Unpaid social security liabilities exceeded the value of 20.2 billion lek (about 200 million euros) with an increase of over 9% from 2023, notes the report of the Supreme State Audit after an inspection at the Social Security Institute, of which about 18.9 billion lek (about 190 million euros) are liabilities held by businesses and the rest by budgetary enterprises.
Public entities own 6% of total insurance liabilities worth over 1.2 billion lek.
The SAI notes that despite the fact that the number of debtors in the public sector has decreased from 823 in 2023 to 724 entities in 2023, the total value of unpaid liabilities has increased significantly, expanding by about 469 million lek compared to 2023. The increase is particularly pronounced in non-budgetary institutions, in which liabilities have almost doubled.
On the other hand, in the private sector, the situation worsened even further. The number of debtor entities increased by 10,606 in 2024, bringing the total to almost 120 thousand businesses. Unpaid liabilities in the private sector increased by another 1.3 billion lek in 2024, bringing the total liabilities in this category to more than 18 billion lek.
Small businesses own almost 39% of total insurance liabilities or 7.85 billion lek.
Legal entities (large businesses) hold the main burden of debt, with 54.9% of the total, or over 11.1 billion lek.
In an official letter to the Tax Authorities in September 2024, the ISSH warned that the growing debt directly affects individuals' benefits. Because many employers have not paid their contributions, a significant number of employees cannot receive services from the social security scheme, as the payrolls are unverified.
The SAI suggested stronger cooperation between the GDT and the ISSH, to guarantee the regular administration of contributions and the reduction of the stock of unpaid liabilities, which continues to be progressive every quarter.
In total, unpaid social security obligations for 2024 include 17.18 billion lek principal, 2.08 billion lek fines and 968 million lek interest, bringing the total value of the debt to 20.22 billion lek.
The SAI found that the stock of outstanding liabilities increased by about 9.6% compared to a year ago. This performance indicates a decline in business discipline in paying employee insurance, as well as the deterioration of the financial situation of businesses and weaknesses in the management of liabilities in the public sector.
In 2023, the total liabilities were around 18.46 billion lek, while in 2024 they exceeded 20 billion lek, further deepening the pressure on the social security system and creating direct consequences for employees whose contributions are not recognized due to non-repayment by employers./Monitor
