Main Modifications of Law No. 263/2010 on the Universal Pension System
Main Modifications of Law No. 263/2010 on the Universal Pension System

Summary/Abstract: One of the phenomena with a direct effect on the social insurance system is the decrease in the number of employees, from 8.1 in 1990 to 4.5 million at present. This is mainly due to emigration and black work. Although the active population is 10.5 million, only 4.5 mentioned above have pension insurance, which will generate long-term problems. Over 25-35 years, those working illegally or do not work at all (significant number) will reach retirement age without being insured and will burden the social welfare system, requiring public money guaranteed minimum income or other support social. At that time, the working-age population (which pays these costs through taxes and contributions to insurance funds) will be less numerous, which will lead to a significant increase in taxes. If internally this trend can be countered by creating conditions for securing private pensions, raising the retirement age, discouraging early retirement and encouraging labor regime of part and policies targeted by age and by raising the employment rate of the population (in particular, the population aged over 45 and females), the issue of emigration needs to be treated differently.

• Details
• Contents