Romania adds stability points for long‑term pension contributors and clarifies pension tax rules

Law 360/2023 introduces a “stability points” mechanism in Romania’s public pension system. The points are awarded only for years of contribution that exceed 25 years, adding to a worker’s accumulated pension score. For example, a contributor with 30 years of service receives points for the five years beyond the 25‑year threshold. The scheme targets long‑term employees in sectors such as health, education, public administration and also private‑sector workers with extended careers, aiming to reward longevity and improve the sustainability of the pension fund.

Pension payments above the non‑taxable ceiling of 3 000 lei are subject to a 10 % health insurance contribution (CASS) on the amount that exceeds the threshold, and a 10 % income‑tax after deducting the non‑taxable portion and any CASS due. CASS applies only to the excess portion and is scheduled to remain in force until 31 December 2027. These fiscal rules affect the net pension received by retirees.