how much will pensions increase from January 1, 2025?

Starting from January 1, 2025, some pensioners in Romania will benefit from a pension increase in accordance with a law that provides for an increase in the value of the reference point. This will be based on the value of inflation, to which will be added 50% of the real increase in average wage earnings in the economy. This measure applies to pensioners whose pensions, after recalculation, were lower than those resulting from the new calculation.

According to the Minister of Labor, Simona Bucura Oprescu, the anticipated average increase will be approximately 340 lei. The statistical data required for these calculations will be provided by the National Institute of Statistics, which will collaborate with the Ministry of Labor and the National Public Pension House. The influence of the increase is based on the inflation rate of 10.4% recorded in 2023, which guarantees an increase above this percentage.

How much will pensions increase from January 1, 2025?

Romanians’ pensions will be increased again starting from January 2025, and all pensioners will benefit from extra money. The head of the National Public Pension House (CNPP), Daniel Baciu, said how much pensions will increase, according to the law and the figures he has so far.

“We are talking about the provisions of art. 83, para. 3 of Law no. 360/2003, which specifies the indexation mechanism starting next year. Indexing will happen every January and things are very clear now.

Indexation has two clear and predictable indicators, provided by the INS: the average inflation rate, to which is added another 50% of the real increase in the average gross wage earnings in the economy.

For this, I sent an address to the INS to get a correct calculation and a clear explanation of how this actual increase is determined. I also received a reply. This indicator is a ratio between the gross average salary index and the consumption index”, he explained head of CNPP for Romania Tv.

Daniel Baciu: increase of over 12%

According to him, the increase – according to the provisional figures valid at the moment, the increase will be over 12%.

“To the inflation rate – of 10.4% for the year 2023, already known – is added to 50% of the real earnings, and, also taking into account the provisions of para. 7, we arrive at a figure of about 12.1% by which we will have to update the reference point value. This is an estimate, not a definitive calculation. When we have the official figures communicated, we will also present the final data.

This is our calculation based on the figures reported so far and it shows this percentage, but there are almost two months to go. When we have the final figures, we will be able to confirm what the real, final figure will be”, said the head of the CNPP.

Daniel Baciu said that, according to preliminary data, “the average value in money for this 12% increase is estimated at 91.1 lei, representing the value of the reference point (VPR)”.

“To the inflation rate – of 10.4% for the year 2023, already known – is added to 50% of the real earnings, and, also taking into account the provisions of para. 7, we arrive at a figure of about 12.1% by which we will have to update the reference point value. This is an estimate, not a definitive calculation. When we have the official figures communicated, we will also present the final data”.