The overcoming poverty It involves a sufficient pension and health insurance that minimizes out-of-pocket expenses, however the country is far from achieving both goals, he said. Arismendi Diaz Santanasocial security expert.
He highlighted that in 2022, the average pension under the pay-as-you-go system was 18,228 pesos (331 dollars).
In households in the lowest income quintile, the pension was 10,231 pesos (186 dollars), while pensioners in the richest quintile more than doubled (2.7 times, 27,657 pesos), 503 dollars, the average pension of the poorest quintile.
You can read: Dominican Republic highlights progress against inequality but calls for reform
“This situation poses a greater vulnerability for the lowest income quintiles in the face of possible external shocks or price increases, not only in terms of coverage but also in terms of the adequacy of the benefits received,” said Díaz Santana when commenting on the results of the recent ECLAC study entitled Advances and challenges in the implementation of the non-contributory pension system in the Dominican Republic.
He explained that the report highlights that 25.4% of older people depend exclusively on their work, 49% on the income of other members of the household, and only 11.3% live off their pension. The pension system generates a high level of exclusion, especially among self-employed workers and the most vulnerable people.
“Inequalities in coverage are due, among other factors, to those generated in the labour market. In the case of the Dominican Republic, this situation particularly affects the most vulnerable households and in particular women, whose participation is 4.8 percentage points lower than that of men (12.4% of women compared to 17.2% of men),” the study indicates.
Díaz Santana pointed out that this is why ECLAC recommends expanding solidarity pensions (non-contributory) because, in addition to complying with the Law 87-01would contribute to significantly reducing poverty and indigence.
