Moldovan cabinet rules to index pensions by 6.6 per cent as of 1 April 2018

Chisinau, 21 March /MOLDPRES/ - The age limit and the disability pensions will be indexed by 6.6 per cent starting from 1 April 2018, under a decision approved by the cabinet today, the government’s communication and protocol department has reported.   

Thus, the average size of the age limit pension will increase by 96.36 lei, the disability pensions will go up by 75.82 lei, the survivor pension – by 50.49 lei and the pension of the participants in the Chernobyl accident relief works will grow by 201.31 lei. In all, about 715,000 people will get higher pensions.   

Presently, the minimum pension for age limit is of 961 lei; after the indexation, it will be of 1,025 lei – the equivalent of the quantum of the minimally guaranteed monthly income. 

At the same time, to continue implementing the retirement system reform, the cabinet today approved amendments to the regulation on the way of calculation of pensions and the way of calculation of the length of pensionable service. In particular, the draft provides for the updating of the cumulative coefficients of pensions’ indexation, as well as the specification of the coefficients of recalculating the income on which the income tax was levied for 2017, which will be taken into account when calculating the pensions starting from 1 April 2018. Also, the regulation stipulates the anticipated carrying out of the last stages of the pensions’ recalculation.    

It is worth mentioning that, as of 1 April 2018, the age limit pensions and disability pensions, set in 2012-2013, will be increased (recalculated). The age limit pensions will grow by an average of 272 lei (+21 per cent) monthly (50,000 beneficiaries) and the disability pensions will increase by 253 lei one average (+29 per cent) for 6,000 beneficiaries. Cumulatively with the indexation, these pensions will grow by an average of 27-35 per cent.   

At the same time, starting from 1 October 2018, the pensions established during 1 January 2014 – 31 March 2017 will increase. Thus, the age limit pensions will go up by an average of 325 lei per month and the disability pensions will grow by 300 lei on average.   

In the context, Prime Minister Pavel Filip stressed the importance of both drafts for the residents. ”Given that we have done well and had economic growth and have an increase in revenues in the social fund as well, we have possibility to recalculate all pensions, for everybody this year,” the PM added.