Romania's Govt. promises higher pensions starting September with or without new Pension Law

Romanian labor minister Marius Budai said on May 15 that the value of the so-called “pension point” (the benchmark used for calculating public pensions) would increase from September 1, from RON 1,100 to RON 1,265, irrespective of whether or not the new Pension Law comes into force until that date, local Wall-street.ro reported.

The new Pension Law envisages 15% state pension hike in September 2019, followed by a further 40% increase in September 2020. The law is currently under debate in Parliament after the Constitutional Court objected to some of its provisions.

“In a law with more than 180 articles, the Constitutional Court asked for clarifications on three paragraphs, did not declare them unconstitutional. We respect the decisions of the Constitutional Court and, in the shortest time, we will reformulate those paragraphs and resubmit the law to the president regardless of whether this new pension law enters into force or not, from September 1, the value of the pension point will be increased from 1,100 to 1,265, as stipulated in OUG 114,” Budai stated.

(Photo source: Shuuterstock)