A new increase in pensions from January 1, 2025

Daniel Baciu, the president of the National Pension House, announced that pensions in Romania will be increased again, bringing benefits to the majority of pensioners. After the recalculation of the pension system, more than 80% of pensioners will benefit from increases, which will be applied starting in September.

In addition, Baciu confirmed that another increase is scheduled for January 2025. This will be based on a well-defined calculation formula, taking into account economic indicators such as inflation and half of the average wage increase.

Pension changes from 1 January 2025

According to Daniel Baciu, the adjustments scheduled for January will be based on clearly defined economic factors, such as the inflation rate and 50% of the average wage increase in the economy. Baciu emphasized that one of the big problems of the public pension system in Romania was related to the fact that pensions were established on the basis of unequal contribution periods, which led to discrepancies. The objective of the ongoing reform is to standardize pensions, so that for equal contributions there are equal pensions. Baciu described this process as “the most important reform of the Romanian state in the last five decades”, stressing that the recalculation of pensions is the result of the intense work of the last three years.

Recalculation pension value insurance

Simona Bucura-Oprescu, the Minister of Labor and Social Solidarity, gave assurances that no pension will decrease as a result of the recalculation process. Pensioners who, as a result of the new calculations, may see less value in their pension decisions, will be protected by a clear rule: no one will receive less money than they currently do. The Ministry of Labor and the National Pension House have guaranteed that the minimum pension will remain at least at the level of August, and pensioners will always benefit from the most favorable value, even after the recalculation.

“Whatever the result of the recalculation, pensioners will receive at least the current value of the pension. The Pensions Law clearly states that no pension will be reduced, and those affected will receive an official confirmation from the authorities”, said Minister Bucura-Oprescu.

Official confirmation for pensioners

The minister emphasized that all pensioners will receive an official confirmation in the next period, which will detail the fact that, regardless of the results of the recalculation, the pensions will not decrease. “If the new pension decision will show a lower value than the one received in August, the current amount will be kept. The pension coupon related to September will serve as a clear confirmation of this”, said the minister.

Simona Bucura-Oprescu also explained that there are two categories of pensioners who could see lower recalculated pensions, but they will not suffer financial losses either. First of all, the beneficiaries of the social allowance for retirees, who receive the minimum guaranteed amount of 1,281 lei, will not see a decrease in this allowance, even if the recalculation indicates a lower value.

Second, retirees who benefited from historical advantages, that is, received higher pensions than peers with similar contributions, will not lose these advantages. Although their pensions will not increase at this time, they will not decrease either. The minister emphasized that the purpose of this process is to eliminate inequities in the public pension system, ensuring a leveling based on the real contributions of each person.

“Thus, we ensure that all pensions in the public system are calculated based on the same formula, eliminating the discrepancies that have appeared over time, depending on the various laws applied at the time of retirement”, concluded Simona Bucura-Oprescu.