The new pension law with a new calculation formula will come into effect next year. From January 1, 2024, pensions will increase by 13.8%. By September, according to the new law, all pensions will be transferred according to the new formula.

The pension will be equal to the value of the reference point multiplied by the number of points. The base point value is the pension point value divided by 25, and the total number of pension points is made up of the number of contributory points, non-contributory points and stability points.

The Ministry of Labor presented an example of a calculation to show what the pension will be in September.

The monthly score is calculated by dividing the gross monthly income by the average gross salary used to prepare the budget for the relevant year. The average gross profit, which is used to form the state social insurance budget, is 6,789 lei.

Example of the Ministry of Labor:

• You divide the gross earnings of 6,991 lei (approximately 4,000 lei net) by the average gross earnings used to form the social insurance budget (6,991 lei divided by 6,789 lei), resulting in 1.02978 points for the relevant month . Five decimal places are used.
• The monthly points are added up and divided by 12 months to get the annual point.
• The accumulated annual points are added up, and the sum is multiplied by the value of the base point (VPR), which from 2024 is 81 lei.
• Example: You worked for 35 years and had income that paid contributions, what exactly is the average gross salary that is used to form the state social security budget? This means that you have accumulated 35 points (35 points X 81 lei). Thus, the gross pension amounts to 2,835 lei.
• Stability points are also added to the total number of points for more than 25 years of service: 0.5 points per year from 26 to 30 years and 0.75 points per year from 31 to 35 years. In our example, this results in 6.25 stability points. This means another 506.25 lei in retirement. In total, the pension is 3342 lei. After taxation, the received pension is 3,208 lei.
• All these calculations are effective from September 2024, when Law No. 360/2023, says the message of the Ministry of Labor on Facebook.

According to the new law, the minimum length of service for the appointment of an old-age pension will be 15 years, and by 2035 the retirement age will be the same for women and men, respectively 65 years. A full contribution period of 35 years is required to benefit from early retirement.

• New pension law – Main changes: new calculation formula, length of service and retirement age for women and men

Some pensions in Romania may increase by more than 80% after the recalculation provided for by the new law, Labor Minister Simona Bucura Oprescu said in an interview with HotNews.ro.

• VIDEO How much will be the lowest pension in Romania from next year. The Minister of Labor claims that there will be money for the application of the new pension law

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