Pension
Romania has a contribution-based social security scheme for its residents. This scheme covers retirement benefits. Private sector and public sector employees are compulsorily insured. The standard retirement age is 65 for both men and women (for women, it will increase in stages until it reaches 65 in 2035). The minimum contribution period is 15 years while the full contribution period is 35 years. Persons working in difficult conditions are eligible for retirement at a lower age.
Monthly pension amount depends on the number of years of contribution and national average wage. Employees and self-employed persons under the age of 35 years are also required to contribute to mandatory individual accounts. The amount of contributions in these accounts is paid as a lump sum at the time of retirement.
Only employees contribute to social security for retirement benefits, employers contribute for employees working in difficult and very difficult working conditions.
Dependents/Survivors Benefits
In Romania, the survivor's pension is granted to eligible children and the surviving spouse when the deceased was either a pensioner or met the conditions for obtaining a pension.
Children are entitled to a survivor's pension up to the age of 16 or until the age of 26 if they are enrolled in a form of education recognized by law until their studies are completed. Children with disabilities are also entitled to a pension if the disability occurred before the age of 16 or before the age of 26 while studying.
The surviving spouse is entitled to a lifetime survivor's pension at the standard retirement age if the marriage lasted at least 15 years. If the marriage lasted between 10 and 15 years, the pension amount is reduced by 0.5% per month or 6% per year for each year under 15 years of marriage.
The amount of the survivor's pension is established as a percentage of the average annual score achieved by the worker, depending on the number of entitled dependents, as follows:
- 50% - for a single dependent
- 75% - for 2 dependents
- 100% - for 3 or more dependents
Invalidity Benefits
The mandatory social security insurance covers disability benefits for insured persons. The invalidity pension is available to those who have not reached the standard retirement age and who have lost all or at least half of their work capacity due to work accidents and occupational diseases, neoplasms, schizophrenia and AIDS, and common diseases and accidents unrelated to work. Contribution requirements vary depending on the insured's age when the disability began.
The amount of disability pension depends on the number of years of contribution and degree of disability. In case of disability due to work accidents or occupational diseases, employers must pay for medical treatment and rehabilitation. Employees are also entitled to disability pension.
Only employees contribute to social security for retirement benefits, and employers contribute for employees working in high-risk and very high-risk conditions.