Romania To Hike Pensions 20% On Nov 1 – Labor Min

Pacuraru explained the hike in pensions is required by Law 250/2007 on the public system of pensions and social insurance, which obliges the government to ensure the value of the pension point is 45% of the country’s gross average salary as of Jan 1, 2009.

The minister said the pension point is currently worth 581.3 lei (EUR1=RON3.5721) and stands at 37.5% of the gross average salary, which is RON1,550.

"If we increase pensions earlier, we adjust the increase to the current gross average salary of RON1,550, therefore the pension point should stand at RON697.4, and that entails a 19.9% hike. As of Jan 1, 2009, we’d have a different gross average salary,” Pacuraru said.

Pacuraru said last week pension hikes could be moved up due to the country’s first-half social insurance budget surplus, of nearly EUR150 million.

The government increased pensions 30% on Nov 2007 when the value of the pension point increased to RON541 from RON416. The pension point was further increased to RON581 in Jan 2008 and the next hike was planned for Jan 2009.