A new pension calculation formula will be applied as of April 1, 2017. The regulations that define the procedure were published in the March 24 number of the Official Gazette. The authorities say the pensions set after April 1 will be by 45% on average higher than if they were calculated according to the old formula, IPN reports.

The new formula is based on the interdependence between the size of pension – social insurance contributions - and valorization of the insurance average monthly incomes earned after January 1, 1999. 

The valorized income is determined based on the depreciation of the national currency for the given period.

Thus, the following formula will be used as of April 1 this year: P (pension) = 1.3% x Tt x Vav, where Tt is the total insurance period, Vav is the average monthly valorized income insured, while 1.35% is the accumulation rate for the insurance period.

The pensions paid before April 1 will also be valorized, in stages. This year, there will be recalculated the pensions fixed in 2001-2008, for about 80,000 persons.

Also on April 1, the pensions paid from the social insurance budget will be indexed by 6.8%. The pensions of about 700,000 recipients will be indexed overall. The minimum old-age pension will be 1,026 lei.