Moldova warns of pension risks amid 3.5 billion lei deficit

In Moldova, the Minister of Labor and Social Protection, Natalia Plugaru, has warned of potential risks to pension payments due to a 3.5 billion lei deficit in the state social insurance budget. While the deficit is currently being covered by the state budget, Plugaru noted that the deficit has been decreasing annually due to efforts to reduce undeclared work and regulate seasonal labor.

Plugaru emphasized the need for a broader base of formal taxpayers to ensure the long-term sustainability of the system. Regarding future pension indexation, she stated it is currently too early to announce specific percentages as clear forecasts are not yet available.