Recent revisions of Romania's pension system have led to significant changes for nearly 4.7 million pensioners, as the government implements court-ordered recalculations to address long-standing grievances, particularly among those who worked under challenging conditions.
On September 1, 2024, the recalculation of pensions took effect, with varying outcomes for different groups. According to reports, around 2 million pensions saw increases ranging from 1 to 500 lei, and 1.5 million pensions increased between 500 lei and 1,000 lei. Meanwhile, approximately 400,000 pensions experienced increases of over 1,000 lei. Nevertheless, it's important to note, as pointed out by Newsweek, around 900,000 pensioners did not receive any increase due to having insufficient years of work, even if they had served in hazardous or difficult working conditions.
The backdrop to this situation includes recent rulings by the High Court of Cassation and Justice (ÎCCJ) which aimed to rectify injustices witnessed over many years. Last summer, the Court ruled to increase the calculation scores for pensioners who had labored under special conditions, establishing criteria for pension adjustments more favorable for these workers. This decision was grounded in the interpretation of Article 30(4) of Law 263/2010 governing public pensions. The Court asserted the need to factor how prior work experience within hazardous roles delivered significant impacts on pension benefits, stating, "The assimilation of the period before April 1, 2001... produces effects... of increasing the monthly scores by 50%."
Most recently, on March 6, 2025, the ÎCCJ reiterated the necessity for uniform application of this increase across all courts, mandatorily obliging any tribunal, including the Tribunal Vâlcea, to grant requests from pensioners for higher scores based on the nature of their work conditions.
For current pensioners seeking recalculated benefits, they are required to initiate legal action against the National Pension House to acquire these increases. If they successfully prove their case, beneficiaries could see pension amounts rise, sometimes by hundreds or even thousands of lei. The recalculation relies on the value of the reference point (VPR) set at 81 lei, multiplied by the number of points accumulated, which factor includes contributory periods and additional points accrued for specific working conditions.
Adding another layer to the financial relief, the Romanian government plans to provide financial assistance of 800 lei to pensioners whose earnings fall below 2,574 lei, distributed over two payments, one expected by April and the other by December 2025. This initiative could benefit around 2.6 million pensioners, though certain groups may be excluded from receiving this aid.
The Ministry of Labor emphasizes the need for this support, especially amid rising living costs, as it aims to improve the social protection system for the vulnerable populations within the country. "The goal is to support vulnerable individuals and to prevent social exclusion of beneficiaries within the public pension system," the Ministry stated.
One significant concern raised due to the complexity of these newly introduced policies is the exclusion of pensioners residing abroad from receiving the additional support. Following the publication of the Court's ruling, some media outlets sought clarification from the Ministry of Labor on this seemingly discriminatory policy.
Alongside these developments, the Romanian Ministry of Finance has initiated discussions on imposing a uniform tax rate of 10% on pensions exceeding 3,000 lei as part of broader fiscal reforms intended to comply with decisions from the Constitutional Court from December 2024. Nevertheless, this proposition ties back to the special pensions and legislation impacting judges' pensions which recently stagnated, continuing to be one of the hurdles for Romania's participation and benefits under international financial assistance plans.
Overall, the recent court decisions and government policy shifts are poised to deliver both financial adjustments and social support enhancements to retirees, marking pivotal changes aimed at rectifying historically unfair pension conditions.