After two years, will reduce the burden of the employer in the structure of compulsory social insurance

BAKU/19.09.13/TURAN : After 2015, the burden of the employer in the structure of compulsory social insurance can be reduced.

As told Turan in the State Social Protection Fund (SSPF), an initiative of changes in the structure of the contribution due for compulsory social insurance exercised at the beginning of the year , the documents submitted to the Cabinet of Ministers.

Today the rate of social security contributions is 25 %, of which 22 % is paid by the employer on the wage bill, and 3% is deducted from the salary of the employee.

Under the changes, expected is a three-tier system of charging rates. For example, if the salary of the employee is below the level of three times the minimum wage (105 x 3 = 315 manat), the entire amount will be paid by a private employer. This rule will not apply to employees of budget organizations. If the employee's salary will be up to 3 million manat , in which case the employer will pay for social insurance 18% on wages in the enterprise (company) , from the salary of the employee will be held 7%.

If the employee's salary will exceed 3 million manat , the ratio of contributions for social insurance will be as follows : the employer - 15%, employee - 10%.

The concept of reforming the pension system in Azerbaijan will include four key points.

The first point is the abolition of the concept of "basic pension" system change pension indexation based on the level of inflation for the previous year (currently, the basic pension is 100 manat and is one of the elements to determine the total amount of pension indexation is currently produced only the insurance part of pensions).

The second is the differentiation of financial flows. Currently, the budget process SSPF is as follows: first defined expenses for the year , and then determined by an independent income fund . The difference is covered by transfers from the state budget. The draft provides that the obligations and liabilities of the state pension system will be separated.

Estimated fund, it will result to the fact that in 3-4 years after the application of such a system, SSPF will have a certain budget surplus, which means it will be possible to use , for example , the market for securities, other elements of the investment.

The third point is the establishment of minimum amounts of deductions for social insurance .

The fourth point is the creation of conditions for voluntary payments to the system when the state fund , along with private pension funds will be able to receive funds from the public for the issue of pensions for pre-agreed terms with the fund . - 17D-