Romanian Senate Adopted Tacitly Pension, Wage Amassment Law

The draft law should have been adopted on September 10, but was analyzed in the Senate and sent back to the labor committee, which was expected to draft an additional report, as senators were displeased with amendments proposed by the labor committee.

The committee had recommended the Senate to adopt a series of propositions, brought forth by liberals, to gradually tax the revenues cumulated with state pension. The liberals proposed taxation levels that ranged from 16%, for gross pensions lower than or equal to the gross average wage in the public sector, to 80% for pensions that top eight gross average wages.

The draft law was tacitly adopted by the Senate because the labor committee did not draw up the requested report and the draft will be debated in the Chamber of Deputies as decisional body.

According to the law adopted tacitly by the Senate, the retirees who took new jobs in the public sector will be allowed to amass pension and wage if their pension is smaller than or equal to the gross average wage in the public sector.

Retirees whose pensions top the gross average wages must choose between not receiving pension while they are still employed and ceasing work. The written decision regarding their choice has to be submitted within 15 days after the enforcement of the law.