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The social insurance state budget for the public pension system is set at both revenues and expenditures of 87.327 billion lei, both for commitment credits and budget credits, the percentage allocated for the public pension system and the unemployment insurance system being 7.9 pct of the Gross Domestic Product, according to the draft social insurance budget law for 2020 published by the Ministry of Public Finance (MFP).
The gross average wage used to substantiate the social insurance budget for 2020 is 5,429 lei.
"The social insurance budget bill for 2020 ensures the distribution of the Gross Domestic Product for the social field concerning the public pension system and the unemployment insurance system. In 2020, 7.9 percent of GDP is allocated to support these two sectors," reads the explanatory memorandum of the bill.
For the year 2020, out of the total budget revenues estimated at 87.489 billion lei, 86.9 percent are to be collected from insurance contributions, 0.2 percent from non-tax revenues and 12.9 percent from subsidies from the state budget, namely the amount of 11.309 billion lei.
Of the total budget revenues, 87.327 billion lei are related to the public pension system (99.8 percent) and 162.337 million lei related to the system of occupational accident and disease insurance (0.2 percent).
The total revenues of the social insurance budget for 2020 are reduced by the amount of lei 9.378 billion related to pension Pillar II.
The funds intended for the payment of pensions from the public pension system for 2020 amount to 84.832 billion lei, respectively 7.5 percent of GDP. When establishing the necessary funds for the payment of pensions, an average monthly pension of 1,515 lei was considered.
For 2020, the total income of the unemployment insurance budget was estimated at 3.416 billion lei, of which 37.4 percent will come from the share of the labor insurance contribution intended to finance the unemployment insurance system, 36.5 percent from the labour contribution intended to finance the guarantee fund for the payment of salary claims and 26.1 percent of the amounts received from the European Union (25.6 percent) and non-tax revenues (0.5 percent).
Of the total budget revenues, about 2.158 billion lei are related to the unemployment insurance system (63.2 percent) and 1.258 billion related to the guarantee fund for the payment of salary claims (36.8 percent).
For the year 2020, through the unemployment insurance fund budget, the financing of some expenditures was provided for in the total amount of 1,912 billion lei, of which 1.9 billion lei are related to the unemployment insurance system (99.4 percent) and 11.465 million lei to the guarantee fund for the payment of salary claims (0.6 percent).
The level of expenditures to be financed in 2020 from the unemployment insurance budget was established taking into account mainly the following categories of beneficiaries and average monthly amounts: 39,500 unemployment benefit beneficiaries; 10,700 beneficiaries of unemployment benefit for graduates, 652 lei monthly unemployment benefit and 250 lei monthly unemployment benefit for graduates.
