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Government approves the minimum gross salary for 2021 at 2,300 lei per month

The Government approved, on Wednesday, the normative act establishing the minimum gross salary for 2021 at 2,300 lei per month, Prime Minister Florin Citu announced.

“We approved the normative act which establishes the minimum salary for 2021, you already know, at 2,300 lei. I know that there were discussions in the public space if it can be applied from January 1. Of course it can be applied from January 1 because salaries for January are paid in February. So it is enough time and thus the minimum salary will increase by 3% in 2021, as we announced, above the inflation rate in 2020 and above the inflation rate estimate for 2021, thus preserving the purchasing power of Romanians,” Citu said at Victoria Governmental Palace.

 

PM Citu: State pensions to increase as planned, but not with 40%

 

In reaction to a Constitutional Court ruling on Wednesday, Prime Minister Florin Citu says Romania in 2020 did not afford to increase state pensions by 40% and it does not afford now either, but the government will do increase pensions based on a promised schedule.

“Romania did not afford it last year. It does not afford it in 2020 either. At this moment, the law is submitted for promulgation to the President, who has two options: to send it for re-examination to the Romanian Parliament or to promulgate it. We will see why one he takes. I can tell you that we, the incumbent government, already have a precedent, and the coalition has taken on a timetable to increase pensions. We will increase pensions, but on the promised schedule. That is the option we are taking,” he told a news conference at the Government House.

The statement was made as on Wednesday the Constitutional Court rejected the government’s constitutional objection over a law providing for a 40% increase in the pension computation point, ruling that the law is constitutional, sources with the court told AGERPRES.

In essence, the government reiterated in the objection that Parliament ignored the requirements of legislative predictability and the outlook of the aggregate national budget as well as of the general economy, with the consequence of affecting the principle of legislative security.

On Tuesday evening, Minister of Labor Raluca Turcan told private broadcaster Digi 24 Tuesday evening that the minimum wage will be indexed on Wednesday, in the Government meeting, by 3.1%, namely 70 lei gross, and the pensions will be increased this year at least by the inflation rate.

As for pensions, she pointed out that two laws are now in force, the old Law 263, “in which the pension point is updated in relation to the inflation rate and 50% of the average gross earnings”.

“Based on that law, we made the increase by 14% at the end of last year. Normally, pensions should have been indexed to the inflation rate at the beginning of the year, but what did the politicians do? They quickly put into electoral logic and arranged the increases during a period of electoral campaign. This Law 127/2019, published in the Official Journal, should enter into force as of 1 September, but with a few articles extended until 1 September, which would have a budgetary impact for only 4 months of 48 billion lei and 138 billion lei for next year, because not even the smallest step has been taken and I told you if in the PSD [Social Democratic Party] Government in 90 days they came with the updating of all pensions, no one could back off, because we were ready for the recalculation of pensions,” the minister claimed, according to Agerpres.

The Minister of Labor said that the indexation of pensions with the inflation rate will occur in 2021, but did not say when.

The minister also specified the correlation of the special pensions with the contribution paid is desirable, stating that at this moment there are 9,600 beneficiaries of service pensions and that there are monthly pensions of over 78,000 lei, 17,000 lei or 41,000 lei, in while 900,000 pensioners live on 800 lei. Regarding the highest paid service pension, of 78,634 lei, the minister showed that it belongs to a person who worked in the legal field.

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