How the pension is calculated

Average insured income and the accrual rates

The pension is calculated by multiplying your own average monthly insured income across your whole working life by an accrual percentage for each year of service: 1,2 % for each year up to the required service of 34 years, then 2 % for each additional year (Legea nr. 156/1998, art. 16 alin. (1)-(2) and Anexa nr. 4).

What this page does not state

The exact formula used to compute the average insured income — how earnings across a whole career are combined — sits in an annex of the law we have not consulted at this stage. We found no provision stating whether, or how, past years' earnings are brought to present-day value before the average is taken. No provision was found capping the total insured service the formula counts.

Annual indexation — a trigger, not a public formula

The law provides for annual indexation of pensions once cumulative inflation reaches a stated threshold since the last indexation; the actual decision, by government decision, is made each year by the Government (Legea nr. 156/1998, art. 13). The law does not, however, state a public formula for the resulting percentage — that is set administratively, year by year, not computed from a rule in the statute.

The guaranteed minimum pension

The minimum old-age pension is 3 264,66 lei (Legea nr. 156/1998, art. 12, and the 2026 government decision). For very long careers, the law provides for a different, higher minimum, which this page does not detail.

No provision was found setting a maximum pension amount. The law caps only the INCOME on which contributions are paid — a different quantity, which does not limit the pension itself.