It said the nominal amount transferred to the mandatory private pension system remain unchanged at least next year. It said the reduction in percentages was necessary due to a 20% wage hike in the average wage starting 2018.
The government also approved a hike in the social pension to RON640 from RON520 and the hike of the pension point to RON1,100 from RON1,000 starting July 1, 2018.
The cabinet on Wednesday passed another emergency decree overhauling the country’s tax system, in a move criticized by the business environment and analysts as hasty and bound to cause chaos and hinder economic growth.
Among the measures, the government transferred the burden of social security contributions to employees, a plan that prompted ample protests during the past weeks.