The only mandatory benefits are those covered under the social security insurance and funded by contributions made during employment by employers and employees.
Employees must contribute into the compulsory pension benefit administered by the Romanian National Pensions House. Employees contribute 25% of their gross remuneration (withheld and paid by the employer monthly).
To be eligible for retirement pension, a person must have (1) contributed to the fund for at least 16 years and (2) reached the minimum retirement age. The standard retirement age is 65 years for men and 61 years and six months for women, increasing gradually to 63 years by 2030. The full contribution period is 65 years for men and 31 years and six months for women, increasing gradually to 35 years by 2030.
The actual amount received as pension is determined based on a system of points calculated each month, with the gross wage or insured income of the applicant being divided by the gross average wage earned at national level and reported by the National Institute for Statistics.
The state transfers part of the pension contribution paid by the employee to a privately managed pension fund chosen by the employee, known as Pillar II. The amount is currently 3.75% and is scheduled to increase gradually.
If Romanian citizens fall under specific categories, they will be eligible for unemployment indemnity paid by the Local Workforce Occupation Authority.
For more details, see the End of Employment section.