Prime Minister Marcel Ciolacu, president of the PSD, declared on Monday that from September 1, with the recalculation of pensions, the ceiling above which pensions are taxed will also change, a threshold that is now 2,000 lei.
Marcel Ciolacu, Prime Minister of Romania PHOTO: Inquam Photos
Ciolacu was asked at Realitatea Plus whether the analysis was done on the taxation of pensions over 2,000 lei and whether these pensions will still be taxed, writes Agerpres.
“At some point someone decided, based on certain indicators I suppose, that above the ceiling of 2,000 there should be a taxation. In the meantime we know very well that the standard of living has become more expensive, there have been certain indexations, so, in other words, there must be a correction to the ceiling as well so that the reference to the purchasing power of the 2,000 lei… You need to make a new report, to see what is the nominal threshold from which it starts to increase. It is normal to change this threshold simultaneously with the recalculation of pensions”said Prime Minister Ciolacu.
Currently, pensions under 2,000 lei are not taxed. The tax is 10% of the difference that exceeds 2,000 lei. For example, a pension of 2,800 lei is taxed with 80 lei.
The taxation of contributory pensions has not changed in 2024, changes being only regarding service pensions calculated on the basis of special laws, as informed by the Ministry of Labor and Social Solidarity (MMSS). “Pensions under 2,000 lei are not taxed. The tax is 10% of the difference that exceeds 2,000 lei. For example, a pension of 2,800 lei is taxed with 80 lei. A pension of 4,000 lei is taxed with 200 lei”, says MMSS.
Instead, there have been changes to the taxation of service pensions, calculated on the basis of special laws. “Here we have as a basis Law no. 282/2023 which revised service pensions and brought them closer to the principle of contribution. Gradual taxation of the non-contributory part was introduced. Including for pensions in payment. There are two ceilings: 20% for the part non-contributory higher than the average gross salary and 15% for the non-contributory part higher than the average net salary, but lower than the gross average salary”, the ministry stated.
