AMMAN — A new mechanism to be followed by the Social Security Corporation (SSC) while
calculating the average wage will take into account the annual inflation rates,
SSC’s spokesperson Shaman Al-Majali said.
اضافة اعلان
“The average wage upon which the retirement salary
will be calculated will depend on collecting the wages of those insured and
covered by SSC, adding to that the annual wages adjusted according to the
inflation rates recorded in subsequent years”, Majali told
Jordan News.
For the purposes of clarifying the calculation
mechanism, SSC presented in a press release an example in which it assumed that
the annual wage of the subscriber in the year 2023 is JD500, while the average
annual inflation rate in subsequent years is 3 percent.
If the participant decided to retire after 15 years,
the wage he was receiving in the year 2023 will be increased according to
inflation rates in subsequent years, which will come up to JD756, instead of
JD500.
Insurance and social protection expert Mousa
Al-Subaihi told
Jordan News that “this mechanism will reduce pension
salaries.”
“It is a method that is applied in some countries,
especially in the developed countries that witness stability in the labor
market, and have the ability to control inflation,” he said. “As for developing
countries, it is one of the ways of the so-called policy of reducing the
retirement bill.”
The new mechanism will harm any employee who is promoted with a higher salary according to the job, whether in the public or private sector, or even in international organizations, and this does not constitute an incentive for self-development.
He said that “countries, such as Jordan, do not
reflect the real inflation rates because they are much lower than the real
values.”
Subaihi said that
“the new mechanism will harm any employee who is promoted with a higher salary
according to the job, whether in the public or private sector, or even in
international organizations, and this does not constitute an incentive for
self-development.”
Economic expert Zayan Al-Zawwaneh told
Jordan
News that the Social Security Law moved from being “excessive generosity,
when it was established, where the pension salary for dozens of retirees ranged
from JD8,000 to JD15,000 per month, to the current amendment, which reduces the
pension salary for the subscribers.”
Health insurance is a citizen’s right, and a
government goal that has not been achieved so far as funding the comprehensive
health insurance plan according to the proposal will raise the subscription
from 22 percent to 29 percent, he said.
That, he added, is a “very high percentage which
will weaken the net salary and the economy, and reduces the contributor’s
ability to live a decent life in light of the low-income level.”
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