Social security deficit is now 3.5 billion lei
The Republic of Moldova faces a risk to its pension payments, which could put further pressure on the state budget if the social security system's deficit is not reduced. According to Natalia Plugaru, the Minister of Labor and Social Protection, the social security budget deficit for this year is 3.5 billion lei, a sum that is being covered by the state budget.
The authorities have made strides in reducing the deficit, partly by combating undeclared work and extending social security contributions to specific categories of workers.
"This year, the deficit in the social insurance fund is 3.5 billion and is being covered by the state budget. The positive news is that this deficit has been decreasing year after year. Why is this happening, and what does it mean? It means we are effectively maintaining the level of contributions to the social insurance budget," stated Natalia Plugaru during the "La 360 de grade" program on Radio Moldova.
According to the minister, the formalization of employment is crucial, as officially employed individuals contribute to the social insurance budget and become eligible for social benefits.
"We have identified a significant amount of undeclared work through the Labor Inspectorate. We have formalized many workers by putting them on official employment contracts. Additionally, we have regulated day labor, ensuring that day laborers also contribute to the insurance budget; as a result, the deficit is shrinking," the minister explained.
However, the deficit has not been completely eliminated and continues to be covered by state funds.
When asked whether the system could lack sufficient resources to pay pensions in the future, Natalia Plugaru acknowledged the risk if the deficit is not consistently reduced. "That possibility exists, especially if we do not continue to prevent this deficit from growing. In other words, we must remain vigilant when considering exemptions from social security contributions for certain categories or making other decisions. We need to ensure that people remain officially employed—only then will we be able to maintain the capacity to pay pensions," stated Natalia Plugaru.
1.2 contributors per pensioner
The pension system's financing is closely tied to the ratio of contributors to pensioners. Data previously presented in Parliament indicate that in the Republic of Moldova, there are approximately 1.2 contributors per pensioner. In contrast, many European countries maintain a ratio of about 4 to 5 contributors per pensioner.
This situation is exacerbated by factors such as an aging population, labor migration, and the prevalence of undeclared work. According to Parliament's data, the number of insured individuals is expected to reach about 842,000 by 2025, an increase of about 15,000 from 2024.
Furthermore, the State Labor Inspectorate has reported a dramatic rise in the detection of undeclared work, increasing from roughly 80 cases in 2020 to around 8,000 in 2025.
