LAW ON RETIREMENT AND
DISABILITY
INSURANCE
of the Republic of Macedonia
Promulgated on
27 December, 1993
Skopje
1. INTRODUCTORY PROVISIONS
Article I
This Law shall regulate
mandatory pension and invalid insurance of employees and other physical persons
engaged in work, and special requirements by which particular insured
categories shall fulfill their pension and invalid insurance rights.
Article 2
Pension and invalid
insurance of individuals whose insurance is not mandatory according to this
Law, and the insurance of a larger portion of pension and invalid rights of
individuals whose insurance is mandatory
according to this Law, may be certified as voluntary insurance in
compliance
with this Law.
Article 3
Through mandatory pension and
invalid insurance based on employment and according to the principle of social
equity, the ensuing rights shall be fulfilled in cases of old age, reduction
and loss of working ability, death and physical injury.
Article 4
Pension and invalid insurance
rights are acquired depending on the length and amount of funds invested in
pension and invalid insurance under the conditions set forth in this Law.
Article
5
Rights incurred from pension
and invalid insurance shall entail:
1) The right to old age pension;
2) The fight to disability pension;
2
3) The
right to reassignment of employment; the right to corresponding employment- the
right to vocational training or improvement of skills; and the right to
appropriate money
allowances;
4) The right to family pension;
5) The right to money allowance for physical
injury; and
6) The right to the lowest pension level.
Article 6
Rights acquired through
pension and invalid insurance are inalienable, personal and material rights,
that can not be transferred to other individuals.
Rights acquired through
pension and invalid insurance can not become obsolete with the exception of
overdue and unpaid pension amounts and other money receipts in instances
defined by this Law.
The use of pension and
invalid insurance rights acquired in compliance with this Law may terminate or
be restricted only in instances and under conditions designated in this Law.
Article 7
Insured parties and
employers shall provide the required funds for the fulfillment of rights on pension
and invalid insurance.
The State shall provide
funds for pension and invalid insurance in instances and under conditions
determined in this Law.
Funds required for the
fulfillment of pension and invalid insurance rights shall be obtained by
insured parties as funds for personal consumption.
A.rticle 8
Funds for pension and
invalid insurance and ensuing rights shall be fulfilled and effected by the
Pension and Invalid Insurance Fund of Macedonia (hereinafter: Fund)
The status of the fund is
that of a legal entity.
The head office of the Fund
is located in Skopje.
3
Article 9
The operation of the Fund
shall be of public interest.
Article I 0
Fulfillment of pension and
invalid insurance rights shall necessitate a two-sided procedure in the Fund,
i.e., with the employer and with the legal protection of rights.
11.
INSURED PARTIES
Article
I I
Insured parties under
mandatory pension and invalid insurance are:
1) Employees of enterprises and other legal
entities engaged in
business activities,
institutions and other legal entities
employed in public services,
in state organs, units of the local self-government and in
domestic
and foreign legal
entities (hereinafter:
employer)-,
2) Individuals employed in the armed forces of
the Republic of Macedonia (soldiers under contract, junior officers, officers
and civilians in the Army service);
3) Elected and appointed holders of public and
other functions receiving either a salary for that function or other
compensation for the performance of that function;
4) Citizens of the Republic of Macedonia
employed by foreign and international bodies, organizations and institutions,
foreign diplomatic and consular n-tissions or in
4
the personal service of
foreign diplomatic and consular rnissions on the territory of the Republic of
Macedonia, unless otherwise designated by an international agreement;
5) Citizens of the Republic of Macedonia
employed abroad if they have not been insured during their employment with the
foreign insurer;
6) Citizens of the Republic of Macedonia
employed by foreign employers in countries in which they are mandatorily
insured, but in which pension and invalid rights determined in this Law can not
be fulfilled nor utilized outside that particular
country,
7) Physical persons performing an activity;
8) Private farmers - tax payers of income on
agricultural activities who
are engaged solely in an
agricultural profession;
9) Unemployed individuals receiving money
allowances;
10) Disabled workers waiting on vocational
training, improvement of skills, on reassignment of employment or corresponding
employment;
I 1) Self-supporting artists who have acquired such status in
accordance with the standards, procedures and respective act assigned by the
Minister of Culture- and 12) Sportsmen, who in compliance with the standards of
the Union of
Sport Associations of the
Republic of Macedonia, have acquired the status of leading sportsmen-amateurs
according to this Law, unless otherwise insured.
Article 12
5
Employees specified under
article I 1, paragraph 1, items I and 3 of this Law appointed to work abroad
shall be subject to mandatory insurance unless they have been insured in
accordance with the regulations of the foreign country during the period of
employment, or unless otherwise resolved through an international agreement.
Citizens of the Republic of
Macedonia who are employed by employers operating aborad shall be subject to
mandatory insurance.
Article 13
Foreign nationals and
individuals without citizenship on the territory of Macedonia shall be subject
to mandatory insurance in the following instances:
1) When provided with a job by an employer;
2) When employed by foreign nationals or
foreign legal entities unless otherwise designated by an international agreement-,
and
3) When employed by international organizations
and institutions, and foreign diplomatic and consular rnissions, unless
insurance has been stipulated by an international agreement.
Article 14
Mandatory pension and
invalid insurance based on disability and physical impairment caused by injury
at work or occupational illness shall be provided for:
1) Pupils and students in organizations of
vocationally directed education engaged in practical work;
2) Individuals serving sentences in prisons, juvenile
prisons and in juvenile reformatory schools during the period of regular work
while serving the sentence-7
3) Members of youth cooperatives during the
period of work;
4) Health workers with higher education
acquiring working experience for specialist examinations; and
6
5) Unemployed
individuals during professional training, vocational retraining and improvement
of skills.
The provisions under
paragraph I item I of this article, shall also apply to citizens of the
Republic of Macedonia, who in compliance with the regulations in force, have
been sent abroad for education.
The provisions under
paragraph I item I of this article, shall also apply to foreign nationals
receiving education in the Republic of Macedonia under condition that the same
treatment is provided for citizens of the Republic of Macedonia in the
respective foreign country unless otherwise determined by an international
agreement.
Article 15
Mandatory pension and
invalid insurance shall be provided based on disability and physical impairment
caused by injuries which have occurred during participation in:
1) Actions of rescue or
protection against natural disasters and accidents;
2) Organized youth and other types of working
campaigns;
3) Training by request of the defense authorities;
4) Providing assistance to police authorities
in fulfilling
their official duties;
5) Cultural and artistic manifestations and
contests organized by cultural and other types of associations; and
6) Sport and technical tournaments organized by
sports and other types of associations.
Article 16
A general act of the Fund
shall regulate the procedure whereby entities specifies in articles 14 and 15
are to fulfill pension and invalid insurance rights.
7
111. ACQURING AND DETE G RIGHTS
1. Old Age Pension
Article 17
Insured parties shall
acquire the right to old age pension having turned either 63 years of age (men)
or 60 years of age (women), and a minimum of 20 years working experience.
During the transitional
period from January 1, 1994 till December 31, 1998 (men) and December 31, 2002
(women), the age limit for acquiring old age pension shall increase gradually
as follows:
Year Men Women
01.01.1994 till 31.12.1994 60,5 55,5
01.01.1995 till 31.12.1995 61,0 56,0
01.01.1996 till 31.12.1996 61,5 56,5
01.01.1997 till 31.12.1997 62,0 57,0
01.01.1998 till 31.12.1998 62,5 57,5
01.01.1999 till 31.12.1999 63,0 58,0
01.01.2000 till 31.12.2000 58,5
01.01.2001 till 31.12.2001 59,0
01.01.2002 till 31.12.2002 59,5
01.01.2003 till 31.12.2003 60,0
Insured parties who have not
completed 20 years of working experience shall acquire the right to old age
pension having turned 65 years of age (men) and 63 years of age (women), and
with a minimum of 15 years insurance.
During the transitional
period from January 1, 1994 till December 31, 1998 the age limit for women
shall increase gradually as follows:
8
Year Women
01.01.1994 till 31.12.1994 60,5
01.01.1995 till 31.12.1995 61,0
01.01.1996 till 31.12.1996 61,5
01.01.1997 till 31.12.1997 62,0
01.01.1998 till 31.12.1998 62,5
01.01.1999 till 31.12.1999 63,0
Insured parties shall
acquire the right to old age pension having completed a working period of 40
years (men) and 35 years (women), regardless of their age.
Reduction of Age Limit
Article 18
The age limit for acquiring
the right to old age pension shall be reduced for insured parties whose period
of insurance has increased depending on the level of the expanded work period
in the scope of one year.
1) For every seven years of service, 12 months of effective
work shall be estimated as 13 months of work for insurance;
2) For every six years of
service, 12 months of effective work shall be estimated as 14 months of work
for insurance;
3) For every five years of
service, 12 months of effective work shall be estimated as 15 months of work
for insurance;
4) For every four years of
service, 12 months of effective
work shall be estimated as
16 months of work for insurance;
5) For every three years and
six months of service, 12 months of effective work shall be estimated as 17
months of work for insurance;
9
6) For every three
years of service, 12 months effective work shall be estimated as 18 months of
work for insurance-,
Pension
Base
Article 19
Old age pension is
determined from the average monthly salary earned by the insured party during
the entire period of insurance starting from January 1, 1970 (hereinafter:
pension base).
Old age pension for insured
parties specified in article I I item 2 shall be determined from the pension
base, i.e., from the average monthly salary earned by the insured party during
the entire period of insurance starting from April 1, 1992 earliest.
The calendar year in which
the insured party earned a salary or compensation for a minimum of six months
insurance shall be used to determine the pension base.
With the exception of
paragraph 3 of this article, the salary or compensation earned in the year in
which the insured party acquired the right to old age pension shall not be used
to determine the pension base.
Article 20
The pension base shall be
determined according to the base defined in the general act of the Fund for
insured parties and individuals who have not earned salaries or compensations
after January 1, 1970.
Article 21
Salaries, money allowances
and insurance basis, which the insured party earned in accordance with the
general act of the employer in conformity with the collective agreement and the
Law, shall be used to determine the pension base.
Article 22
10
The average monthly salary earned by the insured
party during full working hours shall be used to determine the pension base.
Salaries earned for work
exceeding or under full working hours shall be computed with the average monthly
amount corresponding to the salary for full working hours.
The salary of insured
parties working shorter hours and simultaneously for more than one employer
during the calendar year shall be computed by adding the total earned salaries
and the working hours spent with all employers as full work time.
Salaries earned for work
exceeding the full working hours shall be used to determine the pension base
under condition that such work had been performed in cases designated in the
regulations on labor relations.
Article 23
When determining the pension
base, the total salary earned through full time work or work longer or shorter
than the full working hours during one year, shall be deduced to the average
monthly amount which corresponds to the salary for full working hours.
The amount that corresponds
to the full time salary specified in paragraph I of this article shall be
computed in such a way that the total amount of estimated salaries used to
determine the pension base and earned by the insured party during one year is
divided by the number of full time, shorter and longer hours. The received amount per hour is multiplied
by the average number of full time hours per month in the period in which the
salary was earned. The received amount
shall be used to determine the pension base.
Article 24
When determining the pension
base for the period in which insured parties received salary compensation
according to the regulations on heath insurance, the average salary amount
shall be used to determine the pension base according to the salary earned in
the calendar year prior to the year in which the temporary impediment occurred,
computed with the valorization rate assigned for that respective year.
If insured parties did not
earn a salary in the previous year, the average salary earned in the last year
of insurance prior to the occurrence of temporary impediment, shall be used as
a salary to determine the pension base computed with the valorization rate
assigned for that respective year.
Article 25
When determining the pension
base for unemployed workers receiving money allowances, for disabled workers
waiting on vocational retraining, improvement of skills, reassignment of
employment or corresponding employment, the base shall be used to determine the
money
allowance.
The basis used to determine
the money allowance is valorized with the coefficient that valorizes the
salaries which are used to determine the base.
Article 26
When determining the pension
base for disabled workers receiving money allowances for reduced working hours
or money allowances for small salaries, in addition to receiving a salary,
money allowances shall also be received that are to be computed with the
valorization rate assigned for the year in which the allowance was earned.
Article 27
When determining the pension
base for insured parties specified in article I I paragraph I item 3 of this
Law, the salary or compensation paid for the performance of that function shall
be used as a base for payment of pension and invalid insurance.
Article 28
The salary and insurance
base used for payment of pension and invalid insurance contributions shall be
used when determining the pension base of insured parties specified in
article
12 of this Law.
Article 29
The insurance base used for
payment of pension and invalid insurance contributions shall be used when
determining the pension base of insured parties specified in article I I
paragraph I items 4, 5 and 6 and article 13 of this Law.
12
Article 30
The pension base for workers
hired by employers shall be determined from the salaries earned in accordance
with the agreement for employment.
The pension base for private
farmers shall be determined from the insurance base.
The pension base for
physical persons perfo@ng an activity, self-sporting artists and leading
sportsmen-amateurs, shall be determined from the base used for computation and
payment of contributions for pension and invalid insurance.
Article 3 1
Compensation earned on the
basis of innovation, rationalization and other types of creativity at work that
are in compliance with the general act of the employer and in conformity with
the collective agreement and the Law, shall be used to determine the pension
base if pension and invalid insurance contributions have been paid.
When determining the pension
base, the compensation specified in paragraph I of this article shall be
evaluated for the year in which the compensation was paid.
A.rticle 32
Salafies from previous years
which serve to determine the pension base are valofized by the rates computed
on the basis of the salaries of all employees on the territory of the Republic
of Macedonia.
The valorization of salaries
from previous years, which serve to determine pensions, shall be estimated according
to the average salaries in the last calendar year prior to the year in which
the insured party acquired the fight to pension.
The valorization rates on
salaries from previous years shall be determined every year identically for all
wages based on statistical data on the incomes of all employees on the
territory of the Republic of Macedonia.
The valorization rates shall
be assigned by the Fund through a general act.
Old Age Pension Levels
13
Article 33
Old age pension shall be
determined according to the pension base in percentages depending on the length
of the years of service:
Years of Service Men % Women %
15 years 35 40
15 years and 6 months 35.9 41.3
16 years 36.8 42.6
16 years and 6 months 37.7 43.9
17 years 38.6 45.2
17 years and 6 months 39.5 46.5
18 years 40.4 47.8
18 years and 6 months 41.3 49.1
19 years 42.2 50.4
19 years and 6 months 43.1 51.7
20 years 44.0 53.0
20 years and 6 months 44.9 53.9
21 years 45.8 54.8
21 years and 6 months 46.7 55.7
22 years 47.6 56.6
22 years and 6 months 48.5 57.5
23 years 49.4 58.4
23 years and 6 months 50.3 59.3
24 years 51.2 60.2
24 years and 6 months 52.1 61.1
25 years 53.0 62.0
25 years and 6 months 53.9 62.9
26 years 54.8 63.8
26 years and 6 months 55.7 64.7
14
27 years 56.6 65.6
27 years and 6 months 57.5 66.5
28 years 58.4 67.4
28 years and 6 months 59.3 68.3
29 years 60.2 69.2
29 years and 6 months 61.1 70.1
30 years 62.0 71.0
30 years and 6 months 62.9 71.9
3 1 years 63.8 72.8
31 years and 6 months 64.7 73.7
32 years 65.6 74.6
32 years and 6 months 66.5 75.5
33 years 67.4 76.4
33 years and 6 months 68.3 77.3
34 years 69.2 78.2
34 years and 6 months 70.1 79.1
35 years 71.0 80.0
35 years and 6 months 71.9
36 years 72.8
36 years and 6 months 73.7
37 years 74.6
37 years and 6 months 75.5
38 years 76.4
38 years and 6 months 77.3
39 years 78.2
39 years and 6 months 79.1
40 years 80.0
15
The level of old age pension
may not exceed 80% of the pension base
Lowest Old Age Pension Level
Article 34
Insured parties who meet the
requirements for acquiring old age pension rights are entitled to the lowest
level of old age pension.
The lowest level of old age
pension shall be assigned by the Fund through a general act form the average
salary earned in the Republic of Macedonia in the previous year as follows:
- A minimum of 60% for pension beneficiaries
who have completed 3 5 years of service (men) and over 30 years of service
(women).
- A minimum of 55% for pension beneficiaries
who have completed 25 years of service (men) and over 20 years of service
(women) and
- A minimum of 50% for pension beneficiaries
who have completed up to 25 years of service (men) and up to 20 years of
service
(women).
Throughout the year,
pensions specified in paragraph 2 of this article shall be brought into line
with the percentage under which other pensions are reconciled.
Article 35
Insured parties who have
acquired a portion of their pension through an international agreement, shall
be entitled to the lowest pension level if the pension amount assigned by this
Law and the foreign pension estimated at the current foreign exchange rate are
smaller than the amount used to determine the lowest pension level specified in
article 34 of this Law.
When determining the percentage
of the lowest pension level, the years of insurance abroad shall not be taken
into account.
Highest Pension Level
16
Article 36
The highest pension level may not exceed 80% of the
average salary earned in the
Republic
of Macedonia in the year prior to acquiring the pension right increased by four
times
Adjustment of Old Age
Pension
Article 37
Adjustment of old age pension