ROMANIA – The Romanian government has decided to raise public pensions payments by almost three percent from next month, according to local reports.

Romanian news agency Mediafax has reported that the government has decided to raise pensions by 2.7% in June.
The rise will mean that the average state pension would rise to 1.8 million lei (47 euros), it said. The average pay in Romania is 4.6 million lei (120 euros).

Reform of the pension system is seen as one of the key problems facing the Romanian government. Romania has an old-age dependency ratio of 33.6 as of 1999, up from 29.7 in 1990.

One of the European Union’s stipulations to Romania was that it align its policy on supplementary pensions before joining the EU.

In April, the government told the International Monetary Fund that it intends to would approve legislation amending the laws on the pension, unemployment and health insurance funds in a bid to harmonize procedures for collection, enforcement and auditing.