
After immigration and the aging of the population, informality in the labor market is the third cause that risks leading to the collapse of the pension scheme according to the International Monetary Fund.
Non-payment of contributions risks deepening the deficit in the pension scheme to the point of being unable to be covered by the state budget, the IMF estimates.
"Albania needs today a fiscal package that fits the formalization of the political sector. It is not a question of right or left economic policies. In this type of system, with this degree of informality, the elderly risk being left without financial support," says Elisabeta Katia, accounting expert.
Tirana throughout the year and the coastal areas mainly during the summer. These are the cities with the highest rate of undeclared workers. This, according to the General Directorate of Taxes, is due to the greater concentration of businesses in the capital and informality in tourism.
"We need a risk analysis where we can monitor the controllers, otherwise we won't be able to do anything," says the expert.
The expansion of beneficiaries at faster rates than the number of contributors is forcing the government to put more money into the pension scheme. From ALL 31.2 billion this year, the budget support for the Social Insurance Institute in 2024 will increase to ALL 36.8 billion.
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