Romania PM Says Earlier Pension Hike Unacceptable -Sources

Tariceanu sent two notifications to the Senate president Nicolae Vacaroiu, mentioning hiking the pension point to 35.7% of the gross average salary as of November 1 would trigger additional costs of 531.1 million lei (EUR1-RON3.5248) to the 2007 social insurance budget, the mentioned sources said.

Tariceanu said the government already operated a 30% increase of the pension point from RON416 to RON514 as of November 1 and it plans another increase to RON581.3 (or 35.7% of the gross average salary) starting with 2008.

Under the country’s pension law, the pension point is scheduled for a new hike as of January 2009, from 37.5% to 45% of the average gross salary.