Minister of Finance B.Choijilsuren submitted draft law on the state budget framework for 2017-2018. The State Great Khural to discuss the submitted law tomorrow.
According to the draft law, social insurance contributions paid by both employee and employer will be increased by five points in order to reduce pension fund deficits.
Expenditure of pension insurance fund was accounted 4.1 percent of GDP in 2011 and increased to 5.5 percent in 2016. Therefore, the Government plans to change the retirement age and contribution rate in accordance with the Mongolia`s demographic composition.
The Government could not finance the pension fund deficits. Therefore, Ministry of Finance made preliminary estimate to rise the current contributions rate by 10-12 points.
Thus, 9.5 percent of contributions will set for both employer and employee while it will rise by one percent in 2017, 2018 and 0.5 point in 2019.
Minister of Finance B.Choijilsuren submitted draft law on the state budget framework for 2017-2018. The State Great Khural to discuss the submitted law tomorrow.
According to the draft law, social insurance contributions paid by both employee and employer will be increased by five points in order to reduce pension fund deficits.
Expenditure of pension insurance fund was accounted 4.1 percent of GDP in 2011 and increased to 5.5 percent in 2016. Therefore, the Government plans to change the retirement age and contribution rate in accordance with the Mongolia`s demographic composition.
The Government could not finance the pension fund deficits. Therefore, Ministry of Finance made preliminary estimate to rise the current contributions rate by 10-12 points.
Thus, 9.5 percent of contributions will set for both employer and employee while it will rise by one percent in 2017, 2018 and 0.5 point in 2019.