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The Number of Social Security Beneficiaries Rapidly Increases

Reality Macedonia

Macedonia

July 13, 2004

In the past year the number of households, who receive social security payments has increased by almost 3000. Last year in May, 61.700 households were receiving benefits, while the same month this year total of 64.832 households are on the list.

Ministry of Labour states that majority of the new beneficiaries are people who have lost their jobs. They come from the Bureau for Employment after the legal period for reimbursement of their payments expires. "After workers become redundant labor, they go to Bureau of Employment, where they receive payments for 3 to 14 months with reference to their experience and how long they worked. After this period expires, they transfer to our social security system," said Natasha Petrovska, the manager of the Social Security sector in the Ministry of Labor.

"There was a great influx of workers in Makedonska Kamenica and Probishtip area when the mines closed. We also had a big flow of unemployed workers in Veles when the local factory [of porcelain] "Porcelanka" was closed. This will also happen if "Maslodajna" - the local factory for oil, butter and margarine - in Veles closes down," explains Petrovska.

The Ministry of Labour claims that they do not know the exact data on how many new social beneficiaries have come from the Bureau of Employment. They also explain that the number of people who are employed but also apply for social security is not to be disregarded.

One part of the newly registered social security beneficiaries are employees, who are formally employed but have not received their wages for few months. In this case they submit endorsements from their employers stating this and they apply for social security payments.

The Ministry estimates that by the end of the year there will be 65.000 social security beneficiary households. "We expect the number to rise at the beginning of winter. Season work finishes then and people usually have no income," said Petrovska.

The social security payment depends on how big a family is. A family of one member receives 1700 denars monthly, family with two members receives 2200 denars and a three-member family is entitled to 2800 denars monthly. If a family has 4 members they receive 3600, but if they have four or more family members then they receive the maximum limit of 4200 denars.

Two years ago the Minister of Labour Jovan Manasievski, cleared the list from families that received social security and reduced their number for even 16.000. After this he introduced the electricity bills as part of the requirement for receiving social security, but he also increased the checking and control on the field.

Constitutional Court abolished this rule last year as well as the proposal from Ministry of Labour for cease of social security payments after few years. Households currently receive 100 per cent of the payment in the first 2 years of the benefit, which goes down to 70 per cent in the following four years, while after 6 years they are only entitled to 50 per cent. (R.F.)