Average pension in Romania up 16% YoY, yet not much over EUR 330

The average number of retired persons in Romania stood at 5.099 mln, in the first quarter of the year 2021, slightly decreasing (-24,000) compared to the previous quarter, while the average monthly pension was RON 1,650 (EUR 334), 0.9% more compared to the last quarter of 2020. Compared to the first quarter of 2020, the increase was 16%.

For comparison, the net average wage increased by 6.4% YoY to EUR 700 in Q1 this year.

The ratio between the average number of state social insurance retirees and that of employees was 9 to 10 in the quarter, Ziarul Financiar reported.

The gross average wage in Romania was RON 5,785 in March (EUR 1,175), meaning that the average contribution to the pension fund (Pillar II included) in amount to 25% accounted for EUR 293. Combined with the ratio of retirees to employees, the contributions cover some 97% of the pension fund’s expenses.

However, part of the contributions go to Pillar II (15% actually), and the payment rate of the social security contributions may not be 100% - meaning that the deficit to the public pension system may be in excess of 20% of the volume of pensions paid.

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