Pensions and salaries without a rise: the first increases not until 2028

Pensioners and public sector employees could wait until the 2028 electoral year for an increase in their income, according to information presented by journalist Alexandra Nistorescu from Realitatea PLUS. As such, next year risks becoming the third consecutive year without indexation of pensions and public sector salaries.

Why the legally required indexation is not being applied

Current legislation provides for the periodic adjustment of pensions and salaries in line with the inflation rate. Nevertheless, the Government has postponed these increases in order to keep public expenditure under control. The direct consequence for pensioners and public sector workers is a continued erosion of their purchasing power.

The risk of a "junk" rating downgrade persists

Romania continues to face the risk of being downgraded to "junk" rating status. Two further international credit rating agencies are due to publish their verdicts, and the analysts cited warn that the state must continue to reduce its budget deficit.

What economists are saying

Specialists warn that a substantial increase in pensions and salaries before public finances are stabilised could undermine the country's economic credibility and lead to higher borrowing costs for the state.

First increase possibly not until 2028

In this context, discussions about significant rises in pensions and public sector salaries may not materialise until 2028, contingent on economic developments and the stabilisation of the budgetary situation.