Romania considers 2027 pension indexation after two-year freeze

Romanian authorities are discussing potential pension indexation for 2027 following a two-year freeze in 2025 and 2026. The freeze was implemented to address high budget deficits. Designated Prime Minister Luca Niculescu stated that a prudent indexation is highly likely, though the specific percentage will depend on the state budget's capacity.

Preliminary discussions suggest three possible increase scenarios for 2027: 5%, 7%, or 10%. For a pension of 2,000 lei, a 5% increase would result in an additional 100 lei per month, while a 10% increase would provide 200 lei. Finance Minister Alexandru Nazare and other officials have emphasized that any decision must be carefully weighed against budgetary constraints and the upcoming annual budget construction.

In the meantime, pensioners with incomes exceeding 3,000 lei face ongoing fiscal pressures, including a 10% income tax and a 10% health contribution applied to the amount above the threshold. Legal experts have noted that while pensioners may seek to recover unpaid indexation from the frozen years, the legal process for such claims is complex.