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Home ATTUALITA

Informal wages hurt pensions! Employment experts comment on the payroll figures of 630 thousand Albanians

by imkadmin
Dhj 30, 2021
in ATTUALITA
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Informal wages hurt pensions!  Employment experts comment on the salary list figures of 630 thousand Albanians
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The leak of the payroll for about 690 thousand people in Albania was a scandal that shook the social life of citizens.

What stood out was that many private companies paid professionals the minimum wage or much lower than their market average, indicating that the two-payroll system continues to be present.

For the employment expert, Eranda Ymerali, the evasion is obvious and the government intervention is needed:

“We can not deny the part of the complete non-declaration of salaries, but also of the many facilities that operate in Albania. There is still a lot of work to be done, in terms of the level of salaries that is declared“.

Incomplete declaration of salary consequently means even less contributions to the pension scheme. If as a young person you are paid less today, in old age the pension will be lower, but the risk is not only this:

“The first direct impact comes to the state because the contributions that an employee or a company pay to its employees are not paid in full and in the same basket it is an impact on the employees themselves who should be aware that their salary is full, for the fact that tomorrow the day after tomorrow when they retire their level will be very low based on the salary they have declared“.

The pension scheme is in a real risk as clearly evidenced by the report of KLSH. Every year, the State Budget is forced to pay billions of ALL to compensate pensions, which were to be covered by salary contributions, but due to informality and rising unemployment, the deficit continues to deepen.

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