As of January 1, 2024, Romania has implemented a significant Pension Reform Law, reshaping the landscape of retirement for women.
One of the amendments brought by the Pension Reform Law is the increase in the retirement age for women. The retirement age extended to 65 by January 2035.
In conjunction with the change in retirement age, the Pension Reform Law also extends the full contribution period for women. Initially set to be 32 years and four months, the new goal is now 35 years by January 2035.
The reform also introduces child-related deductions. Women who have completed the full contribution period can deduct six months from their retirement age for each child raised until the age of 16. The maximum deduction is capped at three years and six months.
Effective from September 2024, the Pension Reform Law introduces a revised formula for calculating pension benefits. The new method multiplies an individual’s total pension points by the pension value. This change is expected to have a positive impact on over 4 million pensioners, ensuring a fair and updated calculation of pension benefits.
Our team of professional is available for any clarifications or additional details required in your analysis. The above information represents just a summary of aspects we consider relevant in the recently published legislation. This is not exhaustive disclosure of information and it is not intended to be used as advice on any particular matter. We invite all readers to contact us for further clarification of any specific issue. Argus Audit team and its associates disclaim liability in any action taken by a third party in reliance exclusively on summarized information presented in our publications.