The new government could index pensions by 5% or 7% in 2027, following the budget revision and an audit of state spending

If appointed, the government led by Luca Niculescu will have to quickly decide how pensions will be increased in 2027. The indexation rate has not been established, but two scenarios are being considered: a cautious 5% increase or the application of the legal formula, which would result in an increase of approximately 7%, depending on the inflation rate.

Under the 5% scenario, the minimum pension would increase by 64 lei, while the average pension would rise by 139 lei. A 7% indexation would mean an increase of 89 lei for the minimum pension and 194 lei for the average pension.

Florin Manole, nominated for the position of Minister of Labour, said that the final percentage would be established after an audit of state spending and the budget revision. He said pension indexation would take place, but that the government must first verify what funds are available and which expenses need to be covered.

The budget revision is one of the future government’s first priorities, alongside allocating funds for healthcare. Pensions have been frozen for the past two years, and pensioners are estimated to have lost between 200 and 500 lei in purchasing power amid cumulative inflation of approximately 16%.