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Income from the pension scheme is added, how has the contribution changed since 2015

2024-02-24 09:39:25Biznes SHKRUAR NGA REDAKSIA VOX

Income from the pension scheme is added, how has the contribution changed since

The increase of the minimum wage at the country level, the wage reform in the public sector and the fight against informality or false declaration, seems to have given results in the improvement of the pension scheme in terms of income.

Total contributory income has increased from ALL 64.8 billion in 2015 to ALL 134 billion in 2023 or more than doubled in less than 10 years. This increase in contributory income has affected the financial sustainability of the scheme by reducing the transfer of the state budget towards the pension scheme and reducing the pension deficit.

More specifically, the deficit of the pension scheme has decreased from ALL 27.6 billion in 2015 to ALL 17 billion in 2023, or from 1.93% of GDP to about 0.8% of GDP.

The increase in performance in the collection of income from social security contributions has also led to a decrease in the level of the transfer of the state budget for the social security scheme, which has decreased from an average of 36% of total expenses in the years 2018-2022. to about 27% of them in 2023. This level is projected in a downward trend for the following period as well, starting from the policy of increasing wages in the public sector, which has also brought growth in the private sector.

From the performance of the contribution scheme, which resulted in 7.9 billion ISS accumulated, created as a result of the excess of contribution income and the budget transfer approved in the relevant budget law, the changes in the budget were also initiated, where the reallocation was decided theirs.


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