A new law detailing the provision of occupational pension schemes will come into force on 7 February 2020 in Romania, according to local daily newspaper Adevarul.

Law 1/2020 sets out the amount of contributions employees and employers can invest each month in the pensions (Pillar IV).

Offering occupational pension schemes is at the discretion of the employer and it is also entirely optional for employees. If the employer choose to offer a scheme then it must be included in the employment contract.

Contributions will be collected and paid by the employer, these can be split between the employer and the employee, as established in the pension scheme drawn up by the employer and the application for membership signed by the employee.

However, contributions cannot exceed one third of the employee's gross salary, without the total of the deductions (state pension contributions, Pillar 2, health contributions and income tax) exceeding half of the net salary.

The employer is free to set different amounts of his own contribution for his employees on the basis of seniority, function or salary rights.

Share Story: