Pension system in Macedonia
(Note: The is a google translation of our MK version on which we are currently working. Please be patient untill we proof-check it.)
The pension system in the Republic of Macedonia is regulated by the Law on Pension and Disability Insurance.
Pension and disability insurance rights are:
- right on old-age pension;
- right on disability pension;
- right on family pension;
- right on lowest amount on
- right on professional rehabilitation and rights on appropriate money fees;
- right on money compensation for physically
MK-MOD The tax and fee model uses this law to simulate pensions in Macedonia. The model models the rights 1) to 4).
- Old-age pension
The insured person acquires the right to old age pension when he turns 64 years of age (man), ie 62 years of age (woman) and at least 15 years of pensionable service.
The old age pension is determined by the monthly average of the wages that the insured person earned during the total duration of the insurance, and as early as January 1, 1970.In addition to the monthly average of wages, the determination of the pension base is also taken into consideration the compensation of salaries, ie the unemployment benefit.
The old age pension is determined by the pension base in percentages determined depending on the length of the retirement age, which for each year is 0.75% (man) and 0.86% (woman) from the pension base, and for a pension period shorter than one year and at least six months equals 0.375% (man), or 0.43% (woman) of the pension base.
The lowest amount of the old-age pension from the mandatory pension and disability insurance on the basis of generational solidarity and the pension obtained from the mandatory fully funded pension insurance cannot be less than the determined average salary of all employees in the Republic of Macedonia in 2002, for:
- the beneficiaries who have received the pension with a pensionable age of over 35 years (man),ie over 30 years (woman), in the amount of 41%,
- the beneficiaries who have earned the pension with a pension experience over 25 years (man),ie over 20 years (woman), in the amount of 38% and
- the beneficiaries who made the pension with a pension period of up to 25 years (man), respectivelyup to 20 years (woman), in the amount of 35%.
- Disability pension
Disability exists when in the insured, due to a change in the health condition that cannot be removed by treatment or medical rehabilitation, the working ability is permanently reduced by more than half compared to a physically and mentally healthy insured with the same or similar education and ability.
The disability is determined according to the following categories:
- category I – if the insured’s working ability is reduced by more than80% there permanently loss on working ability (general incompetence for work)
- category II – if the insured’s working ability is reduced by morefrom 50%, and up to 80% (occupational inability to work).
If the insured’s working ability is reduced by 50% compared to a physically and psychologically healthy insured with the same or similar education and ability and cannot perform full-time work, he may work part-time or be allocated on other appropriate work in accordance with the regulations related to the labor relations and the collective agreement.
Disability can occur due to illness, injury from work, injury at work or occupational diseases.
The insured person with general incapacity for work, as well as the insured person with the residual working ability who, due to the attainment of certain years of his life, cannot be qualified for performing other appropriate work with a professional rehabilitation, is entitled to a disability pension if he meets the following conditions:
- disability is caused by an injury at work or an occupational disease – without
- Given the length of retirement or
- the disability is caused by an injury out of work or with a disease conditioned prior tothe occurrence of disability, that is, on the day of the termination of the insurance after the disabled person is older than 45 years of age and has at least 12 years of age years of retirement or
- disability is caused by an injury out of work or illness, ifthe insured has completed over 30 to 37 years of age, should have a retirement period which covers 30% of the service life, counting the working life of full years, a the insured has completed over 37 to 45 years of age, should have a retirement period which covers 40% of the service life, counting the working life of full years.
An insurer whose disability arose prior to attaining 30 years of age as a result of an injury outside the work or illness acquires the right to invalidity pension if on the day of occurrence of the disability he had the capacity of an insured person and if:
- the disability occurred until the age of 20, if he had at least sixmonths of insurance;
- disability was created by the age of 25 if he had the leastnine months of insurance and
- the disability occurred until the age of 30, if he had at least 12 years of agemonths of insurance.
Disability pension in case of disability caused by a work injury or occupational illness is determined in the amount of 80% of the pension base for a pension realized by 2015, and the disability pension realized after 2015 is determined in percentages given in the Law on Pension and Disability Insurance.
Family members can make family members:
- children (born in a marriage or out of wedlock or adopted, the females who have themhe sustained the insured, his grandchildren and other orphans who supported them insured) and
- parents (father and mother, stepfather and stepmother) and the adoptive parent, who sustained them
A family pension may also be exercised by a spouse of divorced marriage if a court decision entitles him to the maintenance.
It is considered that the grandchildren, the other orphans and the parents, have served the insured, if during that period:
- were not in employment or did not earn a salary on another basis;
- were not users of old age, disability or survivor pension;
- the cadastre income from the agricultural activity per member of the narrower, ie
- the wider family does not account for annually more than 25% of the average salary earnedin the Republic in the previous year and
- all other income per family member was not more than 25% per monthaverage salary earned in the Republic in the previous year.
Family members acquire the right to a family pension if the deceased insured person:
- has completed at least five years of insurance or at least ten yearsretirement or
- Has fulfilled the conditions for old age or disability pension or
- was a beneficiary of old-age or disability pension.
If the death of the insured occurred as a consequence of a work injury or an occupational illness, family members acquire the right to a family pension, regardless of the length of the pensioner’s length of service.
Widow / widower is entitled to a family pension if:
- until the death of the insured person, on which basis this right belongs to him, the person has turned 50years of life;
- until the death of the spouse was incapable of work or such incapacityoccurred within one year from the date of death of the spouse;
- after the death of the spouse have remained one or more children who are entitled tofamily pension after that spouse, and the widow / widower performs the parental duties towards those children or
- until the death of the spouse was 45 years old when he turned 50life – or if in those years it became incapable of work.
A widower who during the exercise of the right to perform parental duty becomes unable to work or has turned 50 years old permanently reserves the right to a family pension.
The widower / widower who has lost the right to a family pension on the basis of performing parental duty after completing 45 years of age, acquires the right to a family pension when he turns 50 years of age.
The child acquires, ie uses the right to a family pension:
- up to 15 years of age, and if he is at school until he is 26 years of ageWhether
- if before the death of the insured person, that is, the beneficiary of the pension he sustainedwas incapable of work or such incapacity occurred within one year of the day of death of the insured person, ie the beneficiary of a pension.
If the child’s schooling is interrupted due to illness, the right to a family pension can be acquired, that is, it belongs during the sick leave until the age of 26, as well as over those years, but at most for as long as it is lost from regular schooling because of illness.
The child who has stopped schooling for the voluntary serving of the military term is paid for the family pension during that time.
If, during the exercise of the right to family pension, the child becomes unable to work permanently reserves the right to a family pension.
A child with disabilities is entitled to a family pension after the termination of employment.
The parent, whom the insured person, ie the beneficiary of a pension, sustains until his / her death, acquires the right to a family pension, if:
- until the death of the insured, ie the beneficiary of the pension, has reached 55 yearslife and
- is younger than 55 years and if up to the death of the insured, that is, the user of thepension was incapable of work.
The amount of the family pension is determined as a percentage of the basis that constitutes the old age or disability pension, 70% for one family member, and for each next member another 10%, but not more than 100% of the base.
For children without two parents, the lump-sum pension earned by one parent increases for a part of the pension that he used or would use the other parent for:
- two children,20%
- three children,30%
- four or more children,40%.
When the family pension is used by three or more family members, the amount of the family pension can not be less than 40% of the pension base of the deceased insured.
As a basis for determining a family a pension from an insured person who has a retirement period of less than 15 years and does not fulfill the disability pension, the old-age pension calculated for a 15-year retirement pension is taken.