Taxation of service pensions has been changed

RADOR RADIO ROMANIA (20 January) - Starting this year, the taxation of service pensions has been modified.

Thus, gradual taxation of the non-contributory part has been introduced, including for service pensions in payment.

The two ceilings are 20% for the non-contributory part above the average gross salary and 15% for the non-contributory part above the average net salary but below the average gross salary.

The Ministry of Labour also points out that no changes have been made this year to pensions based solely on the contributory system.

The institution points out that this year pensions below 2.000 lei are not taxed and the 10 percent tax is applied to the difference above 2.000 lei, as has been done so far.

Translated by: Radu Matei