14.3 C
September 21, 2020

Gov’t is firm: Pensions to rise when we will afford their rise

Pensions will not rise considerably this year or early next year, they will only be raised to keep pace with inflation, Labour Minister Dragos Pislaru stated on Sunday, emphasising that “pensions will rise when we will afford their rise.”

“Considerably, it’s unlikely. In the sense of regular hikes to keep pace with inflation, of the mechanisms that everyone knows, I don’t see why not,” Pislaru stated, pointing out that significant pension hikes can be done by hiking the state budget – through better collection of taxes, hiking taxes, boosting the efficiency of public spending.

At the same time, he warned that if the special pensions’ system continues, straying away from the principle of contributivity, pensions will have no way of growing for the rest of the pensioners.

According to the Labour Minister, things should revert to the single pensions system, but the current Government will not take this upon itself.

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