Everything about the pension system for self-employed workers (PFA) in Romania: CNPP, 25% CAS contribution, Pillar II and III, 2023 reform.
The Romanian system is built on three pillars managed by the CNPP (National Public Pension House).
The mandatory public scheme, managed by CNPP, operates on a points-based system. Pensions are calculated based on points accumulated over one's career. For PFA holders, the 25% CAS contribution is mandatory if annual net income exceeds 12 times the minimum gross salary (~EUR 4,200).
3.75% of CAS is automatically redirected to a private pension fund (Pillar II). Managed by licensed administrators, this pillar operates on a funded basis and supplements the public pension.
Self-employed workers can contribute voluntarily to a Pillar III fund, tax-deductible up to EUR 400/year. This is an optimisation lever to supplement the base pension.
PFA holders declare a contribution base between the minimum gross salary (3,300 RON/month, ~EUR 660) and 5 times that amount. The chosen base directly impacts future pension amounts.
Tip: choosing a higher contribution base increases your pension points and therefore your future pension. The extra cost is tax-deductible.
3.75% of CAS is automatically redirected to a private pension fund (Pillar II). Managed by licensed administrators, this pillar operates on a funded basis and supplements the public pension.
Self-employed workers can contribute voluntarily to a Pillar III fund, tax-deductible up to EUR 400/year. This is an optimisation lever to supplement the base pension.
As a PFA, you choose your CAS contribution base. A higher base means more pension points and a better retirement income.
Pillar III contributions are deductible up to EUR 400/year, offering an immediate tax advantage and a long-term pension supplement.
Review your points statement with CNPP each year to verify that your contributions are correctly recorded and adjust your strategy.
Women's retirement age is gradually rising from 63 to 65 by 2035. Plan ahead to avoid an income gap.
Our financial analysis tools help you optimise your contributions and plan your self-employed retirement in Romania.
Discover our solutionsThe legal retirement age is 65 for men and 63 for women (gradually rising to 65 by 2035). A full career of 35 years is required for the full-rate pension, with a minimum of 15 years for any eligibility.
A PFA pays 25% of their declared contribution base (CAS). The base is chosen between the minimum gross salary (3,300 RON/month) and 5 times that amount. The contribution is mandatory if annual net income exceeds 12 times the minimum gross salary (~EUR 4,200).
Pillar II is the mandatory private pension scheme. 3.75% of CAS is automatically redirected to a private pension fund managed by licensed administrators. It operates on a funded basis and supplements the public Pillar I pension.
Yes, Pillar III is a voluntary scheme offering a tax deduction of up to EUR 400/year. For higher-income self-employed workers, it is an effective fiscal optimisation lever and a significant pension supplement.
The minimum pension is approximately 1,281 RON/month (~EUR 257 in 2024). The actual amount depends on the number of points accumulated during one's career and the annual pension point value set by the government.
BoostPro AI tax optimization analyzes your situation (status, income, expenses, country of residence) through a 10-15 minute questionnaire. Our AI Nora calculates your effective tax rate, identifies applicable tax incentives, and proposes legal optimization strategies tailored to your profile: employee, self-employed, or company.
Absolutely. BoostPro AI exclusively proposes legal tax optimization strategies, based on provisions established by law in each European Union country. It involves making the best use of existing deductions, tax credits, and tax incentives. The report includes a legal disclaimer specifying it does not replace professional tax advice.
The BoostPro AI tax optimization module covers the main European Union countries: France, Germany, Spain, Italy, Belgium, Netherlands, Portugal, Poland, and Romania. Recommendations are adapted to the specific tax legislation of each country. Additional countries are being progressively added.
Potential savings vary considerably depending on your profile. Our algorithm estimates achievable savings before payment. On average, users identify between 500 and 5,000 euros in potential annual savings through mechanisms they were unaware of or were not fully utilizing.
Each tax profile has its own optimization levers. Employees can optimize deductions, investments, and benefits in kind. Self-employed individuals can leverage deductible expenses, depreciation, and tax regime choice. Companies have additional levers: compensation policy, investment, and legal structuring.
Generate a complete professional business plan powered by artificial intelligence.
Automatically draft your company's legal statutes with AI.
Evaluate your business creation project viability with a personalized AI analysis.