President Iohannis promulgates the Pensions Law

President Klaus Iohannis has signed the decree promulgating the Public Pensions Law, says a Presidency press release on Monday.

The law has been adopted at the last minute by the Chamber of Deputies in the last week of the parliamentary session that ended in June.

The law will have a budget impact of RON 8.4 billion this year, an impact of RON 24.8 billion in 2020, RON 58.1 billion in 2021 and RON 81.1 billion in 2022.

The law entails gradual increases of the pension point until 2021, when it is estimated to reach 45% of the value of the gross salary.

Therefore, this year the pension point is estimated at RON 1,265, in 2020 it will mount to RON 1,775, while in 2021- RON 1,875. As of 2022, the pension point will be indexed along the inflation rate on an annual basis and by 50% of the real increase of the gross average salary in Romania.

As a novelty, the new law introduced the master degree and the PhD degree as work seniority, and also a special provision for the women who have at least three children.

Thus, the women who have contributed to the social securities at least 15 years and who gave birth to three children and raised them until the age of 16 will benefit of a cut of the retirement age by six years. If the woman has more than three children, the retirement age will be cut by one more year for each child.