Is informality the cause of the dysfunction of the pension scheme? What do the figures show about the most affected sectors?

2024-10-26 10:48:29Biznes SHKRUAR NGA REDAKSIA VOX

Is informality the cause of the dysfunction of the pension scheme? What do the

For days, the government has been "going down" to the ground about the reason for the non-increase in pensions. For the leaders of the executive, informality remains the main cause and measures will be taken for this. But how much does this actually affect the pension scheme? Is the scheme itself a problem? Is fleeing the country another problem? What are the sectors most affected by informality? There are a number of issues that affect the pension scheme from the economic model, the exodus and then informality.  

However, the General Directorate of Taxes has found that out of 662,000 declared jobs, excluding the self-employed, 10% are below the minimum wage and 22.9% are with the minimum wage. So, in total, there are over 217 thousand employees with low wages up to 40 thousand ALL, or about 33% of the total number of jobs.

Which sectors have these employees and which consequently, and have they also caused the highest informality?

Taxation lists trade, tourism and construction as the most problematic sectors in terms of under-declared or black wages.

Why this situation in Albania?

There are several reasons, such as the low efficiency of the administration; poor business environment and very high levels of poverty; lack of trust in institutions and high perception of corruption; high level of payroll tax; bureaucracy and frequent changes in fiscal legislation. These reasons are attached to the need for a new economic model or finding ways for the middle class not to leave the country.

 


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