Memov: More Than €220 Million Transferred Annually for Pensioners’ Health Insurance, Financing Scheme Changes Needed

The Pension and Disability Insurance Fund transfers around 13.7 billion denars annually—more than €220 million—to the Health Insurance Fund to cover pensioners’ healthcare costs, the fund’s director, Nikolla Memov, said.

Memov believes this financing model should be reviewed and that these costs should no longer be covered by the pension contributions of current employees.

Currently, 11.8% of net pension payments is allocated to pensioners’ health insurance. Until December 31, 2025, the rate was 13%, the director of the Pension Fund explained.

“On an annual basis, this amount reaches 13.7 billion denars, or more than €220 million,” Memov said.

According to him, these funds come from pension insurance contributions paid by employees, placing an additional burden on the fund.

“There must be a change, and another way must be found to finance pensioners’ health insurance, rather than the current model—through pension insurance contributions,” he added.

North Macedonia’s pension system is based on intergenerational solidarity, with employees’ contributions used to finance the entitlements of current pensioners. The pension and disability insurance contribution is 18% of gross salary, while for people covered by the two-pillar system, six percentage points are transferred to the second pillar.

Memov’s proposal is not intended to reduce the cost of pensioners’ health insurance, but to change the source from which that cost is financed.

Such a change would allow some of the funds to remain in the Pension Fund. However, Memov has not yet specified what the alternative source for securing the €220 million would be.