Pensions will be indexed by a minimum of 6% next year, and the government’s intention is for this increase to be higher, while allowances will be increased by 20% from 1 January 2022, the interim Minister of Labour and Social Protection, Raluca Turcan, posted on the ministry’s communication group on Monday, Agerpres notes.
“A realistic and sustainable budgetary effort for next year means: increasing allowances by 20% from 1 January, so an extra 350 million lei per month, on top of this year’s expenditure; also, pensions will be indexed by at least 6%, the intention being that this increase will be higher; we will maintain the direction of increasing the minimum wage through dialogue with social partners,” said Raluca Turcan.
The interim Minister of Labour said that people need support, and the pressure of rising prices is major, but the Government must maintain budgetary balance, investment and the prospect of economic growth, because these are the real basis for income growth.
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“We are now allocating in total for pensions, allowances, social assistance and unemployment alone about 133 billion lei a year. The cost of spending on pensions, salaries and social assistance is more than 90% of total state tax revenues. All the PSD’s demands for increases would mean an additional 16 billion lei for 2022 on top of the current 133 billion. Where could we allocate this money? From investments? We would blow up the only real engine of economic growth! The only credible answer is to carefully spend every public leu or euro that enters the country. This means: pension reform, wage reform, targeted social assistance, attracting money from the NERP and the next European financial year”, added Raluca Turcan.
The Labour Minister explained that the budget for 2022 to support vulnerable energy consumers is 720 million lei.