RRI Live!

Listen to Radio Romania International Live

Protection measures for pensioners

The Romanian Government decided on Thursday that pensioners with pensions below 872 lei, that is 195 euros, should be exempted from the payment of healthcare contributions.

Protection measures for pensioners
Protection measures for pensioners

, 11.03.2016, 13:28

The measure taken by the government to exempt from the payment of healthcare contributions those pensioners whose pension is below 195 euros will be applied in the case of five hundred thousand people. The measure is a consequence of the increase in the pension point and of the harmonization of the new fiscal code with the Healthcare Law.



The Government’s spokesman, Dan Suciu, explains: “We have harmonized the new fiscal code with the Law on the reform of the healthcare system. According to the old provision, only the pensions smaller than 166 euros were exempt from the payment of healthcare contributions. Now, the new ceiling is of 195 euros, following the increase in the pension point. This amendment will apply in the case of 508 thousand pensioners, who will therefore no longer pay healthcare contributions.”



So far, almost 2 million pensioners have been exempt from the payment of healthcare contributions. Romania currently has more than 5 million pensioners, which is a high number. From one year to another, this makes it difficult for the state budget to support these payments, even if most of the pensions are below 224 euros.



The situation is pretty serious because, in some counties, the number of pensioners exceeds the number of employees. The average pension in Romania is among the lowest ones in Europe, amounting to almost 200 euros. Pensions are 5 times lower than in France and 20 times lower than in Luxembourg. And this happens in the context in which, from a technical point of view, the Romanian system uses high individual contribution quotas to be paid from pensions.



According to economic analysts among the causes for this situation are: the rather slow passage from the public pension system to the private system, the drop in the number of active population, the economic crisis and the rising unemployment rate. Other causes are the false promises of politicians related to sustainable growth and the corruption in the system, fueled by the permissive legislation and by some Communist-like mentalities.



The funds deficit and the bad loans made to cover payments have a negative impact not only on pensioners, who have become the victims of austerity measures, but also on the population’s general living standards. Consequently, the debates on pensions have triggered fierce reactions by the society, as has happened recently, when the MPs have granted themselves special pensions calculated depending on the number of mandates they held in Parliament.



A similar debate, on which the Constitutional Court was called to pass its decision, was generated by the proposal to grant special pensions to locally elected officials. Among them there are former Communist party secretaries who, during Communism, held positions similar to their present ones.

Foto: PIX1861 / pixabay.com
Today in the News Friday, 20 December 2024

Economic effects of political instability

The deadlock related to the establishment of a parliamentary majority to propose a prime minister and, therefore, the impossibility of forming a new...

Economic effects of political instability
foto: presidency.ro
Today in the News Friday, 20 December 2024

Conclusions of the Winter European Summit

The EU heads of state and government gathered in Brussels to discuss the war in Ukraine, migration, the situation in the Middle East, the Republic of...

Conclusions of the Winter European Summit
Romanian president Klaus Iohannis (right) and president of EU Council Antonio Costa (Photo: presidency.ro)
Today in the News Thursday, 19 December 2024

The EU and the exposure to disinformation

Attending the EU-Western Balkans summit and the European Council in Brussels, the Romanian president Klaus Iohannis said Romania was confronted with...

The EU and the exposure to disinformation
Photo: Mediamodifier / pixabay.com
Today in the News Thursday, 19 December 2024

Fitch revises Romania’s outlook to negative

Fitch Ratings has revised Romania’s outlook to negative, citing political instability and budget deficit.     Fitch Ratings has...

Fitch revises Romania’s outlook to negative
Today in the News Wednesday, 18 December 2024

A new Forestry Code

The new Forestry Code, a milestone in the National Recovery and Resilience Plan, was adopted by the Chamber of Deputies in Bucharest as the...

A new Forestry Code
Today in the News Wednesday, 18 December 2024

EU investigates TikTok

The European Commission opened formal proceedings against the TikTok social media platform for alleged violations of the Digital Services Act in the...

EU investigates TikTok
Today in the News Tuesday, 17 December 2024

Russia: concerns and sanctions

  Four US Senators, both Republicans and Democrats, have condemned Russia’s interference in the Romanian presidential elections and have...

Russia: concerns and sanctions
Today in the News Tuesday, 17 December 2024

What are entrepreneurs waiting from the future government

Entrepreneurs, who convened on Monday for a specialized online event, have emphasized the risk of a potential economic recession that might hit...

What are entrepreneurs waiting from the future government

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company