Moldova to index pensions by 6.8% amid demographic pressure
Moldova will increase pensions by 6.84% starting April 1, 2026, amid concerns that the adjustment fails to cover rising living costs. The measure will bring the minimum pension to approximately €167 (3,254 MDL), costing the state budget €102.8 million (2 billion MDL).
Elena Tibirna, Director General of the National Social Insurance House (CNAS), stated that the indexation follows current legislation based on consumer price indices. However, the parliamentary opposition argues the increase is insufficient for the needs of the elderly, especially regarding utility bills.
Economic analyst Veaceslav Ionita explained that the current mechanism only prevents a decline in living standards but does not increase welfare. He noted that while real wages grow annually, pensions only adjust to inflation, widening the wealth gap between retirees and the active workforce.
Demographic red flags
The social security system faces a growing sustainability crisis. Official data reveals a workforce of only 640,000 contributors supporting over 672,000 pensioners. This ratio has plummeted from historical levels of three employees per retiree to less than one-to-one.
"The system is under immense pressure," Ionita warned. He added that many citizens discover only at retirement that employers failed to pay their social contributions, leaving them with no basis for pension calculations.
Structural deficits
By the end of 2025, Moldova recorded 672,207 pension beneficiaries, nearly 28% of the country's population of 2.4 million. Experts conclude that without structural reforms or increased contributions, the system will continue to accumulate deficits.
Tibirna emphasised that while the state can cover this year's indexation from its own resources, long-term balance remains a challenge as the demographic decline continues.
Translation by Iurie Tataru
