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On January 1, 2025, pensioners in Romania will receive a new pension increase, according to the announcement made by the head of the Pension House, Daniel Baciu.
He explained that following inflation indexation and the increase in gross average earnings, the value of the reference point will increase considerably.
How to calculate the pension increase for 2025?
According to the pension law, the annual indexation of pensions is calculated based on two important factors:
- Inflation rate from the previous year (100%).
- 50% of the actual increase in average gross earnings.
For the year 2025, the reported inflation is 10.3%, and the estimates for the growth of the average gross salary vary between 4-6%. Thus, pensions could increase by 12-13% on average.
The value of the reference point – from 81 lei to 91 lei
Daniel Baciu stated that the value of the reference point (VPR), which is currently 81 lei, will be increased to approximately 91 lei. This will affect all pensions in payment, updating them according to the number of points accumulated by each pensioner.
“The calculation is simple: we multiply the number of points of each pensioner by the new value of the VPR, and the result reflects the new amount of the pension from January 1, 2025”, explained Baciu during an intervention at RTV.
Examples of pension increases in 2025
To illustrate how this recalculation will affect, here are some examples:
- Current pension of 1,281 lei → Increase of 153 lei → The new pension: 1,434 lei.
- Current pension of 2,000 lei → Increase of 240 lei → The new pension: 2,240 lei.
- Current pension of 3,500 lei → Increase of 420 lei → The new pension: 3,920 lei.
How can you calculate the new amount of your pension?
To estimate the amount of your pension from January 1, 2025, you can use the formula:
Total number of points x new reference point value (91 lei).
Important details about pension taxation
Along with the increase in pension comes the issue of taxation. Currently, pensions up to 3,000 lei are not taxed. Those who exceed this threshold will pay a tax calculated as follows:
Tax = 10% of the amount exceeding 3,000 lei.
For example, for a pension of 4,000 lei, the tax will be 100 lei (10% of the difference of 1,000 lei).
How will this increase affect low-income retirees?
Indexing will bring financial relief to most retirees, but the impact will vary. Those with small pensions will experience less growth in absolute value compared to those with larger pensions. Even so, any increase helps to improve the quality of life, especially in the context of high inflation.
The recalculation of pensions on January 1, 2025 is a necessary measure to adjust pensioners’ incomes in relation to economic growth and inflation. The head of the Pension House, Daniel Baciu, ensures that all pensions will be properly updated, bringing a significant increase for millions of beneficiaries.
It remains to be seen how this measure will affect the quality of life of retirees and whether the adjustments will succeed in counterbalancing the price increases and subsequent taxation.
Source: www.doctorulzilei.ro
