EXCLUSIVE: Romanian Freezes Pensions In 2011, Social Contributions – Draft Budget

According to the document, the pension point, an indicator used by authorities to calculate pensions, will be kept at the level set for 2010, namely 732.8 lei (EUR1=RON4.2912).

The minimum guaranteed social pension in 2011 will remain at its current level of RON350.

The 2011 public pension fund was set at RON46.2 billion (8.5% of the gross domestic product), to ensure money for 4.78 million retirees whose pensions are paid by the National Pension House (with a monthly average pension of RON749), 80,000 retirees whose pensions are paid by the Interior Ministry and 8,000 pensioners whose pensions are paid by the Romanian Intelligence Service (with a monthly average pension of RON1,755).

The document reads that the next year’s budget projection was based upon the country’s new pension bill and on the laws and provisions regarding special retirement.

Social contribution quotas for 2011 were kept at 31.3% for normal work conditions (of which 10.5% to be paid by employees and 20.8% by employers), at 36.3% for excellent work conditions (10.5% to be paid by employees and 25.8% by employers) and at 41.3% for special work conditions (10.5% paid by employees and 30.8% by employers).

The 2011 health contribution quotas were also frozen at 5.5% for employees (including people who do not gain salary income, but must pay health contributions) and at 5.2% for employers.

Next year’s unemployment contributions were kept at 0.5% for employees and 0.5% for employers.

The individual social security contribution quota also includes a 3% contribution to the private pension system.

The draft act will be approved by the Government and will be forwarded to the Parliament.