Universal social protection. Country cases
Universal Social Protection
Country Cases
Global Partnership for Universal Social Protection USP2030
World Bank Internaional Labour Oice
African Union | EU-OECD-Finland Social Protecion Systems Programme | Experise France | Food and Agriculture Organisaion (FAO) | German
Development Cooperaion | Help Age Internaional | Internaional Policy Center for Inclusive Growth UNDP | Inter-american Development Bank |
Internaional Council of Social Welfare (ICSW) | Save the Children | United Naions Children’s Fund (UNICEF)
ISBN 978-92-2-131572-8 print ISBN 978-92-2-131573-5 web pdf
The designaions employed in this publicaion, which are in conformity with United Naions pracice, and the presentaion of material therein do not imply the expression of any opinion whatsoever on the part of the Internaional Labour Oice or the World Bank concerning the legal status of any country, area or territory or of its authoriies, or concerning the delimitaion of its froniers. The responsibility for opinions expressed in signed aricles, studies and other contribuions rests solely with their authors, and publicaion does not consitute an endorsement by the Internaional Labour Oice or the World Bank. The Internaional Labour Oice or the World Bank do not guarantee the accuracy of data included in this publicaion and accept no responsibility whatsoever for any consequence of their use. Reference to names of irms and commercial products and processes does not imply their endorsement by the Internaional Labour Oice or the World Bank, and any failure to menion a paricular irm, commercial product or process is not a sign of disapproval.
Table of Contents
Introducion
1 Argenina
Universal social protecion for children and adolescents 5 Argenina
Universal maternity protecion 11 Azerbaijan
Universal Pensions 17 Bolivia
Universal Pensions 27 Botswana
Universal old-age pensions 33 Brazil Universal old-age pensions
39 Cabo Verde
Universal Pensions 47 China
Universal Pensions 53 Georgia
Universal old-age pensions 59 Kosovo
Universal old-age pensions 64 Lesotho
Universal pensions 70 Maldives
Universal old-age pensions 76 Mongolia
The Universal Child Money Programme 81 Mongolia
Universal old-age pensions 89
Namibia The Basic Social Grant for all older persons
95 Nepal
Universal old-age and disability pensions, and other universal allowances 103 South Africa
Universal disability grants 110 South Africa
Universal pensions 115 Thailand
Universal Pensions 121 Timor-Leste
Universal old-age and disability pensions 126 Trinidad and Tobago
Universal Pensions 134 Ukraine
Universal old-age, disability and survivors pensions 146 Zanzibar
The universal Pension Scheme 156 Developmental impacts of expanding social protecion
163 Sub-Saharan Africa: Economic and producive impacts of naional cash
transfers programmes 173
Financing universal social protecion 182
A shared mission for universal social protecion - Concept Note
Universal Social Protecion Partnership (USP2030)
Introducion
Transforming our World: The 2030 Agenda for Sustainable Development , was adopted by Heads of State and Governments in September 2015 as a plan of
acion for people, planet and prosperity that calls for eradicaing poverty. All countries and all stakeholders, acing in collaboraive partnership, are called to implement this plan.
Sustainable Development Goal 1 (SDG1) calls for ending poverty in all its
forms and dimensions , including eradicaing extreme poverty by 2030. It aims to ensure that all people enjoy a basic standard of living, including through
social protecion systems. Countries are called to ensure social protecion systems for all, including loors for the poor and vulnerable, increase access to basic services, and support people harmed by climate-related extreme events and other economic, social, and environmental shocks and disasters. Target 1.3 (Goal 1) seeks to implement naionally appropriate social protecion systems and measures for all, including loors, and by 2030 achieve substanial coverage of the poor and the vulnerable.
The Global Partnership for Universal Social Protecion (USP2030) was established to support this objecive. The USP 2030 was launched in September 2016 at the ime of the UN General Assembly, by the Internaional Labor Organizaion (ILO) and the World Bank Group (WBG) in partnership with the African Union, the Food and Agriculture Organizaion (FAO), the European Commission, the Inter-American Development Bank (IDB), Organizaion of Economic Cooperaion and Development (OECD), the United Naional Development Programme (UNDP) and its Internaional Poverty Centre for Inclusive Growth (IPC-IG), the United Naions Children’s Fund (UNICEF) and others, along with Belgian, Finnish, French and German development cooperaion, and internaional civil society organizaions such as HelpAge, the Internaional Council of Social Welfare (ICSW), Save the Children, among others.
Introducion
The objecive of USP2030 is to increase the number of countries that can provide universal social protecion, supporing countries to design and implement universal and sustainable social protecion systems, joining eforts of the internaional agencies, donors, and governments in providing
social protecion coverage for all people. Universal coverage and access to social protecion are central to ending poverty and boosing shared prosperity, the World Bank’s twin goals by 2030. Universal social protecion coverage is at the core of the ILO’s mandate, guided by ILO social security standards including the Social Protecion Floors Recommendaion No. 202, adopted by 185 Member states in 2012. Many countries have embarked in expanding social protecion coverage and are reporing signiicant progress. However, the poorest countries coninue to have enormous coverage gaps. The ILO’s “World Social Protecion Report 2017-19 on Universal Social Protecion to Achieve the Sustainable Development Goals” indicates that despite signiicant progress in the extension of social protecion in many parts of the world, only 45 percent of the global populaion are efecively covered by at least one social protecion beneit, while the remaining 55 percent – as many as 4 billion people – are let unprotected.
Universal social protecion refers to the integrated set of policies and programs designed to provide income security and support to all people
across the life cycle, with paricular atenion to the poor and the vulnerable. Universal social protecion includes adequate cash transfers for all who need it, especially: children; beneits/support for people of working age in case of maternity, disability, work injury or for those without jobs; and pensions for all older persons. This protecion can be provided through social insurance, tax- funded social assistance/safety nets beneits, public works programmes and other schemes guaranteeing basic income security. Social protecion programs aim at speciic demographic groups of the populaion (e.g., children, persons with disabiliies, women and men of the working age, older persons, etc.) and at households in chronic or transient (for instance, caused by shock such as a natural disaster) poverty. The objecive of the social protecion programmes is oten not only to provide income support, but also to build up resilience to shocks and enhance connecions to producive aciviies.
Social Protecion systems when well-designed and implemented are a criical
part of the foundaion for sustained social and economic development – for individuals, households, communiies, and socieies. This development role of social protecion manifests itself in many ways, such as: (i) it prevents
Introducion
and reduces poverty, promotes social inclusion and dignity of vulnerable populaions; (ii) it contributes to economic growth through increases in consumpion, savings and investment at the household level and macro level; (iii) it promotes human development and formalizaion; (iv) it increases producivity and employability by enhancing human capital and producive assets; (v) it protects individuals and families against the losses due to shocks, whether they be pandemics, natural disasters, or economic downturns; (vi) it builds poliical stability and social peace, reducing inequaliies, social tensions and violent conlict; enhancing social cohesion and paricipaion; (vii) it is a human right that everyone, as a member of society, should enjoy, including children, mothers, persons with disabiliies, workers, older persons, migrants, indigenous peoples and minoriies.
Countries have many opions/pathways to achieve universal social protecion
coverage. USP2030 partners will work with countries to help advance the universal social protecion agenda, recognizing: (i) naional ownership of
development processes towards universal social protecion; (ii) the choice of countries to aim for gradual and progressive realizaion or immediate universal coverage; (iii) the heterogeneity in the design and implementaion of universal social protecion schemes. In other words, building the road to USP should recognize that every country case is unique as countries have a wide set of opions to achieve universal social protecion coverage. Generally, universality is achieved by combining contributory and non-contributory schemes. As the compilaion of the country case studies in this volume demonstrates, some countries have opted for an explicit universal coverage of speciic populaion groups (e.g., universal old age social pensions in Botswana, East Timor, Georgia, Namibia and Zanzibar/Tanzania) while others have employed a combinaion of public social insurance and social assistance to building up coverage (e.g., Brazil, Cabo Verde, China, Thailand, Trinidad and Tobago). Some countries have the principles of universalism (universal rights) embedded in their naional consituions (e.g. Bolivia, South Africa), whereas others have pursued those principles without consituional provisions. Universal social protecion is most commonly started with universal old-age pensions (as most country case studies in this volume indicate), but some countries have opted to make universal, separately or in parallel, beneits for children (e.g., Universal Child Money Program in Mongolia and Universal Child Allowance in Argenina), people with disabiliies (e.g., Universal Disability Grants in South Africa), and mothers (e.g., Universal Maternity Protecion in Argenina).
Introducion
Countries have used many opions to inance universal social protecion.
Those opions include: (i) re-allocaing public expenditures (e.g., from inancing public subsidies to inancing speciic programs); (ii) increasing tax revenues, including revenue generated from taxaion of natural resources; (iii) using the reducions of debt or debt servicing; (iv) expanding social security coverage and contributory revenues, among other inancing opions. Regardless of inancing mechanisms and sources, universal social protecion systems should be equitable and sustainable.
This publicaion presents country examples that document diferent pathways to achieve universal social protecion coverage. These country cases encompass a wide range of programs, country seings and regions, including Sub-Saharan Africa (Botswana, Cabo Verde, Lesotho, Namibia, South Africa and Zanzibar), Europe and Central Asia (Azerbaijan, Georgia, Kosovo and Ukraine), Lain America and Caribbean (Argenina, Bolivia, Brazil and Trinidad and Tobago), East Asia and Paciic (China, Mongolia, Thailand and Timor-Leste), and South Asia Region (Maldives, Nepal). As all these case studies indicate, there is no “one size its all” in achieving universal social protecion objecives. Every country has its own vision and path for achieving it, depending on the country prioriies, inancing and implementaion capacity.
This is a irst of such publicaions under the Global Partnership for USP2030. One of the objecives of the partnership is to coninue documening cases of universal social protecion to show that universal social protecion is feasible in developing countries and to share knowledge that supports the achievement of the USP2030 iniiaive.
Argenina
Main lessons learned
• The integraion of the contributory
Universal social protecion
and non-contributory components
for children and adolescents
is a strategy to guarantee the consolidaion of “comprehensive social security systems” and to
In 2009, the Universal Child Allowance ensure the universal protecion (UCA) was introduced in response to
of children and adolescents, in the efects of the global crisis, and
accordance with the provisions with the aim of consolidaing sev-
of ILO Social Protecion Floors eral non-contributory transfer pro-
Recommendaion, 2012 (No. 202) grammes for families with children.
and the Convenion on the Rights This non-contributory cash transfer
of the Child. programme expanded coverage to
children under age 18 (and disabled • The introducion of the UCA has children without any age limit), as
enabled the development of a well as to unemployed workers, infor-
system to support the income of mal workers, domesic workers and
families with children, according monotribuistas (Monotribuistas are
to the employment status of mainly low-income, self-employed
the adults responsible for the workers paricipaing in the Simpliied
children and adolescents and the Regime for Small-scale Contributors,
income earned. The system has known as the Monotributo. This is a
three components: contributory simpliied, integrated tax system that
component, non-contributory rolls income, value-added and social
component and tax deducions security taxes into a single monthly
for higher-income workers. payment).
The provision of income insurance for • Studies have shown that the families with children and adolescents
policy to extend social protecion is made up of three components:
through the UCA has had a major contributory family allowances (CFA),
impact on reducing extreme non-contributory family allowances
poverty and inequality and on and tax deducions from income
increasing school atendance of (tax on earnings) for higher-income
adolescents aged 16 and 17. workers with children.
Argenina: Universal social protecion for children and adolescents
Coverage data
Figure 1: Overview of social protecion coverage for children by programme
Together, these three components reach approximately 83 per cent of children and adolescents in Argenina. In absolute terms, some 10.3 million children and adolescents are covered by an income transfer mechanism.
1. Background
Since the late 1990s, several iniiaives have been introduced to provide income security for households with children. During the 2000s, social assistance programmes used the per cent). presence of children in the household In legal terms, the UCA was created as a reference, and programmes for the through a Decree of the Naional social protecion of children were even Execuive Branch (1.602/09), which implemented at the sub-naional level. modiied the Law of Family Allowances The UCA was introduced in Argenina (N° 24.714). as a result of years of intense discussion This decree established the incorpo- on proposals designed to universalize raion of a non-contributory sub-sys- protecion of children and adolescents. tem within the General Family Allow- One of the most noteworthy proposals ance Regime. In other words, both was the extension of family allowances. types of beneits are now regulated The almost universal coverage achieved by this Law. is due to several factors, most notably the implementaion of the UCA, the
2. Structure and main
increase in formal employment that
characterisics of protecion of
expanded contributory coverage
children and adolescents
levels and the incorporaion of monotribuistas in the CFA component As menioned, the provision of income (April 2016).
security for children and adolescents Also of note is the extension of non- in Argenina has three components: contributory pensions to mothers of
seven or more children, which provides • Contributory family allowances
income security to large families (CFA ), composed of the “Family (between 2003 and 2014, the number
Child Allowance,” which covers the of main beneiciaries increased by 471
dependents of formal middle- and
Argenina: Universal social protecion for children and adolescents
and UCA beneiciaries receive the same amount ($ 966). In 2015, the automaic mobility of beneits (twice annually) based on the pension mobility index was established by law. The Naional Social Security Admin- istraion (ANSES) is responsible for managing both contributory and non-contributory family allowances. In other words, the ANSES receives applicaions, processes and evaluates them and pays both beneits). The integraion of the contributory and non-contributory components (CFA and UCA) pave the way for the consolidaion of a “comprehensive social security system” as established in the ILO Social Protecion Floors Recommendaion, 2012 (No. 202). Nearly six years ater the UCA was implemented, evidence indicates that these social protecion programmes of high coverage do not have a negaive impact on labor market variables. This posiive result is largely due to the coordinaion among programmes that guarantee income and to acive labour market policies. Several factors explain the fact that 17 per cent of children and adolescents are not covered under any scheme. This group mainly includes children and adolescents whose parents: i) are employees with higher earnings – or slightly lower earnings – than the established ceilings; ii) they are higher- income monotribuistas; iii) they are independent workers; or iv) they are immigrants residing in the country for less than three years. The situaion of
low-income employees, beneiciaries of certain social security guarantees (unemployment and work injury) and, since April 2016, dependents of workers of the Monotributo regime.
• Non-contributory family allow-
ances , composed of the Universal Child Allowance (UCA), which is a
semi-condiional cash transfer for each child and disabled child of un- employed workers, those of the in- formal economy, social monotribui- stas and domesic workers. The cash transfer is semi-condiion- al: the 80 per cent is granted through the usual system of social security payments while the remaining 20 per cent is paid once the main beneiciary conirms health checkups, immuniza- ion records and ceriicaion of com- pleion of the school year of children and adolescents, whichever is the case. The UCA is a component of the non-contributory pillar, together with family allowances for dependents of beneiciaries of old-age pensions and of beneiciaries of certain non-con- tributory pensions (disability and for- mer soldiers in the Falklands War).
• Deducion or tax credit for each
child , for higher-income workers who pay income tax. The tax credit
is the component available to higher- income workers who pay individual income tax.
Low-income beneiciaries of the FCA
Argenina: Universal social protecion for children and adolescents
children and adolescents not under poverty and inequality. Studies family care should also be menioned (Bertranou, 2010; Maurizio and given that they are not included in any Vázquez, 2014) have shown that UCA of the current protecion components. reduced poverty rates, especially Moreover, there are children and extreme poverty. There is also adolescents who are eligible for one empirical evidence that suggests that of the established schemes but who the UCA contributes to improved do not receive beneits for a variety income distribuion, as measured both of reasons, especially: problems by the Gini coeicient and in terms associated with family relaions; of income gaps (Hintze and Costa, problems associated with their or their 2014 and Curcio and Beccaria, 2013). parents’ ideniicaion documents; Addiionally, some studies found and non-compliance with some that the UCA had a posiive impact requirements for access.
on school atendance of adolescents aged 16 and 17 (the group with the
3. Financing
highest dropout rates) as well as on reducing child labour (Jiménez and
The contributory component Jiménez, 2015). Nevertheless, given is inanced through employers’ the lack of available standardized contribuions to social security while data, more evidence is needed on the social security resources cover the impact of this programme on school cost of the UCA.
atendance, paricularly with respect As a result of the expanded coverage, to secondary school. the resources allocated to cash The implementaion of this policy transfers for children and adolescents also led to a 50 per cent increase in have been sharply increased. In the number of children enrolled in 2014, the amount allocated to the the SUMAR Plan – guaranteed health protecion of this segment of the beneits – and a 14 per cent increase populaion was 1.04 per cent of GDP, in the number of pregnant women where the principal components were enrolled (MSAL, 2012). the UCA (0.50%), the CFA (0.46%) and the family allowances for people
5. What are the challenges?
receiving an old age pension (0.08%). The main challenges for policies to
4. What is the impact of
guarantee income security for children
the UCA?
and adolescents can be summarized as follows:
Policies to extend social protecion, in this case the UCA, had considerable
• Despite eforts to increase UCA impact in terms of reducing extreme
coverage, the challenge remains
Argenina: Universal social protecion for children and adolescents
to incorporate a large number of Bertranou, F. (coord.) 2010. Aportes para un eligible children and adolescents piso de protección social en Argenina: el caso who for diferent reasons face
de las asignaciones familiares. Buenos Aires,
barriers to accessing the beneits. ILO Country Oice for Argenina. • The role of established condiions Bertranou, F., Casalí, P. and Schwarzer, H., 2014.
needs to be redeined to emphasize La estrategia de desarrollo de los sistemas de the concept of the “universal right” seguridad social de la OIT. El papel de los pisos of children and adolescents to
de protección social en América Laina y el
health and educaion.
Caribe. ILO Regional Oice for Lain America and the Caribbean, Lima.
• The suiciency of UCA beneits
should be assessed in an efort to Bertranou, F., Cetrángolo, O., Casanova, L., enable children and adolescents to Beccaria, A and Folgar, J. 2015. Desempeño get out of poverty.
y Financiamiento de la Protección Social en Argenina. Buenos Aires, ILO Country Oice for Argenina.
A micro-assessment of the UCA should be conducted to idenify Casalí, P. and Schwarzer, H., 2010. Social botlenecks and propose reforms Protecion Floor: Conceptual Development that help facilitate programme and Applicaion in Lain America. 2010 Labour implementaion and compliance Overview. ILO Regional Oice for Lain America with established condiions.
and the Caribbean, Lima. Curcio, J. and Beccaria, A. 2013. Políicas de
This Universal Social Protection brief protección social y su impacto en la situación
was produced by Alejandra Beccaria, de la niñez y de sus familias. El caso de la
Luis Casanova and Pablo Casalí of the Asignación Universal por Hijo para Protección ILO, with contribuions from Sebasián Social a tres años de su implementación, XI Waisgrais and Javier Curcio of UNICEF. It Naional Poliical Science Congress, Paraná. was reviewed by Isabel Oriz of the ILO. Hintze, S. and Costa, M. 2014. “Capacidad protectoria de la Asignación Universal por Hijo para Protección Social: problemas y debates a
References
cuatro años de su implementación,” in Danani, C. and Hintze, S. (Coords.) Protecciones y Arcidiácono, P., Carmona Barrenechea, V. and
desprotecciones II: Problemas y debates de la Straschnoy, M. 2011 “La asignación universal
seguridad social en la Argenina. Buenos Aires, por hijo para protección social: rupturas y
Universidad Nacional de General Sarmiento. coninuidades ¿Hacia un esquema universal?,” in Revista Margen, Number 61, June 2011.
Argenina: Universal social protecion for children and adolescents
Jiménez, M. and Jiménez. 2015. Asistencia escolar y paricipación laboral de los adolescentes en Argenina: el impacto de la Asignación Universal por Hijo. Working Paper Series N° 11, Buenos Aires, ILO Country Oice for Argenina.
Argenina
Main lessons learned
In line with ILO’s Recommenda-
Universal maternity ion No. 202, maternity protec-
ion in Argenina encompasses
protecion
both transfers in cash and in kind. It includes income security meas- ures through a number of social
Argenina’s Consituion provides for transfer programmes, universal the protecion of pregnant and lactat-
access to basic social services and provisions for maternity leave.
ing female workers. Social protecion in Universal maternity protecion in the case of maternity includes mater- Argenina had impressive results,
nity protecion in the workplace, con- child and maternal mortality have tributory and non-contributory family
been reduced by 34 per cent and allowances and pensions for mothers
24 per cent respecively. with 7 or more children. In addiion,
several programmes provide universal • The contributory and non- access to basic social services such as
contributory programmes are the programme SUMAR which ofers
administered by the Naional basic health services including ante-
Social Security Administraion natal and postnatal consultaions and
(ANSES); complementary health delivery. The naional legal framework
programmes are operated or regulated by the Naional Health
also provides paid and unpaid mater- Ministry; good coordinaion nity leave and paid paternity leave for among insituions is required
registered workers. to guarantee a comprehensive maternity protecion.
1. Towards universal maternity protecion
• The establishment of an adapted legal framework
Maternity protecion in Argenina en- ensures the sustainability of compasses both transfers in cash and
social protecion programmes. in kind. It includes income security
measures through a number of social transfer programmes, universal ac-
2. How is the system organized?
cess to basic social services and provi- sions for maternity leave. Argenina’s Contributory programmes include maternity protecion policy is in line maternity protecion in the work with the Social Protecion Floors Rec- place and family allowances. ommendaion, 2012 (No.202).
To extend maternity protecion to uncovered groups, two non-
Argenina: Universal maternity protecion
contributory allowances
were
established in 2009 and 2011 respecively: the universal child allowance (Asignación Universal por Hijo) and the pregnancy allowance (Asignación por Embarazo). The
contributory programmes
are
administered by the Naional Social Security Administraion (ANSES). Out of a total number of 13 million
the two programmes and income children and teenagers below the
tax deducions brings the coverage age of 18 years, the Universal Child
to 74.3 per cent of all children below Allowance and Pregnancy Allowance
the age of 18 years. At the same cover 7 million, i.e. a coverage rate
ime, the Naional Commission for of 53.8 per cent. In addiion, income
Social Pensions of the Ministry of tax reducions are applied to families
Social Development administers the with children. The combinaion of
pensions for mothers with 7 or more children.
Table 1. Social transfers programmes Programme
Provisions
Beneiciaries
Beneiciaries Contributory programmes
Maternity protecion in the
Monthly income replacement equivalent to Employees covered by the
work place
100% of the workers’ salary
Law on work related risks and unemployment protecion
• Prenatal: between AR$ 199 and 2,084 (US$
13 and 141) per month
Same as above, plus beneiciar-
ies of the pension system and Family allowances • Per adopion: AR$6748 (US$ 456)
• Per birth: AR$ 1,125 (US$ 76)
non-contributory pension, up • Per child: between AR$ 199 and 2,084 (US$
to a maximum monthly family
income set in the Law (of AR$ • School allowance: between AR$ 808 and
13 and 141) per month
60,000 = US$ 4,054)
1615 (US$ 55 and 109) per year
Non-contributory programmes
Universal Child
AR$ 966 (US$ 65) per month per child, with
Allowance
condiionaliies on health and educaion Beneiciaries of the Monotax, unemployed persons, workers
AR$ 966 (US$ 65) per month staring from in the informal economy with
Pregnancy
week 12 of pregnancy and unil the child birth income levels below the mini-
Allowance
or the interrupion of pregnancy
mum wage, domesic workers
Pensions for moth -
Lifeime monthly amount equivalent to the
ers with 7 or more
minimum old age pension of AR$ 4958.90 Mothers with 7 or more chil-
dren (own or adopted children) Source: Decree 1141/2015-Family allowances from March 2016 onwards
children
(US$ 335) (ANSES, March 2016)
Argenina: Universal maternity protecion
age that are without any contributory social health protecion. In 2015 the Programme SUMAR was covering
13 million people. According to the naional census, the populaion without any social health protecion was 14 million in 2010. Therefore the Programme SUMAR has contributed to signiicantly close the social health protecion gap in Argenina. The programme is operated by the Naional Health Ministry and is inanced from the public budget. It is linked with the Universal Child Allowance and the Pregnancy Allowance. In addiion the naional legal framework includes paid and unpaid maternity leave for female workers in registered or formal employment. Although there are some diferences between the maternity leave in the public and private sectors, in both cases the beneits are of 100 per cent of the salary during the total period of the maternity leave. The beneits are inanced from the social security.
As far as universal access to basic social services is concerned, female workers in the formal economy can access social health services of trade unions. They can also access prepaid health care services in private clinics and sanatoriums. The programme SUMAR plays an important role as it provides access to basic health care to vulnerable families with the objecive to reduce child and maternal mortality, strengthen access to health care for school age children and teenagers, and improve the overall care provided to women through regular health check-ups. The Programme SUMAR was created in 2012 in the context of the extension of coverage of the Plan Nacer (2005). The Programme SUMAR contributed to facilitate access to health care for pregnant women and children up to 6 years of age. It was then extended to children and teenagers of between 6 and 19 years of age, and consequently to men and women of 20 to 64 years of
Public system
Public provincial and district hospitals as well as primary health centres
Provides health services to all the populaion
Programme SUMAR Essenial public health funcions pro-
gramme (FESP) Programmes Remediar and Redes
Provides health services to the vulner- able populaion
System of social services
Naional social services system Covers health risks for salaried workers and their families
Private subsystem
Enterprises providing prepaid health packages in sanatoriums and private
clinics
Provides coverage to those that pay a premium
Table 2. Health services
Source: ILO, Social Protecion Plaform (www.social-protecion.org)
Argenina: Universal maternity protecion
At the end of their maternity leave mothers can take an unpaid leave called “excedencia” to take care of their child during the irst year of life (not clear if the excedencia lasts one year or if it ends when the child reaches one year of age). The unpaid maternity leave only applies to female workers in registered paid employment. Men are enitled to a paternity leave of between two and ive days and cannot beneit from the unpaid leave.
3. What are the main impacts on people’s lives?
Over the last ten years, maternity protecion coverage was increased and reinforced by linkages and synergies between the various programmes. Thanks to major ailiaion eforts of the Programme
SUMAR, 230,000 children have entered the Universal Child Allowance and in 2014 47,000 women have automaically received the Pregnancy Allowance. Exising Universal Child Allowance and Pregnancy Allowance combined with income tax deducions for families with children beneit 74.3 per cent of all children below the age of 18 years. The Programme SUMAR had also a signiicant impact by facilitaing access to health care to 13 million people. These intervenions have contributed to improve the quality of life of the most vulnerable families in Argenina and their implementaion is one of the most signiicant progresses made in the ight against poverty. Due to the linkages that exist between the programmes, the Universal Child Allowance and Pregnancy Allowance have in 2014 contributed to increase
Selected measures
Legal protecion
Maternity leave Lactaing periods
Private sector
Dismissals are prohibited during the pregnancy, the maternity leave and
7.5 months before and ater the delivery date
90 days
2 periods of 30 minutes each unil the child reaches 12 months
Public sector
Same rights as permanent staf members (Law on Labour Contract does not apply during the maternity
period)
100 days for the 1st and 2nd child; 110 days for the 3rd child and beyond
2 periods of 1 hour each unil the child reaches 12 months Opion to reach or leave the oice 2 hours in earlier or
later
Table 3. Maternity leave in the registered or formal sector
Source: Law No20.744 on the work contract and Law No. 25.164 on the regulaion of the naional public employment
Argenina: Universal maternity protecion
the enrolment of children and (No. 156) that was raiied by pregnant women in the Programme
Argenina in 1988. SUMAR by 50 per cent and 14 per cent respecively. Thanks to the extension
• Promote fathers’ co-responsibility in of maternity protecion in the past
child care by extending paternity decade, child and maternal mortality
leave to uncovered groups and have been reduced by 34 per cent
increasing the duraion of the and 24 per cent respecively. The
paternity leave. Programme SUMAR was rewarded by the Geneva Health Forum and
• Improve Labour Law compliance highlighted as a model and source
through prevenion and inspecion of inspiraion for other countries
measures.
(Ministry of Health, 2015). • Extend the maternity leave to
4. What are the main
female workers in the informal
challenges?
economy.
One of the main challenges relies This Universal Social Protecion brief in the inclusion of the right to care
was produced by Analía Calero. It was as one of the components of the
reviewed by Victoria Giroud, Fabio social protecion system (ILO, 2014).
Durán-Valverde, Valerie Schmit and To ensure that the right to care can
Isabel Oriz of the ILO. become a reality, recommendaions include:
• Raify ILO’s Maternity Protecion References
Convenion, 2000 (No. 183) in order to extend the duraion of ANSES.2015. Administración Nacional de la maternity leave from 12 to 14 Seguridad Social. www.anses.gob.ar weeks.
ILO. 2012. Recommendaion concerning
• Create the necessary legal framework Naional Floors of Social Protecion, 2012
to ensure that in enterprises with (No. 202) www.ilo.org/dyn/normlex/es/f? certain numbers of female workers, p=NORMLEXPUB:12100:0::NO::P12100_ maternity rooms and child-care INSTRUMENT_ID:3065524 centres are established, in line with ILO’s Workers with Family ILO. 2009. Protección de la maternidad. Notas Responsibiliies Convenion, 1981
OIT sobre Trabajo y Familia N°4. www.ilo. org/americas/publicaciones/notas-trabajo-y- familia/lang--es/index.htm
Argenina: Universal maternity protecion
ILO. 2010. Maternity at work: A review of naional legislaion. Second ediion. Geneva. www.ilo.org/global/publicaions/ilo-bookstore/ order-online/books/WCMS_142159/lang--es/ index.htm
ILO. 2012. “Avances en la consolidación de la protección social en Argenina.” Notas OIT. Trabajo decente en Argenina. Buenos Aires. www.ilo.org/buenosaires/publicaciones/notas- trabajo-decente/WCMS_221702/lang--es/ index.htm
ILO. 2014. Recibir y brindar cuidados en condiciones de equidad: desaíos de la protección social y las políicas de empleo en Argenina. Documento de trabajo Nº 5. www.ilo.org/buenosaires/publicaciones/ WCMS_302535/lang--es/index.htm Ministerio de Salud. 2013. Plan para la reducción de la mortalidad materno-infanil de las mujeres y las adolescentes. www.msal.gov. ar/plan-reduccion-mortalidad
Ministerio de Salud de la Nación. 2014. Memoria Anual, Programa SUMAR, 2013. www.msal.gov.ar/sumar/images/stories/pdf/ memoria-anual-sumar-2013.pdf
Ministerio de Salud de la Nación, 2015. Programa SUMAR. www.msal.gov.ar/sumar
Azerbaijan Main lessons learned
• Azerbaijan illustrates how a
Universal Pensions
former soviet republic can progress towards universal pension coverage, integraing important coverage constrains. Strong poliical commitment
Universal coverage for old-age,
is key to develop an eicient
disability and survivors: one
system and to further reform it.
step further to achieving social protecion for all
• Azerbaijan has demonstrated its willingness for reinvesing
Social protecion has been one of the economic growth in social leading prioriies of the Azerbaijan
protecion and generaing higher Republic for the past years. The
beneits rates, progressively pension system is representaive of
bringing them towards minimum the country’s ability to develop and
subsistence revenues. implement universal coverage taking
into account a large number of self- • The system was built to be highly employed worker (almost 1 million),
adaptable to the ever-changing and an important informal economy.
socio-economic structure of Historically, Azerbaijan has inherited
the country, and to cope with
a universal soviet pension system possible economic shocks. which was underinanced during irst
However, only parial indexaion years of independence. The situaion
of pensions ater the currency was characterised by poliical and
devaluaion and high inlaion economic turmoil of the early
in 2015 did not allow to cover 1990s, as well as and large number
the consequences of economic of Internally Displaced Persons as a
crises for the beneiciaries of consequence of armed conlicts.
pension schemes in Azerbaijan. In 2001 the government has started
In this regards, more eforts are
a major pension reform for three necessary in order to ensure main social risks: old-age, disability
beneit adequacy. and survivors. The country rapid
economic achievements were parially
A muli-ier system guarantees reinvested in social protecion, which
a variety of resources and helped considerably reducing poverty
important dexterity of the system. and vulnerability. Indeed, social
However, the introducion of protecion loors helped miigaing
third pillar in the situaion of
Azerbaijan: Universal Pensions
economic turmoil on naional and on regional inancial markets can represent some diiculies.
• The wide coverage of the personal accouning system,
based on a unique insurance- pension system, was facilitated by the introducion of a card system for payments.
This universality is reached by the impact of economic crises, due combinaion of labour pensions to the country’s heavy reliance on oil. (social security part) for those cleared However, recent downturn in oil prices minimum qualifying period, and social and rapid devaluaion of naional allowances for those who are not currency in 2015 had an important qualiied to receive labour pension impact on the real pensions’ level.
for three aforemenioned risks (social assistance part).
1. What does the system
Although since 2006 the labour
look like?
pension system is based on a 3-pillars structure (basic pension + insurance
Azerbaijan’s social protecion part + voluntary savings), the third system is under the responsibility pillar was not really implemented. of the Ministry of Labour and
A personal accouning system has Social Protecion of the Populaion been established in the mandatory (MLSPP) . Since March 2016, the state social insurance area, which State Social Protecion Fund (SSPF) enabled the provision of pensions was integrated in the structure of and the transiion to insurance the MLSPP. Before, the SSPF had an principles. This was followed by the independent structure and carried implementaion of a card system in out important pension reforms in the order to facilitate payments. social security branches.
The universal coverage in Azerbaijan Coverage
is achieved for three major social risks:
At present there are 1.3 million • Old-age
beneiciaries of diferent labour • Disability
pension schemes in the country • Survivors
(including old age, disability and survivor). It is necessary to add to this
Azerbaijan: Universal Pensions
to a labour pension. Since 1 January 2010, the reirement age is 63 for men and 60 for women, with possibiliies of early reirement. Those not eligible for a labour pension are enitled to social pensions at the age of 67 for men and 62 for women. The labour pension is calculated as the sum of three components: 1)
a basic lat-rate beneit (110 AZN since February 2016) ixed directly by order the government, 2) insured part revised each year, based on the consumer price index and ixed by the formula SH=PSK/T where, SH-amount of insured part, PSK- pension capital recorded in the insurance part of the personal account of the insured from 1 January 2006 on the date of graning old-age labour pension plus pension capital for the mandatory social contribuion years of insured person for the period of prior 2006, T- number of months (144 months according to legislaion) of the expected pension payment period and 3) voluntary funded element. The basic lat-rate pension as well as minimum pension are ixed in relaion minimum wage in Azerbaijan which is 105 AZN since February 2016. The amount of these minimum standards have progressed during last years in order to reach progressively the subsistence minimum for the persons who are incapable of work, which is 115 AZN in 2016. This subsistence minimum for diferent categories of populaion is reconsidered every year based on basket of selected
igure 0.2 million persons covered by social allowances for the same risks
paid through MLSPP 1 :
Table 1. Overview of the number of labour pensions and social allowances beneiciaries
Oicially, the coverage is universal because the enitlement is automaic (either on labour pension or on social allowance). However, some problems with coverage were observed in the past, especially related with oicial recogniion of disability and thus enitlement of disability beneits. In 2015, 3.09 million personal accounts were registered for social insurance part. However, an important layer of economically acive populaion is registered as self-employed people, represening around 22 % of the employed populaion.
Beneit packages
At least 12 years of covered employment is required to be enitled
¹ The MLSPP is paying other social allowances, but they are not making part of this note because they don’t illustrate the universal approach.
Labour pensions
Social Allowances
Sources: State Staisical Commitee of Azerbaijan. Data on 01/01/2016
Azerbaijan: Universal Pensions
commodiies and services. (105 AZN in 2016). Diferent rates The average labour pension amount apply depending on the sectors and per month is 177.6 AZN in the regions. beginning of 2016 (whereas average old-age pension of 197.6 AZN). The Land owners must contribute with social allowances are ixed as follows: rates depending of the land category.
66 AZN for old-age and disability, 61 The rate per capita and per hectare, is AZN for survivors).
2% to 12% of the minimum wage. The pension adequacy represent an issue because the average Other categories : Civil servants, replacement rate represents between military, prosecutors, etc. have a 38% and 45 % compared to oicial special compulsory contribuion. salary. At the same ime, the studies
show the posiive impact of universal Figure 1. Sources of inancing of the pensions on the absolute poverty insurance part of the pension system
rate.
Oher Sources
Financing 0,4%
In 2014, 1,743,743.240 million AZN
of social contribuions were collected 39,4% by SSPF. They were distributed as Social
State Budget
Contributions
follows: 60,2% • Public entities (employers and
employees): 36% • Self-employed: 2%
• Other employers: 62%
Legal aspects
Employees pay 3% of their monthly gross income to the MLSPP, employers
18 February 1997 – Law “On Social
22%. They are in charge of transferring Insurance” № 250-IQ, which the enire contribuion to the MLSPP determines the legal, economic and at the same ime than the salary. organisaional aspects of the social In the end, half of the contribuion insurance. will go on the employee’s personal account.
27 November 2001 – Law “On Personal Accounts in the State Social
Self-employed persons: 10 to 50% of Insurance System” № 221-IIQ, which the naional monthly minimum wage regulates the data collecion in the
Azerbaijan: Universal Pensions
personal individual accounts for the the country’s economic posiive provision of social security rights in results set condiions for improvement the future.
in the socially oriented policy of the State. The social protecion become
a development priority of the Pensions” № 54-IIIQ, which government and the provisions are introduced the labour pension made in order to bring extremely law rights of ciizens, rules for the but universal social beneits close to implementaion and establishes a subsistence minimums. pension provision system.
7 February 2006 – Law “On Labour
In 2001, with support of internaional organisaions,
the government
2 July 2013 – Law “On regulaion adopted a 3-ier pension system of the checks which are carried reform
a out to areas of entrepreneurships, reinforcement of basic pay-as-you-go and protecion of the rights of component, an addiional mandatory entrepreneurs”, № 714-IVQ, which insurance part, and a third voluntary regulates the irms audit by the scheme. government. It determines the rights The second pillar was actually and the obligaions of the inspecion implemented
concept, including
in 2006 with bodies and entrepreneurs.
introducion of individual accounts. The works on implementaion of
2. How was this achieved?
third pillar were under way during last years, however present economic
Historically, Azerbaijan has inherited situaion represent a serious obstacle universal soviet pension system for such development. which was criically underinanced Furthermore, up to 2006 Azerbaijan during irst years of independence. had universal child beneits coverage. Although the State Social Protecion However, these allowances (extremely Fund was established in 1991, the low at that period) were transformed basic informaion for management into Targeted Social Assistance (safety of pension system was missing: net mechanism). employment records and employment Last reform has brought the State periods, income levels for workers Social Protecion Fund (SSPF) under who used to live in other Soviet the responsibility of the Ministry of republics. Furthermore, the situaion Labour and Social Protecion of the was worsened by socio-poliical and Populaion (MLSPP) in March 2016. economical cataclysms of the early This reform is intended to render more 1990s and large number of Internally comprehensive the pensions system Displaced Persons.