The Ministry of Labor sent out a clarification on the taxation of pensions on Saturday, explaining that nothing has changed in the taxation of those that are calculated on the basis of contributions. Changes occurred only in the taxation of pensions for years of service, calculated on the basis of special laws.

“Nothing has changed in the taxation of accumulative pensions in 2024! More precisely, pensions up to 2,000 lei are not taxed. The tax is 10% of the difference exceeding 2,000 lei,” officials of the Ministry of Labor said on Saturday.

In contrast, a pension of 2,800 lei is taxed at 80 lei, and a pension of 4,000 lei is taxed at 200 lei.

“There have been changes regarding retirement pensions, which are calculated on the basis of special laws. Here we have Law No. 282/2023, which revised the length of the pension and brought it closer to the contribution principle,” the ministry also specified.

According to them, gradual taxation of the non-accumulated part was introduced, including for pension payments.

Thus, there are two ceilings:

20% for the non-contributory portion exceeding the average gross salary

15% for the non-contributory portion above the average net salary but below the average gross salary. (Photo source Dreamstime)