As from April 1, pensions will be indexed by 4.2% although in December 2023 the authorities announced that the indexation rate in 2024 will be 6%. According to the Minister of Labor and Social Protection, the authorities maintain the purchasing power of pensioners by increasing pensions. Alexei Buzu noted that since the beginning of the PAS government’s mandate, the minimum pension has been raised by 120 percent, while the average pension by 70 percent, IPN reports.
Under the law, pensions are indexed on April 1 according to the inflation rate recorded at the end of the previous year. Indexation takes place to link the value of pensions to price increases. The Minister of Labor and Social Protection said that this year pensions will be indexed by 4.2% even if the authorities last year announced an indexation rate of 6% for 2024.
“Data on inflation at the end of the year show that we have an inflation of 4.2%. This will be the indexation rate of pensions this year. Last year pensions were indexed by 15%. But how was this figure determined? Pensions were indexed only as much as the receipts to the social insurance budget increased in 2022, compared to 2021. It is true that last year we had an extremely high inflation rate that the Republic of Moldova hasn’t had the past 20 years. But still, in the end we protected the purchasing power. Since the beginning of the current Government’s mandate, both the minimum pension and the average pension have increased more than the inflation rate,” Alexei Buzu stated in the program “Resumé with Ileana Pîrgaru” on RliveTV channel.
The minister noted that last year, by derogation from the law, pensions were indexed by 15% instead of 30%, as there were insufficient funds for indexation according to inflation. However, the pensioners have maintained their purchasing power because the pensions have been considerably increased over the recent years.
“We amended the legislation. The legislation contains clear provisions that link the increase in pensions to economic growth. If we have economic growth, pensions will also increase. We increased the minimum pension by 120%. The average pension rose by 70%. So, they both have risen more than the cumulative rate of inflation. Surely, the pension is still small. I don’t think there is a person more dissatisfied with the inadequacy of the pension in the Republic of Moldova than the Minister of Labor and Social Protection and his father, who every time he sees me, asks me why his pension is so small,” said Alexei Buzu.
In 2024, 530,643 pensioners in the Republic of Moldova receive an old-age pension.
