The minimum pension raised to 2,000 lei, the minimum monthly salary raised to 3,200 lei in the public sector, and the tripartite agreement in principle to raise the minimum salary to 4,000 lei next year in the private sector as well, are among the biggest social agenda achievements of 2021. The selection belongs to Stas Madan, social and economic expert with the think-tank Expert-Grup, who was asked by IPN to look back at the past year.
Also, a number of instruments were introduced in the Labor Code enabling employers to easier access furlough payments. “In 2021, the social agenda was quite significant for the PAS government”, said the expert, noting that the 2022 State Budget is more socially oriented as well.
At the same time, rising inflationary pressures and a general rise in consumer prices are perhaps the biggest drawbacks of the past year. “If we look at the polls, this is the greatest concern of the people. Even if inflation is imported, we in Moldova have no choice but absorb it, because it comes from rising global prices, both on food and energy resources. This has been caused by global logistic imbalances, among many other factors. It’s a negative phenomenon for people and, at least in the first half of next year, it will continue to exert significant social pressure”, says Stas Madan.
Victor Stepaniuc, former Deputy Prime Minister for Social Affairs, believes that, for the most part, the social transformations of 2021 have negative consequences for the socially vulnerable, in particular poor families and families of pensioners. “The government has increased the pensions of those who received less than 2,000 lei. It’s a good thing, albeit ten years late. But given some foreign policy blunders, inflation, rising fuel prices, rising gas prices, rising food prices – prices have risen by up to 20% on some goods, including medicines – all of which have negative consequences socially”, said Victor Stepaniuc.
The return to the old formula of the old-age pension law, which equates women with men, is also a negative thing, says Stepaniuc, even if the government has tried to find a compromise by allowing those with a longer contributory period to retire before the standard retirement age. “On the one hand, the government has met the requirements of the IMF and the World Bank and has taken an antisocial measure by raising the retirement age, but on the other hand, a compromise solution has been found that works in some countries”, said the former deputy prime minister.
Another issue pointed out by Victor Stepaniuc is related to the 2022 state budget. “The health care system hasn’t received due attention. The two years of the pandemic have weakened the medical system. Many doctors quit, some emigrated. The government needed to take extraordinary measures to keep the specialists. The expected salary increase promised back in 2020 has not been offered. Teachers have also been misled. They waited for a salary increase as promised, but the government did not take the steps that were expected, although the teachers are mostly PAS voters. It’s strange that the salaries of deputies, ministers, judges of the Constitutional Court and others have increased, but they forgot about the teachers”, said Victor Stepaniuc.
But perhaps the biggest problem, according to Stepaniuc, are the 110,000 poor families with children. Half of families with children have incomes below the poverty line. “Given the inflation, the increase in energy tariffs, the Government had to support these families,” said Victor Stepaniuc.
