Support for people with low pensions

The Romanian government has taken measures to protect people with low pensions, a measure planned at the start of the year.

Mihai Pelin, 14.03.2025, 14:00

The government has approved an emergency order to grant financial support for pensioners in the public sector and the military whose income does not pass the equivalent in lei of around 515 euros, which is the level of the minimum wage. The authorities say this is intended as a social measure. The Economic and Social Committee, whose opinion is advisory, says the measure will have a positive impact on public sector pensioners, but that it would be fair to apply it to those earning up to 560 euros, the level of the average pension in January 2025. Prime minister Marcel Ciolacu rejected this idea on account of not being sustainable by available budget resources.

Almost 2.7 million Romanian pensioners earn less or the equivalent of this sum, and over 86,000 of them live abroad, according to the ministry of labour, family, youth and social solidarity. The support will be granted by the government in two equal payments of around 80 euros in April and December, respectively, via the regional or sectoral pension agencies. The money will not be taken into account when establishing the ceiling for the approval of the programme for the 90% compensation of the reference price of medicine, or the granting of the minimum inclusion income and of the spa treatment tickets via the system organised and administered by the National Public Pension House.

The measure was first announced at the start of the year, when the government did not raise the pensions to catch up with the inflation rate because of the high budget deficit. To make up for it, the government spoke about the possibility of providing another type of financial support to pensioners. On the other hand, the indexation of pensions to match the inflation rate, which prime minister Ciolacu initially said it might take place in September, was not included in the 2025 budget, finance minister Tanczos Barna said. The reason for this is the high budget deficit recorded last year and the restrictions imposed this year. In 2024, Romania had a huge budget deficit, of 8.6% of GDP, and this year, the government aims at 7%.

The number of pensioners decreased in Romania by almost 32,000 persons in February compared with the previous month, according to the National Public Pension House. 4.6 million pensioners were recorded last month. Almost 570,000 people had worked in agriculture, and the average pension in this case is 130 euros. According to official statistics, 3.7 million people retired at the pension age limit, two thirds of them being women.