Pensioners could receive more money from 2027: the health insurance contribution threshold for pensions set to change

An important change could bring concrete financial benefits to hundreds of thousands of pensioners in Romania, starting from 1 January 2027. The change concerns the threshold above which the health insurance contribution, known as CASS, applies to pension income.

What is CASS and how does it affect pension payments?

The health insurance contribution (CASS) is a deduction applied to pensions that exceed a threshold established by law. In practice, pensioners whose income surpasses this limit are required to pay a percentage of their pension towards the healthcare system, which reduces the amount they actually receive each month.

What change is being proposed?

According to available information, Romanian authorities are considering raising the income threshold above which CASS becomes payable on pensions. This would mean that more pensioners would fall below the new threshold and would therefore no longer be required to pay this contribution, resulting in an increase in their monthly net pension.

Who would benefit from this change?

The change could provide a financial boost for pensioners with moderate incomes who currently sit above the existing threshold, but who could be exempt from CASS if the new threshold is set at a higher level. The number of people positively affected could reach hundreds of thousands nationwide.

When would the new rules come into effect?

The change is expected to come into effect from 1 January 2027, meaning that the pensioners concerned would begin to feel the positive effects in the pension payments they receive from the start of that year. In the meantime, the proposal still needs to complete the necessary legislative process.

This measure forms part of a broader effort to improve the financial situation of Romanian pensioners, a vulnerable group that frequently faces significant economic pressures. Any reduction in the tax burden on pensions represents an important step towards improving the quality of life for senior citizens in Romania.