Pensions to rise in January

PENSIONS and general social security benefits are to rise by 5.5 per cent from January 1, Social Insurance Department Director Antonis Petsas said yesterday.

But while this was good news for the island’s pensioners, who have long been calling for a rise in pensions, Petsas warned that many self-employed workers were paying less in social insurance contributions than they should.

Speaking after a meeting of the Social Insurance department’s treasury council, of which he is also president, Petsas said that of as many as 40, 000 self employed people, between 13 and 14,000 were evading full payment of their contributions.

“To this end, our goal is for the self-employed to pay on the basis of their real income,” he said.

Three amendments have been proposed to solve the problem. First, it has been suggested that the current ten professional categories be replaced by 28 better-defined ones. Secondly, that the monitoring of the income of all categories be increased; and finally that a change be made to the social insurance law giving the director greater powers over people’s contributions.

Petsas also said that in 1997, the department had registered an income of £372 million, and had paid out £211 million in pensions and benefits.

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