Romania Defers Health Insurance Contribution Payments For Non-Taxable Pensions Until 2011

Contributions to the health insurance budget for pension incomes below the non-taxable threshold of RON1,000 will be calculated and paid as of January 1, 2011, according to an emergency decree approved by the Romanian government last week.

The government started to pay health insurance contributions from the state budget for pensions below RON1,000 on January 1, 2009.

Income tax on pension is calculated by applying the 16% flat tax on the monthly taxable pension income set by deducting a monthly non-taxable sum of RON1,000.

Currently, only retirees with pensions higher than RON1,000 pay contributions to the health insurance budget.