Social Security Funds in Tunisia Face Structural Deficit
Tunisia's social security funds are facing a structural deficit that threatens their financial balance, warned Khaled Sdiri, an expert in the social protection department at the Tunisian General Labor Union (UGTT), during an interview on Express FM. According to him, it has become essential to diversify funding sources to ensure the sustainability of these institutions.
Deficit in Retirement Regimes
Sdiri recalled that most retirement regimes, whether at the National Social Security Fund (CNSS) or the National Retirement and Social Welfare Fund (CNRPS), are experiencing a deficit. In 2023, the CNRPS recorded a deficit of 600 million dinars, despite a contribution rate of 23.7%. To achieve balance, this rate would need to be increased to 34%, a hike deemed unrealistic in the current context marked by inflation and fragile purchasing power.
Demographic Factor Impact
He also highlighted the impact of the demographic factor: the system relies on solidarity between active workers and retirees, but the ratio is now less than two contributors per beneficiary, whereas three active workers are needed to guarantee balance. However, creating the hundreds of thousands of jobs necessary to correct this imbalance remains out of reach for the state.
Need for Diversification
Given these limitations, the UGTT has been advocating for diversification of resources for several years. Khaled Sdiri cited examples already implemented, such as allocating a portion of revenue from traffic fines, technical control fees, or taxes on certain products (tobacco, games, insurance) to finance new social protection funds.
Inspiration from France
He also mentioned the example of France, where social security funding is based on a combination of contributions, generalized social contributions, and tax revenue, with a specific financing law adopted each year after consultation between the state, unions, and employers. In his view, Tunisia could draw inspiration from this model by establishing an annual budget dedicated to social protection funding, discussed with all stakeholders.
Concerted Approach Necessary
According to the union expert, only a comprehensive and concerted approach will allow for the reinforcement of social security funds' sustainability, relief for businesses, and protection of citizens' purchasing power.
