Romania’s government plans to freeze contribution for second pension pillar at 5.1 pct in 2017

Newsroom 23/01/2017 | 13:02

The center-left government led by Sorin Grindeanu has put out a draft emergency ordinance that would freeze the contributions to Pillar II, of the mandatory pensions fund, to last year’s level of 5.1 percent.

According the draft bill, the contribution for this pillar is set to reach 6 percent of the gross income of an employee in 2018.

The previous government increased the mandatory contributions for Pillar II from 5 percent to 5.1 percent at the beginning of 2016.

The initial plans for the second private pension pillar envisaged the increase of the contribution to 6 percent by 2016.

This year, the government expects the unemployment rate to fall to 4.3 percent, while the amount of taxes it collects will reach over 31 percent of GDP.