The Confederation of Free Trade Unions of Macedonia strongly reacts to the proposal retirement age to be increased

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The Confederation of Free Trade Unions of Macedonia (KSS) strongly reacts and does not support the proposal to increase the retirement age because it considers that it will not significantly contribute to the increase in the pension fund, and it also considers that it will negatively affect the workers, companies and the economy .

Macedonia as the country that is in the last place in Europe according to the “sustainable quality of life”, and as part of the indicators determining the quality of life are the prevalence of diseases, the rate of unemployment, the expected life span, the state of the environment, must not to allow the worker to be additionally burdened by increasing the retirement age; on the contrary, a benchmarked internship for labor-intensive low-paying jobs should be introduced and the possibility of early retirement ionizing under other conditions.

The Confederation of Free Trade Unions of Macedonia  believes that it is necessary to systematically work on improving the sustainability of the pension system, through several policies such as increasing the employment rate through active measures, and hiring employment out of the lowest paid, by reducing the scope of the informal economy with the various forms of stimulating and supporting the formalization of informal economic activities, thus increasing the employment rate against pensioners.

The increase in pension insurance contributions by 2% can be accepted as a proposal if consensus is reached with employers’ organizations by examining the short-term and long-term implications of the reform.

KSS also believes that the increase in pensions should be, in sustainable terms, because in the past, and even today, some of them are social categories. In Macedonia more than half of the pensioners are recipients of the minimum pension, and only about 5% are pension recipients higher than the average salary. The aging of the population should not be seen as a major problem for the sustainability of the pension fund; strategies for encouraging the third pillar should be adopted in order to increase its impact on pension revenues.

According to certain analyzes with the commencement of the payment of the pensions from the second and third pillar, the first pillar will be thinner and most sustainable, and in the meantime a module for sustainability of the pension fund in the next 15 years should be found through a variety of sustainable measures, they take care that they do not have an impact on the economy and economy, and especially with measures to reduce unemployment, which is certainly the main parameter of sustainability.

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