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Small, medium-sized businesses make only one fifth of social deductions

More than 65-70 percent of all employees work for small and medium-sized businesses, but they make only 20 percent of social deductions. The Deputy Chairwoman of the Social Fund of Kyrgyzstan Gulnura Dzhumataeva told at a round table discussion.

According to her, most of the deductions are made by large business. The Social Fund believes that such indicators show that more people work in the field of small and medium-sized businesses.

«This suggests that the number of employees is more than 5 or 15 people. Many businessmen themselves say that they employ 20 people, but they register only three or five. In the new draft law on the tariffs of social contributions it is tied to the size of wages. According to it, if the number of employees is more than 15 and their salary is higher than the average, then the amount of social contributions will be 14 percent. At least 4 percent of them must be paid by the employer. It turns out that the managers have a salary of 40,000-50,000 soms, the rest have the minimum wage established by law — 8,000 soms. But actually it is not so. They just receive the rest of the money in envelopes,» Gulnura Dzhumataeva said.

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