BIA: Some 93% of businesses demand that state officials pay personal social security contributions

Some 93% of businesses demand that state officials pay personal social security contributions, showed  results from a survey of the Bulgarian Industrial Association (BIA) conducted among employers, which was announced yesterday. Merely 6% of the respondents were against this measure, but just 1% found it difficult to answer the question.

"The survey clearly confirms the consistency of BIA’s proposal regarding the pension reform, according to  which all insured persons should participate in the social security system on equal footing," explained experts from the organization.

The survey was carried out in relation to the package of measures aimed at changes in the pension system, submitted by BIA on August 15. Some of the proposals concerned the social security contributions of state officials, the subjected to early retirement employees from the Ministry of Interior, the Ministry of Defence and the Judiciary. Currently, these are being covered fully by the state budget, unlike the situation in the private sector where the amounts due are shared between employers and employees in a 60 to 40 ratio.

Experts from the employers' organization are offering the social security contributions of civil servants to be paid not by the state budget but by the budgets of the respective administrations. "This will have a disciplinary effect on them and finally it will be much clearer how much the administrations cost to taxpayers” explained BIA’s experts. They further insisted that the amounts should be remitted to the National Social Security Institute (NSSI) monthly, as private employers do. "Otherwise, the administrations should be charged with the same penalties all employers are obliged to pay by law," were clear the specialists.

Currently, the State is submitting the due social security contributions, including the personal contributions to the NSSI, via quarterly transfers.

According to BIA, the budget expenditures will not increase as a result of the measures proposed. Moreover, the state employees will maintain their income unchanged, the departments will be disciplined and their real costs will be brought to light. The experts believe that NSSI will also receive a regular income from the personal social security contributions of the civil servants and the state subsidy to the budget of the Institute will be reduced substantially.

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