Experts from the Tunisian General Labor Union have raised concerns about the escalating financial deficits in the country's social funds. They warn that the situation has reached alarming levels, posing a risk to the continuity of public services and the rights of social security beneficiaries. The warning was issued during a workshop organized by the union's social protection and informal economy department.
The financial deficits in the three main social funds - the National Social Security Fund, the National Retirement and Social Protection Fund, and the National Health Insurance Fund - have reached approximately 7 billion dinars. According to Hadi Dahman, a social security expert at the union, the deficits have been accumulating since 1993. He attributes the worsening situation to demographic changes, including a declining ratio of active contributors to pensioners.
The ratio of active workers to pensioners has decreased from 8.3 to 2.3, and is expected to drop further to 1.1 by 2031. Dahman argues that this decline, coupled with an aging population and increased life expectancy, will make it more challenging to finance pensions. He also criticizes the lack of diversification in funding sources for the social funds, which has exacerbated the problem.
Dahman expresses frustration with the delay in implementing reforms, citing six ministerial councils held over the past two and a half years to discuss social security reform. Despite promises of readiness, no concrete actions have been taken. He emphasizes the need for urgent measures to address the deficits and ensure the sustainability of social services.
The National Health Insurance Fund is particularly affected by the financial situation, as it relies on contributions from the other two funds. Dahman explains that the deficits in these funds have led to delayed payments to healthcare providers, causing tensions in the relationships between the fund and service providers.
Boulebaba Salemi, assistant general secretary of the Tunisian General Labor Union, also warns of the dangers of growing deficits in the social funds. He criticizes the temporary solutions adopted by successive governments, citing the introduction of a solidarity contribution in 2018 and the increase in retirement age in the public sector. These measures, he argues, have not yielded the desired results.
The experts propose several solutions, including the separation of contribution collection for the National Health Insurance Fund and exploring new funding sources, such as a new social tax. They also suggest integrating the 2.5 million Tunisians working in the informal sector into the social security system, which could help alleviate the financial burden on the funds.
Key points
- The financial deficits in Tunisia's social funds have reached 7 billion dinars.
- The situation threatens the continuity of public services and citizens' rights.
- Experts propose reforms, including new funding sources and integration of informal sector workers.
