Social measures starting January 1

Pensions and child benefits will go up starting January 1

Ştefan Stoica, 16.12.2021, 14:00

The Romanian Government on
Wednesday passed bills stipulating the increase of pensions and child benefits.
Without them, the budget for next year couldn’t have included the increases PSD,
PNL and UDRM pledged to implement in the governing program. Starting January 1,
five million pensioners will receive an additional 10% to their pensions. The
pension point will go up to some 320 Euro. Child benefits will also get an
increase. Children up to 2 years old and those with disabilities will receive 120
Euro, while children up to 18 years of age will receive 50 Euro. According to
the bills adopted on Wednesday, the government will also introduce the 13th
allowance for people with disabilities.

Social-Democrat Labor Minister Marius Budăi
admitted the measures will also trigger an increase in the purchasing power,
but says it will offer protection considering the latest price hikes. The
increase in the price for natural gas and electricity and other utilities and
products has boosted the inflation rate to nearly 8%. Analysts don’t rule out
the possibility the inflation might exceed 9% next year. The Government is also
considering a third emergency decree for granting a special allowance to people
with low pensions starting next month. The measure will address two and a half
million pensioners who will see their pensions increased to 440 Euro. Overall,
the impact of the measures will be tantamount to 3.2 billion Euro. It is a
considerable strain on the 2022 budget, so there won’t be enough funds for
other salary increases in the public system.

According to the emergency decree
published by the Ministry of Finance, base salaries, military pays, allowances
and bonuses awarded to public sector employees will not be increased net year
so as to avoid putting additional strain on public spending. The highly
controversial special pensions will also be frozen, while special pensions
awarded to mayors will be awarded starting 2023. PSD leader, Marcel Ciolacu,
says the decision was taken at the level of the ruling coalition. Ciolacu told
a television station that the state has accrued considerable debt, equal to 50%
of GDP. In turn, PNL leader, Florin Cîțu, warned that the budget deficit should be kept
below 5.84% of the GDP, while investments should be maintained at 7%, in
compliance with the governing program. (VP)