The Government has approved a bill limiting the indexation of pensions only to the part of the pension that does not exceed the average monthly salary, or 9,900 lei in 2022. The goal is to ensure the equity of the pension system by reducing the gap between the smallest and biggest pensions, IPN reports.

Today, 9,190 pensions paid in Moldova are bigger than the average salary. They represent 1.3% of the total number of pensions, and 8.3% of the total value of pensions.

The bill is sponsored by MP Dan Perciun (PAS). He notes that the annual indexation according to the formulas applied in recent years has led to an increase in the gap in the system. The huge differences cause dissatisfaction in society and affect the credibility of the pension system as a whole, he argues. The fact that the average pension is up to 50 times lower than the maximum pensions amplifies the perception that the pension system is preferential and unfair to the average taxpayer.

Minister of Labor and Social Protection Marcel Spatari said that the Government supports the proposal, but some provisions require further examination. “The provisions according to which the costs of paying pensions of MPs, members of the Government, civil servants, local elected officials, prosecutors and judges are fully covered by the state budget require additional examination”, the minister said.

The average old-age pension as of 1 January 2022 was 2,595 lei, and the largest pension was over 120,000 lei.