Social security rate cut considered mistake

A further reduction in the social security rate will be fatal for the pension system. That is the opinion expressed by experts in the branch and minister of labour Totyu Mladenov. When the government took office the ruling party GERB pledged to decrease the social security rate by 5%. Since the beginning of this year contributions have dropped 2%. Currently 11% of the gross domestic product is used for state social security payments. Bulgaria has the lowest pension insurance rate in Europe, Florian Fichtel, representative of the World Bank in Bulgaria, pointed out. In most countries the crisis made the governments raise the pension insurance rates while Bulgaria did the opposite, World Bank experts commented. The government is considering levying tax on the incomes of working pensioners, Mladenov said.

Finance

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