Unions denounce proposed rise in social insurance contribution

The National Confederation of Unions of Moldova (CNSM) considers that the proposed rise in the individual social insurance contribution by one percentage point will add to the burden on salary-earners, estimating that the measure will reduce their income by over 250 million lei, Info-Prim Neo reports. CNSM president Oleg Budza told a news conference on Wednesday that the CNSM strongly disapproved of the Government's intention to increase contributions paid by employees from 6 to 7 percent by allowing employers a one percentage point reduction. “We won't allow this rise to fall on the shoulders of employees, especially since these contributions in Moldova are already twice higher than in some CIS countries”, stated Budza. Oleg Budza said that amid a rise in prices and tariffs the measure would further impact on the employees' incomes, and in particular on the one-third of employees whose salaries don't even rise up to the minimum subsistence level. The CNSM says the Government has breached earlier understandings reached with the social partners, urging Parliament and the Government to reverse the proposal, or face protests, with the first being scheduled for Friday outside the Republic Palace.