The Constitutional Court has ruled that the introduction of a new tax in the form of compulsory social security contributions on pensions exceeding RON 4,000 by emergency ordinance was unconstitutional.
In support of this conclusion, it was argued that the provision introduced reduces the amount of the pension, which affects the right to a pension itself.
Following a wave of litigation triggered by the Constitutional Court’s decision, the government passed an emergency ordinance on 15 February 2023 deciding to refund these amounts.
Government Emergency Ordinance No. 130/2021 introduced a new tax in the form of compulsory social security contributions consisting of social health insurance, payable by persons receiving pension income for the part of the pension exceeding RON 4,000 per month.
The Constitutional Court has ruled that the imposition, by emergency ordinance, of a social health insurance contribution on persons who are pensioners in respect of pensions in excess of RON 4,000 affects the rights, freedoms and duties provided for by the Constitution, in particular the right to a pension.
The decision of the Constitutional Court was published in the Official Gazette on 28 December 2022, and within 45 days from that date the provision declared unconstitutional will cease to have effect unless it is brought into conformity with the provisions of the Constitution.