INESS - Institute of Economic and Social Studies - Proposals for Solving the Major Drawbacks of the Slovak Social System

In order to solve the drawbacks mentioned in INESS‘ Analysis of the Social System in Slovakia, INESS introduced the Proposal for Solving the Major Drawbacks of the Social System in Slovakia (It can be found in Slovak here).

The major suggested steps are:

Cancellation of the sickness benefits fund, guarantee insurance fund, unemployment insurance fund, employment injuries insurance fund.

Abolition of the minimum wage from the labor law.

Introduction of the asset test to determine eligibility for the social payments and improve the targeting of social benefits.

Elimination of the activation work policy.

In order to introduce more transparency into social system, we suggest to merge the contributions paid by employer with those paid by employee into one contribution rate.

To change the principles of old-age pension valorization in order to eliminate increasing deficit of the first pillar of the state pension system.

Our proposals will decrease the percentage of payroll taxes by almost 5%, and will help to eliminate the barriers in creating new jobs.

This proposal represents the very first step on the way to the social system, in which the responsibility of the individual and cohesion of the family and community play a major role in the social security of an individual. This kind of social system creates a space for more personal and thus more efficient private charity.