The ratio of employees to the number of contributors to Social Insurance Scheme during 2002-2006

The social insurance system “Pay As You Go”, which is implemented in Albania, is characterized by a direct link of contributions paid and pension distributed. This means that as many contributors participate in the scheme, the more healthy and independent from the state budget would the scheme be. This fact will be further reflected in the higher chances for increased pension and subsidies decreased from state budget.

As a new-age population, Albania should not have a high ratio (a problematic one) beneficiary/ contributor, but elements such as unemployment, tax evasion or high rate of contributions paid  has made ​​this ratio not being at optimum kolone

^{Source: Institute of Statistic (INSTAT), Social Insurance Institute ISSH
Comments and Analysis: Open Data Albania (ODA)}

level.
*Note: data for the year 2006 for the number of contributors in the scheme is taken from the ISSH
 
To see the performance over the years of including in the scheme of this private sector, ODA has examined self-employed in private non-agricultural sector and contributors of private non-agricultural sector, including private firms and the self-employed. Despite that the number of contributors from this sector has increased, as the payment of contributions is mandatory, the discrepancy between the levels of employment reported by INSTAT and contributors according to Social Insurance Institute reflect a high evasion, which in 2005 was at the level of 33%.

This high level means that in 3 employees, 1 of them was not declared, but comparing to the level of 44% in 2002 this indicator seem to be improved. These figures bring the necessity of taking urgent measures such as increasing controls by tax offices or by decreasing the contribution rate in order to low costs for employers, which can reflect in rising of workers declared.

^{Source: Institute of Statistic (INSTAT), Social Insurance Institute ISSH
Comments and Analysis: Open Data Albania (ODA)}

All the data is presented in the dynamic table below:

^{Source: Institute of Statistic (INSTAT), Social Insurance Institute ISSH
Comments and Analysis: Open Data Albania (ODA)}