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North Macedonia Fiscal Council proposes raising pension contributions to 20%
The Fiscal Council of North Macedonia has proposed a package of measures to address a growing deficit in the national pension system. According to Nikola Memov, Director of PIOM, the system already faces a shortage of approximately 500 million euros for pension payments.
To ensure long-term sustainability, the Council recommends a gradual increase of the contribution rate to 20%. The analysis warns that without intervention, the pension deficit could reach 6.3 percent of GDP by 2030 and peak at 6.6 percent between 2035 and 2037. The most critical period is projected to be between 2038 and 2048, when the ratio of contributors to pensioners is expected to fall below 1.3.
Key recommendations include limiting pension indexation to inflation, reducing the shadow economy, and increasing female participation in the labor market. The current instability is attributed to previous reductions in contribution rates and pension increases that exceeded legal formulas.
Entities
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The period between 2038 and 2048 is identified as the highest risk period for the pension system. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] In 2025, pension expenses are projected to grow by 19 percent, while contribution revenues grow by only 8.8 percent. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] The pension system lacks approximately 500 million euros for current pension payments. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] The Fiscal Council proposes gradually increasing the contribution rate to 20%. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] Without intervention, the pension deficit is projected to reach 6.3 percent of GDP by 2030 and peak at 6.6 percent between 2035 and 2037. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] The period between 2038 and 2048 is identified as the most critical for the pension system. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] If no action is taken, the pension deficit will reach 6.3 percent of GDP by 2030. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] Pension expenses are growing faster than contribution revenues, with a 19 percent increase projected for 2025 compared to 8.8 percent in revenue. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] The pension system faces a deficit of approximately 500 million euros. ohridsky.com · plusinfo.mk
- [● 2 SOURCES] The Council recommends limiting pension indexation to inflation only. ohridsky.com · plusinfo.mk