Minister of Labour and Social Solidarity Simona Bucura-Oprescu said on Tuesday in Iasi that the recalculation of pensions according to a new formula is a priority for her ministry, and that changing the RON-2000 pension tax cap also depends on the Finance Ministry.

She added that significant raises in public pensions will be visible in the case of people who have longer contribution periods, in excess of 25 years.

Prime Minister Marcel Ciolacu, national chairman of the Social Democratic Party (PSD), said on Monday that from September 1, along with the recalculation of public pensions, the cap above which pensions are taxed will also change, from a current RON 2,000.

Ciolacu was asked by Realitatea Plus private broadcaster if an analysis was made regarding the taxation of pensions over RON 2,000 and if such pensions will still be taxed.

„At some point someone decided, on certain indicators – I suppose – that above RON 2,000 there should be taxation. In the meantime, we know very well that the standard of living has become more expensive, there have been certain indexations, so, in other words, there must be a correction to the cap (…) You have to do a new reporting, to see what is nominally the cap from which it starts to grow. It is normal to do it simultaneously with the recalculation of pensions, changing this cap.”

Currently, pensions below RON 2,000 lei are tax free. The tax is 10% of the difference exceeding RON 2,000. For example, a RON 80 tax is levied on a RON 2,800 pension.

AGERPRES