There is concern that since 2023 is a pre-electoral year, the national budget will be affected by the increase in the public payrollnot only for the concept of remuneration, but for other types of current spending, raises the Regional Center for Sustainable Economic Strategies (YOU BELIEVE).
For 2023, the draft budget contemplates an increase in the remuneration of 40,464.6 million pesos compared to what was budgeted for 2022, which indicates that in the remainder of this year and for the next, hiring in the public sector will continue to increase in order to cover the budgeted increase, he specified Miguel Collado DiFranco, economist of YOU BELIEVE.
Collado explained to Free Journal that, taking into account the increase in public payroll to August this 2022, more than five million inhabitants benefit from the treasury and it is estimated that this number of dependents will increase gradually during 2023.
470,678
average annual cost of the salary of a public servant for taxpayers, according to the TSS.
Di Franco made reference to an analysis that this medium published yesterday on an increase in the government payroll of the contributing jobs in the Social Security Treasury (TSS) with which he pointed out that the average monthly remuneration of these employees is 36,206.03 pesos for each public server.
In that order, the average cost of each government employee in a year for taxpayers was about 470,678 pesos, without calculating the social security payment of each worker.
Until August 2021 the payroll had 630,727 employeesfor August this 2022when the payroll count was updated in the TSS, it had climbed to 721,448 for a difference of 90,721, that is, an increase of 14%.
“These increases in personnel should not be taking place in accordance with the same provision of the Executive Power that restricts the hiring of new personnel and salary increases,” said the economist.
impact study
when conversing with Free JournalCollado Di Franco highlighted the most recent study of that economic center: “More Dominicans depend on public resources in 2022”published in September, in which they raise the need for attention required by the labor sector.
According to data from the Dominican Republic labor market published by the Central Bank, between the last quarter of 2021 and the second quarter of 2022 the number of formally employed only increased by 21,636 people, the document indicates.
The formally employed are those who have the benefit of social security, consequently, it includes public employees and those private contributing wage earners.
Job creation
The analysis indicates that there is low growth in formal employment compared to the aforementioned increase in public employees, which shows a situation that should concern the corresponding entities.
The survey continues to show that in the last two quarters the capacity of the economy to generate formal jobs private it was very low or negativeas jobs may have been lost.
“It is true that the TSS figures come from administrative records and that the data from the labor survey is a sample; however, the comparison should not be far from reality”, indicates Collado Di Franco in the conclusions of the study published by the YOU BELIEVE in September.
He stated that the conditions of high costs and low productivity limit the creation of jobs that compensate for the burden that formality represents in the country, especially public jobs, whose salaries fall on taxpayers.
