Higher pensions in Romania
As of January 1, pensions in Romania will be increased by 12.5%.
Ştefan Stoica, 22.11.2022, 14:00
The parties in the governing coalition in Romania have had long and difficult negotiations on the topic of the percentage by which pensions should be increased, a percentage practically dissolved, in the last year, by a galloping inflation rate, which exceeded 15%. The Social Democratic Party – PSD, number one in the governing coalition, would have pleaded for a differentiated increase, which was to mainly benefit people with small and medium pensions, that actually represent the majority. For their part, the Liberals (PNL) have constantly pleaded in favor of a flat percentage, which would eliminate the possibility of attacking the decision on grounds of discrimination.
Finally, PSD, PNL and the Democratic Union of Ethnic Hungarians in Romania – UDMR announced, on Monday evening, that contributory pensions will increase by 12.5% from January 1. The percentage is valid for all pensioners, regardless of the amount of their pension, but those with low incomes will, in addition, receive an aid from the state, which will be granted next year, in two installments. From January 1 next year, the pension point will be 1,784 lei, a little over 360 Euros. Senior citizens with pensions under 3,000 lei will benefit from additional aid, differentiated according to the amount of the pension. Also, people who have pensions lower than 1,700 lei will receive special vouchers of 250 lei next year, once every two months, throughout the year. The government will also grant support of 1,400 lei for the payment of energy bills, for retirees over 60 who have pensions of less than 2,000 lei.
State child benefits will be linked with the rate of inflation, disabled people will receive a 13th allowance, and veterans and war widows will have their allowances linked with the rate of inflation. The period we are going through is marked by multiple crises worldwide, and we must mitigate the effects generated by high inflation. That’s why the Liberals firmly opposed increases of less than 15% and obtained in negotiations total increases that exceed 15.8%, the Prime Minister Nicolae Ciucă explained. According to the Social-Democratic leader, Marcel Ciolacu, the PSD thought that each category should be helped differently, and that the support from the state should go to a higher extent to those who feel the full effects of the economic crisis.
Today, 91% of pensioners across Romania have pensions below 3,000 lei and it is our moral duty to index-link their incomes or, when we have the opportunity, to increase their incomes even more, said the deputy prime minister and leader of the UDMR, Kelemen Hunor. From the opposition, the USR leader, Cătălin Drulă, claims that the 12.5% increase in pensions does not even cover the 15% inflation rate. On the other hand, Drulă accuses that neither PSD nor PNL want to eliminate the special pensions of the parliamentarians, and from January 1, the mayors will receive additional special pensions. The reform of special non-contributory pensions which are several times higher than the ordinary pensions, is assumed under the National Recovery and Resilience Plan but it has not been implemented yet. (LS)
