Romanian Pensions to Go up Next January

Victor Ponta's centre-left government in Romania says it has enough funds to raise pensions by 5 per cent rise, starting in January.

The minimum gross monthly salary is to increase from 900 lei to to 975 lei (221 euro) at the same time.

"We have the resources for cover this expense. Hopefully this is great news for Romania's 5.3 million pensioners," Labour Minister Rovana Plumb said earlier this week.

Romania last raised the minimum wage in July, from 850 to to 900 lei. Some 1 million employees receive the minimum gross salary in the country.

Romania is aiming for a budget deficit in 2014 of 2.2 per cent of Gross Domestic Product, GDP, which is slightly higher than the gap of 2.0 per cent planned earlier.

To cover the shortfall, the government has raised taxes on mineral resources, except oil and gas, by 25 per cent.

It has also introduced a new excise tax on fuels, and a tax on "special" buildings owned by corporate clients, such as warehouses.

On the other hand, the government has cut the tax on social contributions paid by employers. Some state employees, like teachers and doctors, have received modest rises this year. State pensions have also been risen by 3.76 per cent.

Romania is to hold presidential elections on November 2, with Prime Minister Ponta being the favourite to win, according to polls.