40 years of work, pension of 3,000 RON: how your pension is calculated under the new law

A man who worked for 40 years was shocked to discover the amount of his calculated pension: approximately 3,000 RON. At first, he thought it was an error. In reality, the figure is the result of applying the new pension calculation formula, according to information published by Newsweek.

The new pension law takes several factors into account: the number of years of contributions, earnings throughout one's career, and any periods worked under special or hazardous conditions.

Why a low pension resulted after 40 years of work

In this pensioner's case, 40 years of employment did not automatically translate into a large pension. The man accumulated 37 points, but had not worked in Group I or Group II working conditions, so he did not receive the additional points awarded for such periods.

Another decisive factor is income earned over the years. The pensioner is understood to have been paid the minimum wage throughout his entire working life. Measured against the gross average wage of 9,192 RON, a minimum wage of 4,235 RON equates to approximately 0.46 points for each year worked.

For the 40 years of work, this yields approximately 18.4 points. Added to these are the supplementary points provided for under the new law, bringing the total to approximately 37 points. At a reference point value of 81 RON, the resulting pension comes to around 3,000 RON.

How the pension is calculated under the new law

The calculation formula takes into account primarily the number of years of contributions, earnings achieved, and supplementary points awarded for certain periods of activity.

For individuals who have contributed for more than 25 years, the law provides for the granting of stability points, as follows:

• 0.50 points for each year worked beyond 25 years and up to and including 30 years;
• 0.75 points for each year worked beyond 30 years and up to and including 35 years;
• 1 point for each year worked beyond 35 years.

The current reference point value is 81 RON.

Who receives supplementary points

Those who have worked under special or hazardous conditions may also be entitled to supplementary points, depending on their working group classification:

• Working Group I: 0.50 points for each year;
• Working Group II: 0.25 points for each year.

The total number of years worked is therefore not the sole criterion determining the value of a pension. Earnings accumulated throughout one's career and any periods worked under special conditions can significantly influence the final amount.

In the case of the man who worked for 40 years, the absence of any periods in classified working groups, combined with having consistently been paid the minimum wage, resulted in a pension of approximately 3,000 RON. Although the figure struck him as a mistake, it is the direct result of applying the new calculation formula.