Pensions in Romania to hike this year instead of 2009 if the insurance budget sees surplus

The increase of the pension point to 45 percent of Romania’s average salary could be completed at the end of the year if the social insurance budget for the current year see a surplus, an official said; the move was initially slated for January 1, 2009.

Labor Minister Paul Pacuraru explained the increase of the pension point from 37.5 percent to 45 percent of the average salary puts pressure on the social insurance budget. Yet, the measure could enter into force sooner, if the social insurance budget records a surplus.

Pacuraru noted pensions will be paid from the social insurance budget this year, even though collections to it lowered very much as more money are paid to the private mandatory pension funds.

The value of the pension point grew from 416 lei (126 euros) to 541 lei in November 1, 2007. A second increase took place in January this year, when the pension point rose to more than 581 lei.

Starting with 2009, the pension point should exceed 740 lei.

NewsIn