Skopje, 2 December 2024 (MIA) - The Fiscal Council proposed on Monday raising the retirement age for both men and women to 67 as of 2026 as well as increasing the rate of pension insurance contributions by 0.7 percent to 19.5 percent, as part of its recommendations for the 2025-2029 Fiscal Strategy.

The Fiscal Council, which is an independent body that drafts analyses and opinions on macroeconomic and financial policies in the country, stressed that the measures are necessary to maintain the Pension and Disability Insurance Fund, reduce fiscal risks and consolidate the budget in the midterm.

“The Fiscal Council is of the position that in order to maintain the Pension and Disability Insurance Fund, reduce fiscal risks and consolidate the budget in the midterm, additional measures are necessary such as raising the working age of employees and a gradual increase of pension and disability insurance contributions (they currently stand at 18.8 percent, which is a drop of 2.4 percent compared to 2008 when it stood at 21.2 percent). When we add the aging population to this, and with it the growing number of pensioners by around 1500-1700 new pensioners each year, accompanied by young people’s preference to move abroad, and consequently the relative reduction of contributions to pensions, the issue becomes increasingly more complex. Therefore, the fiscal sustainability of the Pension and Disability Insurance Fund represents a special fiscal risk,” the Fiscal Council said.

Political party Levica responded to the Fiscal Council’s proposal, urging it to reexamine its position.

“We warn this Government and any future Government not to toy with the toil of the working people. If they want to intervene in the Pension and Disability Insurance Fund, then they should begin with their own officials who led the Fund to its current state. We urge the Fiscal Council to reexamine its positions. It is necessary to implement strategic policies in the real sector that would improve the position of workers, otherwise the wave of emigration of young and high skilled workers won’t be halted, and consequently the drop of contributions to the Pension and Disability Insurance Fund won’t stop either,” Levica said.

Photo: MIA Archive