Khaberni - Labor Minister Khaled al-Bakkar stated that the financial cost of early retirees constitutes (61%) of the pension payroll under the umbrella of the Social Security Corporation.
Al-Bakkar added, in his speech during the Government Communication Forum held on Tuesday, to discuss the results of the eleventh actuarial study of the Social Security Corporation, which is conducted every three years pursuant to Article (18) of the Social Security Law, that the social security system is based on strong foundations that enable it to fulfill all its obligations towards subscribers and retirees, relying on subscription revenues, investment returns, and assets.
Al-Bakkar -Chairman of the Social Security Corporation's Board- explained that the rising cost of early retirement has significantly and negatively impacted the expenses of mandatory insurance (old age), in addition to disability and death insurances, noting that the number of insured persons covered by the law reaches 1,659,000 insured, while the total number of active retirees reaches 264,787 retirees.
He clarified that among these, 169,072 are early retirees, constituting about 64% of the total retirees from other types of pension payrolls, and this category alone accounts for 61% of the pension payroll bill.
The Minister of Labor confirmed the need for legislative amendments aimed at enhancing the financial sustainability of old age, early retirement, disability, and death insurance in the long term, ensuring the protection of the rights of subscribers and retirees and the continuity of the system.
Al-Bakkar emphasized that combating the phenomenon of insurance evasion in the organized sector, alongside including workers in the informal sector, represents a national priority, pointing out that the percentage of workers not covered by the Social Security Law constitutes about 22.8% of workers in the organized Jordanian labor market.
He indicated that there will be a study to improve pension salaries for subscribers receiving low salaries.
He also noted that the government is about to make a decision to suspend the enforcement of mandatory retirement for those who have completed 30 years of service at the beginning of the upcoming year.
