Parliament approved a new method for indexing the state guaranteed minimum monthly income. As in the case of the pension indexation method that was recently modified, the state guaranteed minimum monthly income will be indexed twice a year, IPN reports.
Under the bill, the guaranteed minimum monthly income will be indexed on April 1 and the indexation coefficient will represent the annual average rise in consumer prices for the last three years. The October 1 indexation coefficient will be the inflation rate for the first half of the given year.
About 4.2 million lei is needed to index the state guaranteed minimum monthly income by 3.89% (average inflation rate for last three years) on April 1.
The provisions will be implemented within the limit of the finds planned for the Social Assistance Program: social assistance – 639.5 million lei, cold-month allowances – 480 million lei.
The bill to amend the law on social assistance was given two readings. The amendments take effect on April 1, 2021.
