Price hikes from 1 January: pensions frozen as taxes and prices rise

The start of 2025 brings bad news for Romanian pensioners, who will face a new wave of price rises whilst their incomes remain frozen. The Government has implemented a series of tax increases that will directly affect the purchasing power of older people.

Among the most significant changes is the rise in dividend tax from 10% to 16%, a measure that will affect pensioners who hold investments or savings in various financial instruments. Property tax is also rising substantially, with increases of up to 70% on buildings and land, meaning additional costs for senior homeowners.

Higher fuel excise duties will generate a knock-on effect throughout the Romanian economy. Increased transport costs will be reflected in the prices of food and medicines — essential items for older people. Rises in excise duties on tobacco and alcohol will similarly push up prices in those categories.

Another measure set to affect seniors is the introduction of new charges on parcels arriving from outside the European Union. This change will particularly impact older people who order medicines or specialist health care products online from non-EU countries.

The most serious aspect for pensioners is that these price rises come at a time when pensions are being frozen entirely throughout 2025. Unlike employees, who may benefit from a potential rise in the minimum wage in the second half of the year, pensioners will see no increase in their income whatsoever.

This situation creates significant financial pressure on older people, who will have to adjust their budgets to cope with higher costs on the same fixed income. Many families with pensioner members will be forced to cut back on spending on healthcare, quality food, and other basic necessities.