Starting August 1, 2025, Romania’s tax system undergoes a major change: over one million pensioners, approximately 1 in 6, will be required to pay the health insurance contribution (CASS). This measure is part of Law no. 141/2025, a broad package of fiscal-budgetary changes aimed at reducing the deficit and stabilizing public finances.

What does the new regulation imply?

According to the new provisions, pensioners with pensions higher than 3,000 lei/month will pay a 10% health contribution, applied strictly to the part of the pension that exceeds this threshold. The deduction will be made directly by the pension houses, without beneficiaries having to submit declarations or go through additional formalities.

Example: for a pension of 4,200 lei, the taxable base for CASS is 1,200 lei (4,200 – 3,000). The 10% contribution means 120 lei, to which the income tax is added, calculated after deducting this amount. In the end, the pensioner loses approximately 228 lei from the gross pension.

Why is this measure different from the one in 2021–2022?

A similar variant existed in the past but was declared unconstitutional by the Constitutional Court in December 2022. At that time, the government had introduced CASS for pensions above 4,000 lei through an emergency ordinance (GEO 130/2021). The CCR ruled that reducing pensions through ordinance affects the constitutional right to pension, which is prohibited.

This time, the fundamental difference is the procedure: CASS was introduced through a law adopted by Parliament, not by ordinance. The Constitutional Court validated the new regulation through Decision no. 357/2025, rejecting all objections regarding the legality and constitutionality of the measure.

Who is exempt from CASS, regardless of pension amount?

The law provides two important categories of exceptions, meant to protect vulnerable persons:

• Pensioners with disabilities – exempt from payment, regardless of pension amount;

• Pensioners diagnosed with cancer, undergoing treatment within national health programs – exempt during treatment or until recovery.

In addition, other special categories remain insured without payment: children and young people up to 26 years old (under certain conditions), persons with disabilities, pregnant women, detainees, victims of human trafficking, and volunteers in public emergency services.

Military pensions and special allowances, different rules

For pensioners in the defense, public order, and national security systems, including former penitentiary employees, the rules are the same: CASS applies only to the part of the pension exceeding 3,000 lei.

However, for allowances granted under special laws, such as those for former political detainees, war veterans, or revolutionaries, the deduction does not apply. The contribution is calculated on the entire amount received, and the deduction is made directly by the institutions that pay these rights.

Impact on other incomes and social benefits

The new law is not limited to pensions. Starting in August, the 10% CASS also applies to:

• child-rearing allowance;

• adoption accommodation allowance;

• minimum inclusion income;

• unemployment benefit and other forms of support granted from the unemployment insurance budget.

For these benefits, there is no non-taxable threshold of 3,000 lei; the contribution applies to the entire amount.

CASS and private pensions

The payment obligation also extends to private, voluntary, or occupational pensions (Pillars 2, 3, and 4), as well as pensions received from abroad, if declared in Romania and subject to the Fiscal Code.

A side effect: less money in hand

Although the measure has a clear purpose—to increase budget revenues and reduce the deficit—for pensioners it translates into lower net incomes. In a context where inflation, utility costs, and food prices remain high, the reduction of the actual amount received can be acutely felt, especially by those with medium to high pensions.

What’s next?

The measure is temporary, applying between August 1, 2025, and December 31, 2027, but historical precedent shows that such contributions can become permanent. The business environment and pensioners’ organizations demand predictability and clarity in the communication of fiscal measures, so that those affected can plan their budgets.

Applying CASS for pensions over 3,000 lei represents one of the most significant fiscal changes in recent years for the pensioner population. Although the current legal framework is solid and validated by the CCR, the impact on net income should not be overlooked. It is essential for every pensioner to understand exactly how the contribution is calculated and what rights they have.

Cabot Transfer Pricing recommends all affected individuals to check their pension slips and request clarifications where differences appear. Understanding the fiscal mechanism and the exceptions is the first step to avoiding unpleasant surprises and making correct financial decisions: https://cabot-tp.ro/contact/