Pension system in Romania-pillar III – voluntary privately administered pension scheme

The voluntary privately administered pension scheme is regulated by Law 204/2006 and is addressed to people who want to ensure a supplementary income to their public and mandatory privately administered pension. Any person earning taxable income can participate in this scheme.

The percentage allocated is a maximum of 15% of gross monthly salary income, and the accumulated amount is added to the income obtained from the two pensions mentioned above.

There is also the possibility for the employer to make an additional contribution to the voluntary pension fund on behalf of the employee.

The amounts contributed by the employee to the voluntary pension fund are deductible for income tax purposes, up to a total amount representing the equivalent in RON of 400 euro in a tax year/participant. Amounts contributed by the employer to the voluntary pension fund are deductible for the calculation of income tax, up to a total amount representing the equivalent in lei of 400 euro in a tax year/employee.