Public sector pensions and salaries in Romania potentially remain unchanged in the year 2026.
Romania is currently grappling with plans to freeze pensions and public sector salaries, but it's essential to clarify when these measures are set to take effect. Contrary to some speculation, these austerity steps will not begin in 2023, as initially reported, but from January 1, 2026.
The government announced these measures as part of a broader package aimed at avoiding a financial crisis akin to Greece’s 2009 debt crisis. The package includes freezing salaries and pensions at current levels, limiting new hires, and curbing unjustified bonuses in the public sector to reduce the budget deficit and stabilize public finances.
In 2023, Romania did not freeze pensions or public salaries; instead, minimum salary levels were increased in several sectors during that period, including a general increase effective January 1, 2025.
More recently, as of July 2025, the government has introduced a new fiscal package with proposed tax increases and pension and salary cuts to take effect from August 1, 2025. This package aims to reduce the budget deficit, which was 9.3% in 2024—the highest in the EU—and includes measures such as raising VAT, excise duties, and health contributions for pensioners with high incomes.
President Nicușor Dan, Prime Minister Ilie Bolojan, and Finance Minister Alexandru Nazare have all confirmed that the current austerity measures and freezes are part of the 2025–2026 fiscal strategy, not retrospective or for the year 2023.
To provide a clearer understanding of the timeline, here's a summary of the measures:
| Year | Measure | Notes | |-----------|-----------------------------------------------|----------------------------------------| | 2023 | No freeze; minimum salaries increased | Salary increases in various sectors[3] | | 2025 (Aug) | Pension and public salary cuts and tax hikes | Fiscal package to reduce deficit[1][2] | | 2026 (Jan) | Freeze on pensions and public salaries | Announced to avoid Greek-style crisis[4] |
In conclusion, while Romania is indeed implementing austerity measures, these measures are not yet in effect for 2023. The freezing of pensions and public salaries will start from January 1, 2026, as part of urgent fiscal consolidation efforts to avoid a potential financial crisis.
In alignment with the 2025-2026 fiscal strategy, Romania's government is set to institute austerity measures that include freezing pensions and public sector salaries, beginning from January 1, 2026. These steps are a part of the broader package aimed at averting a financial crisis, similar to Greece's 2009 debt crisis, and are not retroactive or implemented in 2023, contrary to some speculation.
