Labour Min Budai: If GEO 114 is abrogated, we will have a problem with minimum pension

Labour Minister Marius Budai on Sunday told Antena 3 private television broadcaster that there would be a problem with the minimum pension, which would affect 950,000 people, if the Government Emergency Ordinance (GEO) 114/2018 got abrogated, but he gave assurance he would find a legal and fair solution to the problem "in order to move on." 

He was asked if there were going to be any problems with the payment of the pensions in case the GEO 114/2018 was abrogated. 

"With respect to the value of the pension point, I must be very, very fair, and I could give a strictly politicianist answer and say yes, but no. The law, as it was promulgated, is published in the Official Journal and we have already started with its implementation calendar. However, we will have a problem with the social allowance, minimum pension here - and there are 950,000 people who will be affected, and not just a few - if the law is abrogated. But I don't want to, I have never allowed myself to cause panic among the pensioners, which is why I am telling them that we will find the legal and fair solution so this won't happen and even if it happens we also have a plan B and we will move on with it," said Budai. 

The Labour Minister underscored in relation to the GEO 114 that he made an appeal to the Committee on budget-finance not to abrogate this ordinance, for it includes many other measures and they must "think clear and fair before deciding what to do." 

The value of the pension point will grow by 15 per cent as of September 1, from 1,100 up to 1,265 lei respectively, with the minimum guaranteed pension or social benefits for the pensioners to increase by 64 lei, from 640 up to 704 lei. 

Moreover, the benefits from the attendants of pensioners with 1st degree disability is increased from 880 lei to 1,012 lei. 

According to data released by the Labour Minister, the total number of pensions in Romania is of 4,964,018, with 4,668,104 of whom benefit from pensions from the state and 295,900 are pensioners from agriculture. 

The average pension in Romania accounted for 1,189 lei in mid July, with the pension for mandatory retirement being of 1,348 lei and the average pension for farmers of 489 lei.