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Around 30% Of Romanian Public Pension Contributors Earn Less Than RON800

Around 30% of Romanian contributors to the public pension system earn less than 800 lei (EUR1=RON4.1054), and about one million of them are registered as earning less than RON600, National Pension House (CNPAS) president Doina Parcalabu said Tuesday.
Around 30% Of Romanian Public Pension Contributors Earn Less Than RON800
02 mart. 2010, 12:01, English

Parcalabu said, during the Mediafax Talks about Private Pensions conference, these figures are relevant for December last year and the one million people with incomes lower than RON600 make up 18.8% of the total number of contributors.

According to the CNPAS president, the number of insured women with low incomes is greater than that of men. Women are also at a disadvantage because employers do not pay social security contributions while they are on maternity leave.

Parcalabu said there 4.1 million people started contributing to mandatory private pensions (Pillar II) the first month when the system was launched. This figure grew slowly, to 4,970,000 contributors by December 2009. Contributions rose from RON88 million in the first month to RON112 million in December.

She also pointed out that some employers do not pay contributions for their employees, leaving many accounts empty, and called on authorities to analyze and issue rules regarding this problem.

The Romanian private mandatory pension system has been in effect for 21 months.