Romania Insider
Occupational pension system enforced in Romania as of February

The Law on Occupational Pensions will enter into force in Romania on February 7, Adevarul daily announced.

The provisions of Law 1/2020 indicate how much money the employers and employees can contribute to such funds (Pillar IV) on a monthly basis, the daily commented.

Specifically, Law 1/2020 stipulates that the employer decides whether or not to propose to the employee an occupational pension scheme.

This has to be included in the employment contract. Then, the employer will sign a contract with a fund manager company, authorized by the state, and will ask the employees to fill in the application to join Pillar IV. The occupational pension is absolutely optional for the employees.

The contributions will be collected and paid by the employer, but these can be divided between the employer and the employee, as established in the pension scheme drawn up by the employer and the application for membership signed by the employee.

With regard to the amount of the contributions, they can be as large as one third of the employee's gross salary, but they should not exceed half of the net salary.

The employer may establish differentiated amounts of his own contribution for his employees on the basis of seniority, function or salary rights.

(Photo: Shutterstock)

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For a decade, Romania Insider has been your platform of choice for reliable information on all things Romania. We have always been proud of our ability to bring you bias-free reporting but this hasn't always been easy. We have been thinking about making some changes and can't imagine doing this without your feedback.
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Romania Insider
Occupational pension system enforced in Romania as of February

The Law on Occupational Pensions will enter into force in Romania on February 7, Adevarul daily announced.

The provisions of Law 1/2020 indicate how much money the employers and employees can contribute to such funds (Pillar IV) on a monthly basis, the daily commented.

Specifically, Law 1/2020 stipulates that the employer decides whether or not to propose to the employee an occupational pension scheme.

This has to be included in the employment contract. Then, the employer will sign a contract with a fund manager company, authorized by the state, and will ask the employees to fill in the application to join Pillar IV. The occupational pension is absolutely optional for the employees.

The contributions will be collected and paid by the employer, but these can be divided between the employer and the employee, as established in the pension scheme drawn up by the employer and the application for membership signed by the employee.

With regard to the amount of the contributions, they can be as large as one third of the employee's gross salary, but they should not exceed half of the net salary.

The employer may establish differentiated amounts of his own contribution for his employees on the basis of seniority, function or salary rights.

(Photo: Shutterstock)

[email protected]

Normal

For a decade, Romania Insider has been your platform of choice for reliable information on all things Romania. We have always been proud of our ability to bring you bias-free reporting but this hasn't always been easy. We have been thinking about making some changes and can't imagine doing this without your feedback.
For this, we would appreciate it very much if we could borrow 2 minutes of your day to fill out this survey. 
Thank you for reading Romania Insider!  

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