Romania’s PM Ciolacu announces higher wages and pensions
The minimum statutory gross wage in Romania will increase by 10% under a bill to be endorsed by the Government on September 28, while the pensions will increase as well from January 2024 by an average of 15%, according to Prime Minister Marcel Ciolacu.
The 15% average rise in pensions regards the overall pension envelope (RON 100bn or EUR 20bn – some 6% of GDP currently), while lower pensions may increase by up to 40%, the higher pensions may increase by only 5%, Ciolacu explained, G4media.ro reported.
The pensions will rise following broader reform of the system, and not as a result of a yearly indexation as it used to be in the past.
The 15% increase in the public pensions envelope compares to an expected 10% rise of the nominal GDP, but this will still keep the overall pension envelope to GDP ratio well below the 9.4%-of-GDP benchmark inked in the Resilience Facility national implementation PNRR.
(Photo: Vlad Ispas/ Dreamstime)