Adopt legislation to reform the system of social security contributions to: (i) broaden the contribution base; (ii) simplify the contribution schedule across the various funds; (iii) shift funding away from nuisance taxes and onto contributions; and (iv) reduce contribution rates by 3.9 percentage points. The reforms will be fully phased in by January 1, 2016 and will be revenue neutral and preserve the actuarial balance of the various funds (¶10).
Introduced at R1R2. Macro relevance: growth/competitiveness (business environment). At R3, text of condition was revised from contribution rates of "4" to 3.9 percentage points; phase in date also revised from January 1, 2015 to January 1, 2016. At R5, Not observed. Upfront social security rate reduction is a prior action (see Table 3); steps to broaden contribution base are underway; and harmonization of rates across funds is rephased for end-June 2014 (¶6).