From 2026, the method of determining length of service for retirement will change. Calculation example

From 2026, the method of calculation that determines seniority changes, given that employers report the number of working days for which the contribution was paid, while the contribution period in the new pension law refers to calendar days.

An order of the National Public Pension House (CNPP), published in the Official Gazette, establishes the technical procedure for the transformation of working days into calendar days, necessary for the calculation of the contribution period in the public pension system. The document also includes the conversion formulas that will be applied in this process.

Thus, for the period April 2001-February 2003, the sum of days worked per month under normal conditions is calculated as follows:

That is, the sum of the days declared in the month by the employer/employers under normal conditions, calculated according to the norm and the number of hours worked per day (without the days when the insured benefited from aid/unemployment compensation/support allowance) – Z_NN_T – is equal to the number of days worked under normal conditions (without the days when the insured benefited from aid/unemployment compensation/support allowance), entered in the nominal declaration of insurance (NN).

For the period March 2003-June 2005, the sum of days worked per month under normal conditions is calculated as follows:

That is, the sum of the days declared by the employer (without the days when the insured benefited from aid/unemployment compensation/support allowance) = the sum of working hours to be divided by the norm – the normal work schedule specific to the workplace, expressed in hours (it can have the values ​​8, 7 or 6), entered in the nominal insurance declaration, to be divided by the number of days worked under normal conditions.

Working hours means the number of hours worked/day, as follows:

– in the case of individual full-time employment contracts, it is equal to the norm;

– in the case of individual part-time employment contracts, it is equal to the number of hours provided for in the individual employment contract, entered in the nominal insurance declaration (can take the values ​​1,2,3,4,5,6,7);

Read also: The new government program changes the rules of early retirement and social assistance. What taxes are increasing

Starting from July 2005, the sum of days worked in a month under normal conditions is no longer calculated according to the norm and the number of hours worked per day:

where:

– Z_NN_T = the sum of the days declared by the employer/employers under normal conditions (without the days when the insured benefited from help/unemployment compensation/support allowance);

– NN = the number of days worked under normal conditions (not including the days when the insured benefited from aid/unemployment compensation/support allowance), entered in the nominal insurance declaration.

In compliance with the legal provisions, the following is calculated in a similar way:

– Z_SS_T = sum of days worked in the month under special conditions;

– Z_DD_T = sum of days worked in the month under special conditions;

– Z_PP_T = the sum of days for which the insured benefited from social insurance benefits under normal conditions;

– Z_PPS_T = the amount of days for which the insured benefited from social insurance benefits under special conditions;

– Z_PPD_T = the sum of days for which the insured benefited from social insurance benefits under special conditions;

– Z_SOM_T = the sum of days for which the insured benefited from help/unemployment compensation/support allowance;

– Z_PP_SOM_T = the sum of the days for which the insured benefited from social insurance benefits declared by the National Employment Agency/county employment agencies (ANOFM/AJOFM).

The order also establishes the capping of the number of days worked at the number of working days in the month.

Calculation example

If an employee worked 20 days in a month that actually has 22 working days and 30 calendar days, determining the number of calendar days of internship is done by multiplying the number of days actually worked (20) by the number of calendar days (30), to be divided by the number of working days in that month (22), resulting in the number of calendar days of internship being 27.27 days.

For employees who have worked throughout the year, without any interruption other than vacation leave, the number of days worked will be equal to the number of calendar days, resulting in a full contribution period.

For employees who worked part-time or intermittently or had several jobs at the same time, the contribution period is calculated proportionally for each working day, without exceeding the number of working days in that month/year.

The technical procedure for converting working days into calendar days, in order to determine the period of contributions made by insured persons of the public pension system, can be read in full HERE