Bucharest Tower Center, etaj 22 B-dul Ion Mihalache
nr. 15-17 011171 Bucuresti, sector 1, Romania
+40 21 402 4000

Completion of Law no. 263/2010 on the unitary public pension system

In this issue:

Emergency Ordinance no. 163/2020 on the completion of Law no. 263/2010 on the unitary public pension system, as well as for implementing new measures for insuring individuals in the public pension system, published in the Official Gazette no. 883 from 28 September 2020, Part I.

 

According to the normative act, individuals who do not qualify as pensioners and would like to complete their social security contribution period, will be able to pay retroactively the pension contributions to the public system for a past period up to six years.

Thus, Romanian citizens from Romania or from abroad, whom are not pensioners and also were not insured during certain past periods (in which they also did not contribute for other public pension systems from the EU or from other states with which Romania has in place Totalization Agreements for social security coverage), will be able to conclude an individual insurance contract until 1 September 2021, by which they can retroactively pay the respective social security contributions, only for periods prior to the month in which the contract is concluded.

The social insurance contract is concluded between the concerned individual and the competent territorial pension house, depending on the domicile or residence of the insured person.

The insured income cannot be lower than the minimum national gross wage in force at the date of concluding the contract while the social security contribution quota is the one established by the Fiscal Code (currently, 25% from the insured income).

The payment of the contribution can be performed in one installment or in monthly installments, but no later than 31 August 2021.

The normative act also provides the necessary draft templates for filing the insurance contract.

In case you would like to receive more information on these legislative updates or even a tailored advice for your own case or for the benefit of another interested person, please do not hesitate to contact us.

 
Prepared by:
Dan Răuț, Tax Manager People Advisory Services
 
For additional information, please contact:
Alex Milcev, Partner ― Head of Tax & Leagal
 
Ernst & Young SRL
Bucharest Tower Center Building,
22nd Floor, 15-17 Ion Mihalache Blvd.,
Sector 1, 011171, Bucharest, Romania
Tel: (40-21) 402 4000, Fax: (40-21) 310 7124
Email: office@ro.ey.com
Abonează-te la noutățile EY România și fii la curent cu ultimele studii și articole, evenimente și comunicate de presă lansate de experții noștri.
Abonează-te