Although the article in La Prensa is titled "More contribute to Social Security" the administrator of the Caja Social is concerned that the recent wage increases will cause an increase in unemployment and therefore a deterioration of funding for the public fund. With good reason! IMO
Machine translated from La Prensa
The Social Security Fund (CSS) expected to join about 13 thousand new contributors this year to reach a total of one million people who pay workers share.
The people listed on the social security institution has experienced a rise from a year ago. In 2008 there were 934 thousand 581 contributors, and the figure is estimated at 987 thousand at close of 2009.
The Executive Director of Economic Benefits and Investment Technical Unit of the CSS, Cesar Garcia, said he looks forward to further boosting the index, reflecting formal new jobs, due to good prospects in such activities as transportation, telecommunications market, the supply of electricity, gas, water and construction.
Highlights of the system
One factor that has impacted the number of contributors is the inclusion of dependents under age 35 from 2007, something that would have increased by 10% the income of the Fund in 2009.
The entity has estimated the number of contributors had been higher, but factors such as unemployment and informal employment have reduced the contributions of the insured.
A Guillermo Puga, chairman of the board of the CSS, is concerned about possible layoffs in the private sector following the increase in the minimum wage and an end to public sector jobs, which is reflected in a decrease in income entity.
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