Expert: It is necessary to reduce contributions to the Federal Social Insurance Fund to be able to increase pensions



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Since 1 August, pensions in Belarus will increase by an average of 10%. However, this does not mean that the problems of the pension fund are close to the solution, says the expert BEROC Economic Research Center Katerina Bornukova, writes thinktanks.by. According to her, in Belarus, it is necessary to reduce the amount of deductions to the Social Protection Fund.

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<figcaption> The picture is illustrative. Photo: Vadim Zamirovsky, TUT.BY </figcaption></figure>
<p>  "The increase in pensions is a logical step after the reduction of actual pensions in 2015, 2016 and partly in 2017. Although in the same period, and reduces wages real, the average real pension has decreased much faster.The target index of the average pension level is 40% of the average wage.For the moment, this indicator is much lower.Pensioners are a very vulnerable group that "There are no other sources of income, so once they had the opportunity to raise pensions, they were immediately promoted," said Katerina Bornukova </strong> </p>
<p>. In part, the deficit reduction was the result of the beginning of the pension reform – last year, fewer people retired than they did the could if the retirement age was maintained.Of course, this has only made re delay the problem, because soon these people will still retire, estimates the expert. According to her, the wage growth begun the previous year also contributed to the reduction of the deficit, which led to an increase in allocations to the FSZN </p>
<h2>  "The transition to a funded system is necessary but does not do not solve the current problems ". pensions in Belarus are far from resolved, and the need for high deductions at the Social Security Fund hampers the development of the economy. "The high tax burden in Belarus is mainly due to a significant contribution to the FSZN.In Belarus, the highest contributions to the Social Security Fund in the CIS, in particular, they are higher than in Russia and In Ukraine, the need for their payment leads to a decrease in the competitiveness of companies, and the risk of tax evasion increases.It is clear that the current deficit of the pension fund can not be covered by 39, other tax increases: they are already very high, "says Katerinina Bornukova </p>
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<p>  In Belarus, the employee pays 1% of his salary to the FSZN the fees paid by the employer ( 28% of the employee's salary for pension insurance and 6% for social insurance.) </p>
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<p>  One of the main reasons for the pension fund's deficit is the situation demographic: the number of pensioners in Bel Orussia increases and the number of people of working age decreases, estimates the expert. According to her, with the current system of pensions, when able-bodied people deduct money for the maintenance of current retirees, this constantly leads to a shortage of funds to pay pensions </p>
<p>  "The Demographic Situation On the contrary, it is necessary to move to a funded pension system, which will not only help to solve the pension problem in conditions of deterioration of the demographic situation, but will also provide a source of financing for long-term investments. "However, she said, the problem lies in the fact that the effect of the introduction of the funded system will not be immediate. results will appear for at least a decade, and the problem of the pension fund must be solved here and now. "Raising the retirement age is also not a solution. This measure softens the current problems of the FSES deficit, but gives no hope of raising the standard of living of retirees, "says the expert. </p>
<h2>  It is important to reach the level of contributions According to Katerina Bornukova solve the economic growth and the influx of people of working age in the country.According to the experience of the EU countries, the promotion of migration can create other social problems, so that these measures should be approached intelligently, attracting migrants from countries with a similar culture.That is how works Poland, which has recently attracted experts from all over the world. Ukraine and Byelorussia. "It is possible to attract a high quality workforce with high wages, a strong economy, create conditions so that specialists from other countries look with envy our workplaces, "says Katerina Bornukov </p>
<p> the industry, adds the expert. "The basic tax privilege that IT companies receive is a privilege for the FSZN, they pay contributions not from the current salary, but from the average wage, and we see that in a few years this has helped to create a lot of money. It is therefore necessary to think of introducing similar conditions for other sectors of the economy.Today, the ceiling of the contribution to the FSZN is equal to the deductions of five If the ceiling is omitted, other industries may also develop more actively.For example, you can make a ceiling of 2 average wages for the whole economy, so that the Highly productive work benefits, "said the expert." We live in a global world where everyone competes for everything, including for human resources.If more attractive conditions for Belarusian engineers are created in the neighboring country, they will be immediately attracted. If Belarus does not have favorable conditions for the place of production, it will be built in the region of Bryansk, where, in addition, social contributions are less important. Therefore, today, it is very important to reach the level of social contributions comparable to Russia, "says Katerinina Bornukova </p>
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