Moldovan lawmakers approve new mechanism of pensions' indexation

Chisinau, 12 March /MOLDPRES/ - The parliament today approved a draft law, the goal of which is to change the way of indexation of pensions and other social benefits and, therefore, to increase the coefficient of indexation.  

The document approved sees maintaining the biannual indexation of pensions – in April and in October, but with a new mechanism of its enforcement, as of 1 April 2021.  

Thus, in April 2021, the coefficient of pensions’ indexation will be the average of the annual growth of the consumer prices index for the last three years – 2018, 2019 and 2020 and in October – the inflation rate registered in the first half of the current year. The indexation coefficient will be set by the government.

The way of indexation in force at present sees that, on 1 April, the indexation coefficient is to represent the inflation rate registered in the last half of the year preceding the indexation year.  

The concerned legislative initiative belongs with the MPs of the Party of Socialists and sees that, on 1 April 2021, the pensions are to be indexed by 3.89 per cent. At the same time, the pensions’ indexation on 1 October will be maintained, which is to be of 3.2 per cent. Thus, the indexation will be 7 per cent annually.   

More than 731,000 citizens are to benefit from the indexation of pensions and social benefits.

photo: Parliament