Romania plans 12% pension increase for 2027 as government cites budget pressures

The Romanian government did not apply the annual indexation of pensions in 2025 and 2026, keeping the reference point at 81 lei to limit the budget deficit and permanent public spending. Officials said the freeze was necessary after the 2024 pension reforms and recalculations increased expenditures by billions of lei.

Ionuț Dumitru, honorary adviser to interim Prime Minister Ilie Bolojan, announced that pensions could rise by 12% on 1 January 2027 if the new salary law is enacted, requiring roughly 10 billion lei. The proposal is linked to fiscal consolidation and the need to avoid a downgrade to “junk” status by rating agencies. Fitch briefly downgraded Romania, prompting a government appeal that restored the rating, while Moody’s remains cautious.

The potential increase depends on the upcoming budget and the passage of the salary‑indexation law, which aims to balance pensioners’ needs with public‑finance sustainability.