13 thousand pensioners still working. Should they be taxed the same as every other employee?

Amid the biggest crisis in the labor market, the shortage of workers around 13,000 pensioners are officially still active in the workforce.

However, they continue to be taxed the same as every other employee. Igli Cara, a DP deputy and member of the Economy Commission, has submitted an initiative to Parliament seeking to exempt pensioners who are still working from paying social security contributions.

“Official figures show that there are 13,000 working pensioners. But I assure you, the figure could be three times higher, as many of them work informally. To formalize this segment of the market, exemption from paying social security contributions would be a step in the right direction. The logic behind paying contributions is that this money will be returned to the individual in the future, but pensioners do not benefit from the money they are paying today,” Cara explained in the studio of the e-ZONE program.

Mr. Cara is also appealing for the majority to offer consensus for the approval of the initiative, arguing that it would help formalize the labor market.

“According to calculations, the total cost of this initiative reaches 18 million euros per year. The figure is not high, but in any case it is significant for the pension scheme, which still remains in deficit. However, market analyses show that the lighter fiscal policies are, the more they encourage formalization. Therefore, this cost would be compensated by the formal registration of many other pensioners currently working off the books, who would then become subject to personal income tax,” said Cara.

In Albania, besides the very low pensions that are insufficient to cover living costs, many pensioners work in family businesses, mainly those of their children, where they are considered self-employed.

“KORÇA BOOM”