The financial deficit of Tunisia's social security funds has reached 7 billion dinars, according to Hédi Dahmane, an attorney and social security expert. This situation poses a significant threat to the system's balance and may impact public service operations. Dahmane made these remarks during a study day dedicated to social security in Tunisia, its current state, and reform prospects. He emphasized that this deficit is part of a trend that has been ongoing for several decades.
The decline in the financial situation of social security funds began in 1993, according to Dahmane. Successive governments have adopted measures that have only provided temporary solutions to improve fund liquidity for limited periods. The expert highlighted the impact of demographic changes, with the number of active contributors per retiree decreasing from 8.3 to 2.3, and expected to drop to 1.1 by 2031. This demographic shift, driven by an aging population, puts increasing pressure on social protection systems.
Dahmane noted that the government has held six ministerial councils over the past two years and four months to discuss social security reform. The latest council, held in September, confirmed the authorities' intention to reform various branches of the system. He also mentioned that the National Health Insurance Fund (CNAM) has unique financing and recovery mechanisms compared to other social security funds. Additionally, companies in the public and private sectors owe 64 million dinars in arrears to social security funds.
To address this situation, Dahmane advocates for a more profound reform of the system. He recommends revising the distribution mechanism, modernizing fund management methods, and improving recovery mechanisms. He also suggests revising the CNAM recovery mode and distinguishing it from that applied to pensions of other funds. Furthermore, Dahmane proposes introducing a social tax, inspired by foreign experiences, as the solidarity contribution has not yielded significant results.
Dahmane rejects the idea of raising the retirement age as a sufficient solution to the deficit, citing potential consequences on workforce renewal and recruitment in public and private sectors. Instead, he believes that integrating informal sector workers into the social protection system is crucial. With approximately 2.5 million workers in the informal sector, their gradual integration would broaden the contribution base and provide better social coverage to a significant part of the active population.
The social security funds face several structural challenges, including demographic aging, a decrease in contributors relative to retirees, and the weight of the informal sector. According to Dahmane, the situation can no longer be addressed solely through temporary cash measures and requires a comprehensive reform of the social protection system. The expert emphasizes that previous measures have only addressed the symptoms, rather than the root causes of the problem.
The issue of social security reform in Tunisia requires a multi-faceted approach that takes into account demographic changes, the informal sector, and the financial sustainability of the system. With a rapidly aging population and a significant informal sector, the government must develop a comprehensive strategy to address these challenges and ensure the long-term viability of the social security system.
Key points
- The deficit of Tunisia's social security funds has reached 7 billion dinars.
- The country's demographic changes, including an aging population, are putting pressure on social protection systems.
- Integrating informal sector workers into the social protection system is crucial to addressing the deficit.
