CASS Could Be Extended to Pensions Below 3,000 RON

Pensioners in Romania are preparing for significant changes regarding the taxation of pensions. The health insurance contribution (CASS) of 10% remains in effect until the end of the year, and the outgoing prime minister has stated that the measure should be maintained.

Moreover, following recent discussions in Brussels, there are considerations to extend CASS to pensions below 3,000 RON — a threshold that currently exempts a portion of pensioners from this contribution. The final decision will be made by the incoming Government, in the context of measures being discussed to reduce the budget deficit and the commitments undertaken by Romania.

How the contribution could be calculated

If the 10% were applied in full to the pension amount, the monthly impact on income would be as follows, based on the examples provided:

• pension of 3,000 RON → CASS of 300 RON → 2,700 RON remaining
• pension of 2,500 RON → CASS of 250 RON → 2,250 RON remaining
• pension of 2,000 RON → CASS of 200 RON → 1,800 RON remaining
• pension of 1,800 RON → CASS of 180 RON → 1,620 RON remaining
• pension of 1,500 RON → CASS of 150 RON → 1,350 RON remaining

These calculations are indicative, based on the assumption that the 10% contribution would be applied to the full pension amount. The exact taxation formula will depend on the final form of the legislation, with concrete decisions to be determined by the incoming Government.