Romania To Reduce Minimum Social Pensions To RON300 – Draft Decree

"Starting 2010, the level of minimum social pensions will be set annually, through the state budget law, and will be adjusted according to macroeconomic indicators and the country's financial resources," reads the draft normative act.

The draft decree also amends the state budget law, as the value of the pension point will be set at RON622.9 starting June 1, from the current RON732.8.

Romania's social security budget for 2010 sets the pension point at last year's level, namely RON732.8, and the average gross wage for 2010 is of RON1,836, which means the pension point stands at 39.9% of the average gross wage.

Romanian authorities announced recently pensions will be reduced by 15% as part of a program to avoid an economic collapse and keep the deficit in the new cap agreed with the International Monetary Fund.

Joint teams from the IMF, EU and the World Bank were in Bucharest until May 10 for the fourth review of Romania's progress under a loan agreement. Romania's loan agreement with the IMF is part of a larger EUR20 billion package that includes funds from the European Commission, the World Bank and other foreign lenders.

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