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Social Security Programs 
Throughout the World - 1997 



Social Security Administration 

Office of Research, Evaluation and Statistics 



Research Report #65 

SSA Publication No. 13-11805 
August 1997 




Social Security Programs 
Throughout the World — 1997 



Social Security Administration 

Office of Research, Evaluation and Statistics 

Research Report #65 

SSA Publication No. 13-11805 
August 1997 



■■ill 

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For sale by the Superintendent of Documents 
U.S. Government Printing Office 
Washington, D.C. 20402-9325 



This is the 60th Anniversary of the United States Social Security 
Administration's (SSA) biennial publication, Social Security Programs 
Throughout the World, through which SSA has been documenting details 
about social security systems around the world. The first edition, published 
in 1937, summarized the social security programs in 28 countries. This 
edition contains summaries of 172 systems in effect on January 1, 1997. 

Social Security Programs Throughout the World is the product of a 
cooperative effort between SSA and the International Social Security 
Association. The contributions of Labor Attaches and Labor Reporting 
Officers at American Embassies abroad were also an integral part of the 
process. In addition, hundreds of persons around the globe compile the 
myriad pieces of data that must be drawn together to update the report. 
It will enable researchers to employ comparative analysis as a beginning 
to further research. This is crucial to our efforts, and those of researchers 
in other countries, to review different ways of approaching social security 
challenges that will enable us to adapt our social security systems to the 
needs of the aged, the disabled, survivors, the poor, and others. This is 
also particularly important as each nation faces major demographic changes, 
especially the increasing number of aged, as well as economic and fiscal 
issues. It is an honor for the U.S. Social Security Administration to 
facilitate, in a small way, all of our efforts to improve our programs aimed 
at the economic security of those in the greatest need. We send a special 
message of gratitude to all involved in the massive effort of gathering and 
producing the information in this volume. 

This report was prepared by the following staff members in the 
Office of Research, Evaluation and Statistics: Ann Bixby, Rita DiSimone, 
Alexander Estrin, Flan Fry, Barbara Kritzer, and Lillian Liu, under the 
direction of Martynas Yeas. An added thanks is due to Mr. Estrin for his 
project leadership and to Ms. Kritzer for her responsibility for the technical 
production of the report. We also acknowledge Emil Loomis of the Division 
of Publications for his work in designing the cover. 

The internet version of this edition is available at: 

www. ssa . gov /statistics lores Jwme. html 

If you have any additional questions about individual countries, you may 
contact barbara.e.kritzer@ssa.gov via e-mail. 



Peter Wheeler 

Associate Commissioner 

Office of Research, Evaluation and Statistics 



Social Security Programs Throughout the World — 1997 



in 



Contents 



Foreword iii 

Guide to Reading the Country Summaries v 

Types of Programs Covered v 

Format of Program Summaries viii 

Old-Age, Disability, and Survivor Programs ix 

Sickness and Maternity Programs xv 

Work-Injury Programs xx 

Unemployment Benefit Programs xxii 

Family Allowances xxv 

Note to the Reader xxvii 

Countries Providing Information xxix 

List of Social Security Programs, by Type xxx 

Type of Social Security Programs — Paying Cash Benefits 

to the Aged, Disabled, and/or Survivors xxxvii 

Tables: 

1. — Number of countries by type of 

social security program — selected years xlv 

2. — Social security related statistics — 

OECD countries (1997) xlvi 

3. — Contribution rates for social security programs — 

OECD countries (1997) xlvii 

List of Social Security Program Summaries xlviii 



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Social Security Programs Throughout the World — 1997 



Guide to Reading the Country Summaries 



This Research Report highlights the principal features of social security 
systems throughout the world. A few political jurisdictions have been 
excluded because they have no social security system, or have issued no 
information regarding their social security legislation. The data reported are 
based on laws and regulations in force at the beginning of 1997, or the last 
date for which information has been received. The names of the countries 
are those used by the U.S. Department of State. 

Much of the information used was collected in the Annual Survey 
on Developments and Trends conducted by the International Social Security 
Association (ISSA) under the sponsorship of the United States Social 
Security Administration. Appreciation is expressed to the ISSA for 
providing this information. 

Other sources include official publications, periodicals, and other 
documents received from social security institutions, foreign embassies, or 
the Law Library of the Library of Congress. Information transmitted by 
Labor Attaches and Labor Reporting Officers at American Embassies 
abroad has been invaluable. Additional important sources include the 
International Labor Office and other international organizations such as the 
Permanent Inter-American Social Security Committee, the Organization for 
Economic Co-operation and Development, the European Communities, the 
World Bank, the International Monetary Fund, and the Inter-American 
Development Bank, as well as foreign social security officials, and social 
security experts in the United States. (For a listing of countries and 
territories that provided information, see page xxix.) 

The country summaries show each system's major features. 
Separate programs in the public sector and specialized funds for such groups 
as agricultural workers, collective farmers, or the self-employed have not 
been described in any detail in this report. Private employer or individual 
benefit arrangements are not described in any detail, even though such 
arrangements may be mandatory in some countries or available as 
alternatives to statutory programs. 

The country summaries also do not refer to international social 
security agreements that may be in force between two or more countries. 
These agreements may modify coverage, contribution, and benefit 
provisions of national laws summarized in the country summaries. 

Since the summary format requires brevity, technical terms have 
been developed and are applied to all programs. This terminology, created 
to be concise as well as comparable, may differ from national concepts or 
usages. 

Types of Programs Covered The term social security in this report refers to programs established by 

statute that insure individuals against interruption or loss of earning power, 
and for certain special expenditures arising from marriage, birth, or death. 



Social Security Programs Throughout the World — 1997 



v 



Allowances to families for the maintenance of children are also included in 
this definition. 

Protection of the insured person and dependents usually is extended 
through cash payments to replace at least a portion of the income lost as the 
result of old age, disability, or death; sickness and maternity; work injury; 
or unemployment; or through services, primarily hospitalization, medical 
care, and rehabilitation. Measures providing cash benefits to replace lost 
income are usually referred to as income-maintenance programs, while 
measures that finance or provide direct services are referred to as 
benefits-in-kind. 

There are three broad approaches to coverage that provide cash 
benefits under income-maintenance programs, namely, employment- related, 
universal, and means-tested systems. Under the first two, the insured, 
dependents, and survivors can claim benefits as a matter of right; 
means-tested benefits are based on a comparison of a person's income or 
resources against a standard measure. 

Employment-related systems generally base eligibility for pensions 
and other periodic payments on length of employment or self-employment 
or, in the case of family allowances and work injuries, on the existence of 
the employment relationship itself. The amount of pensions (long-term 
payments, primarily) and other periodic payments (short-term) in the event 
of unemployment, sickness, maternity, or work injury is usually related to 
the level of earnings before any of these contingencies caused earnings to 
cease. Such programs are financed entirely or largely from contributions 
(usually a percentage of earnings) by employers, workers, or both, and are 
in most instances compulsory for defined categories of workers and their 
employers. Such systems are referred to as social insurance systems. 

A few of these systems permit voluntary affiliation of workers, 
especially the self-employed. In some instances, the government subsidizes 
such programs to encourage voluntary participation. 

The government is, pro forma, the ultimate guarantor of all 
benefits. In a substantial number of countries, it participates in the financing 
of employment-related as well as other social security programs. The 
government may: contribute through an appropriation from general 
revenues based on a percentage of total wages paid to insured workers; 
cover part or all of the cost of a program; or pay a subsidy to make up any 
deficit of an insurance fund. Occasionally, the government pays the 
contributions for low-paid workers. These arrangements are separate from 
obligations the government may have as an employer under systems that 
cover government employees. Social security contributions and other 
income are kept in a separate fund and are shown as a separate item in 
government accounts. (For further details on the government's role in social 
security financing, see Source of Funds under Old-Age, Disability, and 
Survivor Programs.) 

Universal or demogrant programs provide flat-rate cash benefits to 
residents or citizens, without consideration of income, employment, or 
means. Usually financed from general revenues, these benefits are often 
universal in application for persons with sufficient residency. These 

Social Security Programs Throughout the World — 1997 



programs may include old-age pensions for persons over a certain age; 
pensions for disabled workers, widows, widowers, and orphans; and family 
allowances. Most social security systems incorporating a universal program 
also have a second-tier earnings-related program. Some universal programs 
are financed in part by contributions from workers and employers, even 
though they receive substantial support from income taxes. 

Means-tested programs establish eligibility for benefits by 
measuring individual or family resources against a standard usually based on 
subsistence needs. Benefits are limited to needy or low-income applicants. 
The size and type of benefits are determined in each case by administrative 
decision within the framework of the law. 

The specific character of means, needs, or income tests, as well as 
the weight given to family resources, differ considerably from country to 
country. Such programs, variously referred to as social pensions, 
equalization payments, and other similar names, traditionally are financed 
primarily from general revenues. 

Means-tested systems constitute the sole or principal form of social 
security in only a few jurisdictions. Sometimes they have been replaced by 
contributory programs linked with income-related benefits. In addition, 
means- or income-tested programs are in many cases administered by social 
insurance agencies. These programs apply to persons who are not in 
covered employment, or whose benefits under employment-related 
programs, together with other individual or family resources, are inadequate 
to meet subsistence or special needs. Sometimes, means-tested programs are 
administered on the national level, but more often they are administered 
locally. 

In this report when national means-tested programs supplement an 
employment-related benefit, the existence of a means-tested program is 
generally noted, but no details concerning it are given. When a means-tested 
program represents the only or principal form of social security, however, 
further details are noted. 

Other approaches. Three other types of programs are covered in 
some of the country summaries: mandatory private insurance, 
publicly-operated provident funds and employer-liability programs. 

Mandatory private insurance may have been put into place to 
substitute for or to complement social insurance systems. Private insurance 
is funded through mandatory contributions by the employee (or a 
combination of employee and employer contributions) to an employee's 
individual account. The employee must pay an administrative fee for the 
account and purchase a separate policy for disability and survivors insurance. 

Public provident funds, which exist primarily in developing 
countries, are essentially compulsory savings programs in which regular 
contributions withheld from employees' wages are matched by their 
employers. These contributions are set aside for each employee in a special 
fund for later repayment to the worker (as a rule in a single lump sum with 
accrued interest) when defined contingencies occur, although in a few cases 
the beneficiary can opt for a pension, or pensions are provided for the 
survivors. 



Social Security Programs Throughout the World — 1997 



vii 



Under employer-liability systems, workers are usually protected 
through labor codes whereby affected employers are required to provide 
specified payments or services directly to their employees, such as payment 
of lump-sum gratuities to the aged or disabled; provision of medical care, 
paid sick leave, or both; payment of maternity benefits or family 
allowances; provision of temporary or long-term cash benefits and medical 
care in the case of a work injury; or payment of severance indemnities in 
the case of dismissal. This approach does not involve any direct pooling of 
risk, since the liability for payment is placed directly on each employer. 
Employers may insure themselves against liability and some laws make such 
insurance compulsory. 

Format of Program 

Summaries Each country summary begins with programs dealing with old age, 

disability, and death. Benefits under these programs are ordinarily 
pensions payable for life, or for a considerable number of years; hence, they 
are usually referred to as benefits for long-term risks (as distinct from 
short-term risks such as temporary incapacity resulting from sickness and 
maternity, work injury, or unemployment, which are dealt with under their 
respective headings). These programs are usually administered jointly and 
have a pooled source of financing as well as interrelated qualifying 
conditions and benefit formulas. 

The laws summarized under Old Age, Disability, and Death 
include those providing pensions or lump-sum payments to replace income 
loss resulting from old age or permanent retirement. Such benefits are 
usually payable only at a specified age. Some countries require complete or 
substantial retirement; others pay a pension at a certain age, whether 
workers retire or not. 

The second type of long-term risk for which pensions are provided 
is disability (referred to in some countries as invalidity). This may be 
generally defined as long-term and more or less total work impairment 
resulting from a non-occupational injury or disease. (Disability caused by a 
work injury or occupational disease is usually compensated under a separate 
program; these benefits are dealt with under Work Injury.) 

The third type of pensions listed are those payable to dependents of 
insured workers or pensioners who die. (Pensions for survivors of 
work-accident victims are usually provided under a separate work injury 
program.) 

The second major heading of each country summary deals with 
sickness and maternity programs, including: cash benefits to replace wages 
lost due to short-term sickness or injury of nonoccupational origin; cash 
benefits to replace wages lost during maternity leave; and, related medical 
benefits or services. (Again comparable benefits provided as a result of a 
work injury or occupational disease are shown under Work Injury.) 

One reason for grouping the several kinds of benefits shown 
together under a single branch, Sickness and Maternity, is that each deals 
in one way or another with the risk of temporary incapacity. Moreover, in 
most instances, such benefits are furnished as part of a single system with 



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Social Security Programs Throughout the World — 1997 



common financing and administration. Most countries provide medical care 
services for sickness and maternity as an integral part of the health 
insurance system and link these services directly with the provision of cash 
benefits. (In some instances, maternity cash grants are covered under family 
allowance programs.) Occasionally, however, medical-care services are 
provided under a public health program, independent of the social insurance 
system. Where this dual approach is followed, it has been indicated in the 
summaries. 

The third major heading of the country summaries concerns 
programs that provide benefits in the event of incapacity or death caused by 
an employment-related work injury or occupational illness. Such 
programs usually furnish short- and long-term benefits, depending on both 
the duration of the incapacity and the age of survivors. Work- injury benefits 
nearly always include cash benefits and medical services. Most countries 
maintain more or less separate work-injury programs that are not directly 
linked with other social security measures. In some countries, like Spain, 
however, work-injury benefits are paid under special provisions of the 
general social security programs. Both types of programs are dealt with 
under Work Injury. 

The fourth heading of the summaries lists programs protecting 
persons against unemployment. In some countries, these programs are 
independent of other social security measures and often closely linked with 
employment services. In others, the unemployment programs are included 
with social security measures covering other risks, although employment 
services may continue to verify unemployment and assist in a job search. 

The last heading of each country summary concerns family 
allowances. The general purpose of such programs is to provide additional 
income for families with young children in order to meet at least part of the 
added costs of their maintenance. These programs are sometimes integrated 
with other social security measures; in other instances, they are entirely 
separate. 

Old-Age, Disability, and 

Survivor Programs Coverage. The extent of social security coverage in a country is determined 

by the kind of system, sometimes the age of the system, and the degree of 
economic development. A program may provide coverage for the entire 
country or, at the other extreme, may be limited to wage and salary workers 
in the capital and perhaps in several provinces. 

In principle, universal (or demogrant) systems cover the entire 
population for the contingencies of old-age, disability, and survivorship. A 
person may have to meet certain conditions, such as long-term residence or 
citizenship. Aliens are often excluded from benefits unless there is a 
reciprocal agreement with the country of which they are nationals. 

The extent of employment-related benefits frequently depends on the 
age of the system. Historically, coverage was usually provided first to 
government employees and members of the Armed Forces, then to workers 
in industry and commerce, and eventually extended to practically all wage 
earners and salaried employees through a general system. Therefore, public 



Social Security Programs Throughout the World — 1997 



ix 



employees, including military personnel and civil servants, teachers, and 
employees of public utilities, corporations or monopolies are still covered, 
by older separate systems in many countries. 

Special occupational systems were also often set up for certain 
private sector employees, such as miners, railway workers, and seaman. 
Qualifying conditions and benefits are often more liberal than under the 
general system. The risk involved in an occupation, its strategic importance 
for economic growth and the economic and political strength of trade unions 
have often had a role in shaping the type and size of benefits offered by the 
particular program. 

Groups which might be considered difficult to administer — family 
workers, domestics, and day workers, agricultural workers and the 
self-employed — were often initially excluded from coverage. The trend has 
been to eventually cover these groups under separate funds or to bring them 
under the general system. Even non-workers are sometimes covered by 
allowing voluntary contributions at a specified level which maintains the 
right to an eventual pension. Some systems also provide voluntary coverage 
for women who leave the labor force temporarily to have children or to 
raise a family, or for self-employed persons not covered by a mandatory 
program. Some developed countries with younger programs have built up a 
unified national program, bypassing the stage of separate industrial or 
agricultural funds. 

Most developing countries have extended coverage gradually. 
Particularly in the early stages of development, a large part of the 
population may still be living in a predominantly noncash, extended-family, 
or tribal economy. During the first stages of social security, primarily wage 
and salary workers are covered against loss of income due to old age and, 
less often, disability. 

This often takes the form of provident funds. Most provide coverage 
for wage and salary workers in the government and private sector. A few 
have exclusions based on the worker's earnings or the firm size. Funds that 
exclude employees with earnings above a certain level from compulsory 
coverage may in some cases give them the option to affiliate or continue to 
participate voluntarily. 

Source of Funds. There are normally three sources of revenue for 
old-age, disability, and survivor programs: a percentage of covered wages 
or salaries paid by the worker; a percentage of covered payroll paid by the 
employer, and a government contribution. 

Almost all pension programs under social insurance (as distinct 
from provident funds or universal systems) are financed at least in part by 
employer and employee contributions. Many derive their funds from all 
three sources. Contributions are determined by applying a percentage to 
salaries or wages up to a certain maximum. In many cases the employer 
pays a larger share. 

The government's contribution may be derived from general 
revenues or, less frequently, from special earmarked or excise taxes (for 
example, a tax on tobacco, gasoline, or alcoholic beverages). It may be used 
in different ways — to defray a portion of all expenditures (such as the cost 



Social Security Programs Throughout the World — 1997 



of administration), to make up deficits, or even to finance the whole cost of 
a program. Subsidies may be provided in the form of a lump sum or an 
amount to make up the difference between employer-employee contributions 
and the total cost of the system. A number of countries reduce or, in some 
cases, eliminate contributions for the lowest-paid wage earners, financing 
their benefits entirely from general revenues or by the employer. 

The contribution rate apportioned between the sources of financing 
may be identical or progressive, increasing with the size of the wage, or 
changing according to wage class. Where universal and earnings-related 
systems exist side by side, and the universal benefit is not financed entirely 
by the government, separate rates may exist for each program. In other 
instances, flat-rate weekly contributions may finance basic pension 
programs. These amounts are uniform for all workers of the same age and 
sex, regardless of earnings level. However, the self-employed often must 
contribute at a higher rate than wage and salary workers, thereby making up 
for the employer's share. 

For administrative purposes, a number of countries assess a single 
overall social security contribution covering several contingencies. Sickness, 
work injury, unemployment, or family allowances, as well as pensions may 
be financed from this contribution. 

General revenue financing is the sole source of income in some 
universal systems. The contribution of the resident or citizen is often a 
percentage of taxable income under a national tax program. General 
revenues finance all or part of the means-tested supplementary benefits in 
many countries. 

Contribution rates, as a rule, are not applied to the entire wage or 
salary, but only up to a ceiling. A portion of the wage of high-paid workers 
will escape the tax, but will also not count in the determining the benefit. In 
a few cases, an earnings ceiling applies for the determination of benefits but 
not for contribution purposes. In some countries, contribution rates are 
applied not to actual earnings, but to a fixed amount that is set for all 
earnings falling within a specified range or wage class. 

Qualifying conditions for benefits. To receive an old-age benefit, 
two requirements usually must be met: attainment of a specified age and 
completion of a specified period of contributions or covered employment. 
Another common requirement is total or substantial withdrawal from the 
labor force. Sometimes, eligibility is determined by resident status or 
citizenship. 

Old-age benefits generally become payable between age 60 and 65. 
In some countries, length-of-service benefits are payable at any age after a 
certain period of employment, most commonly between 30 and 40 years. 
The age at which benefits first become payable was often a major policy 
issue in the 1970's and 1980's, reflecting public pressure to lower the age 
limits. Several countries have more recently increased their age limit due to 
budgetary constraints. 

Many programs have the same pensionable age for women as for 
men. The others permit women to draw a full pension at an earlier age, 



Social Security Programs Throughout the World — 1997 



xi 



despite their longer life expectancy. The differential is usually about 5 
years. Internationally, there is a trend, toward equalizing the retirement age. 

Many programs offer optional retirement before the normal 
retirement age is reached. A reduced pension may usually be claimed up to 
5 years earlier. Some countries pay a full pension before the regular 
retirement age if the applicant meets one or more of the following 
conditions: work in an especially arduous, unhealthy, or hazardous 
occupation (for example, underground mining); involuntary unemployment 
for a period near retirement age; physical or mental exhaustion (as distinct 
from disability) near retirement age, or, occasionally, an especially long 
period of coverage. Some programs award old-age pensions at ages beyond 
the norm to workers who cannot satisfy the regular length-of-coverage 
requirement. Others provide increments to those who had continued 
working beyond the normal retirement age. 

Universal systems usually do not require a minimum period of 
covered employment or contributions. However, most prescribe a minimum 
period of prior residence. 

Some systems credit periods during which persons were not in 
covered employment, for reasons beyond their control, such as disability, 
unemployment, military service, education, child rearing, or training. Other 
systems disregard these periods and benefits often are proportionately 
reduced for each year below the required minimum. Should the person have 
only a few years of coverage, there may be a refund of contributions or a 
settlement in which a certain part of the full benefit or earnings is paid for 
each year of contribution. 

A majority of social insurance systems require total or substantial 
withdrawal from covered employment. Under a retirement test, the benefit 
may be withheld or reduced for those who continue working, depending on 
the amount of earnings or, less often, the number of hours worked. 
Universal systems usually do not require retirement from work for receipt 
of a pension. Provident funds pay the benefit only when the worker leaves 
covered employment or emigrates. 

Some countries provide exemptions that, in effect, eliminate the 
retirement condition for specified categories of pensioners. For example, the 
retirement test may be eliminated entirely after a worker reaches a specified 
age above the minimum pensionable age; or for pensioners with long 
working careers in covered employment. Occupations with manpower 
shortages may also be exempted from the retirement test. 

The principal requirements for receiving a disability benefit are loss 
of productive capacity after a minimum period of work or contributions. 
Often the full disability benefit is granted for a two-thirds loss of working 
capacity in the worker's customary occupation, but this requirement may 
vary from one-third to 100 percent. 

The qualifying period for a disability benefit is usually shorter than 
for an old-age benefit. Periods of 3 to 5 years of contribution or covered 
employment are most common. A few countries provide disability benefits 
in the form of an unlimited extension of ordinary cash sickness benefits. 



Social Security Programs Throughout the World — 1997 



Entitlement to disability benefits may have age limitations. The 
lower limit in most systems is in the teens, but it may be related to the 
lowest age for admission to social insurance, or employment, or to the 
maximum age for a family allowance benefit. The upper age limit is 
frequently the normal retirement age, when disability benefits may be 
converted to old-age benefits. 

For survivors to be eligible for benefits, most programs require that 
the deceased worker have been a pensioner, or have completed a minimum 
period of covered employment or contribution—often the same as that for 
the disability benefit. The surviving spouse and orphans must also often 
meet certain conditions, such as age requirements. 

Old-age benefits. The old-age benefit in most countries is a 
wage-related, periodic payment. However, some countries pay a universal 
fixed amount that bears no relationship to any prior earnings while others 
supplement their universal pension with an earnings-related pension. 
Provident fund systems make a lump-sum payment, usually a refund of 
employer and employee contributions plus interest. 

Where benefits are related to income, they are almost always based 
on average earnings. In some countries, the average is computed from gross 
earnings, including various fringe benefits; in others, from net earnings. 
Still other countries use wage classes rather than actual earnings. These may 
be based on occupations, or, for administrative convenience on earnings 
arranged by size using the midpoint in each step to compute the benefit. 

Several methods are used to compensate for averages that may be 
reduced by low earnings early in a worker's career or periods without any 
credited earnings (due to unemployment or military service, for example), 
and for the effects of price and wage increases due to inflation. One method 
is to exclude from consideration a number of periods with the lowest 
(including zero) earnings. In many systems, the period over which earnings 
are averaged may be shortened to the last few years of coverage, or the 
average may be based on years when the worker had his highest earnings. 
Other systems revalue past earnings by applying an index that usually 
reflects changes in national average wages or the cost of living. Some assign 
hypothetical wages before a certain date. Still others have developed 
mechanisms for automatic adjustment of workers' wage records based on 
wage or price changes. 

A variety of formulas are used in determining the benefit amount. 
Instead of a statutory minimum, some pay a percentage of average earnings 
(such as 35 or 50 percent), which is unchanged by length of coverage once 
the qualifying period is met. A more common practice is to provide a basic 
rate, for example, 30 percent of average earnings, plus an increment of 1 or 
2 percent of earnings either for each year of coverage or for each year in 
excess of a minimum number of years. Several countries have a weighted 
benefit formula, which returns a larger percentage of earnings to lower paid 
workers than to higher paid workers. 

Most systems limit the size of the benefit. Many do this by 
establishing a ceiling on the earnings taken into account in the computation. 
Others establish a maximum cash amount or a maximum percentage of 



Social Security Programs Throughout the World — 1997 



xiii 



average earnings (such as 80 percent). Some systems combine two or more 
of these methods. 

Most systems supplement the benefit for a wife or child. The wife's 
supplement may be 50 percent or more of the basic benefit, although in a 
number of countries it is payable only for a wife who has reached a 
specified age, or has children in her care, or is disabled. It is sometimes 
also payable for a dependent disabled husband. 

Minimum benefits are often intended to maintain a minimum 
standard of living, though in many cases this has not been achieved. A 
maximum which reduces the effect large families have on benefits is often 
used to limit total benefits, including those of survivors, in the interest of 
the financial stability of the program, (see Survivor benefit). 

The adjustment of benefits to reflect price or wage changes is 
sometime automatic(often referred to as dynamic). In other countries, the 
process is semiautomatic, the adequacy of pensions is reviewed periodically 
by an advisory board or other administrative body that recommends a 
benefit adjustment to the government, usually requiring legislative approval. 

Disability benefit. Under most programs, provisions for persons 
who are permanently disabled due to nonoccupational causes are very 
similar to those for the aged. The same basic formula usually applies for 
total disability as for old age — a cash amount frequently expressed as a 
percentage of average earnings. Increments and dependents' supplements 
are generally identical under the total disability and old-age programs. For 
the totally disabled, a constant-attendance supplement, most often 50 percent 
of the benefit, may be paid to those who need help on a daily basis. Partial 
disability benefits, if payable, are usually reduced, according to a fixed 
scale. The system may also provide rehabilitation and training. Some 
countries provide higher benefits for workers in arduous or dangerous 
employment. 

Survivor benefit. Periodic benefits for survivors of covered persons 
or pensioners are provided under most systems, although a few pay only 
lump-sum benefits. Survivor benefits are generally a percentage of the 
benefit paid to the deceased at death, or the benefit to which the insured 
would have been entitled if the insured had attained pensionable age or 
become disabled at that time. 

Survivor benefits are paid to some categories of widows under 
nearly all programs. The amount of a widow's benefit most frequently 
ranges from 50 to 75 percent of the deceased worker's benefit, or in some 
cases 100 percent. In some countries, lifetime benefits are payable to every 
widow whose husband fulfills the necessary qualifying period. More 
commonly, the provision of widows' benefits is confined to those having 
young children in their care, those above a specified age, or those who are 
disabled. 

Lifetime benefits are ordinarily payable to aged and disabled 
widows. Those awarded to younger mothers, however, are usually 
terminated when all children have passed a certain age, unless the widow 
has reached a specified age or is disabled. Most widows' benefits also 
terminate on remarriage, although a final lump-sum grant is often payable in 



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Social Security Programs Throughout the World — 1997 



this circumstance. Special provisions govern the rights of the divorced. Age 
limits for orphans' benefits are often the same as for children's allowances. 
Many countries fix a somewhat higher limit for orphans attending school, 
undergoing an apprenticeship, or who are incapacitated. In a large number 
of countries, the age limit is removed for disabled orphans as long as their 
incapacity continues. Under most survivor programs, a distinction is made 
between half orphans (who have lost one parent) and full orphans (who have 
lost both parents). Benefits for the latter are often from 50 to 100 percent 
larger than those for half orphans. Special payments are also made to 
orphans under the family allowance programs of some countries. 

Benefits are payable under a number of programs to widowers of 
insured workers or pensioners. A widower usually must have been 
financially dependent on his wife and either disabled or old enough to 
receive an old-age benefit at her death. A widower's benefit is usually 
computed in the same way as a widow's benefit. 

Many systems also pay benefits to other surviving close relatives, 
such as parents and grandparents, often only in the absence of qualifying 
widows, widowers, or children. The maximum total benefit to be divided 
among survivors is usually between 80 and 100 percent of the benefit of the 
deceased. 

Administrative organization. Responsibility for administration 
generally rests with semiautonomous institutions or funds. These agencies 
are most often subject to general supervision by a ministry or government 
department, but otherwise are largely self-governing, headed by a tripartite 
board that includes representatives of workers, employers, and the 
government. Some boards are bipartite with representatives of workers and 
employers only, or of workers and the government. Where coverage is 
organized separately for different occupations, or for wage earners and 
salaried employees or self-employed workers, each program usually has a 
separate institution or fund. In a few cases, the administration of benefits is 
placed directly in the hands of a government ministry or department. 



Programs for sickness are generally of two types: cash sickness benefits, 
paid when short-term illnesses prevent work; and health care, provided in 
the form of medical, hospital, and pharmaceutical benefits. Some countries 
maintain a separate program for cash maternity benefits, paid to working 
mothers before and after childbirth. In most countries, however, maternity 
benefits are administered as part of the cash sickness program. 

Cash sickness and maternity benefits as well as health care are 
usually administered under the same branch of social security. For this 
reason, these programs are grouped together in the country summaries. 

Where health care is dispensed directly by the government or its 
agencies, and the principal source of funds is general revenue, the cash 
benefit program usually continues to be administered on an insurance basis, 
funded by payroll contributions, and often merged with other aspects of the 
social insurance system such as old age and disability. However, countries 
that deliver health care primarily through private facilities and private 



Social Security Programs Throughout the World — 1997 



xv 



funding also tend to have developed separate programs. Where the social 
security program operates its own medical facilities, both types of benefits 
are usually administered jointly. 

A new category of benefits, designed to assist in the provision of 
long-term care, preferably at home, is generally supported by a special tax, 
with benefit levels set according to the level of care required. These benefits 
may be payable in cash, kind, or a combination of the two. 

Coverage. The proportion of the population covered by sickness 
programs varies considerably, due in part to the degree of economic 
development. Coverage for medical care and cash benefits is generally 
identical in countries where both types of benefits are provided through the 
same branch of social insurance. In a number of systems, particularly in 
developing countries, health care insurance extends only to employees in 
certain geographic areas. A common procedure is to start the program in the 
capital city or in a few urban centers, then extend it gradually to other 
areas. Both cash sickness and health care programs may exclude agricultural 
workers, who, in some countries, comprise a major proportion of the 
working population. Where a health insurance system (as distinguished from 
a national health service program) exists, most workers earning below a 
certain ceiling participate on a compulsory basis. Others, such as the 
self-employed, are often permitted to affiliate on a voluntary basis. In 
several countries, higher paid employees are specifically excluded from one 
or both forms of sickness insurance, although some voluntary participation 
is usually permitted. 

A large number of countries include pensioners as well as other 
social security beneficiaries under the medical care programs, sometimes 
without cost to the pensioner. Elsewhere, pensioners pay a percentage of 
their pension or a fixed premium for all or part of the medical care 
coverage. Special sickness insurance systems are often maintained for 
certain workers, such as railway employees, seamen, and public employees. 

Where medical care coverage is provided through a national health 
service rather than social insurance, the program is usually open in principle 
to virtually all residents. However, restrictions on services to aliens 
sometimes apply. 

Source of funds. Many countries have merged the financing of 
sickness programs with that of other social insurance benefits and collect 
only a single contribution from employees and employers. More often, 
however, a fixed percentage of wages, up to a ceiling, is contributed by the 
employee and the employer directly to a separate program that administers 
both health care and cash benefits for sickness and maternity. Some 
countries, in addition, provide a government contribution. Where medical 
care is available to residents, generally through some type of national health 
service, the government usually bears at least the major part of the cost 
from general revenues. 

Qualifying conditions. Generally, a person becoming ill must be 
gainfully employed, incapacitated for work, and not receiving regular wages 
or sick-leave payments from the employer to be eligible for cash sickness 
benefits. Most programs require claimants to meet a minimum period of 



XVI 



Social Security Programs Throughout the World — 1997 



contribution or to have some history of work attachment prior to the onset 
of illness to qualify. Some countries, however, have eliminated the 
qualifying period. 

The length of the qualifying period for cash sickness benefits may 
range from less than 1 month to 6 months or more and ordinarily somewhat 
longer for cash maternity benefits. Usually the period must be fairly recent, 
such as during the last 6 or 12 months. In the case of medical benefits, a 
qualifying period is usually not required; where such a requirement does 
exist, it is generally shorter. Most programs providing medical services to 
dependents of workers, as well as to the workers themselves, do not 
distinguish in their qualifying conditions between the two types of 
beneficiaries. A few programs require a longer period of covered 
employment before medical services are provided to dependents. 

Cash benefits. The cash sickness benefit is usually 50 to 75 percent 
of current average earnings, frequently with supplements for dependents. 
Most programs, however, fix a maximum benefit amount or do so implicitly 
through a general earnings ceiling for contributions and benefits. Benefits 
are sometimes reduced when beneficiaries are hospitalized at the expense of 
the social insurance system. 

A waiting period of 2-7 days is imposed under most cash sickness 
programs. This means that benefits may not be payable at all if an illness or 
injury lasts only a few days and that the first few days may not be 
compensable in case of a prolonged inability to work. Under some 
programs, however, benefits are retroactively paid for the waiting period 
when the disability continues beyond a specified time, commonly 2 to 3 
weeks. A waiting period reduces administrative and benefit costs by 
excluding many claims for short illnesses or injuries during which income 
loss is relatively small. 

The period during which a worker may receive benefits for a single 
illness or injury, or in a given year, is ordinarily limited to 26 weeks. In 
some instances, however, benefits may be drawn for considerably longer, or 
even for an unlimited duration. A number of countries permit the agency to 
extend the maximum to 39 or 52 weeks in individual cases. When cash 
sickness benefits are exhausted, in most countries the recipient is paid a 
disability benefit if the incapacity continues. 

Cash maternity benefits are usually payable for a specified period, 
before and after childbirth. A woman is almost always required to stop 
working while receiving maternity benefits, and usually she must use the 
prenatal and postnatal medical services provided by the system. In some 
countries, cash maternity benefits are also payable to working men who stay 
home to care for a newborn child while the mother returns to work, as well 
as cash payments when a parent, usually the mother, must leave work to 
care for a sick child under a specified age. 

The proportion of earnings payable as a cash maternity benefit 
differs considerably from country to country and generally falls within the 
same range as cash sickness benefits. However, in a number of countries, 
maternity benefits are set at 100 percent of wages. Benefit payments usually 



Social Security Programs Throughout the World — 1997 



xvii 



start approximately 6 weeks before the expected date of confinement and 
end 6 to 8 weeks after confinement. 

A nursing allowance — usually 20 or 25 percent of the regular 
maternity benefit and payable for up to 6 months or longer — may be 
provided in addition to the basic cash maternity benefit. A grant for the 
purchase of a layette, or the layette itself, is furnished under some 
programs. Finally, a lump-sum maternity grant is paid in some countries on 
the birth of each child. The wives of insured men are often eligible for this 
grant. Similar benefits may be provided under the family allowance 
program. 

Medical benefits. Medical services usually include at least general 
practitioner care, some hospitalization, and essential drugs. Services of 
specialists, surgery, maternity care, some dental care, a wider range of 
medicines, and certain appliances are often added. Transportation of patients 
and home-nursing services may be included. 

Three principal methods of meeting the cost of health care are: 
direct payment to providers by the public system or its agents, 
reimbursement of patients, and direct provision of medical care. These may 
be used in different combinations and variations for different kinds of 
services. 

Under direct payment, the social security or public medical care 
system ordinarily pays providers directly for services. Patients usually have 
little or no direct financial dealings with them. Payments for care are 
commonly made on the basis of contracts with providers or groups 
representing them, such as practitioner or hospital associations. 
Remuneration may take the form of a specified fee for each service, a 
capitation payment in return for providing all necessary services to a given 
group of persons, or a salary. 

The reimbursement method involves initial payment by the patient, 
with reimbursement by social security for at least part of the cost incurred. 
A maximum is sometimes placed on the refund, expressed as a percentage 
of the bill or a flat amount that can vary with the nature of the service as 
stipulated in a schedule of fees. The ceiling on medical bills can be placed 
on the provider when presenting the bill or on the patient when applying for 
reimbursement. In the latter case, the patient may be reimbursed for only a 
small portion of the bill. 

Under the direct-provision method, the social security system or the 
government owns and operates its own medical facilities, largely manned by 
a salaried staff. Countries using the direct-provision method may sometimes 
contract for services of public or private providers. The patient normally 
pays no fee for most of these services, except insofar as part of the social 
security contribution may be allotted toward health care funding. 

Virtually all national health care programs provide for at least a 
small degree of cost sharing by patients, usually on the assumption that such 
charges discourage over utilization. Thus, the patient either pays part of the 
cost to the provider or social security agency or, alternatively, receives less 
than full reimbursement. Even under the direct-provision method, with its 
emphasis on basically free medical services to the whole population, patients 



xviii 



Social Security Programs Throughout the World — 1997 



are generally required to pay a small fixed fee per medical treatment or 
prescription, or per day of hospitalization. 

In some systems, there is no limit as to how long medical care may 
be provided. Others fix a maximum, such as 26 weeks, for services 
provided for any given illness. Some set limits only on the duration of 
hospitalization paid for by social security. Where time limits are imposed, 
they may sometimes be extended. 

Maternity care — prenatal, obstetric, and postnatal — for working 
women is provided in most countries under the medical services program. 
Obstetric care is sometimes limited to the services of a midwife, although a 
doctor is usually available in case of complications. Care in a maternity 
home or hospital, as well as essential drugs, are ordinarily furnished where 
necessary. The method used for providing medical services is usually 
followed also in providing maternity care. 

Medical care for dependents. When medical benefits for insured 
workers are provided through social insurance, similar services are typically 
furnished to their the spouse and young children (and sometimes other 
adults or young relatives living with and dependent on the insured). 
Maternity care is generally provided to the wife of an insured man. 

In some countries, however, medical services available to 
dependents are more limited than those provided to insured workers or 
heads of families. The maximum duration of hospitalization, for example, 
may be shorter for dependents, or a larger percentage of the cost of certain 
services such as medicines may be payable by the patient if the latter is a 
dependent. 

Administrative organization. The administrative organization for 
the sickness and maternity program often is similar to that of the old-age, 
disability, and survivor program. Most commonly, such programs are 
administered by some form of national social security institution. Under 
some systems, social security agencies own and operate their own medical 
facilities, furnishing at least part of the services available under their 
programs. 

In most countries with a national health insurance program, 
responsibility for detailed administration is in the hands of semiautonomous, 
nongovernment health funds or associations. All workers covered by the 
program must join one of these funds. 

Each fund usually needs government approval and must satisfy 
certain requirements. Workers participate in the election of governing 
bodies, to which employers also name members in some countries. The 
funds normally collect contributions within minimum and maximum limits. 
They may also receive government subsidies related to their expenditures or 
to the number of members. 

National law usually prescribes the minimum (and sometimes the 
maximum) cash benefits and medical services the funds may provide. 
Occasionally, individual funds may determine what specific health care 
benefits and services to provide, within statutory limits, and arrange to 
furnish medical care to their members, often through contracts with 
providers in the region. 



Social Security Programs Throughout the World — 1997 



xix 



In most remaining countries, government departments are 
responsible for the actual provision of medical services, usually through a 
national health service program. The administrative responsibility for 
delivering medical services is often separated from the administration of 
cash benefit programs, which tend to be linked with other types of social 
security benefits. 

Work-Injury Programs The oldest and most widespread type of social security — the work-injury 

program — provides compensation for work-connected injuries and 
occupational illnesses. 

Types of systems. There are two basic types of work injury 
systems: social insurance systems utilizing a public fund, and various forms 
of private or semiprivate arrangements required by law. Most countries 
having work-injury programs operate through a central public fund, which 
may or may not be part of the general social insurance system. All 
employers subject to the program must pay contributions to the public 
carrier, which in turn pays the benefits. 

Countries that rely primarily on private arrangements, including the 
United States, require employers to insure their employees against the risk 
of employment injury. However, in some of these countries, only private 
insurance is available. In the remainder, a public fund does exist, but 
employers are allowed the option of insuring with either a private carrier or 
the public fund. 

The premiums charged by private or mutual insurance companies 
for work-injury protection usually vary according to past experience of 
work accidents in different undertakings or industries, and the cost of 
protection may vary widely. In some countries, however, experience rating 
has been eliminated, and all employers contribute to the program at one rate 

In other instances, workers' compensation laws simply impose upon 
employers a liability to pay direct compensation to injured workers or their 
survivors. Employers covered under these laws may simply pay benefits 
from their own funds as injuries occur, or voluntarily purchase a private or 
mutual insurance contract to protect themselves against risk. 

Coverage. Work-injury programs commonly apply to wage and 
salary workers and exclude the self-employed. The programs of some of the 
more highly industrialized nations cover practically all employees. 
However, many countries either exclude all agricultural employees or cover 
only those who operate power-driven machinery. Some programs also 
exclude employees of small enterprises. 

Source of funds. Work-injury benefits are financed primarily by 
employer contributions, reflecting the traditional assumption that employers 
should be liable when their employees suffer work injuries. Where certain 
elements of the work-injury program are meshed with one or more of the 
other branches of the social insurance system, financing often involves 
contributions from employees, employers, and the government. Another 
exception occurs in countries that provide medical treatment for 
work-connected illnesses under their ordinary public medical care programs. 



Social Security Programs Throughout the World — 1997 



Work Injury benefits. Work-injury programs provide cash benefits 
and medical benefits. Cash benefits may be subdivided into those for 
temporary disability, permanent total disability, and permanent partial 
disability. No qualifying period of coverage or employment is ordinarily 
required for entitlement to work-injury benefits. The concept of 
work-connected injury has gradually been liberalized in a number of 
countries to cover injuries occurring while commuting to and from work. 

Temporary disability benefits are usually payable from the start of 
an incapacity caused by a work injury, though some programs require a 
waiting period of 1 to 3 days. Benefits normally continue for a limited 
period, such as 26 to 52 weeks, depending on the duration of incapacity; if 
incapacity lasts longer, the temporary disability benefit may be replaced by 
a permanent disability benefit. In some systems, temporary benefits may 
continue for an extended period, particularly if the temporary and 
permanent benefit amounts are identical. 

The temporary benefit is nearly always a percentage of the worker's 
average earnings during a period immediately before injury, usually at least 
one-third to one-half. A ceiling is often placed on the earnings considered in 
computing a benefit. Temporary benefits under work-injury programs are 
often significantly higher than in the case of ordinary sickness. Benefits are 
reduced under some programs when a worker is hospitalized. 

The second type of cash work-injury benefit is provided when 
permanent total disability occurs. Generally, it becomes payable 
immediately after the temporary disability benefit ceases, based on a 
medical evaluation that the worker's incapacity is both permanent and total. 
The permanent total disability benefit is usually payable for life, unless the 
worker's condition changes. A minority of programs, however, pay only a 
single lump-sum grant equal to several years' wages. 

The permanent total disability benefit usually amounts to two-thirds 
to three-fourths of the worker's average earnings before injury, somewhat 
higher than for ordinary disability benefits. In addition, unlike ordinary 
disability benefits, the rate usually does not vary based on the length of 
pre-injury employment. Supplements are often added for dependents and for 
pensioners requiring the constant attendance of another person, in which 
case benefits may exceed former earnings. When apprentices or beginning 
workers become permanently disabled due to work-connected injury or 
disease, some countries base benefits on hypothetical lifetime wages, or on 
the wage of an average worker in the particular industry. This mechanism 
overcomes the problem of establishing a lifetime benefit based on a very 
low beginning wage. 

A third form of cash work-injury benefit is that for permanent 
partial disability, payable when a worker loses partial working or earning 
capacity. It is usually equal to a portion of the full benefit corresponding to 
the percentage loss of capacity. Alternatively, permanent partial disability 
benefits may be paid in the form of a lump-sum grant. Partial disability 
payments are generally smaller and are usually stipulated in a schedule of 
payments for particular types of injuries. Some systems commute the benefit 



Social Security Programs Throughout the World — 1997 



xxi 



into a lump sum when the extent of disability is below a stated percentage, 
such as 20 percent. 

Aside from cash payments, medical and hospital care and 
rehabilitation services are provided to injured workers. Nearly always free, 
they may include a somewhat wider range of services than the general 
sickness program. Ordinarily, these are available until recovery is achieved 
or the condition becomes stabilized. In some countries, however, the 
amount of free care is limited based on the duration of services or their total 
cost. 

Survivors benefits. Most work-injury programs also provide 
benefits to survivors. These benefits are customarily payable to a widow, 
regardless of her age, until her death or remarriage; to a disabled widower; 
and to orphans below specified age limits. If the benefit is not exhausted by 
the immediate survivors' claims, dependent parents or other relatives are 
often eligible for small benefits. No minimum period of coverage is 
required. 

Survivors benefits are computed as percentages of the worker's 
average earnings immediately before death, or of the benefit payable 
(or potentially payable) at death. These percentages are typically larger than 
those for survivor benefits under the general program and do not normally 
vary with the length of covered employment. They are commonly about 
one-third to one-half of the worker's average earnings for a widow, about 
half as much for each half orphan, and about two-thirds as much for each 
full orphan. A limit is often placed on the combined total of survivors 
benefits. 

Not all countries, however, provide work-injury benefits to 
survivors, and some do not differentiate between survivors in this category 
and survivors entitled to benefits under other social insurance programs. 
Some pay only a lump sum equal to the worker's earnings over a specified 
number of years. Most systems also pay a funeral grant equivalent to a fixed 
sum or a percentage of the worker's earnings. 

Administrative organization. The functions involved in 
administering work-injury programs differ widely between countries where 
employers are not required to insure or can insure with private carriers, and 
those where a public agency or fund has the sole responsibility for both the 
collection of contributions and the payment of benefits. 

Unemployment Benefit 

Programs Unemployment programs which exist mainly in industrialized countries are 

often compulsory and fairly broad in scope. Some restrict benefits to those 
who satisfy a means or income test. Besides the programs offering 
scheduled payments, a number of countries provide lump-sum 
grants — payable either by a government agency or by the employer. In 
addition, employers in many instances are required to pay lump-sum 
severance indemnities to discharged workers. 

Coverage. About half the compulsory unemployment programs 
mentioned above cover the majority of employed persons, regardless of the 
type of industry. Coverage under the remaining programs is limited to 



xxii 



Social Security Programs Throughout the World — 1997 



workers in industry and commerce. A few exclude salaried employees 
earning more than a specified amount. Some have special provisions 
covering temporary and seasonal employees. Special occupational 
unemployment programs — most typically for workers in the building trades, 
dock workers, railway employees, and seafarers — are found in several 
countries. 

Voluntary insurance systems are limited to industries in which labor 
unions have established unemployment funds. Membership in these funds is 
usually compulsory for union members in a covered industry and may be 
open on a voluntary basis to nonunion employees. Non-insured workers (for 
example, recent school graduates or the self-employed) are at times eligible 
for a government-subsidized assistance benefit when they become 
unemployed. 

Source of funds. The methods used to finance unemployment 
insurance are usually the same as those for other branches of social 
insurance — contributions amounting to a fixed percentage of covered 
wages are paid on a scheduled basis. In many cases, the government also 
grants a subsidy, particularly for extended benefits. 

Unemployment insurance contributions often are shared equally 
between employees and employers; alternatively, the entire contribution 
may be made by the employer. However, government subsidies may be 
quite large, amounting in some cases to as much as two-thirds of the 
program's expenditures. Means-tested unemployment assistance programs 
are financed entirely by governments, with no employer or employee 
contribution. 

Qualifying conditions. To be entitled to unemployment benefits, a 
worker must be involuntarily unemployed and have completed a minimum 
period of contributions or covered employment. The most common 
qualifying period is 6 months of coverage within the year before 
employment ceased. In a number of industrialized countries, however, 
students recently out of school who are unable to find jobs may be eligible 
for unemployment benefits, even without a work record. This provides a 
transition from school to work, particularly in periods of recession. 

Nearly all unemployment insurance programs, as well as those 
providing unemployment assistance, require that applicants be capable of 
and available for work. An unemployed worker, therefore, is usually 
ineligible for unemployment benefits when incapacitated, or if otherwise 
unable to accept a job offer. Usually, the unemployed worker must register 
for work at an employment office and report regularly for as long as 
payments continue. This close linkage between unemployment benefits and 
placement services ensures that benefits will be paid only after the person 
has been informed of any current job opportunities and been found 
unsuitable. 

An unemployed worker who refuses an offer of a suitable job 
without good cause usually will have benefits temporarily or permanently 
suspended. All programs stipulate that the job offered must have been 
suitable for the worker. The definitions of suitable employment vary 
considerably. Generally, the criteria include the rate of pay for the job being 



Social Security Programs Throughout the World — 1997 



xxiii 



offered in relation to previous earnings, distance from the worker's home, 
relationship to the worker's previous occupation, capabilities, and training, 
and the extent to which the job may involve dangerous or unhealthy work. 

An unemployed worker may satisfy all of the qualifying conditions 
for a benefit but still be temporarily or permanently disqualified. Nearly all 
unemployment systems disqualify a worker who left voluntarily without 
good cause, was dismissed due to misconduct, or participated in a labor 
dispute leading to a work stoppage that caused the unemployment. The 
period of disqualification varies considerably, from a few weeks to 
permanent disqualification. 

Unemployment benefits. Weekly benefits are usually a percentage 
of average wages during a recent period. A system of wage classes rather 
than a single fixed percentage is sometimes used. The basic rate of 
unemployment benefits is usually between 40 and 75 percent of average 
earnings. However, a ceiling on the wages used for benefit computations or 
maximum benefit provisions may considerably narrow the range within 
which the basic percentage of wages applies. 

Flat-rate amounts are sometimes payable instead of graduated 
benefits varying with past wages and customarily differ only according to 
the family status or, occasionally, the age of the worker. Supplements for a 
spouse and children are usually added to the basic benefit of unemployed 
workers who are heads of families. These supplements are either flat- rate 
amounts or an additional percentage of average earnings. 

There is usually a waiting period of several days before 
unemployment benefits become payable to reduce the administrative burden 
of dealing with a very large number of small claims. Most waiting periods 
are between 3 and 7 days. Some programs have a waiting period for each 
incident of unemployment while others limit eligibility to once a year. 
Longer waiting periods may be prescribed for certain workers, such as the 
seasonally employed. 

Most countries place a limit on the period during which 
unemployment benefits may be continuously drawn. This limit may vary 
from 8 to 36 weeks (or longer in certain cases). 

Duration of benefits may also depend on the length of the preceding 
period of contribution or coverage under the program. This may reduce the 
maximum duration of unemployment benefits for workers with brief work 
histories. On the other hand, workers with a long history of coverage may, 
under some programs, have their benefit period extended well beyond the 
ordinary maximum. 

Unemployed workers who exhaust the right to ordinary benefits 
often continue to receive some assistance, provided their means or incomes 
are below specified levels. Recipients are usually required to continue 
registering and reporting at an employment exchange. Some countries that 
have unemployment assistance but no insurance program do not place any 
limit on the duration of payments. A number of countries provide that 
insured workers approaching retirement age who have been out of work for 
a specified period be removed from the unemployment rolls and granted a 
regular old-age benefit. 



xxiv 



Social Security Programs Throughout the World — 1997 



Administrative organization. Unemployment insurance systems 
may be administered by government departments or self-governing 
institutions that are usually managed by representatives of insured persons, 
employers, and the government. 

Unemployment insurance and placement service programs usually 
maintain a close administrative relationship that ensures benefits are paid 
only to workers who are registered for employment. At the same time, this 
liaison increases the effectiveness of the placement services by providing an 
incentive, through payment of benefits, for unemployed persons to register 
and report regularly. 

A number of countries have merged the administration of 
unemployment insurance and employment service programs, especially at 
the lower administrative levels where claims are received and benefits are 
paid by the local employment office. Other countries require persons to 
register with a local employment office, but the receipt of claims and 
payment of benefits are handled by a separate insurance office. 

In addition to providing an income for the unemployed, many 
governments have elaborate measures to prevent or counteract 
unemployment. The typical procedure is for government employment 
services to work with industry to promote occupational and geographic 
mobility of labor and to minimize unemployment caused by economic or 
technological developments, by subsidizing the retraining and relocation of 
workers in industries that are declining or being restructured. Governments 
may grant tax and other incentives to industry to locate in areas of high 
unemployment, or they may allocate funds to create jobs in anticipation of 
periods of seasonal unemployment. 

In this report, family allowances include primarily regular cash 
payments to families with children. In some countries, these programs also 
include school grants, birth grants, maternal and child health services, and 
sometimes allowances for adult dependents. 

Most industrialized countries have family allowance programs 
which originated in 19th-century Europe when some large companies began 
paying premiums to workers with large families. The idea spread gradually, 
and several European countries enacted programs during the 1920's and 
1930's. Most programs in operation today, however, have been enacted 
since World War II. 

Types of systems and coverage. Family allowance programs are of 
two types — universal and employment-related. The first category, in 
principle, provides allowances to all resident families with a specified 
number of children. The second category provides allowances to all wage 
and salary workers, and in some cases the self-employed. A few of these 
systems cover some categories of nonemployed persons as well. Most 
employment-related programs continue to pay family allowances to insured 
persons with dependent children in their care when they retire or are 
temporarily off the job and receiving sickness, unemployment, work-injury, 
disability, or other benefits; they' also pay allowances to widows of social 
security beneficiaries. 



Social Security Programs Throughout the World — 1997 



xxv 



Source of funds. The differences in family allowance programs are 
reflected in the methods used for financing. In universal systems, the entire 
cost is usually covered by general revenue. In contrast, countries linking 
eligibility with employment meet the cost of allowances entirely or in 
considerable part from employer contributions, usually at a uniform 
percentage-of-payroll rate. Where employer contributions do not cover the 
entire cost, the remainder is usually met from a government subsidy. Few 
countries provide for an employee contribution toward family allowances, 
although some require self-employed persons to contribute. 

Eligibility. Eligibility is commonly related to the size of the family 
and in some cases to family income. Many countries pay allowances 
beginning with the first child. In addition, some countries pay an allowance 
for a nonemployed wife or other adult dependent, even if there are no 
children. 

In some countries, families with only one child are ineligible. Age 
requirements vary but are usually tied to the last year of school or the 
minimum working age, which are often the same and fall somewhere 
between ages 14 and 18. Under most programs, the continuation of 
schooling, apprenticeship, or vocational training qualifies a child for an 
extension of the age limit. In the case of disabled children, many countries 
extend the age limit beyond that for continued education or pay allowances 
indefinitely. 

Benefits. Whether a program pays a uniform rate for all children, 
an increasing amount, or a decreasing amount for each additional child may 
reflect the history or the intent of the program. The allowance structure may 
vary, for example, depending on whether the primary intent is to provide 
assistance or stimulate population growth. The allowance in most countries 
is a uniform amount for every child, regardless of the number of children in 
a family. The allowance in most remaining countries increases for each 
additional child; the payment for a fifth child, for example, may be 
considerably larger than for the first or second child. In a few countries, the 
allowance per child diminishes or ceases with the addition of children 
beyond a certain number. In some countries, family allowances (and tax 
exemptions for dependent family members) have been replaced or 
supplemented by credits or other forms of a negative income tax. 

Administrative organization. In countries where family allowances 
are available to all families and financed from general revenues, the 
program is usually administered by a government department. Where 
allowances are payable mainly to families of employed persons and financed 
primarily from employer contributions, the administration may be by a 
semiautonomous agency under public supervision. Equalization funds often 
handle the program's financial operations. Each employer pays family 
allowances to its employees with their wages. The firm then settles with the 
local fund only the surplus or deficit of contributions due, after deducting 
allowances the firm has paid. A similar procedure of settling only surpluses 
or deficits is followed by the local funds in relation to the regional 
equalization funds under whose supervision they operate. The equalization 
process makes it possible to fix a uniform contribution rate for all 



xxvi 



Social Security Programs Throughout the World — 1997 



employers, regardless of the number of children in their employees' 
families. This in turn eliminates any effect allowances might have in 
inducing employers to discriminate in hiring workers with children. 

This report is based on information available to the United States Social 
Security Administration with regard to legislation in effect at the beginning 
of 1997, or the last date for which information has been received. 

Corrections and updated information from readers are welcome. Comments, 
including copies of relevant documentation and legislation, may be sent to: 

Office of Research, Evaluation and Statistics 
Social Security Administration 
500 E Street SW., 9th floor 
Washington, D.C. 20254-2760 
United States of America 



or by e-mail: 

barbara. e.kritzer@ssa.gov 



Social Security Programs Throughout the World — 1997 



xxvii 



Countries and Territories that Have Provided Information For This Edition 



Algeria 


Grenada 


Peru 


Andorra 


Guatemala 


Philippines 


Antigua-Barbuda 


Guernsey 


Portugal 


Argentina 


Guinea 


Romania 


Australia 


Guyana 


Russia 


Austria 


Hong Kong 


Rwanda 


Bahamas 


Hungary 


Saint Kitts and Nevis 


Bahrain 


Iceland 


Saint Vincent and the Grenadines 


Barbados 


India 


Saudi Arabia 


Belarus 


Indonesia 


Senegal 


Belgium 


Iran 


Serbia and Montenegro 


Belize 


Israel 


Sierra Leone 


Benin 


Italy 


Singapore 


Bermuda 


Jamaica 


Slovakia 


Brazil 


Japan 


Slovenia 


Bulgaria 


Jersey 


South Africa 


Burkina Faso 


Kazakhstan 


Spain 


Cameroon 


Kenya 


Sri Lanka 


Canada 


Korea, South 


Sudan 


CapeVerde 


Kuwait 


Swaziland 


Central African Republic 


Krygyzstan 


Sweden 


Chile 


Latvia 


Switzerland 


China 


Lebanon 


Taiwan 


Colombia 


Liechtenstein 


Tanzania 


Costa Rica 


Lithuania 


Thailand 


Cote d'lvoire 


Luxembourg 


Togo 


Croatia 


Malawi 


Trinidad and Tobago 


Cuba 


Malaysia 


Tunisia 


Cyprus 


Malta 


Turkmenistan 


Czech Republic 


Marshall Islands 


Uganda 


Denmark 


Mauritius 


United Kingdom 


Dominica 


Mexico 


United States 


Ecuador 


Micronesia, Federated States 


Uruguay 


El Salvador 


Monaco 


Vietnam 


Equatorial Guinea 


Morocco 


Western Samoa 


Estonia 


Nepal 


Yemen 


Ethiopia 


Netherlands 


Zambia 


Fiji 


New Zealand 


Zimbabwe 


Finland 


Niger 




France 


Nigeria 




Gabon 


Norway 




Gambia 


Oman 




Germany 


Pakistan 




Ghana 


Panama 




Greece 


Paraguay 





Social Security Programs Throughout the World — 1997 



xxix 



List of Social Security Programs, by Type 



Country 


Types of Social Security Programs 


Old Aee 
uisaDiiiiy , 
Death 


Sickness and 

\ /T O f- £X -ff\ if I 1 ^ 

iviaierniiy 
•Medical Care 


\ X / /~\ T* \r I »*i 1111*17 

worK injury 


u nempioymeni 


1— j c\ rM i It r 

ramny 
Allowances 


Afghanistan 

ill i 1 C4 A i. J. O l Cl l J, 

r\.iua.iiicL 


X 


X 


X 






x 


X* 


x 


X 


X 


A 1 (V T" 1 o 

rVlgCI la 

Andorra 


x 
x 


x» 
x« 


X 
X 


X 


X 


A nticnia-Rji'rrYiiHji 

Argentina 


x 
x 


X* 

x» 


X 


X 


X 


rVIlllCllia 

Australia 


x 
x 


x« 
x» 


X 
X 


X 
X 


X 
X 


Austria 

Azerbaijan 
Bahrain 


x 
x 


x» 

x» 


X 
X 


X 
X 


X 
X 


x 
x 


X 


X 
X 






T\ a n or 1 q H p c H 




x» 


X 


X 




Barbados 


x 


X 


X 


X 




JDCMI lid 

Belgium 


X 
X 


x» 
x» 


X 
X 


X 
X 


X 
X 


£>Cil£C 

Benin 


X 


X 


X 






X 




X 




X 


OCX 1 1 lUUd 

Rr«1 i vi 
JjvJli V la 


X 
X 


x» 


X 
X 




X 


Botswana 
Brazil 


X 


x» 


X 
X 


X 


X 


British Virgin Islands 
Bulgaria 


X 
X 


X 

x» 


X 
X 


X 


X 


Burkina Faso 
Burma (Myanmar) 


X 


x» 


X 
X 




X 


Burundi 
Cameroon 


X 
X 




X 
X 




X 
X 


Canada 
Cape Verde 


X 
X 


x« 
x» 


X 
X 


X 


X 
X 


Central African Republic 


X 




X 




X 



Sickness and Maternity refers to cash benefits for sickness and maternity. 
Countries must provide both benefits to be included. 
A • denotes that medical care and/or hospitalization coverage are provided 
in addition to cash sickness and maternity benefits. 



xxx 



Social Security Programs Throughout the World — 1997 



List of Social Security Programs, by Type 



— Continued 



Country 

Chad 


Types of Social Security Programs 


Old Age, 
Disability, 
Death 
X 


Sickness and 
Maternity 

2 

•Medical Care 


Work Injury 
X 


Unemployment 


Family 
Allowances 
X 


Chile 
China 
Colombia 


X 
X 
X 


X» 
X» 
X» 


X 
X 
X 


X 
X 


X 
X 


Congo (Brazzaville) 
Congo (Kinshasa) 
Costa Rica 
Cote d'lvoire 


X 
X 




X 
X 
X 
X 




X 
X 


X 
X 


X« 




X 
X 


Croatia 


x 


X* 


x 


x 


x 


Cuba 


X 


X« 


X 






Cyprus 

Czech Republic 


X 
X 


x» 
x« 


X 
X 


X 
X 


X 
X 


Denmark 
Dominica 

Dominican Republic 

Ecuador 

Egypt 


Y 
yv 

X 
X 

V 

A 

Y 


x» 
x» 


Y 

X 
X 

Y 

A 

Y 

A. 


Y 

xv 


Y 


x« 
x» 

X« 


Y 

A 

X 




El Salvador 
Equatorial Guinea 
Estonia 


X 
X 
X 


x« 
x» 
x» 


X 
X 
X 


X 


X 
X 


Ethiopia 
Fiji 


X 
X 




X 
X 






Finland 
France 


X 
X 


x« 
x« 


X 
X 


X 
X 


X 
X 


Gabon 
Gambia 


X 
X 




X 
X 




X 


Georgia 
Germany 


X 
X 


x« 
x« 


X 
X 


. . ■ .... 

X 
X 


X 
X 


Ghana 


X 




X 






Greece 


X 


x» 


X 


X 


X 


Grenada 
Guatemala 


X 
X 


x 
x» 


X 







Sickness and Maternity refers to cash benefits for sickness and maternity. 
Countries must provide both benefits to be included. 
A • denotes that medical care and/or hospitalization coverage are provided 
in addition to cash sickness and maternity benefits. 



Social Security Programs Throughout the World — 1997 



xxxi 



List of Social Security Programs, by Type 



— Continued 



Country 


Types of Social Security Programs 


Old Age, 
Disability, 
Death 


Sickness and 
Maternity 1 

2 

•Medical Care 


Work Injury 


Unemployment 


Family 
Allowances 


Guernsey 
Guinea 


X 
X 


X» 
X« 


X 
X 


X 


X 


Guyana 
Haiti 


X 
X 


X 


X 
X 






Honduras 
Hong Kong 


v 

A 

X 


Ym 

X 


A 

X 


X 


X 


Hungary 
Iceland 


X 
X 


x» 


X 
X 


X 
X 


X 


India 
Indonesia 


■XT. 

A 

X 


X» 


X 
X 






Iran 
Iraq 


X 
X 


X« 
X« 


X 
X 


X 


X 


Ireland 
Israel 


X 
X 


X« 
X» 


X 
X 


X 
X 


X 
X 


Italy 
Jamaica 


X 
X 


X» 


X 
X 


X 


X 


Japan 
Jersey 
Jordan 
Kazakhstan 


X 
X 


x» 
x« 


X 
X 


X 
X 


X 
X 


X 
X 


x» 


X 
X 


X 


X 


Kenya 
Kiribati 
Korea, South 
Kuwait 


X 
X 




X 
X 
X 






X 
X 








Kyrgyzstan 
Latvia 


X 
X 


x« 
x» 


X 
X 


X 
X 


X 
X 


Lebanon 
Liberia 


X 
X 


x« 


X 
X 




X 


Libya 

Liechtenstein 


X 
X 


x» 
x« 


X 
X 


X 


X 



Sickness and Maternity refers to cash benefits for sickness and maternity. 
Countries must provide both benefits to be included. 
A • denotes that medical care and/or hospitalization coverage are provided 
in addition to cash sickness and maternity benefits. 



xxxii 



Social Security Programs Throughout the World — 1997 



List of Social Security Programs, by Type — Continued 



Country 


Types of Social Security Programs 


Old Age, 

Disability 

Death 


Sickness and 

Matprnitv ^ 

IVJLuLl^i 1111 y 

• MpHical Carp 


\Vnrlc Tmurv 


T Inpmnlnvmpnt 

u iiviiiuiv/ y invent 


Familv 

x ciiiiii y 

Allowances 

1 111V VT UllWlJ 


Lithuania 


X 


x* 


x 


X 




Luxembourg 


X 


X« 


X 


X 


X 


Madagascar 


X 




X 




X 


Malawi 






x 






Malaysia 


X 




x 






Mali 


X 




X 




X 


Malta 


X 


X 


x 


X 


x 


Marshall Islands 


Y 

/Y 










Mauritania 


X 




X 




X 


Mauritius 


X 




X 




X 


Mexico 

Micronesia, Federated States of 


X 
X 


X* 


X 






Moldova 


X 




x 


x 


X 


Monaco 


X 


X» 






X 


\Ar\TCiCCC\ 

LVXKJx uwvu 


X 


X 


X 




X 


Nepal 


X 




X 






Netherlands 


X 


X» 


X 


X 


X 


New Zealand 


X 


X» 


X 


X 


X 


Nicaragua 


X 


x» 


X 




X 


Niger 


X 




X 




X 


Nigeria 


X 




X 






Norway 


X 


x» 


X 


X 


X 


Oman 


X 




X 






Pakistan 
Palau 


X 
X 


x» 


X 






Panama 


X 


x» 


X 






Papua New Guinea 


X 




X 






Paraguay 
Peru 


X 
X 


x» 
x» 


X 
X 







Sickness and Maternity refers to cash benefits for sickness and maternity. 
Countries must provide both benefits to be included. 
A • denotes that medical care and/or hospitalization coverage are provided 
in addition to cash sickness and maternity benefits. 



Social Security Programs Throughout the World — 1997 



xxxiii 



List of Social Security Programs, by Type — Continued 





Types of Social Security Programs 


Country 


Old Age, 
Disability 
Death 


Sickness and 
Maternity 1 

2 

•Medical Care 


Work Injury 


Unemployment 


Family 
Allowances 


Philippines 


X 


X» 


X 






Poland 


X 


X» 


X 


X 


X 


Portugal 
Romania 


X 
X 


X* 
X* 


X 
X 


X 
X 


X 
X 


Russia 
Rwanda 

Saint Kitts and Nevis 
Saint Lucia 

Saint Vincent and theGrenadines 
San Marino 


X 
X 
X 
X 
X 


x» 


X 
X 
X 
X 
X 
X 


X 


X 


X 
X 
X 
X* 






X 






Sao Tome and Principe 
Saudi Arabia 
Senegal 

Serbia and Montenegro 


X 
X 
X 
X 


X 


X 
X 
X 
X 




X 
X 


x« 


X 


Seychelles 
Sierra Leone 


V 

A. 


Y 


Y 

A. 

X 






Singapore 


Y 
A 




X 






Slovak Republic 


X 


x« 


X 


X 


X 


Slovenia 
Solomon Islands 


X 
X 


x» 


X 
X 


X 


X 


Somalia 






X 






South Africa 


X 


x 


X 


X 




Spain 
Sri Lanka 


X 
X 


x» 


X 
X 


X 


X 
X 


Sudan 


X 
X 




X 






Swaziland 




X 






Sweden 
Switzerland 


X 
X 


x» 
x« 


X 
X 


X 
X 


X 
X 


Syria 
Taiwan 


X 
X 


x« 


X 
X 
X 










Tanzania 


X 









Sickness and Maternity refers to cash benefits for sickness and maternity. 
Countries must provide both benefits to be included. 
A • denotes that medical care and/or hospitalization coverage are provided 
in addition to cash sickness and maternity benefits. 



xxxiv 



Social Security Programs Throughout the World — 1997 



List of Social Security Programs, by Type 



— Continued 





Types of Social Security Programs 


Country 


Old Age, 

F)i^?ihi1itv 

Death 


Sickness and 
Matprnitv^ 

1 V JLC4l\- A AAA A y 

•Medical Care 


Work Tninrv 


T Inpmnlovmpnt 


Family 

Allowances 


Thailand 
Togo 

Trinidad and Tobago 
Tunisia 


Y 

A 

X 


Y« 


Y 
A 

X 










X 


A 

X 


v 

A. 


Y 
A 

X 


X 


X 


Turkey 
Turkmenistan 


X 


x» 


X 






Y 
A 


A w 


Y 
A 


V 
A 


Y 
A 


uganod 
Ukraine 


X 
X 


x» 


X 
X 


X 


X 


United Kingdom 


X 


x» 


X 


X 


X 


United States 


X 




X 


X 




Uruguay 
Uzbekistan 


X 
X 


x» 
x» 


X 
X 


X 
X 


X 
X 


Vanuatu 


X 










Venezuela 


X 


x« 


X 


X 




Vietnam 
Western Samoa 


X 
X 


X 


X 
X 






Yemen 


X 




X 






Zambia 
Zimbabwe 


X 
X 




X 
X 







Sickness and Maternity refers to cash benefits for sickness and maternity. 
Countries must provide both benefits to be included. 
A • denotes that medical care and/or hospitalization coverage are provided 
in addition to cash sickness and maternity benefits. 



Social Security Programs Throughout the World — 1997 



xxxv 



Types of Social Security Programs 



Paying Cash Benefits to the Aged, Disabled, and/or Survivors 



Country 
(By Geographic Area) 


Contributory 


Non-contributory 


Mandatory 
Private 
Pensions 


Mandatory 
Savings 


Flat- 
rate 


Earnings- 
related 


Means- 


Flat-rate 
universal 


PuKlir- 
r U011C 


r llVd-Lc 


Africa 
Northern Africa 

Algeria 
Egypt 
Libya 
Morocco 
Sudan 
Tunisia 
Western Africa 
Benin 

Burkina Faso 
Cape Verde 
Cote d'lvoire 
Gambia 
Ghana 
Guinea 
Liberia 
Mali 

Mauritania 

Nigeria 
Senegal 
Sierra Leone* 
Togo 
Eastern Africa 
Burundi 
Ethiopia 
Kenya 
Madagascar 
Malawi * 
Mauritius 
Rwanda 




X 
X 
X 
X 
X 
X 












































.... .. .:. s -■: 






X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 


















X 












X 






X 














































X 














X 
X 

X 

X 
X 














X 






X 






X 








X 










Seychelles 
Somalia * 














Tanzania 












X 




Uganda 
Zambia 
Zimbabwe 












X 
X 






X 











See "Definitions of Terms" at the end of this table. 
* No old-age, disability, death program. 



Social Security Programs Throughout the World — 1997 xxxvii 



Types of Social Security Programs — Continued 



Paying Cash Benefits to the Aged, Disabled, and/or Survivors 



Country 
(By Geographic Area) 


Contributory 


Non-contributory 


Manriatorv 

ITlClllUClLUl y 

Private 
Pensions 


Mandatory 
Savings 


Flat- 
rate 


Earnings- 
related 


Means- 
tested 


Flat-rate 
Universal 


Public 


Private 


Middle Africa 
















Cameroon 




X 












Central African Republic 
Chad 

Congo (Brazzaville) 




X 
X 
X 
























Congo (Kinshasa) 




X 












Equatorial Guinea 




X 












Gabon 




X 












Sao Tome and Principe 




X 












Southern Africa 
















Botswana * 
















South Africa 






X 










Swaziland 












X 




Asia 
















Western Asia 
















Armenia 




X 












Azerbaijan 




X 












Bahrain 




X 












Cyprus 




X 












Georgia 

Iraq 

Israel 




X 
X 
X 












X 


X 










Jordan 




X 












Kuwait 




X 












Lebanon 




X 












Oman 




X 












Saudi Arabia 




X 












Syria 




X 












Turkey 




X 












Yemen 




X 












South Central Asia 




X 












Afghanistan 




X 












Bangladesh * 
















India 












X 




Iran 




X 












Kazakhstan 




X 












Kyrgystan 




X 












Nepal 












X 





See "Definitions of Terms" at the end of this table. 
* No old-age, disability and death program. 



xxxviii 



Social Security Programs Throughout the World — 1997 



Types of Social Security Programs 



— Continued 



Paying Cash Benefits to the Aged, Disabled, and/or Survivors 



Country 
(By Geographic Area) 


Contributory 


Non-contributory 


Mandatory 
Private 
Pensions 


Mandatory 
Savings 


ridi- 
rate 


Earnings- 
related 


iviedns- 
tested 


Universal 


Public 


Private 


Pakistan 

Sri Lanka 

Turkmenistan 

Uzbekistan 
South East Asia 

Burma (Myanmar) * 

Indonesia 

Malaysia 

Philippines 

Singapore 

Thailand 

Vietnam 
East Asia 

China 

Hong Kong 




X 








X 






X 
X 
































X 
X 

X 






X 












X 
X 

X 
























X 


X 








Japan 


X 


X 












Korea, South 

Taiwan 
Latin America and 
The Caribbean 
Central America 

Belize 

Costa Rica 

El Salvador 

Guatemala 




X 
X 

X 
X 
X 
X 



































X 












Honduras 




X 












Mexico 
Nicaragua 
Panama 
Caribbean 

Antigua-Barbuda 
Bahamas 
Barbados 
Bermuda 

British Virgin Islands 




X 
X 
X 


X 








X 














X 
X 
X 
X 
X 


X 
X 












i ' ■ ■■: : | ■ i ■ 


















Cuba 




X 












Dominica 




X 













See "Definitions of Terms" at the end of this table. 
* No old-age, disability, and death program. 



Social Security Programs Throughout the World — 1997 



xxxix 



Types of Social Security Programs — Continued 



Paying Cash Benefits to the Aged, Disabled, and/or Survivors 



Country 
(By Geographic Area) 


Contributory 


Non-contributory 


LvlaUxdaiKJl y 

Private 
Pensions 


Mandatory 
Savings 


Flat- 
rate 


Earnings- 
related 


Means- 
tested 


Flat-rate 
Universal 


Public 


Private 


Dominican Republic 




X 












Grenada 




X 












Haiti 
Jamaica 

St. Kitts & Nevis 


X 


X 
X 
X 






















St. Lucia 




X 












St. Vincent & Grenadines 




X 












Trinidad & Tobago 




X 












South America 
















Argentina 




X 










X 


Bolivia 




X 










A 


Brazil 




X 












Chile 




X 










X 


Colombia 




X 










X 


Ecuador 




X 












Guyana 




X 












Paraguay 




X 
















X 






. ■ ■ . - ' 




X 


Uruguay 




X 


X 








X 


Venezuela 




X 












Europe 
Eastern Europe 
















Belarus 




X 












Bulgaria 




X 


X 










Czech Republic 




X 


X 










Hungary 
Moldova 
Poland 




X 
X 
X 












X 












Romania 




X 


X 










Russia 

Slovakia 

Ukraine 




X 


X 












X 
X 










Southern Europe 
















Albania 


X 


X 












Croatia 




X 












Greece 




X 












Italy 




X 


X 











See "Definitions of Terms" at the end of this table. 
* No old-age, disability and death program. 



xl 



Social Security Programs Throughout the World — 1997 



Types of Social Security Programs 



— Continued 



Paying Cash Benefits to the Aged, Disabled, and/or Survivors 





Contributory 


Non-contributory 


Mandatory 
Private 


Mandatory 
Savings 


Country 
(By Geographic Area) 


Flat- 
rate 


Earnings- 
related 


Means- 

icsicu 


Flat-rate 

U 111VC1 oal 


Pensions 


Puhlir 


r I lvaLC 


Malta 
Portugal 
San Marino 

Serbia and Montenegro 

Slovenia 

Spain 

Yugoslavia 
Northern Europe 
Denmark 
Estonia 
Finland 
Iceland 
Ireland 




X 
X 
X 
X 
X 
X 
X 
















































X 
X 
X 




A 


A 








X 
X 

X 
X 
X 
X 
X 

X 
X 
X 
X 
X 




X 








X 
X 
X 
X 
X 
X 


"V 

A 
X 








Lithuania 

Norway 

Sweden 

United Kingdom 
Western Europe 

Andorra 
Austria 










X 




















X 
X 










Belgium 

France 

Germany 

Guernsey 

Jersey 

Liechtenstein 

Luxembourg 

Monaco 

Netherlands 

Switzerland 






X 






X 
X 

X 

X 
X 


X 










X 
X 
X 


X 




















X 


X 




X 







See "Definitions of Terms" at the end of this table. 
* No old-age, disability and death program. 



Social Security Programs Throughout the World — 1997 xli 



Types of Social Security Programs — Continued 



Paying Cash Benefits to the Aged, Disabled, and/or Survivors 



Country 
(By Geographic Area) 


Contributory 


Non-contributory 


Mandatory 
Private 

Dan c i rvti c 

r ensions 


Mandatory 
Savings 


Flat- 
rate 


Earnings- 
related 


Means- 
tested 


Flat-rate 
Universal 


Public 


Private 


North America 
















Canada 




X 


X 


X 








United States of America 




X 


X 










Oceania 

Australia 
Fiji 

Kiribati 

Marshall Islands 






X 




X 












X 
X 






X 











Micronesia, Federated States 




X 












New Zealand 
Palau 

Papua New Guinea 




X 


X 


















X 




Solomon Islands 












X 




Vanuatu 
Western Samoa 












X 
X 





See "Definitions of Terms" at the end of this table. 
* No old-age, disability and survivors program. 



xlii 



Social Security Programs Throughout the World — 



1997 



Types of Social Security Programs 



— Continued 



Paying Cash Benefits to the Aged, Disabled, and/or Survivors 



Definitions of Terms 

Contributory flat-rate pension: a pension of uniform amount or based on years of 
service or residence but independent of earnings that is financed by payroll-tax 
contributions from employees and/or employers. 

Contributory earnings-related pension: a pension based on earnings that is 
financed by payroll-tax contributions from employees and/or employers. 

Non-contributory means-tested pension: a pension paid to eligible persons whose 
own or family income and/or assets fall below designated levels that is generally 
financed through government contributions with no contributions from employers or 
employees. 

Non-contributory flat-rate universal pension: a pension of uniform amount or 
based on years of service but independent of earnings that is paid to residents or 
citizens who meet age or disability requirements that is financed with no 
contributions from employers or employees. 

Mandatory private pension system: a system requiring employers, by law, to 
provide private/occupational pensions. 

Mandatory savings system: a compulsory defmed-contribution pension system 
which pays benefits either as a lump-sum or as an annuity based on employee and in 
some cases employer contributions and returns on investment of funds, including 
both publicly managed provident funds and privately managed systems such as that 
in Chile. 



Social Security Programs Throughout the World — 1997 



xliii 



Tables 



Table 1. — Number of countries by type of social security program — selected years 



Type of Program 


1940 


1949 


1958 


1967 


1977 


1987 


1997 


Any type of program 


57 


58 


80 


120 


129 


141 


172 


Old-age, disability, death 
Sickness and maternity 


33 
24 


44 
36 


58 
59 


92 
65 


1 14 
72 


130 

84 2 


166 
111 2 - 3 


Work injury 
Unemployment 


57 
21 


57 
22 


77 
26 


117 
34 


129 
38 


136 
40 


164 
68 


Family allowances 


7 


27 


38 


62 


65 


63 


86 



The number of countries reflected in this table represents the countries for which we have enough information to produce an individual 
country summary. This number is not the total number of countries in the world that have social security programs. 
For a detailed breakdown for all programs, see chart on p. xxx. 

Includes countries with both cash sickness and cash maternity benefits, plus Australia, which has cash sickness and medical care programs 
but maternity leave payments only as a fringe benefit. 

Of the 111 countries that offer sickness and maternity benefits, 93 also offer medical care and/or hospitalization coverage. 



Social Security Programs Throughout the World — 1997 



xlv 



Table 2. — Social security related statistics — OECD countries (1997) 



Country 


i otal 

Population 


Age 65 
and 

2 

over 


Dependencv 
Ratio 


Activity 
Rate 4 '^ 


Statutory 
pensionable age, 
by sex 


Unemploy- 
ment^' 


Average 
annual 

wage ' 












Men 


Women 




32,968 6 


Australia 


18,439 


12 


51 


59 6 


65 


61 


766. 


Austria 


8,054 


15 


49 


65 


60 


138 6 


310,776. 


Belgium 

O 


10,204 


16 


52 


NA 


65 


65 


390 


856,606 6 


Canada 


29,123 


13 


49 


65 


65 


65 


1,422 


33,696 


Czech Republic 


10,319 


14 


46 


49 


62 


61 


181 


82,056 


Denmark 


5,269 


15 


49 


77 


67 


67 


196 


NA 


Finland 


5,109 


14 


49 


61 


65 


65 


430 


124,987. 


France 


58,470 


16 


52 


55 


60 


60 


2,950 


90,792 6 


Germany 


84,068 


15 


46 


59 


63 


63 


4,035 


52,957 


Greece 


10,583 


16 


48 


50 


65 


60 


425 


2,586,064 


Hungary 


9,936 


14 


47 


49 


60 


56 


417 


465,564 


Iceland 


273 


12 


55 


73 


67 


67 


7 


NA 


Ireland 


3,556 


11 


51 


53 6 


66 


66 


2,584 6 


13,458 A 


Italy 


57,534 


17 


47 


39 6 


63 8 


58 


258,544 6 


Japan 


125,717 


15 


45 


63 


60 8 


59 8 


2,100 


3,345,600 


Korea 


45,949 


6 


41 


62 


60 


60 


419 


13,487 


Luxembourg 


422 


14 


49 


NA 


65 


65 


56 


NA 


Mexico 


97,563 


4 


68 


60 


65 


65 


1,677 


18,949 


Netherlands 


15,653 


13 


46 


70 


65 


65 


523 


49,733 6 


New Zealand 


3,587 


12 


53 


65 


63 


63 


110 


30,888 


Norway 


4,404 


16 


54 


70 


67 


67 


107 


228,446 




38,700 


12 


50 


58 6 
59 6 


65 


60 


2,233 


8,390 


Portugal 


9,868 


15 


48 


65 


65 


NA 


NA 


Spain 


39,244 


16 


47 


49 


65 


65 


3,584 


2,627,040 


Sweden 


8,946 


17 


57 


53 


65 


65 


333 


222,456^ 


Switzerland 


7,249 


15 


47 


55 


65 


62 


127 


65,544 6 


Turkey 


63,528 


6 


59 


54 


55 


50 


1,522 


49,690,680 


UnitedKingdom 


58,610 


16 


55 


44 


65 


60 


2,384 


16,328 


United States 


267,955 


13 


53 


67 


65 


65 


3,983 


25,730 



Sources: U.S. Social Security Administration, Office of Research, Evaluation and Statistics. 
U.S. Bureau of the Census, International Programs Center. 
International Labour Office, Yearbook of Labour Statistics, 1996. 



Thousands. 

2 

Percent of total population. 

3 Population aged zero through 14 plus population aged 65 and over, divided by population aged 15-64 inclusive, in percent. 

4 Percent of economically active population age 15 and above. 

5 1995. 

6 1994. 

Local currency — manufacturing. 
8 Pensionable age refers to employees' pension insurance only. Pensionable age under national pension program is 65. 



xlvi 



Social Security Programs Throughout the World — 1997 



Table 3. 



— Contribution rates for social security programs 

(in percent) 



— OECD countries (1997) 





Old- Age, Disability, Death 


All Social Security Programs 


Country 


Insured 
Person 


Employer 


Total 


Insured 
Person 


Employer 


Total 


Australia 


0 


0 


0 2 


1.25 


0 


1.25 2 


Austria 


10.25 


12.55 


22.80 


17.20 


27.70 


44.90 


Belgium 


7.50 


8.86 


16.36 


13.07 


24.87 


37.94 
14.03^ 


c-anaQd 


3.00. 

6.50 5 
4 


3.00. 


6.00 


5.90 


8.13 


Czech Republic 

Denmark 

Finland 

r ranee 

Germany 


19.50 5 

4 


26. 00 5 
4 


12.50 

4 


35.00 
4 


47.50 3 
3,4 


4.50 
6.65 
10.15 


11.86 
9.80 
10.15 


16.36 
16.45 
20.30 


11.90 
15.26 
20.20 


14.86 
35.39 
21.66 


26. 76 3 
50.65, 
41.86 3 


Greece 


6.67 


13.33. 


20.00. 


11.95 


23.90 


35.85. 


Hungary 


6.00 5 


24. 50 5 


30.50 5 


11.50 


44.50 


56. 00 3 


ICciailQ 


4 - 00 < « 




13.88 ^ 


4.00. 


11.23, 


15.23 . 


Ireland 


7 75 ^,b 


12.00 5 ' 6 


19.75 5 ' 6 


7.75 6 _ 


12.25 6 


20.00 3 ' 6 


liaiy 


8.89 


19.36 


28.25 


10.69 7 


43.08 


53.77 


Japan 


8.67 


8.67 


17.34 


13.37 


14.43 


27.80 


Korea 


2.00 


4.00 


6.00 


3.52 


7.20 


10.72 


Luxembourg 


8.00 


8.00 


16.00 


15.10 


13.10 


28.20 3 


lviexico 


2.07 


5.81 


7.88 


5.19 


14.91 


20.10. 


Netherlands 


32.25 


0 


32.25 


44.65 


10.60 


55 .25 3 


New Zealand 


0 5 


0 5 


0 5 


0 


0 


0 3 


Norway 


7.80 5 


14. 10 5 
45.00 5 Q 


21.90? 


7.80 


14.10 


21.90, 


ruidiiu 


o 8 


45.00 5 o 


0 


48.00 


48. 00 3 


Portugal 


11.00 8 _ 


23.75® 


34.75^ 


11.00 


26.75 


37.75 


Spain 


4.70 5 


23.60 5 


28. 30 5 


6.30 


31.78 


38.08. 


Sweden 


1.00 


19.06 


20.06 


5.95 8 


29.90 


35. 85 3 


Switzerland 


4.90 


4.90 


9.80 


6.40 


6.54 


12.94 


Turkey 


9 0 % 6 


11.00 


20.00. 


14. 00^ 


20.50 


34.50 


United Kingdom 


12.00 5 ' 6 


10.00 5 ' 6 


22.00 5 ' 6 


12.00 6 


10.00 6 


22.00 3 ' 6 


United States 


6.20 


6.20 


12.40 


7.65 


10.50 


18.15 



Includes Old Age, Disability, Death; Sickness and Maternity; Work Injury; Unemployment; 

and Family Allowances. In some countries, the rate may not cover all of these programs. 

In some cases, only certain groups, such as wage earners, are represented. 

When the contribution rate varies, either the average rate or the lowest rate in the range is used. 

The central government pays the entire cost of most programs from general revenues. 

The central government pays the whole cost of Family Allowances. 

Portion of set amount for Old Age, Disability, Death. Central and local government and other types 
of contributions for the other programs. 
Also includes rate for other programs. 

Range according to earnings bracket. Higher rate is shown, which applies to highest earnings class. 
Plus flat amount for Work Injury. 
Plus flat amount for Unemployment. 



Social Security Programs Throughout the World — 1997 xlvii 



List of Social Security Program Summaries 



Afghanistan 1 

Albania 2 

Algeria 5 

Andorra 8 

Antigua-Barbuda 10 

Argentina 11 

Armenia 14 

Australia 17 

Austria 21 

Azerbaijan 24 

Bahamas 25 

Bahrain 27 

Bangladesh 29 

Barbados 30 

Belarus 32 

Belgium 35 

Belize 39 

Benin 41 

Bermuda 43 

Bolivia 45 

Botswana 48 

Brazil 49 

British Virgin Islands 52 

Bulgaria 54 

Burkina Faso 57 

Burma (Myanmar) 59 

Burundi 60 

Cameroon 62 

Canada 64 

Cape Verde 68 

Central African Republic 70 

Chad 72 

Chile 74 

China 78 

Colombia 81 

Congo (Brazzaville) 84 

Congo (Kinshasa) 86 

Costa Rica 88 

Cote d'lvoire 90 

Croatia 92 

Cuba 95 

Cyprus 97 

Czech Republic 100 



Denmark 103 

Dominica 106 

Dominican Republic 108 

Ecuador 110 

Egypt 112 

El Salvador 115 

Equatorial Guinea 118 

Estonia 120 

Ethiopia 123 

Fiji 124 

Finland 125 

France 130 

Gabon 134 

Gambia 136 

Georgia 138 

Germany 141 

Ghana 145 

Greece 146 

Grenada 149 

Guatemala 150 

Guernsey 152 

Guinea 155 

Guyana 157 

Haiti 159 

Honduras 160 

Hong Kong 162 

Hungary 164 

Iceland 167 

India 170 

Indonesia 173 

Iran 175 

Iraq 178 

Ireland 180 

Israel 184 

Italy 188 

Jamaica 192 

Japan 194 

Jersey 198 

Jordan 200 

Kazakhstan 202 

Kenya 204 

Kiribati 206 

Korea, South 207 



xlviii 



Social Security Programs Throughout the World — 1997 



Kuwait 209 

Kyrgyzstan 210 

Latvia 213 

Lebanon 215 

Liberia 217 

Libya 218 

Liechtenstein 220 

Lithuania 223 

Luxembourg 225 

Madagascar 228 

Malawi 230 

Malaysia 231 

Mali 233 

Malta 235 

Marshall Islands 238 

Mauritania 239 

Mauritius 241 

Mexico 243 

Micronesia, Federated States of 246 

Moldova 247 

Monaco 250 

Morocco 252 

Nepal 254 

Netherlands 255 

New Zealand 258 

Nicaragua 261 

Niger 263 

Nigeria 265 

Norway 267 

Oman 271 

Pakistan 272 

Palau 274 

Panama 275 

Papua New Guinea 277 

Paraguay 278 

Peru 280 

Philippines 283 

Poland 286 

Portugal 289 

Romania 292 

Russia 295 

Rwanda 298 

Saint Kitts and Nevis 300 



Saint Lucia 302 

Saint Vincent and the Grenadines 304 

San Marino 306 

Sao Tome and Principe 308 

Saudi Arabia 309 

Senegal 311 

Serbia and Montenegro 313 

Seychelles 315 

Sierra Leone 317 

Singapore 318 

Slovakia 320 

Slovenia 323 

Solomon Islands 326 

Somalia 327 

South Africa 328 

Spain 330 

Sri Lanka 333 

Sudan 335 

Swaziland 336 

Sweden 337 

Switzerland 341 

Syria 345 

Taiwan 347 

Tanzania 349 

Thailand 351 

Togo 352 

Trinidad and Tobago 354 

Tunisia 356 

Turkey 359 

Turkmenistan 361 

Uganda 364 

Ukraine 365 

United Kingdom 368 

United States 373 

Uruguay 377 

Uzbekistan 380 

Vanuatu 383 

Venezuela 384 

Vietnam 387 

Western Samoa 389 

Yemen 390 

Zambia 391 

Zimbabwe 393 



Social Security Programs Throughout the World — 1997 



AFGHANISTAN 



Old Age, Disability, Death 

(Based on 1987 Labor Code) 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 55 afghanis. 

Coverage 

Employed persons in private establishments, cooperatives, social 
organizations, joint enterprises, and government. 

Source of Funds 

Insured person: 3% of earnings. 

Additional amount depending on rank or grade. 

Employer: None. 

Government: Subsidy equal to 3% of earnings. 
Qualifying Conditions 

Old-age pension: Age 60 (men) or 55 (women), after working 
25 years for men, 20 years for women. 

Old Age Benefits 

Old-age pension: up to 100% of salary. 

Permanent Disability Benefits 

Disability pension: Equal to salary if 60% disabled. 

Under 60% disabled, compensation according to reduction in 

salary. 

Medical clinics established for disabled. 

Administrative Organization 

Ministry of Finance. 

Sickness and Maternity 

First law: 1946 (labor law). 
Current law: 1985 (public health). 
Labor code: 1987. 

Type of program: Social insurance system. 

Coverage 

All citizens. 

Source of Funds 

Insured person: See pension contribution, above. 
Employer: None. 

Government: See pension contribution, above. 

Sickness and Maternity Benefits 

Sickness benefit: 20 days leave with salary. 
Maternity benefit: 90 days leave with salary. 
If twins, 15 days additional leave with salary. 

Administrative Organization 

Ministry of Finance. 



Work Injury 

First law: 1946. 

(Currently based on 1987 labor code; medical compensation based 
on 1989 regulations.) 

Type of program: Contributory lump-sum benefit system. 
Coverage 

Employed persons in private establishments, cooperatives, social 
organizations, joint enterprises and government. 

Source of Funds 

Insured person: 1% of earnings. 
Employer: None. 
Government: None. 

Above contributions deposited in employer compensation fund. 
Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: If 10% - 60% disabled, benefit 
equals 30% of minimum salary rate times percent of incapacity. 

Permanent Disability Benefits 

Permanent disability benefit: If 60% - 100% disabled, benefit 
equals 60% of minimum salary rate times percent of incapacity. 

Survivor Benefits 

Survivor benefit: Benefit equals 80% of minimum salary rate 
times 100. 

Administrative Organization 

Ministry of Labor and Social Affairs, supervision of program 
through its Inspection Department. 

Please note: This information is more than 6 years old. 



! 



Social Security Programs Throughout the World — 1997 



1 



ALBANIA 



Old Age, Disability, Death 

First law: 1947. 
Current law: 1993. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 101.0 lek. 

Coverage 

Employed persons, and self-employed; voluntary coverage for 
university students and others who do not qualify for compulsory 
insurance. Supplementary systems are available for civil servants, 
private employers and employees and military personnel. 
Special state pensions are available for those who have contributed 
to the political and cultural development of Albania. 

Source of Funds 

Insured person: 10% of total earnings. 
Employer: 26% of payroll. 

Government: Covers cost for those in compulsory military service. 
Above contributions also finance cash benefits for sickness and 
maternity. 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 55 (women), 35 years of 
contributions, and retirement from economic activity. 
Mothers with 6 or more children over the age of 8, eligible at age 
50 with 30 years of contributions. 

Partial old-age pension: Age 60 (men) or 55 (women), with 20-35 
years of contributions. 

Disability pension: Incapacity for any economic activity, blind, or 
suffering from severe mutilation. 

Minimum insurance period is at least 1/2 the difference in years 
between claimant's age and 20. 

Disability must be certified by Medical Experts Committee (MEC). 
At pensionable age, claimant may choose old-age pension if 
amount is higher. 

Partial disability pension: Incapacity to perform work at last 
employment, but can work under special working conditions, 
provided minimum insurance period is met. 
Disability and special work conditions as determined by MEC. 
Survivor pension: Deceased was insured or had terminated 
insurance not earlier than 1 year before death. Eligibility for 
old-age or disability pension. Dependents include surviving spouse 
caring for dependent child under 8; disabled or aged spouse (age 
50 for widow or 60 for widower); dependent orphans under age 18 
(25, if students), or became disabled prior to reaching these ages; 
parents and grandparents aged 65 or older who shared the same 
household with deceased for 12 months prior to the death and have 
no one else to care for them; dependent grandchildren. 
Surviving spouse loses pension on re-marriage. 

Old-Age Benefits 

Old-age benefit: Consists of: 

1 Basic flat-rate pension (equal to minimum living standard) 
awarded to all insured persons, and 



2 Earnings-related increment for employed persons equal to 
1 % for each year of coverage multiplied by the average 
assessed wage of which contributions were paid. 

Maximum: Twice the basic pension amount, or 75% of average net 

wages during 3 of the last 10 years of employment. 

Increment for deferred retirement: 4% of full pension for each year 

of deferred retirement, with continued contributions. 

Maximum: 80% of average net wage during 3 of last 10 years of 

employment. 

Partial pension: Calculated as percentage of full pension, 
depending on number of years worked. 

Adjustment: Basic pension amount indexed annually according to 
price changes of selected commodities. 

Permanent Disability Benefits 

Disability pension: Consists of basic pension and increment as for 
old-age pension. 

Maximum: Twice the basic pension or 80% of last average net 
wage, whichever is less. 

Partial disability pension: 50% of full disability pension. 
Constant attendance supplement: 15% of assessed wage for 
contribution purposes. 

Supplements for dependent children: 5 % of basic old-age pension 
for each dependent child under age 15. Maximum: 20% of basic 
old-age pension. 

Adjustment: In accordance with old-age pension. 
Survivor Benefits 

Survivor pension: 50% of pension of deceased for the surviving 
spouse; 25 % for each orphan and other dependents up to a 
maximum of 100% (50% where surviving spouse is economically 
active or receiving pension in own right) of pension of deceased. 
50% for sole orphan, provided that there is no other eligible 
dependent. 

Full orphans: Eligible for pensions from both parents. 
Death benefit: Equal to 1 month's basic old-age pension. 

Administrative Organization 

Ministry of Labor, Emigration and Social Affairs, general 
supervision. 

Social Insurance Institute, administration of program. 

Sickness and Maternity 

First law: 1947. 
Current law: 1993, 1994. 

Type of program: Dual social insurance system (cash benefits) and 
universal system (medical care). 

Coverage 

Sickness benefits: Employees. 

Maternity benefits: Employees, employers, and self-employed. 
Medical care: All residents. 



2 



Social Security Programs Throughout the World — 1997 



ALBANIA 



Source of Funds 

Insured person: Employees, see pension contributions, above, for 
cash benefits; medical care, 1.7% of salary (urban areas). 
Employer: See pension contributions, above, for cash benefits, 
none for medical care. 

Government: Medical care, 1.7% of payroll. Whole cost for 

persons not currently in labor force. 

Qualifying Conditions 

Sickness benefits: 1 week of employment. 

Maternity benefits: 12 months of contributions. 

Medical care: No minimum qualifying period. 

Sickness and Maternity Benefits 

Sickness benefit: 70% of average daily wage in last calendar year 
if less than 10 years of contribution, 80% for more than 10 years. 
During hospitalization, benefits equal 50% of average daily wage, 
provided there are no dependents. Payable from 15th day of 
medical certification (first 14 days responsibility of employer) for 
up to 6 months. May be extended for a further 3 months if MEC 
certifies likelihood of recovery in that period. Income 
compensation also available for changes of employment due to 
health reasons. 

Maternity benefit: Employees: 365 days of paid maternity leave 
(minimum of 35 days prior to childbirth and 42 days after): 80% of 
average daily wage in last calendar year for leave period prior to 
childbirth and for 150 days after. 50% of average daily wage for 
remainder of period. For more than 1 child, paid leave period is 
extended to 390 days, including a minimum of 60 days prior to and 
42 days after confinement. Benefits also available in cases of 
adoption. Compensation is payable for changes of employment due 
to pregnancy. 

For employers and the self-employed: Benefit equal to the basic 
old-age pension. 

Birth grant: Lump sum payment of 1500 lek for either insured 
parent with a minimum of 1 year's contributions. 

Workers' Medical Benefits 

Medical benefits: Free general practitioners' services. 
Reimbursement from 35-100% for various medicines from the 
essential list. 

Dependent's Medical Benefits 

Medical benefits for dependents: Same as for family head. 
Administrative Organization 

Ministry of Labor, Emigration and Social Affairs and Ministry of 
Health and Environment Protection, general supervision. 
Social Insurance Institute, administration of sickness and maternity 
benefits. 

Health Insurance Institute, administration of medical benefits. 
Work Injury 

First law: 1947. 

Current law: 1993. 

Type of program: Social insurance. 



Coverage 

Employees, apprentices, and students in practical training. 

Source of Funds 

Insured person: None. 
Employer: 0.5% of payroll. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefits: 100% of average daily wage over 
last 3 years, payable for up to 12 months. 

Permanent Disability Benefits 

Permanent disability benefit: For loss of working capacity of at 
least 67%: 80% of average wage over last 3 years, but not less 
than minimum standard of living. 

Partial disability (at least 33% of working capacity): Benefits equal 
to 80% of average wage over last 3 years (depending on degree of 
loss of work capacity), but not less than 50%. 
Minor permanent disability (loss of between 10% and 33% of 
working capacity): Lump sum determined in accordance to 
regulations. Material damages incurred by the insured person are 
compensated in full. 

Workers' Medical Benefits 

Medical benefits: Compensation available for additional medical 
care, rehabilitation, etc. required to recover lost capacity. 

Survivor Benefits 

Survivor pension: 50% for surviving spouse, 25% for each 
orphan, parent, grandchild, grandparent, subject to a maximum of 
100%, of pension of the deceased. Orphans have right to 
survivor's pension even if the surviving parent is economically 
active or receives a pension, but it is subject to a maximum of 50% 
of the pension of the deceased. 

Death Benefit: Equal to 1 month's basic old age pension. 
Administrative Organization 

Ministry of Labor, Emigration and Social Affairs, general 
supervision. 

Social Insurance Institute, administration of program. 
Unemployment 

First and current law: 1993. 
Type of program: Social insurance. 

Coverage 

Employees. 

Source of Funds 

Insured person: None. 
Employer: 6% of payroll. 



Social Security Programs Throughout the World — 1997 



3 



ALBANIA 



Government: None. (Covers deficit.) 
Qualifying Conditions 

Unemployment benefit: At least 1 year's contribution, receiving 
no other benefits (except for partial disability), registered at 
unemployment office, and willing to undergo training. 

Unemployment Benefits 

Unemployment benefit: Flat rate providing at least for a minimum 
standard of living, as decided by Council of Ministers. (2,200 leks 
per month as of 1995.) Payable for up to 12 months or for a total 
of 365 calendar days where there are temporary periods of 
employment. 

Supplement for dependent children under age 15: 5% of 
unemployment benefit for each child up to a maximum of 20% 
(Reduced by 50% if one parent is employed or receiving a pension). 
Persons attending training courses but not receiving stipends or 
wages: benefits payable up to 18 months. 

Adjustment: Indexed annually in accordance with price changes of 
selected commodities. 

Administrative Organization 

Ministry of Labor, Emigration and Social Affairs, general 
supervision. 

Social Insurance Institute, administration of program. 
Payment of benefits through Labor offices. 

Family Allowances 

Current law: 1992. 

Type of system: Employment-related program. 
Coverage 

Employed persons with children. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 

Qualifying Conditions 

Family allowances: Dependent children and students. 
Family Allowance Benefits 

Family allowances: 200 lek a month for each child. 
Administrative Organization 

Ministry of Labor, Emigration and Social Affairs, administration 
of program. 



4 



Social Security Programs Throughout the World 



— 1997 



ALGERIA 



Old Age, Disability, Death 

First law: 1949. 

Current laws: 1983 and 1994 (Early retirement). 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 55 dinars. 

Coverage 

All employed and self-employed persons. Special system for 
members of the Armed Forces. Special early retirement provisions 
for unemployed. 

Source of Funds 

Insured person: 4.0% of total earnings plus 0.5% for early 
retirement. 

Employer: 7.5% of payroll plus 0.5% for early retirement. 
Cooperatives: 0.5% for early retirement. 
Government: None. 

Disability and survivor benefits financed under sickness and 
maternity program (see below). 

Quabfying Conditions 

Old-age pension: Age 60 (men) or 55 (women and veterans) with 
15 years of coverage. Early retirement available for those in 
arduous or unhealthy work (age to be announced), female workers 
who raised a child for at least 9 years (retirement reduced 1 year 
per child, maximum 3 years); permanently disabled workers with 
15 years' coverage and unable to meet disability pension 
requirements. Retirement necessary. 

Retirement allowance: 65 years old with 5 years or 20 quarters of 

coverage and ineligible for old-age pension. No minimum. 

Early retirement: age 50 (men) and 45 (women) with at least 

20 years of employment and 10 years of contributions with 3 years 

of contributions preceding unemployment. Must receive no income 

from any professional activity. Employer must be current with 

social security contributions according to schedule. 

Disability pension: Loss of all working capacity for total disability 

pension or 1/2 of earning capacity for partial disability pension. 

Currently covered and either 60 days of employment in last 

12 months or 180 days in last 3 years. 

Survivor pension: Deceased was pensioner or was deceased while 
working. 

Above benefits not payable abroad unless under reciprocal 
agreement. 

Old-Age Benefits 

Old-age pension: 2.5% of average monthly wage during last 3 
years or highest 3 years of earnings (whichever is most favorable) 
times years of coverage. Minimum pension, 2,300 times the 
minimum hourly wage; maximum: 80% of final salary. 
Dependents' supplements: 600 times the minimum hourly wage. 
Retirement allowance: 2.5% of average monthly wage during last 
3 years or highest 3 years (whichever is most favorable) times 
years of coverage. 



Constant-attendance supplement (payable to permanently disabled 
pensioners who fail to meet disability pension requirements): 40% 
of pension. 

Early retirement benefits: pension reduced by 1 % for each year 
under age for full retirement benefit. 
Minimum, 75% of National Guaranteed Minimum Salary 
(SNMG). Dependent spouse allowance, 12.5% of SNMG. Eligible 
for Sickness and Maternity benefits. 

Permanent Disabibty Benefits 

Disabibty pension: 80% of average earnings during last year or 
highest 3 years (whichever is most favorable), if totally disabled. 
Constant-attendance supplement: 40% of pension. 
Partial disability: 60% of earnings. 

Survivor Benefits 

Survivor pension: Widow of any age, 75% of old-age or disability 
pension paid or accrued to insured (50% if other survivors). If 
more than 1 widow, pension divided equally. 
Other eligible survivors: Children under age 18 (25 if apprentice or 
21 if student, any age if disabled or female without income) and 
dependent parents. Pension equals 30% if 1 survivor, 40% divided 
equally if more than 1. If no surviving spouse, pension divided 
among other survivors: 45% (full orphan), 30% (dependent parent). 
Maximum pension: 90% of pension paid or accrued to insured. 
Survivor settlement: Lump sum of 12 times highest monthly 
earnings during the year prior to death. 
Minimum: 12 times minimum monthly wage. 

Administrative Organization 

Ministry of Labor and Social Protection and Professional Training, 
general supervision. 

National Retirement Fund, administration of old-age program. 
National Social Insurance Fund For Salaried Workers, 
administration of disability program for salaried employees. 
National Social Security Fund For Wage Earners, administration of 
old age and disability program for wage earners. 

Sickness and Maternity 

First law: 1949. 

Current law: 1983 (effective 1984). 

Type of program: Social insurance system. 

Coverage 

All employed persons are entitled to cash sickness and medical/ 
maternity benefits. Spouses of workers or of pensioners in receipt 
of either old-age, disability, or work-injury (when the incapacity is 
at least 50 percent) pensions are covered for in-kind (i.e., medical) 
maternity benefits. Spouses, dependent children, and dependent 
parents of workers, of pensioners in receipt of either old-age, 
disability or work-injury pension (when the incapacity is at least 
50 percent) or of certain prisoners are covered for in-kind sickness 
benefits. Beneficiaries of unemployment compensation or early 
retirement, national Liberation War pensioners, disabled persons, 



Social Security Programs Throughout the World — 1997 



5 



ALGERIA 



and unemployed students and their dependents are eligible for 
in-kind sickness and medical benefits. 

Source of Funds 

Insured person: 1.5% of total earnings. 
Employer: 12.5% of payroll. 
Government: None. 

Contributions also finance disability and survivor benefits above 
and death allowance. 

Qualifying Conditions 

Cash sickness and medical benefits: In covered employment at 
time of onset of illness. For entitlement to first 6 months of 
sickness benefits, insured employed for 15 days (or 100 hours) in 
preceding 4 months, or 60 days (or 400 hours) in last 12 months. 
For extended benefits (after 6 months), insured employed for 60 
days (or 400 hours) during last 12 months or 180 days during last 3 
years. 

Medical benefits: 15 days or 100 hours of insured employment 
during the 4 months prior to the year of the onset of the illness or 
60 days or 400 hours of employment during the last 12 previous 
years. Cash maternity benefit: 15 days (or 100 hours) of insured 
employment in last 3 months, or 60 days (or 400 hours) in last 
12 months prior to the date of determination of the pregnancy. 

Sickness and Maternity Benefits 

Sickness benefit: 50% of daily earnings (100% if extended illness 
or hospitalization) for 1st through 15th day; 100% of daily earnings 
from 16th day up to maximum of 3 years (4 years under certain 
circumstances). Minimum daily benefit (at 100% rate), 8 times 
minimum hourly wage. 

Maternity benefit: 100% of earnings, payable for up to 14 weeks. 
Minimum daily benefit: 8 times minimum hourly wage. 

Workers' Medical Benefits 

Medical benefits: Cash refund of 80% (100% in certain cases) of 
medical expenses. (Insured normally pays for services and is 
subsequently reimbursed by appropriate fund.) 
Includes medical treatment, surgery, hospitalization, drugs, 
laboratory services, ophthalmology and optician services, some 
dental care including prostheses, functional and vocational 
rehabilitation, prostheses, thermal and specialized cures, and 
transportation. 

100% reimbursement for maternity benefits; hospital charges 
limited to 8 days. Complete medical care in government hospitals 
provided free and for unlimited time for certain categories of 
sickness; some categories may require a co-payment. 

Survivor Benefits 

Medical benefits for dependents: Same as for insured person. 
In-kind maternity benefits only; same as for insured person 
(payable to spouses only). 

Administrative Organization 

Ministry of Labor and Social Protection and Professional Training, 
general supervision. 



National Social Insurance Fund for Salaried Workers, 
administration of program for salaried workers. 
National Social Security Fund For Wage Earners, administration of 
program for wage earners. 

Work Injury 

First law: 1919. 

Current law: 1983 (effective January 1, 1984). 
Type of program: Social insurance system. 

Coverage 

All employed persons, including students in technical schools, 
persons undergoing medical or vocational rehabilitation, voluntary 
social security administrators, wards of juvenile courts, students, 
and certain prisoners. 

Source of Funds 

Insured person: None. 
Employer: 1% of payroll. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings. 

Payable from day after accident for duration of incapacity or until 

recovery or certification of permanent disability. 

Minimum daily benefit: 8 times minimum hourly wage. 

Permanent Disability Benefits 

Permanent disability pension: Average earnings during last 
12 months times the degree of incapacity (if 10% or more). 
(Lump sum based on pension paid if degree of incapacity is less 
than 10%.) 

Minimum: 2,300 times the minimum hourly wage. 
Lump sum of 3 times the annual benefit is payable to injured 
foreign workers who leave the country, unless they are covered 
under bilateral social security agreement. 
Constant-attendance supplement: 40% of pension. 

Workers' Medical Benefits 

Medical benefits: Medical treatment, surgery, hospitalization, 
drugs, laboratory services, ophthalmology and optician services, 
some dental care, prostheses, functional and vocational 
rehabilitation, thermal and specialized cures and transportation. No 
limit on duration. 

Survivor Benefits 

Survivor pension: Widow of any age, 75% of insured's average 
wages in the 12 months before accident, if death is consequence; 
otherwise 75% of pension paid or accrued to insured. If more than 
1 widow, pension divided equally. Other eligible survivors: 
Children under age 18 (25 if apprentice or 21 if student, any age if 
disabled or female without income) and dependent parents. 



6 



Social Security Programs Throughout the World — 1997 



ALGERIA 



Pension equals 30% if one survivor, 40% divided equally if more 
than one. If no surviving spouse, pension divided among other 
survivors: 45% (full orphan), 30% (dependent parent). 
Maximum pension: 90% of pension paid or accrued to insured. 
Survivor settlement: Lump sum of 12 times highest monthly 
earnings in last year of deceased. 

Minimum, 12 times minimum monthly wage. Survivors of foreign 
workers are eligible for benefits if residents or covered by 
reciprocal agreement at time of accident. 

Administrative Organization 

Ministry of Labor and Social Protection and Professional Training, 
general supervision. 

National Social Insurance Fund for Salaried Workers, 
administration of program. 

Unemployment 

First and current law: 1994. 

Type of program: Social insurance system. 

Coverage 

Salaried workers in the economic sector who are laid off. 
Source of Funds 

Insured person: 1.5% of earnings. 
Employer: 2.5% of payroll. 
Government: None. 

Qualifying Conditions 

Unemployment benefit: Must have contributed to social security 
for a total of 3 years with 6 months of contribution prior to 
unemployment, must receive no income from any professional 
activity, must have to be looking for work for at least 3 months, 
must be resident of Algeria. Employer must be current with social 
security contributions. 

Unemployment Benefits 

Unemployment benefit: Employer must pay severance pay for 
each employee with over 3 years of employment equal to 80% of 
monthly earnings in the year prior to dismissal, for up to 12 
months. 

Unemployment benefit: 2 months for each year of service up to a 
maximum of 36 months. Benefit calculated according to reference 
salary which is equal to average monthly salary plus monthly 
National Guaranteed Minimum Salary (SNMG) divided by 2. 
Minimum salary, 75% of monthly SNMG. Maximum salary, 3 
times monthly SNMG. 

Benefit paid quarterly as percentage of reference salary: 1st 
quarter, 10%, 2nd quarter, 80%; 3rd quarter, 60%; and 4th 
quarter, 50%. 

Spousal allowance: 500 dinars per month where husband receives 
unemployment benefit of less than 7,000 dinars per month. 
Eligible for sickness and maternity and family allowance benefits 
for .12 months while receiving unemployment. 



Administrative Organization 

Ministry of Labor and Social Protection and Professional Training, 
general supervision. 

National Unemployment Insurance Fund, administration of 
Program. 

Family Allowances 

First and current law: 1941. 

Type of program: Employment-related system. 

Coverage 

Nonagricultural employees and social insurance beneficiaries with 
1 or more children. Special systems for public employees and 
employees of certain agricultural cooperatives. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Total cost. 

Qualifying Conditions 

Family allowances: Child must be under age 17 (18 if apprentice, 
21 if student or disabled). Insured person must have earned half the 
National Guaranteed Minimum Salary (SNMG) or be disabled, ill, 
receive unemployment, or early or full retirement benefits. 

Family Allowance Benefits 

Family allowances: When family earnings are equal to or less than 
15,000 dinars a month, the benefit is 600 dinars per month for each 
of first five children, and 300 dinars for each additional child. 
When earnings exceed 15,000 dinars per month; the benefit is 300 
dinars per month per child. 

School allowance for children over age 6: When family earnings 
are equal to or less than 15,000 dinars a month, the benefit is 800 
dinars per month for each of first five children, and 400 dinars for 
each additional child. When earnings exceed 15,000 dinars per 
month, the benefit is 400 dinars per month per child. 

Administrative Organization 

Ministry of Labor and Social Protection and Professional 
Training,, general supervision. 
National Social Insurance Fund for Salaried Workers, 
administration of program. 



Social Security Programs Throughout the World — 1997 



7 



ANDORRA 



Old Age, Disability, Death 

First and current law: 1966. 

Type of program: Social insurance system. 

Exchange rate: US$1.00 equals 128 pesetas. 

Coverage 

Employees. Special systems for non-employed and voluntarily 
insured persons. 

Source of Funds 

Insured person: Depending on choice, 2, 4 or 6% of earnings. 
Employer: 6% of payroll. 
Government: None. 

Qualifying Conditions 
Old-age pension: Age 65. 

Disability pension: Loss of at least 2/3 earning capacity. For 
insured persons aged under 21, 12 months of contributions; 
between age 21 and 40, 36 months of contributions; and between 
age 41 and 65, 96 months of contributions. 
Survivor pension: 60 months of contributions. 

Old-Age Benefits 

Old-age pension: The pension amount depends on the amount of 
contributions made. Each monthly contribution is converted into 
age pension points by dividing the monthly employee and employer 
contributions by the purchase value of an age pension point for the 
relevant month. The purchase value of an age pension point in 
1996 is 1,440 pesetas. To calculate the pension, the acquired age 
pension points are converted into an annual pension figure by 
applying a set value to each pension point. This value is indexed 
regularly and, in 1996, is equal to 225 pesetas. The monthly 
pension is equivalent to 1/12 of the result of this calculation. 
Minimum pension: 93,750 pesetas a month (based on 5,000 age 
pension points) for insured beneficiaries with at least 960 points 
and with 180 months of contributions since 1968 and at least 60 
months of paid employment before then. 

Pensions are increased by 10% if the spouse of the insured is aged 
65 or over and is not eligible for a pension in their own right. 

Permanent Disability Benefits 

Disability pensions: Divided into 3 categories: 

1 Group I, able to perform some type of work, 30% of 
average monthly earnings; 

2 Group II, unable to perform any type of work, 50% of 
average monthly earnings 

3 Group III, unable to perform any type of work and in need 
of constant attendance assistance , 75% of average 
monthly earnings. 

Survivors Benefits 

Survivor pension: 50% of pension of deceased. 

Payable to spouse aged 45 years or over or disabled or caring for a 

child aged under 18. 



Orphan pension: 10% of pension of deceased. Payable to each 
dependent child not involved in paid employment. 
Maximum benefit: 50% of pension of deceased. 
Funeral grant: Lump sum equal to earnings of last three months or 
three times average monthly earnings, whichever sum is greater. 
The grant is paid to eligible relatives of the deceased in the 
following order: The surviving spouse and dependent children; 
adult children; parents; grandparents; other immediate relative; or 
the Fund that pays the funeral costs. 

Administrative Organization 

National Social Security Fund, general supervision, managed by an 
Administration Council and a Director. 

Sickness and Maternity 

First and current law: 1966. 

Type of program: Social insurance system. 

Coverage 

See Old age, disability and death, above. 

Source of Funds 

Insured person: 3% of earnings. 
Employer: 7% of payroll. 
Government: None. 

Qualifying Conditions 

Sickness benefits: For the first claim, 40 days of contribution. 
Further claims, 15 days of employment in the last 40 days. To 
receive benefits for longer than 180 days, 12 months of 
contributions prior to stopping work. 

Maternity benefits: 6 months of insurance prior to the date of 
confinement; 3 months of employment in the previous 6 months. 
Medical benefits: For the first claim, 40 days of contribution. 
Further claims, 15 days of employment in the last 40 days. 

Sickness and Maternity Benefits 

Sickness benefit: Daily amount equal to half of 1/180 of earnings 
for the previous 6 months. Payable after 3-day waiting period. 
After the 30th day since stopping work, payment amounts to 2/3 of 
reference earnings. Payments made for 6 months. 6-month 
extensions possible until the end of the third year. 
Adjustment: Annual adjustment of benefits paid for more than 
12 months where the average salary is adjusted by at ieast 10%. 
Maternity benefit: Daily amount equal to 90% of 1/180 of 
earnings for the 6 months prior to stopping work. Payable for 16 
weeks. 

Workers' Medical Benefits 

Medical benefits: Includes primary and specialist treatment, 
pharmaceuticals, hospitalization, dental care, minor aids and 
appliances, maternity care and transportation. 
Fund reimburses 75% of schedule fees for these services. 
Duration: No limit. 



8 



Social Security Programs Throughout the World — 1997 



ANDORRA 



Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured person. 
Administrative Organization 

National Social Security Fund, general supervision, managed by an 
Administration Council and a Director. 

Work injury 

First and current law: 1966. 

Type of program: Social insurance system. 

Coverage 

See Old age, disability and death, above. 
Source of Funds 

See Old age, disability and death above. 
Qualifying conditions 

Work injury benefits: No minimum qualifying period. 
Temporary Disability Benefit 

Temporary disability benefit: Same as for sickness benefits but 
paid from the first day. 

Permanent Disability Benefits 

Permanent disability benefits: For total disability, 100% of 
average monthly earnings in the preceding year. 
Partial disability: If disability less than 10%, lump sum equal to 
twice the average monthly earnings. 

If disability between 10 and 55% and insured aged less than 45, 
choice of: 

1 A pension porportional to 50% of the degree of disability; 
or a lump sum equal to 6 months of average monthly 
earnings if disability between 10 and 25%, 12 months if 
disability between 25 and 39%, or 18 months if disability 
between 40 and 55%. 

2 If aged more than 45, pension porportional to 50% of the 
degree of disability. 

3 If disability greater than 55% and insured aged less than 
45, choice of: A pension proportional to the degree of 
disability; or a lump sum equal to 40 times average 
monthly earnings. 

4 If aged more than 45, pension proportional to the degree 
of disability. 

Workers' Medical Benefits 

Medical benefits: Provided through medical insurance with 100% 
reimbursement. 

Survivor Benefits 

Survivor pension: 50% of average monthly earnings of the 
deceased. Payable to non-separated spouse who is not undertaking 



any gainful activity and is not eligible for a pension in their own 
right. 

Orphan's pension: 10% of average monthly earnings of the 
deceased for each child under 18 who is not undertaking any 
lucrative activity. Maximum orphan pension: 50% of deceased's 
earnings. 

Ascendant pension: 20% of average monthly earnings of the 
deceased. Paid to all ascendants (of deceased and spouse) who are 
totally dependent on the insured. 

Maximum survivor pensions: 100% of average monthly earnings of 
the deceased. 

Administrative Organization 

National Social Security Fund, general supervision, managed by an 
Administration Council and a Director. 

Unemployment 

There is no separate unemployment scheme but assistance is 
available from the government in cases of need. 

Family Allowances 

There is no separate family allowance scheme but assistance is 
available from the governement in cases of need. 



Social Security Programs Throughout the World — 1997 



9 



ANTIGUA-BARBUDA 



Old Age, Disability, Death 

First and current law: 1972 (social insurance), 1996 (social 

assistance). 

Type of program: Social insurance system, plus assistance program. 
Exchange rate: U.S. $1.00 equals 2.70 East Caribbean (E.C.) 
dollars. 

Coverage 

Employed persons aged 16-59. Exclusions: Family and casual 
employment with wages under E.C. $7.50 a week. 

Source of Funds 

Insured person: 3% of wages (2% for public service employees). 

Employer: 5% of payroll. 

Government: Cost of old-age assistance. 

Maximum earnings for contribution and benefit purposes: 

E.C. $54,000 a year. 

Qualifying Conditions 

Old-age pension: Age 60 and 500 weeks of contributions (reduced 
benefit if 156-500 weeks). 

Old-age grant: Age 60, ineligible for periodic benefit, and at least 
26 weeks of contributions. 

Old-age assistance: Age 60, noncontributors to social insurance. 
Disability pension: Minimum of 156 weeks of contributions. 
Survivor pension: Age 60 and 500 weeks of contributions 
(reduced benefit if 156-500 weeks). 

Old-Age Benefits 

Old-age pension: 25% of covered earnings, plus 1 % of earnings 

for each 50 weeks of contribution over 500 weeks. 

Transitional benefit: 25% of earnings. Minimum E.C. $136.50 per 

month, maximum E.C. $227.50 per month. 

Old-age grant: E.C. $1,000 or 75% of combined employer and 

employee contributions, whichever is greater. 

Old-age assistance: E, C$136. 50 per month. 

Permanent Disability Benefits 

Disability pension: Same as old-age pension. 
Disability grant: Same as old-age grant. 

Survivor Benefits 

Survivor pension: 50% of actual or prospective pension of 
deceased, payable to widow aged 50 or over (1 year limit if under 
age 50 at worker's death). 

Orphans: 20% of pension (40% if full orphan) payable to children 
under age 16 (18 if student). 
Funeral grant: E.C. $2,000. 

Administrative Organization 

Ministry of Finance, general supervision. 

Social Security Board, administration of program. 



Sickness and Maternity 

First and current law: 1973. 

Type of program: Social insurance system. Cash benefits only. 
Coverage 

See pension coverage above. 
Source of Funds 

Insured person: 3.5% of covered earnings. 
Employer: 3.5% of covered earnings. 
Government: None. 

Maximum earnings for contribution purposes: E.C. $54,000 a year. 
Qualifying Conditions 

Cash sickness benefits: 26 weeks of contributions in last year. 
Cash maternity benefits: 26 weeks of contributions in year 
preceding confinement. 

Maternity grant: Wives of workers insured for sickness benefit. 
Sickness and Maternity Benefits 

Sickness benefit: 60% of average earnings. Payable after 3-day 
waiting period. 

Maternity benefit: 60% of average earnings. Payable for 6 weeks 
before confinement for total of 13 weeks. 
Maternity grant: E.C. $400. 

Workers' Medical Benefits 

Medical benefits: None provided under insurance. Medical 
services are provided by the Ministry of Health directly through 
public health facilities. Up to E.C. $2, 000 available for necessary 
medical treatment abroad. 

Administrative Organization 

Ministry of Finance, general supervision. 

Social Security Board, administration of program. 



10 



Social Security Programs Throughout the World — 1997 



ARGENTINA 



Old Age, Disability, Death 

First laws: 1944 (commerce), 1946 (industry), and 1954 (rural 
workers). Other laws for special groups enacted 1904-58. 
Current law: 1993 (implemented July 1994). 
Type of program: Dual social insurance system and private 
insurance system. 

Exchange rate: U.S. $1.00 equals 1 peso. 
Coverage 

Employed and self-employed persons, except for military 
personnel. 

Source of Funds 

Insured person: 11% of earnings. Self-employed, 27%. 
Employer: 16% of payroll. 

Government: Contributes to social insurance system through 
general revenues, investments and certain earmarked taxes. 
Ceiling for contribution purposes, 60 AMPOs. AMPO is the 
average mandatory provisional contribution, established twice a 
year, and is determined by dividing the total employee's 
contributions to the system by the total number of contributors. As 
of April 1997, the AMPO was 80. 

Qualifying Conditions 

Old-age pension: Age 63 (men) or 58 (women). The ages will rise 
to 64/59 in 1998 and 65/60 in 2001. Minimum, 30 years of 
contribution and service. Insured person may substitute 2 years of 
age after retirement age for 1 year of contribution. 
Retirement age as well as contribution and employment 
requirements lowered up to 10 years for hazardous or unhealthful 
occupations. 

Advanced age pension , age 70 with 10 years of service and 
contributions, of which 5 of the last 8 years must be immediately 
prior to end of gainful employment; self-employed, 5 years of 
service and contributions. 

Pensioner may continue working after retirement with full benefits, 
except that the retirement benefit will not be re-calculated to 
include post-retirement earnings. 

Disability pension: Reduction of earning capacity by 66% (total 
disability); employed at time of onset and less than 65 years of age. 
Survivor pension: Deceased met pension requirements or was 
pensioner at death. 

Old-Age Benefits 

Old-age pension: Consists of 3 levels: 

1 Basic universal benefit (PBU): 2.5 AMPO plus 1 % for 
every year of contribution exceeding 30, up to a maximum 
of 45 years. 

2 Compensation benefit: (PC) (for service rendered before 
July 1994) 1.5% of average monthly salary during the last 
ten years for each year of service rendered before July 
1994, up to a maximum of 35 years. 



3 Choice of private pension or public pension: 

A Public pension (PAP): 0.85% of final ten year average 
salary for each year of contribution paid after July 
1994. Maximum benefit: 1 AMPO. 

B Private pension: insured contributes to an individual 
retirement savings account managed by a pension fund 
administrator. Amount of benefit depends on insured's 
contributions plus accrued interest. Benefits are 
payable as an annuity or in a specified number of 
installments. Government guarantees a minimum 
benefit. 

Permanent Disability Benefits 

Disability pension: 70% of average salary for regular contributor 
and 50% for sporadic contributor during the five years prior to 
onset of disability. 

Partial disability: Proportion of total disability pension 
corresponding to percentage loss of capacity. 
Means-tested allowance: Payable at any age to needy disabled 
persons ineligible for pension. 

Survivor Benefits 

Survivor pension: 70% of deceased's benefit, payable to widow, 
widower, or companion, with no children; 50% to widow, 
widower or companion with children; 20% for each eligible child 
under age 18 (no age limit if disabled). 
Maximum survivor pension: 100% of pension of insured. 
Funeral grant: Lump sum of 3 months' minimum wage. 

Administrative Organization 

National Social Security Administration (ANSES), supervision and 
administration of public program. 

Superintendent of Pension and Retirement Funds, administration of 
private program. 

Sickness and Maternity 

First law: 1934 (maternity). 

Current laws: 1968 (maternity), 1974 (sickness), and 1980 
(medical benefits). 

Type of program: Social insurance (medical benefits), 
employer-liability (cash sickness benefits), and employment-related 
systems (maternity benefits). 

Coverage 

Cash sickness benefits: All employed persons. 

Cash maternity benefits: Employed women, except domestic 

servants. 

Medical benefits: Employed persons and pensioners, except the 
military police, and public provincial and municipal employees. 
Individuals may contract out. Voluntary coverage for formerly 
employed persons. (Those over 70 years of age with 10 years of 
residency, and neither insured nor dependent, are eligible for free 
medical care.) 



Social Security Programs Throughout the World — 1997 



11 



ARGENTINA 



Source of Funds 

Medical benefits: Insured person: 3% of earnings, plus 1% of 
earnings for each covered dependent besides spouse or children. 
(Pensioners pay 3-6% of social security pension.) 
Employer: 4.5% of payroll, plus 0.9% to Institute of Social 
Service. 

Government: Subsidizes coverage of persons who would not 
otherwise qualify. 

Cash maternity benefits: Financed through family allowance 
program. 

Qualifying Conditions 

Cash maternity benefits: 10 months' continuous employment 
preceding confinement, or 1 month of employment in current 
position and 6 months of employment in 12 months preceding 
current position. 

Cash sickness benefits: Currently employed or pensioner. 
Medical benefits: Currently employed or pensioner. 

Sickness and Maternity Benefits 

Sickness benefit: 100% of salary for up to 6 months for employees 
with 5 years of service. Payable twice as long to workers with 
dependents. 

(Commercial code requires employers to pay full wages of 
employees for 3-6 months of sickness or absence due to 
non-occupational accidents.) 
Maternity benefit: 100% of earnings. 

Payable for 90 days. (Insured has option of either 30 days before 
and 60 days after confinement or 45 days before and 45 days after 
confinement.) 

Prenatal grant: See family allowances. 
Birth grant: See family allowances. 

Workers' Medical Benefits 

Medical benefits: Medical and hospital care. Workers enroll in a 
public or private facility under contract with the National Institute 
of Social Services. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same benefits as insured for 
wife, sons under age 18 (21 if students, no limit if disabled), and 
single daughters under age 21 (no limit if disabled). Other 
dependents of the insured worker are eligible with payment of 
additional contributions. 

Administrative Organization 

Ministry of Health and Social Action, general supervision. 
National Institute of Social Services, coordination and 
administration of program through trade unions. 
Minister of Labor and Social Security, Secretariat of Social 
Security, administration of maternity benefits. 

Work Injury 

First law: 1915. 
Current law: 1995. 



Type of program: Employer liability/compulsory insurance with 
private carrier. 

Coverage 

Employed persons in private and public sector. 

Domestic workers, self-employed and others to be gradually 

integrated into system. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through direct provision of benefits or 
insurance premiums. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of average monthly earnings 
in 12 months prior to onset of disability; payable until recovery or 
certification of permanent disability. 

Disability presumed to be permanent if it continues beyond 1 year. 
Permanent Disability Benefits 

Permanent disability benefit: Partial disability: 70% of base 
earnings times degree of disability plus family allowances. 
If disability 20% or less, lump sum benefit equal to 43 times 
degree of disability and a coefficient resulting from dividing 65 by 
the age of the worker, up to a maximum of 55,000 pesos. 
If disability between 20% and 66%, benefit equal to 70% of base 
earnings times degree of disability plus total household earnings. 
Provisional total disability: 66% or more disability, benefit is 70% 
of base earnings plus total household earnings. Not entitled to 
disability pension. 

Permanent total disability: eligible for disability pension, family 
allowances, plus work injury benefit equal to 43 times base 
earnings multiplied by coefficient resulting by diving 65 by the age 
of the worker, up to a maximum of 55,000 pesos. 

Workers' Medical Benefits 

Medical benefits: Cost of medical attention, appliances and 
pharmaceuticals. 

Survivor Benefits 

Survivor benefit: Same as for insured person. Payable in addition 
to any ordinary survivor pension due. 
Maximum: 55,000 pesos. 

Payable to spouse or companion, children and/or dependent parents 
according to social security laws. 

Administrative Organization 

Superintendent of Work Injury, general supervision. 
Work Injury Insurers (ART), prevention of work injury and 
distribution of benefits. 



12 



Social Security Programs Throughout the World — 1997 



ARGENTINA 



Unemployment 

First and current law: 1967 (construction workers only) and 1991 

(social insurance program). 

Type of program: Social insurance system. 

Coverage 

Employed persons. 

Source of Funds 

Insured person: 1 % of earnings. 
Employer: 1.5% of payroll. 
Government: None. 

Qualifying Conditions 

Unemployment benefits: 12 months of contributions before the 
date of unemployment. Must be registered and available for 
suitable employment, and not be a recipient of any other social 
security benefits. 

Unemployment Benefits 

Unemployment benefits: 60% of the highest wage the worker 
received in the 6 months before the date of unemployment. The 
duration of the benefit ranges from 4 to 12 months, depending on 
the length of coverage between 12 and 36 months. Minimum 
benefit, 

1 monthly minimum wage; maximum, 4 monthly minimum wages. 
With respect to construction industry, upon separation or 
retirement, employers must pay a severance indemnity of 1 
month's wages per year of service up to a maximum per month of 
3 times the legal minimum wage. 

Administrative Organization 

Ministry of Labor and Social Security, general supervision. 
National Social Security Administration, administration of 
program. 

Family Allowances 

First law: 1957. 
Current law: 1996. 

Type of program: Social insurance system. 
Coverage 

Employed persons, pensioners, and other social security 
beneficiaries. Exclusion: Employees earning more than 
$1,500-$1,800 per month and domestic employees. 

Source of Funds 
Insured person: None. 

Employer: 7.5% of payroll (another 1.5 percent helps to finance 
the unemployment insurance program). 

Government: Cost of benefits for pensioners and other recipients 
of social security benefits. 



Qualifying Conditions 

Family allowances: Child must be under age 18 ( no limit if 
disabled). 

Marriage and birth grants: Current continuous employment for 
6 months. 

Prenatal grant: 3 months' employment. 

Spouse benefit: pensioners and other social security beneficiaries. 
Child benefit: currently employed, pensioner, or other recipient of 
social security benefits. 

Family Allowance Benefits 

Family allowances: Monthly benefit level varies by geographic 
region. Spouse: 15- 30 pesos a month, child, 20-80 pesos (times 4 if 
disabled). 

Annual school allowance, 130-520 pesos (doubled if disabled). 
Prenatal allowance, 20-80 pesos. 
Birth grant: 200 pesos. 
Adoption grant: 1,200 pesos. 
Marriage grant: 300 pesos. 

Administrative Organization 

Ministry of Labor and Social Security and the Secretariat of Social 
Security, general supervision. 
National Administration of Social Security (ANSES), 
administration of program. 

Dual system of direct payment: National Administration of Social 
Security and compensation fund when eployer is affected. 



Social Security Programs Throughout the World — 1997 13 



ARMENIA 



Old Age, Disability, Death 

First law: 1922. 

Current law: 1990, as amended 1992. 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 429 Dram (dr). 

Coverage 
All employees. 

Source of Funds 

Insured person: 1% of earnings. 
Employer: 35% of payroll. 
Government: None. 

Above contributions also finance benefits for work-injury disability 
and survivors, and for unemployment. 

Qualifying Conditions 

Old-age pension: Age 60 and 25 years of covered employment 
(men), or age 55 and 20 years of work (women); age 50 with 
20 years of work for arduous or hazardous work, and mothers of 
5 or more children or of disabled children. Covered employment 
includes years spent in higher education, serving in armed services, 
taking care of disabled persons or children under age 3, and 
periods of unemployment while seeking a job. 
Disability pension: Total disability (incapacity for any work): 
Group I disability, requiring constant attendance; Group II 
disability, not requiring constant attendance. 
Partial disability (incapacity for usual work): Group III disability, 
insured has a minimum of 1 to 15 years of covered employment, 
depending on age of onset of disability. 

Survivor pension: Insured had up to 15 years of work, payable to 
surviving children whether or not dependents of the insured; and to 
nonworking dependents (including spouse; either parent, if disabled 
or not yet of pensionable age; grandparents, if no other support 
available). 

Social pension: Non-working or disabled citizens who meet the age 
requirements (i.e., age 65 for men, 60 if women, or if mother of 
5 or more children; orphans under age 18, 23 if students; or 
disabled children under age 16) but are not eligible for 
employment-related old-age, disability, or survivor pension. 

Old-Age Benefits 

Old-age pension: 60% of wage base if 25 years of work (men) or 

20 years (women), plus 1 % of wage base for each year in excess of 

25 years (men, or 20 for women). Payable monthly. 

Wage base equals gross average earnings of any 5 consecutive 

years in last 15 years of covered employment. 

Social pension: 60% of minimum wage (100% if mother of 5 or 

more children). 

Adjustment: Periodic benefit adjustments according to cost of 
living changes. 

Permanent Disability Benefits 

Disability pension: Total disability pension: Group I, 60% of 
wage base; Group II, 50%. 



Partial disability (Group III): 30% of wage base. Payable monthly. 
Social pension: 100% of minimum wage for Group I disabled 
adults, and for Group I and II disabled children (aged under 16); 
60% for Group II disabled adults; 40% for Group III disabled 
adults. 

Adjustment: Periodic benefit adjustments according to cost of 
living changes. 

Survivor Benefits 

Survivor pension: Payable monthly at 1/6 of monthly benefit for 
each dependent survivor of pensioner. 
Adjustment: Periodic benefit adjustments according to cost of 
living changes. 

Administrative Organization 

Ministry of Labor and Social Security, general coordination. 
Regional and local social security departments, administration of 
program. Pension Fund, program financing. 

Sickness and Maternity 

First law: 1912. 

Current law: 1955, as amended 1990 and 1992. 

Type of program: Dual social insurance (cash benefits) and 

universal (medical care) systems. 

Coverage 

Cash benefits: Employed persons. Medical care: All residents. 

Source of Funds 
Insured person: None. 

Employer: Cash benefits: 2% of payroll; medical care: whole 
cost of optional employer-operated health care facilities. 
Government: Cost of medical care and universal maternity cash 
benefits paid by both central and local government budgets. 

Qualifying Conditions 

Cash and medical benefits: No minimum qualifying period. 
Sickness and Maternity Benefits 

Sickness benefit: Payable in case of illness or to care for sick 
family member; information about benefit level and duration not 
readily available. 

Maternity benefit: 100% of earnings payable for 70 days before 
and 70 days after confinement; for a maximum of 155 days if 
complications in childbirth, or 180 days for multiple births. 
Monthly benefits equal to 100% of minimum wage paid for 
maternity leave until child is 18 months old. 
Optional part- or full-time unpaid leave for child care granted to 
either parent, grandparent or relative until child is 3 years old. 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients by 
governmental health providers. 



14 



Social Security Programs Throughout the World — 1997 



ARMENIA 



Preventive care, general and specialist curative care, 
hospitalization, laboratory services, dental care, maternity care, 
and transportation. 

Patient ordinarily pays part of cost of appliances. 

Medicines, if provided with hospitalization, are free. Also free for 

disabled children under age 16, children under age 1, and 

pensioners receiving minimum pension. 

Care in sanatoria and rest homes, preference being given to 

workers who may pay part of cost. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for head of household. 
Administrative Organization 

Cash benefits: Armenian Social Insurance Fund, general oversight 
of the program; Ministry of Social Security, and social security 
departments of local governments, administration of benefits. 
Medical care: Ministry of Health, and health departments of local 
governments, general supervision and coordination; provision of 
medical services through clinics, hospitals, maternity homes, and 
other facilities administered by the Health Ministry and local health 
departments. 

Work Injury 

First law: 1955. 

Current laws: 1995 and 1992 (short-term benefits), 1990 and 1992 
(pensions). 

Type of program: Dual social insurance (cash benefits) and 
universal (medical care) system. 

Coverage 

Cash benefits: All employees. Medical care: All residents. 
Source of Funds 

Insured person: Cash benefits: see pension contributions above; 
medical care: same as under general medical care (see Sickness 
and Maternity, above). 
Employer: Same as above. 
Government: Same as above. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of average monthly earnings 
in last 12 months preceding onset of work injury or occupational 
disease. 

Payable from first day of incapacity, until recovery or award of 
permanent disability pension. 

Permanent Disability Benefits 

Permanent disability pension: Proportion of average monthly 
wage in last 12 months preceding disability, depending on extent of 
incapacity up to a maximum of 100% of average monthly wage for 
total disability. 



Workers' Medical Benefits 

Medical benefits: Same as under general medical care, plus full 
cost of appliances and medicines (see Sickness and Maternity, 
above). 

Survivor Benefits 

Survivor pension: Same as general survivor pensions above (see 
Old Age, Disability, Death, above). 

Administrative Organization 

Temporary disability benefits: General supervision by Armenian 
Social Insurance Funds; enterprises and employers pay benefits to 
own employees. 

Pensions: Same as under old-age, disability and survivor pensions 
above. 

Medical care: Same as under general medical care above (see 
Sickness and Maternity, above). 

Unemployment 

First law: 1921. 
Current law: 1991. 

Type of program: Social insurance system. 
Coverage 

Residents aged 14-59 (men) or 14-54 (women). 
Source of Funds 

Insured: See pension contributions above. 
Employer: See pension contributions above. 
Government: Subsidies as needed from central and local 
governments. 

Qualifying Conditions 

Unemployment benefit: Dismissed as result of reorganization, 
staff reduction, or cancellation of collective agreement. 
Unemployed had a minimum of 12-weeks of covered employment 
in 12-month period preceding unemployment. Seeking to rejoin 
labor force after a lengthy period of interruption, or seeking work 
for the first time. Registered at employment office. Ability and 
willingness to work. Benefits may be reduced, suspended or 
terminated if worker is discharged for violating work discipline, 
leaving employment without good cause, violating conditions for 
job placement or vocational training, or filing fraudulent claims. 

Unemployment Benefits 

Unemployment benefit: For the unemployed who were dismissed 
due to reorganization, staff reduction or cancellation of collective 
agreement: 75% of average monthly earnings in previous 
workplace for the first 8 calendar weeks, and 50% of average 
monthly earnings for additional 24 weeks. For those who have had 
at least 12 weeks' covered employment in last 12 months: 50% of 
previous average monthly earnings for 24 calendar weeks. An 
additional 2 weeks of benefits for every 5 years' covered 
employment beyond the first 
10 years. 



Social Security Programs Throughout the World — 1997 



15 



ARMENIA 



For unemployed persons who never worked before, who seek to 
rejoin the work force after a lengthy (over one year) interruption, or 
who resigned from posts: 100% of minimum wage for 12 calendar 

weeks. 

Maximum: 3 times of minimum wage; minimum: 100% of 
minimum wage (reduced to 50% of minimum wage in case of 
voluntary separation from employment or dismissed as result of 
violation of labor discipline). 

Administrative Organization 

State Employment Service and city and regional employment 
centers, administration of program. 

Family Allowances 

First law: 1944. 

Current law: 1992, as amended 1993. 

Type of program: Dual universal and social assistance system. 
Coverage 

Families with children. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 

Qualifying Conditions 

Family allowances: Children under age 17. 

Low-income allowances: urban families with children, if income 

per capita lower than 60% of minimum wage. 

Family Allowance Benefits 

Family allowances: 450-650 dr. per month (as of April 1, 1995), 
depending on number of children. Supplementary benefit: 700 dr. 
(as of December 1, 1994) per month for unwed or single mother. 
Birth grant: 3000 dr. (as of April 1, 1995). 
Low-income supplement: 10% of minimum wage per month per 
child; maximum: 60% of minimum wage per family. 

Administrative Organization 

Ministry of Labor and Social Security, and local departments of 
social security. 



16 



Social Security Programs Throughout the World 



— 1997 



AUSTRALIA 



Old Age, Disability, Death 

First laws: 1908 (old-age and disability pensions) and 1942 
(widow's pension). 
Current law: 1991. 

Type of Program: Dual universal insurance and social assistance 
system. 

Exchange rate: U.S. $1.00 equals 1.23 Australian dollars (A$). 

Coverage 
Residents. 

Source of Funds 

Insured person: None. 
Employer: None. 

Government: Entire cost from general revenues. 
Qualifying Conditions 

Old-age pension: Age 65 (men) or 60.5 (women), rising to 61 
from July 1, 1997) and resident and physically present in country 
at application. (The pensionable age for women will be raised by 
six months every two years until it reaches 65 on July 1, 2013). 
10 years of continuous residence (5 continuous years if total 
residence exceeds 10 years); means-tested, unless permanently 
blind. 

Paid abroad if payable before leaving the country; may be reduced. 
Disability pension: Age 16 to 65 (for men), 16 to 60 (for women). 
Minimum 20% level of impairment and an inability to work full 
time at full wages for the foreseeable future due primarily to a 
physical or mental impairment, or permanent blindness. 
Resident and physically present in country at application. 
If incapacity occurs prior to arrival in Australia, same minimum 
residence requirements as for old-age pension. If incapacity occurs 
in Australia, no minimum residence requirement. Means-tested, 
unless permanently blind. 

Paid abroad under specific circumstances; may be reduced. 
Wife pension (means-tested), paid when both disability pensioner 
and wife are over 21 (unless there are children). 
Carer pension (means-tested): Claimant provides substantial care at 
home to a social security or veteran's income support recipient. 
Survivor pension: Widows and widowers with dependent children 
entitled to sole pension under family allowances program. 
Widows without children if age 50 on July 1, 1987, receive widow 
pensions. However, from March 20, 1997, there will be no new 
grants of widow pensions, although widow's allowances continue 
to be available. 

Other widows without children, if widowed, separated or divorced 
after they turn 50, receive widow allowance. Must be resident and 
physically present in the country at application. 
If surviving spouse resides in Australia when death occurs, no 
minimum residence requirement. Otherwise 5 years continuous 
residence immediately preceding application or 10 years continuous 
residence any time. 

Paid abroad if payable before person leaves country; may be 
reduced. 



Old-Age Benefits 

Old age pension (means-tested, except if blind): Up to A$173.20 a 
week for singles and A$144.45 for each member of a couple. 
Wife pension (means-tested): Up to A$144.45 a week. Benefits for 
dependent children paid through family allowances scheme. (No 
new grants of wife pension from July 1, 1995) 
Rental assistance (means-tested): Up to A$37.30 per week, 
according to marital status and level of rent. Special rules apply to 
people who live in retirement villages. Rental assistance for those 
with dependent children is paid through family allowances scheme. 
Carer pension (means-tested): Up to A$173.20 a week (A$144.45 
if spouse). 

Remote area supplement: A$8.75 a week (single) or A$15 a week 
(couple), plus A$3.50 per child. 
Pharmaceutical allowance: A$2.70 a week per family. 
Telephone allowance: A$56.00 a year for telephone subscribers. 
Adjustment: Adjusted in March and September according to price 
index. The single rate of pension is maintained as percentage of 
average weekly earnings. 

Permanent Disability Benefits 

Disability pension (means-tested, except if blind) for all married 
pensioners and for pensioners 21 years and over, same as old-age 
pension. 

For single people aged 18-20 years, up to A$132.35 a week (living 

away from home) and A$87.15 a week (living at home). 

Single disability pensioners under age 21 may also be eligible for 

Youth Disability Supplement of A$37.45 a week. 

Parenting and partner allowances: see unemployment assistance, 

below. 

Wife's pension, rental assistance, carer's pension: Same as under 
old-age pension (all means-tested). 
Remote area supplement: Same as under old-age pension. 
Adjustment: Disability pension, carer's pension, and wife's 
pension adjusted in March and September according to price index. 

Survivor Benefits 

Survivor pension (means-tested): Same as single old-age pension. 
No new grants of widow's pension as of March 20 1997. Widow's 
allowance continued to be paid. 

Rental assistance: (Same as under old-age pension — not available 
to people under age 21 living with parents). 
Child's payment through family allowances schemes (means-tested). 
Rental assistance (means-tested): Same as under old-age pension. 
Bereavement payment: On death of pensioner, 14 weeks' pension 
payable to surviving spouse, child (if deceased pensioner a single 
parent), or carer. 

On death of single pensioner, 1 pension payment is credited to the 
estate. 

Adjustment: Survivor pension adjusted in March and September 
according to price index. 

Administrative Organization 

Department of Social Security administers programs through 
20 area, 216 regional and over 60 smaller offices. 



Social Security Programs Throughout the World — 1997 17 



AUSTRALIA 



Sickness and Maternity 

First laws: 1944 (cash sickness benefits); 1947 (pharmaceutical 
benefits); and 1948 (national health program). 
Current laws: 1991 (cash benefits); 1953 (medical and hospital 
benefits); 1973 and 1983 (universal medical and hospital 
insurance — Medicare). 

Type of program: Dual social assistance (cash benefits) and 
universal (medical care) systems. 

Coverage 

Cash benefits: Gainfully employed persons with limited income, 
and others meeting qualifying conditions. 
Medical benefits: Residents. 

Source of Funds 

Insured person: Medical benefits, 1.25% levy on income above 
A$21,366 for couples and sole parents (increased by A$2,100 per 
child), or A$12,688 for single persons without dependents. 
Exemption from levy for veterans, war widows, and Armed Forces 
personnel with dependents (half levy if without dependents). 
Employer: none 

Government: Whole cost of cash benefits and assistance towards a 
wide-range of drugs under Pharmaceutical Benefits Scheme; 
rebates for medical, and hospital benefits. Funding is provided for 
residential and community aged care. 

Commonwealth General Revenue Grants and Medicare Grants to 
States and Territories for public hospital operating costs. Meets 
approximately 40% to 50% of funding of medical insurance 
scheme. 

Qualifying Conditions 

Sickness allowance (SA) (means-tested): Age 16 to pension age. 
Resident in country. Insured can't work because of sickness or 
injury. Must have a job to return to or intend resuming full-time 
studies. Otherwise may receive unemployment assistance. 
Medical benefits: Residents. 
Pharmaceutical benefit: Residents. 

Sickness and Maternity Benefits 

Sickness allowance (means-tested): Up to A$145.00 a week if 
partnered with dependent children. A$160.10 if single, aged 21 or 
over and no dependents, A$232.10 if age 18-20 and no dependents 
and living away from home, or up to A$l 19.65 if single and under 
age 18 with no dependents and away from home; and A$173.20 if 
single with dependents. 

Benefits for children paid under family allowances scheme 
Payable after 7-day waiting period for as long as qualified. 
Rental assistance (means-tested): Same as under old age pension. 
Remote area supplement: Same as under old-age pension. 
Adjustment: Sickness benefit for 16-20 year olds without 
dependents adjusted in January according to price index. 
Other benefits adjusted in March and September according to price 
index. 



Workers' Medical Benefits 

Medical benefits: Patient pays 15% of schedule fee for outpatient 
ambulatory care or A$28.10 whichever is less (indexed annually 
for price changes). 

Pharmaceutical benefit: Most prescribed medicines, with a fee of 
up to A$16.20 per prescription. Pensioners, beneficiaries, and low 
income persons pay A$2.60 fee per prescription. 
Government pays pharmacists. 

Hospital benefits: Free standard ward accommodations and 
treatment by staff doctors in public hospitals. 
Private benefit organizations pay for private hospital stay, or public 
hospital charge for those who choose treatment by their own 
physician in public hospitals. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same medical and hospital 
benefits as head of family. Family membership in private benefit 
organization also covers dependents. 

Administrative Organization 

Sickness benefits: Department of Social Security, administration of 
program through 20 area and 216 regional offices. 
Medical and health benefits: Administered by the Health Insurance 
Commission, with Commonwealth Department of Human Services 
and Health setting policy. 

Work Injury 

First laws: 6 States, from 1902 (Western Australia) to 1918 
(Tasmania); Seamen's Compensation 1911; Commonwealth 
Government employees, 1912; Northern Territory, 1931; 
Australian Capital Territory, 1946. 

Current laws: Queensland, 1990; New South Wales, 1926 and 

1987; Tasmania, 1927 and 1988; Australian Capital Territory, 

1951; South Australia 1971 and 1986; Commonwealth Government 

employees, 1981; Western Australia, 1982; Victoria, 1958, 1985 

and 1993; and Northern Territory, 1986. 

Type of program: Compulsory insurance with public or private 

carrier. 

Coverage 

Employed persons; self-employed usually not covered. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through insurance premiums varying with 
risk (some employers permitted to act as self-insurers). 
Government: None, except as a self-insurer for own employees. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 

Temporary Disability Benefits 
Temporary disability benefit: Varies according to 
States/Territories. Generally, at least 95% of earnings for a 
minimum of 26 weeks. May be payable for extended period at 



18 



Social Security Programs Throughout the World — 1997 



AUSTRALIA 



reduced levels. Dependents' supplements: Where flat-rate benefits 
are paid, A$62.99-A$79.34 for spouse (indexed); 
A$29.49-A$70.80 for each child (indexed). 
Maximum benefit: A limit generally applies. It can be in the form 
of a cap on the weekly benefit payment or an over-all lump sum 
value. In Queensland, A$71,310 (includes weekly benefits); South 
Australia, A$92,300; Tasmania, A$ 100,076; Western Australia, 
A$100,729. 

New South Wales, no maximum; Australian Capital Territory 
A$87,364; No waiting period. 

Permanent Disability Benefits 

Permanent disability pension: Total disability, same as temporary 
disability benefit. 

Dependents' supplements: Same as for temporary disability benefit. 
Partial disability pension: Amount of earnings lost, subject to limit; 
lump sum payments for specific injuries. 
Lump sum payments for specified permanent injuries up to 
A$159,700 and for pain and suffering up to A$65,700. 

Workers' Medical Benefits 

Medical benefits: Reasonable cost of medical care, hospitalization, 
transportation, nursing care, rehabilitation, etc. 
In New South Wales, A$50,000 maximum for medical, A$59,000 
for hospital treatment; A$ 10,000 for ambulance; further amounts if 
ordered by court. 

In Western Australia, subject to prescribed monetary limits, 
dispute resolution body may extend amounts. 

Survivor Benefits 

Survivor benefit: Lump sum of A$59,980-A$225,800 (indexed) 
plus lump sum of A$l,000-A$22,710 for each child (4 States), or 
weekly payment of A$24.00-A$70.80 per child (indexed). 
Funeral grant: Reasonable cost of funeral (Queensland, Victoria, 
Tasmania). Remaining jurisdictions, A$l,890-A$4,000. 

Administrative Organization 

Workmen's Compensation Board or Commission administers 
claims in all States (except Australian Capital Territory, Northern 
Territory, and Western Australia, which have multi-insurer 
systems with claims administered by insurers) and for 
Commonwealth employees. Some States still allow common law 
actions for negligence against an employer. 

Unemployment 

First law: 1944. 
Current law: 1991. 

Type of program: Unemployment assistance. 
Coverage 

Gainfully employed persons (also payable to those not previously 
gainfully employed who meet qualifying conditions). 

Source of Funds 
Insured person: None. 



Employer: None. 

Government: Entire cost from general revenues. 
Qualifying Conditions 

Newstart allowance: Means-tested. Age 18 to pensionable age 65 
(men), 60.5 (women). Pensionable age for women will increase to 
61 years on July 1, 1997. 

Permanent resident and present in country during period of 
payment. Must be unemployed, capable of undertaking, and 
actively seeking work. 

Unemployment not due to voluntary act, labor dispute, or refusal 
of suitable offer (benefit may be postponed 2 or more weeks for 
offenses committed within last 3 year period). 
Youth training allowance (YTA): Unemployed young people 
16 years to 18 years of age (15 and over if school-leaving age) 
undertaking approved education, training, job search or other 
employment preparation activity. 

Means-tested according to both parental and personal income and 
assets test. 

Mature Age Allowance (MAA): Means-tested payment for older 
unemployed people who are at least 60 years of age but less than 
pensionable age. Recipients of MAA must have been in receipt of 
Newstart Allowance for the preceding 9 months or a non-activity 
tested payment in the 13 weeks prior to claim and have no recent 
workforce experience. Receipients are not required to look for 
work. 

Partner allowance (PA): Means-tested payment made to a 
member of a couple (born on or before 1 July 1955) whose partner 
receives a major social security pension or allowance. A person 
must clain PA in their own right, although eligibility does not 
involve any labor market obligations. Must have no recent 
workforce experience, no dependent children under the age of 16 
years, and must not have received unemployment payments or 
sickness allowance in the 

13 weeks prior to claim. Recipients are not required to look for 
work. 

Parenting Allowance (PgA): Means-tested payment to a member 
of a couple who has a dependent child or children under the age of 
16 years. Recipients are not required to look for work. 
Widow Allowance (WA): Means-tested payment to women aged 
50 years or over who are not a member of a couple, who have 
been widowed, divorced or separated (including separated de facto) 
since turning 50 and who have no recent workforce experience. 
Recipients are not required to look for work. 

Unemployment Benefits 

Newstart Allowance (means-tested):Up to A$144.45 per week for 
each member of a couple over 21 years. A$160.10 per week if 
single, aged 21 and no dependents, A$132.35 if age 18-20, living 
away from parents and no dependents; or up to A$72.50 if single, 
living with parents and under 18 years with no dependents; and 
A$173.20 if single, under 18 years with dependents. 
Benefits for children paid under Family Payments scheme. 
Payable after 7-day waiting period for as long as qualified. 
Rent assistance (means-tested): Same as for old-age pension. Single 
recipients under 25 years living with parents are not eligible for 
rent assistance. 



Social Security Programs Throughout the World — 1997 



19 



AUSTRALIA 



Remote area supplement: Same as under old-age pension. 
Adjustment: Newstart allowance adjusted in March and September 
according to Consumer Price Index (except for single persons 
under age 21 without dependents). 

Administrative Organization 

Department of Social Security, administration of program through 
a network of area and regional offices and teleservice centers. 
From July 1997, administration of program will be undertaken by a 
public sector service delivery agency. 

Family Allowances 



First law: 1941 (family allowances). 

Current laws: 1992 (family payment), 1991 (orphan's pension), 
1991 (child disability allowance), 1991 (sole parent pension), 1994 
(parenting allowance), 1995 (birth grant), 1996 (family tax 
payment). 

Type of program: Dual universal and social assistance system. 
Coverage 

Residents with 1 or more children. 

Source of Funds 

Insured person: None. 
Employer: None. 

Government: Entire cost from general revenues. 
Qualifying Conditions 

Family allowances: Minimum family payment: Child must be 
under age 16 (18 if student). Parent or guardian as well as child 
(with exceptions) must be residents. 

More than minimum family payment: Persons with dependent 
children who are in receipt of a pension, benefit or allowance or in 
low to moderately paid work. 

Guardian allowance: Sole parents who are eligible for more than 
minimum family payment. 

Orphan pension: Both parents dead (or one dead, the other in a 
hospital or institution indefinitely, in prison for at least 10 years, or 
whose whereabouts unknown) or refugee children under certain 
circumstances. 

Child disability allowance: Disabled child who requires 
substantially more care and attention than a child of the same age 
who is not disabled. Must be cared for at home. 
Parenting allowance: Partners of income support, other low-income 
recipients or one partner of a couple who has low personal income. 
Child must be under 16. 

Sole parent pension: Male or female single parent of child under 
age 16 or in receipt of child disability allowance. No minimum 
residence requirement if claimant becomes single parent in 
Australia, otherwise minimum residence requirement. 
Birth grant: Persons with newborn child who are eligible for family 
payment. Includes adopted babies, stillborn babies and babies who 
died shortly after birth. 

Family tax payment: Part A-families with dependent children under 
16 (18 if student) who are eligible for more than minimum family 



payment; Part B-families, including sole parents, with a child 
under age 5 and one main income partner (one partner of a couple 
with income less than basic parenting allowance ceiling). 

Family Allowance Benefits 

Family allowances: Minimum family payment (means-tested at 
high level): A$23.40 a fortnight per child; A$7.70 supplement for 
4th and each subsequent child. A$31.10 a fortnight for children in 
institutions. 

More than minimum family payment (means-tested): Up to 
A$72.60 a fortnight per child under age 13; A$101.50 a fortnight 
per child, 13-15; A$36.60 a fortnight per student ages 16-18. 
Rental assistance up to A$98.40 a fortnight depending on number 
of children and level of rent. 

Guardian allowance: A$36.60 a fortnight (does not vary with 
number of children). 
Orphan pension: A$37.50 a fortnight. 

Child disability allowance (not income-tested): A$74.90 a fortnight 
per child. 

Parenting allowance: Maximum rate A$288.90 (individual 
entitlement): basic payment (personal income test only) A$64.80 a 
fortnight plus additional payment (means-tested on income of 
couple) up to A$224.10 a fornight. Recipients of additional 
parenting allowance are automatically eligible for more than 
minimum family payment and rental assistance. 
Sole parent pension: Basic pension remote area supplement, 
pharmaceutical allowance and telephone allowance, same as under 
old-age pension. Also eligible for minimum and more than 
minimum family payment, guardian allowance and rental assistance. 
Birth grant: One-off payment of A$866.70. Paid for each child in 
multiple birth. 

Family tax payment: Part A-A$7.70 a fortnight per child; Part 
B-A$19.24 a fortnight per family. 

Adjustment: Sole parent pension, parenting allowance, birth grant 
and rental assistance adjusted in March and September according to 
price index. Minimum family payment, and more than minimum 
family payment, orphan pension, child disability allowance and 
guardian's allowance adjusted in January according to price index. 

Administrative Organization 

Department of Social Security, administration of program through 
20 area, 216 regional, over 60 smaller offices and 14 trial Family 
Service Centers. 



20 



Social Security Programs Throughout the World — 1997 



AUSTRIA 



Old Age, Disability, Death 

First laws: 1909 (salaried employees) and 1939 (wage earners). 
Current laws: 1956 (employees) and 1979 (self-employed). 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 10.72 schillings. 

Coverage 

Wage earners and salaried employees (separate systems with 
essentially identical provisions) earning 3,740 schillings or more a 
month, and apprentices. Special systems for miners, notaries, 
public employees, and self-employed in trade, industry and 
agriculture. 

Source of Funds 

Insured person: 10.25% of earnings. 
Employer: 12.55% of payroll. 

Government: Any deficits; also cost of nursing care insurance and 
income-tested allowance. 

Maximum earnings for contribution and benefit purposes: 40,800 
schillings a month. 

Qualifying Conditions 

Old-age pension: Age 65 (men) or 60 (women). 180 months of 

insurance coverage in the last 30 years or 180 months of 

contributions. Early pension payable at age 60 (men) or 

55 (women) after 1 year of sickness or unemployment, or 35 years 

of insurance. Early pension suspended if earnings above 

3,740 schillings a month. 

Reciprocity or international agreement required for payments 
abroad beyond 2 months except in member states of the European 
Union. 

Disability pension: Loss of 50% of normal earning capacity and 
60 months of contribution in the last 10 years or 180 months of 
contributions in total . 

Survivor pension: Insured met disability pension requirements or 
was pensioner at death. 

Old-Age and Disability Benefits 

Old-age and disability benefits: 1.83% of average earnings 
(recorded earnings revalued for national average covered earnings 
changes) in best 15 years for each of first 30 insurance years, plus 
1.675% for each insurance year from 31-45. 
Maximum pension, 80% of average covered earnings. Additional 
supplement of 1.83% of earnings for each year of disability which 
occurred before age 56, up to a maximum of 60% of earnings. 
Reduction for early retirement at age 56 (women) and age 61 
(men). Increase for late retirement. 

Child's supplement: 300 schillings for each child under age 18 (27 
if student, no limit if disabled.) 

Income-tested allowance: Amount raising pension to 7,887 

schillings a month for individual, 11,253 schillings for couple, plus 

840 schillings per child. 

Schedule of payments: 14 payments a year. 

Adjustment: Automatic annual adjustment of benefits for changes 

in national average covered earnings. 



Care benefit: Persons in need of personal care may be entitled to a 
monthly benefit varying from 2,000 schillings to 21,074 schillings 
(in 7 steps) depending on the amount of care required. The benefit 
is paid 12 times per year and adjusted annually. 

Survivor Benefits 

Survivor pension: Widow or widower, 40-60% of basic pension 
of insured. Rates under 60% may be increased, depending on the 
total income of the beneficiary. 

Orphans: 24% of basic pension of insured, or 36% if full orphan, 

for each orphan under age 18 (27 if student, no limit if disabled). 

Income-tested allowance: Amount raising survivor pension to 

7,887 schillings a month , orphan's pension to 2,945 schillings, or 

full orphan's pension to 4,423 schillings; after age 24, orphan to 

5,233 schillings and full orphan to 7,887 schillings a month. 

Schedule of payments: 14 payments a year. 

Adjustment: Automatic annual adjustment of benefits for changes 

in national average covered earnings. 

Care benefit payable under the same circumstances as for the 

insured. 

Administrative Organization 

Federal Ministry of Labor and Social Affairs, general supervision. 
Manual Workers' Pension Insurance Institution and Salaried 
Employees' Pension Insurance Institution, administration of 
pensions (separate institutions for public employees, railroads, 
mining, and agricultural and nonagricultural self-employed). 
Self-governing agencies, managed by elected representatives of 
insured persons and employers. 

Sickness funds collect contributions, transmit them to pension 
insurance institutions, and maintain contribution records for 
individual workers. Special funds to equalize surpluses and deficits 
between various systems. 

Sickness and Maternity 

First law: 1888. 

Current laws: 1955 (employees), 1960 (maternity), 1974 (cash 
benefits for wage earners) and 1979 (self-employed). 
Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Employed persons earning 3,740 schillings or more a month, self- 
employed (except in agriculture), apprentices, and pensioners. 
Special systems for public and railway employees and agricultural 
self-employed. Voluntary affiliation for noncovered residents. 

Source of Funds 

Insured person: Wage earners, 3.95% of wages; salaried 
employees, 3.4% of salary; pensioners, 3.75% of pension. 
Employer: Wage earners, 3.95% of payroll (plus 2.3% to 
equalization fund for cash benefits); salaried employees, 3.4%. 
Government: 70%' of cash maternity benefits. Pension insurance 
institutions make contributions for medical insurance of pensioners 
equal to 20.3% of the collected sickness insurance contributions. 



Social Security Programs Throughout the World — 1997 



21 



AUSTRIA 



Maximum earnings for contribution and benefit purposes: 40,800 
schillings a month. 

Qualifying Conditions 

Sickness and maternity benefits: Currently in covered employment 
(funds may require 6 months of contribution in last year for 
optional benefits only). 

Sickness and Maternity Benefits 

Sickness benefit: Employer pays 100% of covered earnings for 
first 4-10 weeks for wage earners and 6-12 weeks (plus 4 
additional weeks at 50%) for salaried employees, according to 
worker's length of service in establishment. Thereafter, sickness 
funds pay 50% (60% after 6 weeks) of covered earnings (half of 
sickness benefit to those receiving 50% from employer). 
Funds also pay up to 10% of earnings for spouse and 5% per child 
up to a maximum of 75% of covered earnings. Duration: 52 weeks 
(extended to 78 weeks in special cases). 

Employers are reimbursed by insurance funds for all benefits paid 
to wage earners. 

Maternity benefit: 100% of earnings for 8 weeks before and 
8 weeks after confinement (12 to 16 weeks after confinement in 
special cases). 

Workers' Medical Benefits 

Medical benefits: Service benefits ordinarily provided by doctors, 
hospitals, and druggists under contract with and paid directly by 
sickness funds; some funds operate own clinics or hospitals. 
Includes medical (including psychotherapy), maternity, and dental 
care, hospitalization, medicines, appliances, home nursing, 
preventive examinations, and transportation. 
Patients pay 42 schillings per prescription and up to 20% of dental 
care cost. Cost sharing, at least 269 schillings, for appliances. 
Exceptions for patients of limited means. 
Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured, but with 
10% cost-sharing (except for maternity) during first 4 weeks of 
hospitalization. 

Wife receives same maternity care as insured woman. 
Administrative Organization 

Federal Ministry of Labor and Social Affairs, general supervision. 
Nine district and 10 establishment sickness funds, administration of 
contributions and benefits. 

Special funds for railroads, mining, public employees, and 
agricultural and nonagricultural self- employed. 
Self-governing agencies, managed by elected representatives of 
insured persons and employers. 

Work Injury 

First law: 1887. 
Current law: 1955. 

Type of program: Social insurance system. 



Coverage 

Employed persons, self-employed, apprentices, and students. 
Special system for public employees. 

Source of Funds 

Insured person : None (except flat annual amounts payable for 
self-employed). 
Employer: 1.4% of payroll. 
Government: None. 

Family Allowances Equalization Fund reimburses Work Injury 
Funds for accident insurance of students. 
Maximum earnings for contribution and benefit purposes: 40,800 
schillings a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: Same as sickness benefit, above. 
Employer pays 100% of earnings for at least 8 weeks. 

Permanent Disability Benefits 

Permanent disability pension: 66-2/3% of average earnings 
during last year, plus supplement of 20% of total disability pension 
if totally disabled. 

Child's supplement: 10% of pension for each child under 18 (27 if 
student, no limit if disabled). Maximum, 1,050 schillings for each 
child. 

Care benefits: See old-age and disability benefits, above. 
Partial disability: Percentage of full pension corresponding to loss 
of earning capacity (converted to lump sum if below 25% of full 
pension). 

Schedule of payments: 14 payments a year. 

Adjustment: Annual adjustment for changes in national average 

covered earnings. 

Workers' Medical Benefits 

Medical benefits : Comprehensive care, including appliances and 
rehabilitation (first 4 weeks provided under sickness insurance). 
Allowances for training, relocation, etc. 

Survivor Benefits 

Survivor pension: 40% of earnings of insured, if age 60 or 
disabled; otherwise, 20% of earnings, payable to widow or to 
dependent disabled widower. 

Orphans: 20% of earnings for each orphan, or 30% if full orphan 

under age 18 (27 if student, no limit if disabled). 

Other survivors (if above pensions below maximum): Dependent 

parents, grandparents, brothers, and sisters receive 20% of 

earnings. 

Maximum survivor pensions: 80% of earnings. 
Schedule of payments: 14 per year. 

Adjustment: Annual adjustment for changes in national average 
covered earnings. 

Funeral grant: 1/15 of annual earnings of insured; minimum, 
11,830 schillings. 



22 



Social Security Programs Throughout the World — 1997 



AUSTRIA 



Administrative Organization 

Federal Ministry of Labor and Social Affairs, general supervision. 
General Accident Insurance Institution, administration of long-term 
benefits (separate institution for railway employees, public 
employees, agricultural and nonagricultural self-employed). 
Sickness funds collect contributions and transmit them to accident 
insurance institutions. Sickness funds also provide temporary 
disability benefits and first 4 weeks of medical care. 

Unemployment 

First law: 1920. 
Current law: 1977. 

Type of program: Compulsory insurance system. 
Coverage 

Employed persons earning 3,740 schillings or more a month, and 
apprentices. Exclusions: Public employees. 
Special system for construction workers. 

Source of Funds 

Insured person: 3% of earnings. 
Employer: 3% of payroll. 

Government: Any deficit and cost of emergency assistance. 
Maximum earnings for contribution and benefit purposes: 40,800 
schillings a month. 

Qualifying Conditions 

Unemployment benefit: 26 weeks of contribution in last 
12 months; or 52 weeks in last 24 months if first claim (reference 
period extended for sickness, unemployment, noninsured 
employment, etc.). Registered at employment office; capable of 
and willing to work. Unemployment not due to voluntary leaving, 
misconduct, work stoppage, or refusal of suitable offer 
(disqualification usually 4 weeks). 

Unemployment Benefits 

Unemployment benefit: About 40% to 50% of earnings, varying 
inversely according to 120 wage classes. Minimum benefit: 1,653 
schillings; maximum benefit, 12,759 schillings a month. 
Dependents' supplements: 627 schillings a month for each 
dependent. Maximum, 80% of earnings. Payable for up to 20 
weeks (30 weeks if 156 weeks' coverage in last 5 years). 
In special cases, available for up to 52 weeks. 
Emergency assistance payable to needy unemployed citizens when 
insurance benefits exhausted: 92% to 95% of unemployment 
benefit, according to number of dependents. Allowances for 
training, relocation, etc. 

Administrative Organization 

Federal Ministry of Labor and Social Affairs, administration of 
benefits. Regional employment offices pay benefits and offer job 
seeking services. 

Sickness funds collect contributions with those for other social 
insurance programs. 



Family Allowances 

First law: 1948. 

Current law: 1967. 

Type of program: Universal system. 

Coverage 

Permanent residents with 1 or more children. (Aliens eligible if 
employed for more than 3 months or resident for at least 
5 consecutive years.) 

Source of Funds 

Insured person: None. Agricultural self-employed: Portion of land 
tax. 

Employer: 4.5% of payroll. 

Government: Grants by municipalities, according to number of 
inhabitants. States pay 24 schillings a year for each inhabitant. 
Portion of Federal income tax receipts transferred to Family 
Allowances Equalization Fund. 

Qualifying Conditions 

Family allowances: Child must be under age 19; age 18 or 
student with taxable income less than 3,740 schillings a month; no 
limit if disabled. 

Family Allowance Benefits 

Family allowances: 1,300 schillings a month for each child up to 
age 10, thereafter 1,550 schillings a month until age 19, then 1,850 
schillings; 1,650 schillings for a permanently disabled child. 
Birth grant: 2,000 schillings, payable in installments. 

Administrative Organization 

Federal Ministry of Environment, Youth and Family, 
administration of program through Family Allowances Equalization 
Fund attached to Ministry. 

Employers ( social insurance institutions or finance offices) pay 
allowances directly to recipients and settle surplus or deficit of 
contributions due with equalization fund. 



Social Security Programs Throughout the World — 1997 



23 



AZERBAIJAN 



Unemployment 

First and current law: 1991. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 4,260 manat. 

Coverage 

Working age citizens. 

Source of Funds 

Employee: None. 
Employer: 2% of payroll. 

Government: Subsidies as needed from Republic and local 

governments. 

Qualifying Conditions 

Unemployment benefifRegistered at employment office; ability 
and willingness to work. 

Benefits may be reduced or suspended (up to 3 months), if the 
unemployed refuses 2 offers of job placements, violates conditions 
of training, or files fraudulent claims. 

Unemployment Benefits 

Unemployment benefit: Unemployment benefits are paid for a 
total of 26 weeks, plus an additional 2 weeks for every year 
worked over 25 years (20 for women), not to exceed 52 weeks. 
For the unemployed with 10 or more years of covered 
employment, 75 % of average pre-unemployment earnings for the 
first 13 calendar weeks and 60% for the following 13 calendar 
weeks. For the unemployed who has less than 10 years of 
employment, 70% of average earnings for the first 13 calendar 
weeks and 55% for the following 13 weeks. 
Maximum: average pre-unemployment earning may not exceed 
average wages in enterprise; minimum: 100% of minimum wage 
(4,000 manat as of January 1, 1995). 

Dependent supplement: 10% of unemployment benefit for each 
dependent. 

First-time job seekers or re-entrants after more than one year out of 
employment: 100% of minimum wage. 

Unemployed older workers (men aged 58-59, women aged 53-54) 
benefits payable equal to 100% of old-age pension until 
pensionable age (men aged 60, women aged 55). 

Administrative Organization 

Republic Labor and Social Security Ministry and local departments 
of labor and social security, administration of program. 

Note: Information is not readily available for "Old Age, Disability, 
Death," "Sickness and Maternity (medical care)," "Work Injury," 
and "Family Allowances." 



24 



Social Security Programs Throughout the World — 



1997 



BAHAMAS 



Old Age, Disability, Death 

First laws: 1956 (old-age noncontributory pensions) and 1967 

(public assistance for disability). 

Current law: 1972 (National Insurance Act). 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 1 Bahamian dollar (B$). 

Coverage 

Employed persons, self-employed and voluntarily insured. 
Source of Funds 

Insured person: 1.7% if weekly insurable wages are under B$60, 
3.4% for others. Self-employed, 8.8% if eligible for work injury 
program, 6.8% for others. 

Employer: 7.1% of payroll if wages under B$60, 5.4% for others. 
Out of employer's contribution, 0.75 of payroll is earmarked for 
work- injury benefits. 

Government: None except for means-tested allowances in force 
prior to October 1974. 

Maximum earnings for contribution and benefit purposes: 
B$13,000 a year. For civil servants, the maximum is B$5,720 for 
retirement and disability purposes. 

Above contributions also finance cash sickness, maternity, and 
work-injury benefits (except for certain categories of 
self-employed). 

Qualifying Conditions 

Old-age pension: Age 65, 150 weeks' contributions paid. 
Employees over age 35 in 1974 (self-employed over age 35 in 
1976) receive special credit of 25 weeks for each year over age 35, 
up to maximum of 600 weeks, provided contributions were paid 
for 

150 weeks during first 3 years program in operation. 

Eligible only if earning less than B$120 per week. 

Payable locally to persons who are abroad. 

Disability pension: Under age 65; permanent incapacity for any 

work. Qualifying conditions same as above. 

Survivor pension: Deceased was a pensioner or had made 

150 contributions at death. For funeral grant, 50 weeks of 

contributions. 

Old-Age Benefits 

Old-age pension: 40% of covered wage with 750 weeks of 
contributions paid or credited. Increased by 1% of covered wage 
for every 50 weeks of paid or credited contributions above 750 up 
to maximum of 60%. 15% to 38% of covered wage if 150-749 
weeks of contributions paid or credited. 
Minimum benefit: B$ 43.85 per week. 
Means-tested allowance: B$36.92 per week payable to retired 
workers age 65 or over who do not qualify under National 
Insurance Act. 

Disability Benefits 

Disability pension: 40% of covered wage, according to wage 
class, with 750 weeks' contributions paid or credited. Increased by 



1 % of covered wage for every 50 weeks of contributions paid or 
credited above 750 up to a maximum of 60%. 15% to 38% of 
covered wage if 150-749 contributions paid or credited. 
Minimum benefit: B$43.85 per week. 
Means-tested allowance: B$36.92 per week. 

Survivor Benefits 

Survivor pension: 50% of pension of insured, payable to widow 
aged 40 or over, incapable of gainful employment, or caring for a 
child eligible for survivor's benefits. Also payable to dependent 
disabled widower with income less than B$30 weekly. 
Minimum benefit: B$43.85 per week. 

Orphans: 10% of insured's pension for each dependent child under 

age 16 (18 if student) up to a family maximum of 100%. 

Full orphans receive B$17.50 a week each, or up to B$20.50 if 

over age 12, student, or disabled. 

Minimum benefit: B$17.31. 

Dependent mother over age 40 or disabled father with income 
under B$30 a week, 50% of pension, provided no other survivor 
with prior entitlement. Minimum benefit: B$43.85 a week. 
Means-tested allowances: Adults B$36.92; children, B$13.85. 
Funeral grant: B$1,000 on death of insured; also paid on death of 
spouse. Payable to the person paying the funeral expenses. If 
funeral costs less than B$ 1,000, balance payable at the discretion 
of the National Insurance Board. 

Administrative Organization 

Prime Minister's Office, general supervision. 
National Insurance Board, administration of program. 

Sickness and Maternity 

First and current law: 1972. 

Type of program: Social insurance system. Cash benefits only. 
Coverage 

Employed persons, including self-employed. 
Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: None. 

Qualifying Conditions 

Cash sickness benefits: 40 weeks of paid contributions, and 
26 weeks paid or credited in the year before benefit is due or in the 
last contribution year, or 13 weeks paid or credited in the last 
26 weeks. 

Cash maternity benefits: 50 weeks of contribution since entry into 
the system with either: 

1 26 weeks' contributions paid or credited in the preceding 
contribution year or 

2 26 weeks' contributions in the 40 weeks before benefit is 
due. 



I 



Social Security Programs Throughout the World — 1997 



25 



BAHAMAS 



Sickness and Maternity Benefits 

Sickness benefit: 60% of average weekly covered earnings. 
Payable after 3-day waiting period for up to 26 weeks (may be 
extended to 40 weeks in certain circumstances). 
Minimum benefit: B$43.85 a week. 

Means-tested sickness allowance of B$36.92 a week for an insured 

who does not qualify for a sickness benefit. 

Maternity benefit: 60% of average weekly covered earnings 

payable for 13 weeks (may be extended to 15 weeks) commencing 

from a date not earlier than 6 weeks before confinement. There is 

also a maternity grant of B$250 per live birth. 

Minimum benefit: B$43.85 a week. 

Workers' Medical Benefits 

Medical benefits: None under insurance. 

(Medical care available at public hospitals and clinics to public and 
private patients. Government subsidizes costs for public patients, 
children, the elderly and indigent persons.) 

Dependents' Medical Benefits 

Medical benefits for dependents: None under insurance. 

Administrative Organization 

Prime Minister's Office, general supervision. 
National Insurance Board, administration of program. 

Work Injury 

First law: 1943. 
Current law: 1972. 

Type of program: Social insurance system. 
Coverage 

Employed persons and certain categories of self-employed. 
Exclusions: Family labor. 

Source of Funds 

Insured person: None, except self-employed (see pension 
contributions above). 

Employer: Entire cost (see pension contributions above). 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability pension: 66 2/3% of average weekly 
covered earnings. Payable after a 3-day waiting period for up to 40 
weeks. 

Minimum benefit: B$43.85 a week. 
Permanent Disability Benefits 

Permanent disability pension: Same as for temporary disability 
benefit, if permanent incapacity of 100%; proportionately reduced 
for partial disability (25% or more). 



A lump sum grant, dependent on degree of disability (1 % or more) 
of B$100-B$2,400 is also payable. 

Minimum benefit: B$43.85 a week for total disability and B$36.92 
a week for partial disability. 

Workers' Medical Benefits 

Medical benefits: Hospitalization, general and specialist care, 
medicines, and transportation. 

Survivor Benefits 

Survivor pension: Same as survivors' benefits, above, except that 
the amount is based on a temporary disability pension instead of 
the pension of the insured. 

Administrative Organization 

Prime Minister's Office, general supervision. 
National Insurance Board, administration of program. 



26 



Social Security Programs Throughout the World — 1997 



BAHRAIN 



Old Age, Disability, Death 

First and current law: 1976 with later amendments. 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 0.38 dinars. 

Coverage 

Employed persons in establishments of 10 or more workers; 
workers in establishments of less than 10 may contribute 
voluntarily. 

Exclusions: Domestic servants, certain workers employed in 
agriculture, casual workers, self-employed, and temporary 
noncitizen workers. Special system for public employees. 
Note: Voluntary insurance is available for persons with 5 or more 
years of previous compulsory social security coverage, who no 
longer are covered on a compulsory basis. Voluntary coverage for 
employers, self-employed and liberal professions. 

Source of Funds 

Insured person: 5% of earnings; voluntarily insured, 12% of 
income based on hypothetical monthly income. (Hypothetical 
income is based on 25 categories.) 
Employer: 1% of payroll. 
Government: None. 

Qualifying Conditions 

Old-age pension: Age 60 (men) and age 55 (women) with 
180 months of contribution; before age 60 with 240 months of 
contribution. Over age 60, 120 months of contribution with at least 
36 consecutive months during the last 5 years before retirement. 
Reduced pension at lower age with 240 months of contribution for 
men and 180 months for women. Retirement from employment not 
necessary. 

Disability pension: 6 months continuous contribution before 
disability (3 months continuous if 12 months total contribution), for 
men before age 60 and women before age 55. 
Survivor pension: Deceased met qualifying conditions for pension 
or was pensioner at death, contributed for 6 consecutive months 
before death (3 months if 12 months total contribution). Also if 
disability or death occurs within year following termination of 
employment. 

Old-Age Benefits 

Old-age pension: 2% of average earnings in last 2 years times 
number of years of contribution (with an additional 5 years credited 
for those retiring at age 60 or over prior to November 30, 1997). 
Minimum pension: Average of contributory wage during last 
2 years, or 115 dinars, whichever is less. 

Reduced pension: 20% reduction if retiring before age 45, 15% if 
age 45 and less than 50, and 10% if age 50 and less than 55. 
Supplement for pensioner and dependents: Amount raising pension 
benefit to 20 dinars for each family member, including pensioner, 
provided total does not exceed average contributory wage during 
last two years. 

Old-age settlement: Lump sum equal to 15% of average earnings in 
last 2 years, multiplied by 12 times number of years of 



contribution, if ineligible for pension, plus 5% interest from date 
coverage stops until payment of settlement. 

Permanent Disability Benefits 

Disability pension: 2% of average earnings in last year times 
number of years of contribution. 

Minimum pension: 44% or 46% of average earnings in last year of 
contribution or 115 dinars, whichever is higher; or the contributory 
wage, if less. 

Supplement for pensioner and dependents: Amount raising pension 
benefit to 20 dinars for each family member, including pensioner, 
provided total does not exceed average contributory wage during 
last year, is considered family allowance. 
Disability settlement: Same as old-age pension. 

Survivor Benefits 

Survivor pension: Widows, 37.5% of pension of insured. 
Orphans: 50% of pension divided equally between each child under 
age 22 (26 if student in higher education). Full orphans divide 
100% of pension. Dependent parents, brothers, and sisters: 12.5% 
of pension divided equally. 

Minimum benefit: 20 dinars a month. Maximum, 100% of 
insured's average earnings. Years of contributions in excess of 
number of years needed to obtain maximum benefit yield a 
lump-sum payment equal to 1 1 % of annual earnings of each excess 
year. 

Supplement for pensioner and dependents: Amount raising pension 
benefit to 20 dinars for each family member, including pensioner. 
Survivor settlement: Same as settlement under old-age pension. 
Death grant: 6 months' earnings or pension, plus 300 dinars for 
funeral expenses (400 dinars if insured died abroad and buried in 
Bahrain). 

Administrative Organization 

Minister of Labor and Social Affairs, general supervision. 
Administered by the General Organization for Social Insurance, 
managed by Board of Management. 

Work Injury 

First and current law: 1976. 

Type of program: Social insurance system. 

Coverage 

Employed persons in establishments of 10 or more workers. 
Exclusions: Domestic servants, casual employees, family labor, 
self-employed, and agricultural workers. 
Special system for public employees. 

Source of Funds 
Insured person: None. 

Employer: 3% of payroll (1 % if employer pays cash benefit and 
transportation expenses, and provides medical care from 
employer-owned hospital facilities). 
Government: None. 



Social Security Programs Throughout the World — 1997 



27 



BAHRAIN 



Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of average daily earnings. 
First day of incapacity payable by employer, thereafter payable by 
General Organization for Social Insurance, until recovery or 
certification of permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: 88% and 92% of average daily 
earnings if totally disabled. Minimum, 115 dinars a month. 
Partial disability: Percent of full pension proportionate to degree of 
disability. If less than 30% loss of capacity, lump sum equal to 
36 times monthly benefit for permanent disability, multiplied by 
actual percentage of disability. 

Supplement for pensioner and dependents: Amount raising pension 
benefit to 20 dinars for each family member, including pensioner. 
Medical benefits: Medical and surgical care, hospitalization, 
drugs, appliances, rehabilitation, transportation, diagnostic 
examinations, and dental care inside or outside Bahrain. 

Survivor Benefits 

Survivor pension: 88% and 92% of average daily earnings of 
insured. Widow, 37.5% of pension. 

Orphans: 50% of pension divided equally between each child under 
age 22 (26 if student in higher education). Full orphans divide 
87.5% of pension. 

Dependent parents, brothers, and sisters: 12.5% of pension divided 
equally. 

Supplement for pensioner and dependents: Amount raising pension 
benefit to 20 dinars for each family member, including pensioner, 
is provided as family allowance. Minimum benefit: 115 dinars a 
month. Maximum, 100% of pension. 

Death grant: 6 months' earnings or pension, plus 300 dinars for 
funeral expenses (400 dinars if insured died abroad or buried 
abroad). 

Administrative Organization 

Minister of Labor and Social Affairs, general supervision. 
Administered by the General Organization for Social Insurance, 
managed by Board of Management. 



28 



Social Security Programs Throughout the World — 



1997 



BANGLADESH 



Old Age, Disability, Death 

Special system for public employees only. 
Exchange rate: U.S. $1.00 equals 42.55 takas. 

S ickness and Maternity 

First Law: 1939. 

Current Laws: 1950 and 1965. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Cash sickness benefits: Workers in factories engaged in 
manufacturing and employing 10 or more workers; workers in 
shops and establishments of 5 or more. Exclusion: Clerical staff. 
Cash maternity benefits: Employed women. 
Medical benefits: Medical facilities provided by some employers 
in both public and private sectors through dispensaries in their 
establishments; workers can also use general hospital facilities run 
by the Government. 

Source of Funds 

Insured person: None. 

Employer: Total cost. 

Government: Provides hospital facilities. 

Qualifying Conditions 

Cash maternity benefits: 9 months service with employer by date 
of confinement. 

Sickness and Maternity Benefits 

Sickness benefit: 50 percent of wage for factory workers and full 
wage for workers in shops, establishments, and large factories, for 
up to 14 days per year. 

Maternity benefit: Cash payment for 6 weeks before and 6 weeks 
after childbirth with amount depending on prior wage. 

Workers' Medical Benefits 

Medical benefits: Where medical facilities are not provided, a 
medical allowance of 100 takas per month is paid to workers. 

Administrative Organization 

Ministry of Labour and Manpower. Public Health Service. 

Work Injury 

First Law: 1923. 
Current law: 1980, 1982. 

Type of program: Employer liability for accidental injuries and 
34 listed occupational diseases. 

Coverage 

Employees of railways, and factories with 10 or more workers; 
estate and dock employees. Exclusions: Clerical staff, and workers 
earning 1,200 takas or more per month. 



Source of Funds 

Insured person: None. 
Employer: Total cost. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: 4-day waiting period. 

Temporary Disability Benefits 

Temporary disability benefit: Full wage for first 2 months, 2/3 
wage for next 2 months, and 1/2 wage for subsequent months for 
period of disablement or for one year, whichever is shorter. 

Permanent Disability Benefits 

Permanent disability benefit: Monthly wage paid during period of 
disablement, up to a maximum of 1 year and 10,000 to 30,000 
takas depending on insured's monthly wages. 

Survivor Benefits 

Survivor benefit: 8,000 to 21,000 takas depending on insured's 
monthly wage. 

Administrative Organization 

Ministry of Labour and Manpower. Commissioner of Workmen's 
Compensation. 

Unemployment 

First and current law: 1965. 

(The Employment of Labour Act of 1965 provides for payment of 
compensation in the form of: termination benefit; retrenchment and 
lay-off benefit; and benefit arising out of discharge from service on 
grounds of ill-health.) 

Coverage 

Workers in shops, and commercial and industrial establishments. 

Source of Funds 

Insured person: None. 
Employer: Total cost. 
Government: None. 

Unemployment Benefits 

Unemployment benefit: 1/2 average basic wage for 120 days for 
monthly rated (permanent) workers; 60 days for casual workers; 
and 30 days for temporary workers. In addition, casual workers 
receive lump-sum payments of 14 days wages for each year of 
service. Permanent workers, 1 month salary for each year of 
service. 

Administrative Organization 

Ministry of Labor and Manpower. 



Social Security Programs Throughout the World — 1997 



29 



BARBADOS 



Old Age, Disability, Death 

First law: 1937 (assistance). 
Current law: 1966. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 2.0 Barbadian dollars (B$). 

Coverage 

Employed persons, including public employees, and self-employed. 
Exclusions: Unpaid family labor. 

Source of Funds 

Insured person: 3.15% of earnings; self-employed, 6.3%. 
Employer: 3.15% of payroll. 
Government: None. 

Above contributions also finance cash sickness and maternity 
benefits. 

Minimum earnings for contribution purposes: B$21 per week or 
B$91 per month; self-employed B$l,092 per year. 
Maximum for contribution and benefit purposes: B$715 per week 
or B$3100 per month. 

Qualifying Conditions 

Old-age pension: Age 65; 500 weeks of contribution credited with 
at least 150 weeks actually paid. 

During transitional period, 25 weeks credited for each year after 
age 45; maximum, 350 weeks of credited contributions. 
Disability pension: Under age 65; 150 weeks of contributions. 
Survivor pension: 150 weeks of contributions paid by deceased 
(50 weeks for funeral grant). 

Old-Age Benefits 

Old-age pension: 40% of average earnings during best 3 years of 
last 15 (less if fewer contribution years), plus 1% of earnings per 
50 weeks of contributions after 500 weeks of contributions. 
Minimum benefit: B$90.25 a week. 

Old-age settlement: Lump sum equal to 6 weeks' earnings for each 
50 weeks of contribution, if ineligible for pension. 

Permanent Disability Benefits 

Disability pension: Same as old-age pension, above. 
Disability settlement: Same as old-age settlement, above. 

Survivor Benefits 

Survivor pension: 50% of pension paid or payable to insured if 
age 50 or disabled. 

Payable for 12 months only to younger widow or widower. 

Orphans: 16-2/3% of pension of insured payable to each child 

under age 16 (to age 21 if student; no limit if disabled before age 

16), 33-1/3% if full orphan or disabled. 

Minimum survivor pension: B$90.25. 

Funeral grant: B$ 1,000. (Payable to person covering cost of 

funeral.) 

Administrative Organization 

Ministry of Finance. 



National Insurance Office, administration of program; directed by 
tripartite board. 

Sickness and Maternity 

First and current law: 1966. 

Type of program: Social insurance system. Cash benefits only. 
Coverage 

Employed persons, including public employees, and self-employed. 
Exclusions: Unpaid family labor. Permanent government 
employees excluded for sickness insurance. 

Source of Funds 

Insured person: 0.82% of wages; self-employed 1.64% of 
earnings. 

Employer: 0.82% of payroll. 

Government: None. As employer contributes 0.32% of earnings 
towards maternity benefit. 

Qualifying Conditions 

Cash sickness benefits: Insured for 13 weeks; 7 weeks of 
contribution paid in the second quarter preceding incapacity, 
currently employed or 39 contributions in the 4 consecutive 
quarters before incapacity. 

Cash maternity benefits: Insured for 26 weeks; 16 weeks of 
contribution paid in the 2 consecutive quarters ending with the 2nd 
quarter preceding contingency. (Self-employed: 39 weeks of 
contribution in the 4 consecutive quarters ending with the second 
quarter preceding the contingency). 

Maternity grant: Woman fails to meet coverage requirements, but 
spouse does meet requirements. 

Sickness and Maternity Benefits 

Sickness benefit: 66-2/3% of average earnings. 

Payable after 3-day waiting period for up to 26 weeks. (May be 

extended to 52 weeks with 150 weeks' paid contributions, of which 

75 contributions paid or credited in 3 years before year of onset.) 

Waiting period waived if illness lasts 21 or more days. 

Maternity benefit: 100% of average earnings. 

Payable for up to 6 weeks before and 6 weeks after confinement. 

Maternity grant: Lump sum of B$500. 

Workers' Medical Benefits 

Medical benefits: None provided under insurance. 

Medical care available in public hospitals and health centers at 

costs scaled to income. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured person. 

Administrative Organization 

Ministry of Finance. 

National Insurance Office, administration of program; directed by 
tripartite board. 



30 



Social Security Programs Throughout the World — 1997 



BARBADOS 



Work Injury 

First law: 1916. 
Current law: 1966. 

Type of program: Social insurance system. 
Coverage 

Employed persons, including public employees and share 
fishermen. 

Exclusions: Self-employed and unpaid family labor. 

Source of Funds 

Insured person: None. 

Employer: 0.75% of payroll. 

Government: None, except as employer. 

Minimum earnings for contribution purposes: B$21 per week or 

B$91 per month. Maximum for contribution and benefit purposes: 

B$715 per week or B$3,100 per month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 90% of average earnings. 
Payable after 3-day waiting period for up to 52 weeks. 
Waiting period waived if disabled 3 weeks. 

Permanent Disability Benefits 

Permanent disability pension: 90% of average earnings if totally 
disabled. 

Partial disability: Percent of full pension proportionate to degree of 
disability. Lump-sum grant if disability is less than 30%. 
Constant-attendance supplement: 50% of pension. 

Workers' Medical Benefits 

Medical benefits: Reimbursement of expenses for medical, 
surgical, dental, and hospital treatment; nursing care; medicines; 
appliances; and transportation. 

Survivor Benefits 

Survivor pension: 50% of temporary disability benefit payable to 
dependent spouse. 

Orphans: 16-2/3% of temporary benefit for each child under 16, 
33-1/3% if full orphan or disabled. 

Maximum survivor pension: 100% of temporary disability benefit 
payable to deceased. 

Funeral grant: B$1,000. (Payable to person covering cost of 
funeral of insured worker or spouse.) 

Administrative Organization 

Ministry of Finance. 

National Insurance Office, administration of program. 

Unemployment 

First and current law: 1982. 



Type of program: Social insurance system. 
Coverage 

Employed persons aged 16-64. Exclusions: Self-employed, family 
labor, and permanent government employees. 

Source of Funds 

Insured person: 1.5% of earnings. 

Employer: 1.5% of payroll. 

Government: None, except as employer. 

Minimum earnings for contribution purposes: B$21 per week or 

B$91 per month. Maximum for contribution and benefit purposes: 

B$715 per week or B$3,100 per month. 

Qualifying Conditions 

Unemployment benefit: Under age 65; insured for 52 weeks; 
20 weeks of contributions in 3 consecutive quarters ending with the 
second quarter preceding unemployment; 7 weeks of contributions 
in the second quarter preceding unemployment . 

Unemployment Benefits 

Unemployment benefit: 60% of average insurable weekly 
earnings for 26 weeks. 

Payable after 3-day waiting period for up to 26 weeks in any 
52-week period. Waiting period waived if unemployed 21 or more 
days. 

Administrative Organization 

Ministry of Finance. 

National Insurance Office, administration of program. 



Social Security Programs Throughout the World — 1997 



3! 



Old Age, Disability, Death 

First law: 1956. 
Current law: 1993. 

Type of program: Social insurance systems. 

Exchange rate: U.S. $1.00 equals 20,000.00 Belarus rubles. 

Coverage 

All employed permanent residents, including priests and employees 
in religious organizations, members of cooperatives, and farmers. 
Special systems for aviators, teachers, artists, professional athletes, 
procurators, and specific categories of medical personnel. 

Source of Funds 

Insured person: 1% of earnings. 

Employer: 4.7% to 35% of payroll, according to branch of 
industry and type of enterprise. 

Government: Cost of social pensions, plus subsidies as needed. 
Above contributions also finance cash benefits for sickness and 
maternity, work injury cash benefits, and family allowances to 
employees. 

Qualifying Conditions 

Old-age pension: Age 60 and 25 years of covered employment 
(men) or age 55 and 20 years of work (women). Requirements 
reduced for hazardous work; war veterans; parents of disabled 
children; the disabled whose disability began in childhood; and 
mothers of 5 or more children, or of servicemen perished in action. 
Disability pension: Incapacity for any work (total disability) or 
usual work (partial disability); a minimum of 1 to 15 years of 
covered employment, depending on age of onset of disability. 
Survivor pension: The deceased was a pensioner or was entitled to 
a pension, having had up to 15 years of work. 
Social pension: Non-working citizens not eligible for old-age, 
disability, or survivor pension and: 

1 aged 60 for men or 55 for women; 

2 disabled if disability began in childhood; 

3 disabled children under age 16; or 

4 orphans under age 18 (or older if disability began before 
age 18). 

Old-Age Benefits 

Old-age pension: 55% of wage base, plus 1 % of wage base (not 
less than 1 %of the minimum old-age pension) for each covered 
year in excess of required years of coverage (25 years for men or 
20 years for women), plus 1 % of wage base for each year in 
excess of 10 years in hazardous work (or 7.5 years for women), up 
to 20%. Payable monthly. 

Maximum: 75% of wage base; minimum: 100% of minimum wage. 
Constant-attendance supplement: 50% of minimum old-age pension 
for pensioners aged 80 or older or for single pensioners and for 
pensioners of Group II disability requiring care; or 100% for 
pensioners of Group I disability. 



Partial pension (if insufficient years of covered employment): 
Monthly benefit reduced in proportion to number of years below 
required years of coverage; minimum, 50% of minimum pension. 
Wage base equals percentage of gross average earnings in any 
5 consecutive years in last 15 years calculated as follows: 100% of 
one-tenth of this amount plus each consecutive one-tenth of this 
amount is reduced to 90, 80, 70, 60, 50, 40, 30, 20, and 10 
percent, respectively. Maximum average earnings: 130 percent. 
Social pension: 50% of minimum pension per month. 
Adjustment: Benefit adjustments when average wage increases by 
more than 15 percent. 

Permanent Disability Benefits 

Disability pension: Group I disability (total disability requiring 
constant-attendance): 75% of wage base. Group II disability (total 
disability): 65%. Group III disability (partial disability): 40%. 
Minimum: Group I and II, 100% of minimum old-age pension; 
Group III, 50% of minimum old-age pension. 
Social pension for disabled under age 16, belong to Group I or II 
disability, whose disability began in childhood: 100% of minimum 
pension per month; 50% if Group II disability and disability began 
after age 16; 30% if Group III disability. 

Adjustment: Benefit adjustments when average wage increases by 
more than 15 percent. 

Survivor Benefits 

Survivor pension: Payable monthly at 30% of wage base for each 
eligible survivor. Eligible survivors: Surviving dependent spouse, 
parents of insured, if they have reached pensionable age or are 
disabled or have care of a child under age 8 and do not work; 
grandparents if there is no one legally responsible for their 
livelihood; children, siblings, and grandchildren who are under age 
18 (23, if student), or older if disabled before age 18. 
Minimum pension: 100% of minimum old-age pension (200% if 
loss of both parents, or death of single mother). 
Social pension: for each orphan under age 18 (older if disabled 
since childhood), 50%of minimum old-age pension. 
Funeral grant: 10 times the minimum wage. 
Adjustment:: Benefit adjustments when average wage increases by 
more than 15 percent. 

Administrative Organization 

Ministry of Social Protection and its local offices, administration of 
program. 

Sickness and Maternity 

First law: 1955. 

Current law: 1992, 1995, 1996. 

Type of program: Dual social insurance (sickness and maternity 
benefits) and universal (medical care) systems. 

Coverage 

Cash benefits for sickness and maternity: Persons in covered 
employment or in military service (including female military 
personnel); registered unemployed. 



32 



Social Security Programs Throughout the World — 1997 



BELARUS 



Medical benefits: All residents. 
Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 

Government: Cost of medical care. 
Qualifying Conditions 

Cash and medical benefits: Sickness benefits according to length 
of uninterrupted service. 

No minimum qualifying period for medical care and maternity 
benefits. 

Sickness and Maternity Benefits 

Sickness benefit: 60% of wages, if less than 5 years' uninterrupted 
work; 80% if 5-8 years; 100%, if over 8 years. 100% of average 
wage while caring for sick child under age 14 up to 14 days during 
hospitalization as recommended by physician (not applicable to 
parent on leave to care for child under age 3); also payable to carer 
of child under age 3, if mother of child is ill, until mother's 
recovery or onset of her disability. 

Maternity benefit: Employed women: 100% of average monthly 
earnings; students on leave from employment: 100% of stipend; 
registered unemployed currently receiving unemployment benefit: 
100% of unemployment benefit; registered unemployed who has 
exhausted the 26 weeks of unemployment benefits: 200% of 
minimum wage. Monthly minimum: 200% of minimum wage. 
Benefits payable for 126 calendar days (140 calendar days in case 
of difficult birth or multiple births). In case of adoption of child 
under 3-months old, benefits payable for a total of 70 days, starting 
from the day of adoption. 

Prenatal care grant: One-time grant for medical consultation 
during first 12 weeks of pregnancy: 50% of birth grant (see Family 
Allowances below). 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly by 
government health providers, including general and specialist care, 
hospitalization, prostheses, medication, and other medical care 
services. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for head of household. 

Administrative Organization 

Ministry of Social Protection, general supervision. 
Cash benefits for sickness and maternity: Provided directly by the 
enterprises, as well as by local offices of social protection, as 
specified by law. 

Medical care: Ministry of Public Health and health departments of 
local governments, general supervision and coordination; provision 
of medical services through government clinics, hospitals, 
maternity homes, and other facilities administered by the Health 
Ministry and local health departments. 



Work Injury 

First law: 1939. 

Current laws: 1955, 1972, 1992 (short-term benefits) and 1993 
(pensions). 

Type of program: Dual social insurance (short-term cash benefits 
and pension payments) and universal (medical care) system. 

Coverage 

Employed persons and their survivors. Medical care available to all 
residents under general medical care program (see Sickness and 
Maternity, above). 

Source of Funds 
Insured person: None. 

Employer: Medical care, none; short-term benefits and pensions, 
see pension contributions above. Supplementary contributions to 
sickness (social insurance) fund in cases of work-related accidents. 
Government: Cost of medical care, to be reimbursed by the 
enterprises if the latter were found responsible for causes of injury. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period; injuries not 
caused by alcohol intoxication. 

Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings. 
Payable from first day of incapacity, until recovery or award of 
disability pension. Supplementary benefits available if employer 
subscribing to special work injury insurance. 

Permanent Disability Benefits 

Permanent disability pension: Percentage of average monthly 
earning during 12 calendar months preceding work injury, 
depending on degree of disability (same as general disability 
pensions above). 

Workers' Medical Benefits 

Medical benefits: Same as under general medical care, plus 
supplementary compensation for added nutrition, transportation and 
other special services in cases of serious injuries. 

Survivor Benefits 

Survivor pension: Same as general survivor pensions above 
(except that the average monthly earning is based on 12 calendar 
months preceding work injury). 

Administrative Organization 

Temporary disability benefits: Same as under cash benefits for 
sickness above. Permanent disability and survivor pensions: same 
as under old-age, disability, and survivor pensions above. 
Medical care: Same as under general medical care above. 

Unemployment 

First law: 1921. 



Social Security Programs Throughout the World — 1997 



33 



Current law: 1991. 

Type of program: Social insurance system. 
Coverage 

Citizens aged 16-59 (men) or 16-54 (women), residing permanently 
in the Republic. 

Source of Funds 
Employee: None. 

Employer: 1% of payroll; 0.5%, agricultural sector. 
Government: Subsidies as needed from republic and local budgets. 

Qualifying Conditions 

Unemployment benefit: Unemployed working-age residents, 
registered at the state employment office as unemployed (not 
enrolled in a day-program at an educational institute or enlisted in 
military or government service, and not engaged in business 
pursuit); ability and willingness to work; unemployment not due to 
voluntary leaving. 

Unemployment Benefits 

Unemployment benefit: Payable at 70% of average earnings of 
employees at last place of employment for 13 calendar weeks, and 
at 50% of earnings for following 13 calendar weeks for those who 
were in full-time employment (or employed for at least 12 weeks in 
last 12-month period). 

Minimum benefit: minimum wage; maximum benefit: 2 times the 
minimum wage. 

For unemployed persons who were not in full-time employment, 
but had more than 12 months covered employment overall 
(although had fewer than 12 weeks' paid work in last 12 months), 
or re-entrants (with a skill) after a longer than 12 months 
interruption: 100% of minimum wage for first 13 calendar weeks, 
and 75% for following 13 calendar weeks. For the unemployed 
(without a skill) seeking employment for the first time after 
prolonged interruption from work, who have worked for less than 
a year overall: 85% of minimum wage for 13 calendar weeks and 
70% for the following 13 weeks. 

Periodic adjustment of benefits according to changes in subsistence 
minimum. 

Administrative Organization 

State Employment Service and its local offices, administration of 
program. 

Family Allowances 



Source of Funds 

Insured person: See pension contributions, above. 
Employer: Same. 

Government: Same. Central government budget allocations to 
allowances for children aged 3 and older; and local budget 
allocations to means-tested allowances. 

Qualifying Conditions 

Family allowances: All children under age 3, and children aged 
3-16 (or 18 if student not receiving education stipends) receive full 
benefit rates if in families whose monthly per capita income does 
not exceed 2 times the minimum wage in previous year; receive 
half the benefit rates, if preceding year family income equal up to 3 
times the minimum wage. 

Family Allowance Benefits 

Family allowances: Monthly benefits for each child under age 3: 
120% of minimum wage. Child aged 3-16 (18 if student not 
receiving stipend): aged 3-5, benefits equal to 50% of minimum 
wage; aged 6-12, 60% of minimum wage; aged 13-16 (18, if 
student), 70% of minimum wage. 

Additional monthly allowances to single mothers (or single parent 
who is not receiving alimony for child care): 25% of monthly 
benefit for each child, until child reaches age 16 (18 if student); to 
non-working single mothers for each child under age 8, to single 
mothers who were orphans (former wards of children's homes), 
and to wives of military servicemen on regular duty: 50% of 
monthly benefit; to each child under age 16 who is infected with 
HIV or AIDS, 150% of minimum wage, and to carer of disabled 
child under age 16: 300% of minimum wage per month. 
Birth grant (not means-tested): Lump sum equal to 10 times the 
minimum wage. 

Administrative Organization 

Ministry of Social Protection, general oversight of the program. 
Enterprises and employers, payment of benefits to employees; local 
offices of social protection, administration of program to 
non-working mothers. 



First law: 1944. 

Current law: 1974, as amended in 1990 and 1992. 

Type of program: Dual universal and social assistance systems. 

Coverage 

Families (including those headed by unemployed, disabled, or 
single parents, or unmarried mothers) with one or more children. 



34 



Social Security Programs Throughout the World — 1997 



BELGIUM 



Old Age, Disability, Death 

First law: 1900 (old age), 1944 (disability). 

Current laws: 1967 and 1990 (old age pensions for employees), 

1963 (disability), 1969 (means-tested allowance for aged). 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 31.37 francs. 

Coverage 

Employed persons (special provision for miners and seamen). 
Special systems for self-employed persons and public employees. 
(Coverage for disability pensions as shown for sickness and 
maternity below.) 

Source of Funds 

Insured person: 7.5% of earnings. Pensioner, 3.55% of old-age 
or survivor pension more than 38,002 francs or 45,037 francs with 
dependents; 3.5% of disability pension more than 36,340 or 43,606 
francs with dependents; 4.5% of prepension (see below) more than 
36,353 francs or 43,662 francs with dependents. 
Employer: 8.86% of payroll. 
Government: Annual subsidies. 

Contributions paid on 108% of earnings for blue-collar workers 
and 100% of earnings for white-collar employees, including 
vacation bonus in both cases. 

(Disability pensions and funeral grants financed through sickness 
and maternity insurance.) 

Qualifying Conditions 

Old-age pension: Age 65 and 45 years of coverage for both men 
and women, to be phased in by 2009. In the interim, the 
retirement age for women is: age 61 in January 1997, 62 in 2000, 
63 in 2003, 64 in 2006, and 65 in 2009. Full benefit based on 
following years of coverage for women: 41 years in January 1997, 
42 years in 2000, 43 years in 2003, 44 years in 2006, and 45 years 
in 2009. Unemployed men or disabled may choose to remain 
under the old (prepension) system until age 65. 
Prepension: Men may retire at age 60 if replaced by unemployed 
worker, years to age 65 credited. Beneficiaries of prepension must 
remain with program to age 65. Prepension provisions were 
terminated as of December 31, 1990. Prepension supplement, see 
unemployment benefits below. Women may retire if unemployed 
or disabled between age 61 and 65, with pension prorated as above. 
Pension not paid if employment income is more than 282,118 
francs a year (423,177 francs with dependent children). 
Disability pension: Loss of 2/3 of earning capacity in usual 
occupation. 6 months of insurance, including 120 days of actual or 
credited work and insurance during last quarter. 
Survivor pension: Insured had coverage during entire period since 
age 20 or was pensioner at death; otherwise, proportionately 
reduced pension. 

Old-Age Benefits 

Old-age pension: Full pension, 60% of average lifetime earnings, 
or 75% for married couple; in computing pension, past earnings 
are adjusted to reflect wage and price changes. 



Reduced pension (if full qualifying period not met): Percent of full 
pension corresponding to portion of period completed. 
Special old-age pension to divorced husband or wife at age 60: 
37.5% of former spouse's earnings during marriage, less any 
pension earned in own right during the same years. 
Means-tested allowance: 20,105 francs a month (single) or 26,305 
francs a month (couple). 

Adjustment: Automatic periodic adjustment of pensions for retail 
price changes. 

Minimum pensions: 27,775 francs a month (single) or 34,709 
francs a month (married couple) if insured during full qualifying 
period. For workers with 2/3 of insurance required for full 
pension, minimum pension proportionately reduced. 

Permanent Disability Benefits 

Disability pension: Equal to 65% of lost wages for employee with 
dependents; 40% if no dependents; 45% if no dependents but living 
with others who have no income. Payable after 1 year of incapacity 
(1st year paid under sickness benefit). 

Minimum benefit: 920 francs a day (single), 1,285 francs a day 
(family), or 1,028 francs a day for those living alone; maximum, 
1,422 francs a day (single) or 2,133 francs a day (family). 
Adjustment: Automatic periodic adjustment of benefits for retail 
price changes. 

Survivor Benefits 

Survivor pension: 80% of old-age pension of insured. Minimum: 
327,701 francs a year if worker fully insured for full qualifying 
period for pension, plus vacation allowance of 18,092 francs a 
year. For survivors of workers with 2/3 of full period, minimum 
pension proportionately reduced. 

Payable to widow or widower aged 45 (at any age if disabled or 
caring for child). Married at least 1 year (waived if child born or 
accidental death). Pension not paid if employment income exceeds 
282,118 francs a year (423,177 francs with dependent children). 
Survivor's pension plus widow or widower's own pension may not 
exceed 1 10% of own pension. Widow or widower who is ineligible 
for regular pension receives pension for 12 months. 
Orphans: 10,192 francs a month for each orphan, payable under 
family allowances system. 

Funeral grant: Lump sum of 6,000 francs, payable under sickness 
insurance. 

Means-tested allowances payable to needy survivors. 
Adjustment: Automatic periodic adjustment of benefits (except 
funeral grant) for retail price changes. 

Administrative Organization 

Ministry of Social Affairs, Public Health and the Environment, 
general supervision. 

National Social Security Office in Ministry, collection of 
contributions and distribution to national offices administering 
benefits. 

National Pensions Office, administrative management of old-age 
and survivor pensions and financial management of program. 
National Insurance Institute for Sickness and Disability, general 
administration of disability pensions. 



Social Security Programs Throughout the World — 1997 



35 



Sickness and Maternity 

First law: 1894 (mutual benefit societies). 
Current law: 1994. 

Type of program: Social insurance system. 
Coverage 

Employed persons (must enroll with mutual benefit society or 

public auxiliary fund). Pensioners and other social security 

beneficiaries also covered for medical benefits. Special systems for 

self-employed persons (basic protection only) and 

seamen. Voluntary affiliation for persons not under compulsory 

coverage. 

Source of Funds 

Insured person: Medical benefits, 3.55% of earnings. Cash 
benefits, 1.15% of earnings. Pensioner, 3.55% of old-age and 
survivor pension (exempt if pension under 38,002 francs a month 
for single person and 45,037 francs for person with dependents). 
Employer: Medical benefits, 3.8% of payroll. Cash benefits, 2.2% 
of payroll plus 0.15% to finance maternity benefits. 
Government: Subsidy for management of social security system. 
Proceeds from surcharge on automobile insurance and on 
hospitalization insurance premiums, and a tax on profit made on 
reimbursable drugs. 

Qualifying Conditions 

Sickness and medical benefits: 6 months of insurance, including 
120 days of actual or credited work, or 400 hours. 
Maternity benefits: Female employees, 6 months of insurance 
preceding confinement. 

Sickness and Maternity Benefits 

Cash sickness benefit: 60% of earnings up to a maximum of 
3,626 francs a day, payable from the third week of incapacity for 
up to one year. Employer pays 100% of earnings for the first 7 
days and 60% of earnings for the 8th to 30th day up to a health 
benefit ceiling. Employer also pays complementary payments, 
from the 8th up to 23rd day; 25.88% of earnings up to the sickness 
and disability ceiling. 

Cash maternity benefit: 82% of earnings for 1st month for 
salaried employees (79.5 for the unemployed), and 75% of 
earnings thereafter. Payable for 7 weeks before and 8 weeks after 
confinement. 

Workers' Medical Benefits 

Medical benefits: Includes general and specialist care, surgery, 
hospitalization, medicines, laboratory services, maternity care, 
dental care, nursing, rehabilitation, transportation, and appliances. 
Insured pays co-payment of varying amounts depending on income 
and status. 
Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 



Administrative Organization 

Ministry of Social Affairs, Public Health, and the Environment, 
general supervision. 

National Social Security Office in Ministry, collection of 
contributions. 

National Sickness and Invalidity Insurance Institute, coordination 
of program together with various management committees for cash 
and medical benefits. 

Local agencies paying benefits: about 100 approved private mutual 1 
benefit societies, federated into 5 national unions and a separate 
fund for railway employees; and district offices of public auxiliary 
fund, for persons not belonging to mutual society. 

Work Injury 

First law: 1903. 

Current laws: 1963 (occupational diseases), 1971 (work accidents). 
Type of program: Social insurance system. 

Coverage 

Employed persons, including casual labor. 
Special systems for public employees. 

Source of Funds 
Insured person: None. 

Employer: Occupational injuries, 0.3% of payroll plus insurance 
premium varying according to risk. Occupational diseases, 1.10% 
of payroll. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 90% of base earnings, payable 
until recovery or permanent disability established. 
Partial temporary disability: Equal to the difference between 
earnings prior to injury and current earnings (after partial take-up 
of work). In case of occupational diseases, temporary disability 
benefit (for total or partial disability) is not payable unless 
disability lasts at least 15 days. 

Adjustment: Periodic adjustment of benefits for retail price 
changes. 

Permanent Disability Benefits 

Permanent disability pension: 100% of earnings, if totally 
disabled. 

Constant-attendance supplement: Level depending on degree of 
need of assistance based on average minimum monthly salary 
required for full time worker (not paid after the 91st day of 
hospitalization). 

Partial disability: Percentage of base earnings corresponding to the 
degree of permanent disability except where less than 10% 
(reduced to half between 0 and 5 % and to a quarter between 5 and 

10%). 



36 



Social Security Programs Throughout the World — 1997 



BELGIUM 



Adjustment: Automatic periodic adjustment of benefits for retail 
price changes (except those for disability of less than 15%). 

Workers' Medical Benefits 

Medical benefits: Medical treatment, surgery, dental treatment, 
hospitalization, medicines, appliances, and transportation; full 
reimbursement according to schedule. 

Survivor Benefits 

Survivor pension: 30% of earnings of deceased up to maximum. 
Payable to widow or widower and to divorced spouse, if receiving 
alimony. No payment to cohabitant. 

Orphans: 15% of covered earnings of deceased per orphan (20% if 
full orphan) under age 18 (or older if entitled to family allowance); 
payable to combined total of 45% (or 60%). 
Other survivors: Parent, grandchild, brother, or sister under age 
18, without conditions (i.e. presence of children, dependence on 
deceased's earnings not required). 

Maximum survivor pensions: 75% of earnings of deceased. 
Funeral grant: Lump sum of 30 days' earnings; minimum 
equivalent to sickness benefit. 

Transport costs: Includes administrative costs and actual transport 
of body to place of burial (even if abroad). 

Adjustment: Periodic adjustment of benefits for retail price changes. 
Administrative Organization 

Ministry of Social Affairs, Public Health and the Environment, 
general supervision. 

Work injury: Work Injury Fund, a public interest organization, 
administration of program, responsible for controlling benefits paid 
by community insurance funds and private companies. 
Occupational diseases: Occupational Diseases Funds, public 
interest organization, joint administration by employers and 
employees, responsible for compensation of injured workers. 

Unemployment 

First law: 1920. 
Current law: 1992. 

Type of program: Social insurance system. 

Coverage 

Employed persons. 

Source of Funds 

Insured person: 0.87% of earnings. 

Employer: 1.46% of earnings. Financing of additional 

unemployment benefits is in the framework of prepension 

collective agreements. 

Government: Covers any deficit. 

Qualifying Conditions 

Unemployment benefit: From 312 days of insured employment in 
last 18 months to 600 days in last 36 months, rising with age of 
claimant. Registered at unemployment office. Capable, willing, 
and available for work. Unemployment not due to voluntary 



leaving, discharge for misconduct, or unjustified refusal of suitable 
offer (disqualification for 8 to 52 weeks; exclusion from 
re-admission if deliberate intent). 

Prepension supplement: Age 58, with 25 years of employment. 
Unemployment Benefits 

Unemployment benefit: Household heads, 60% of maximum 
earnings (56,994 francs a month from May 1, 1996); singles, 60% 
of earnings for first year, then 42%; cohabitants, 55% of earnings 
for first year, then 35 % for the 5th quarter plus 3 additional 
months for each year of prior employment, then a lump sum of 
12,792 francs. 

Unemployed aged 50 or more with 20 years of employment and 
unemployed for 12 months can receive a monthly supplement set 
according to the level of lost earnings. Singles aged 55 or more, 
are guaranteed 60% of their previous salary level. 
Job search benefit: Unemployed youth eligible for variable amount 
depending on age and family status, between 7,306 and 16,978 
francs (except for household head: 30,030 francs). 
Prepension: Unemployment benefit of 60% of earnings. 
Prepension supplement: 50% of the difference between monthly 
benefit and net earnings (gross earnings ceiling of 99,425 francs). 
Payable until age of retirement. 

Adjustment: Periodic adjustment of benefits for price changes. 
Supplementary subsistence benefits payable to specified 
occupational groups to assure minimum income, under collective 
agreement. 

Administrative Organization 

Ministry of Employment and Labor, general supervision. 
National Social Security Office, collection of contributions. 
National Employment Office, decision on claims, supervision of 
paying agencies through 30 regional offices. 
Local agencies paying benefits: Public payment offices, or trade 
unions for own members. 

Family Allowances 

First law: 1930. 

Current laws: 1967, 1969, and 1971 (means-tested allowances). 
Type of program: Employment-related system. 

Coverage 

Gainfully occupied persons and social insurance beneficiaries with 
1 or more children. Special systems for public employees and 
self-employed persons. 

Families not covered above eligible for means-tested allowances. 

Source of Funds 

Insured person: None. 
Employer: 7% of payroll. 

Government: Subsidies to employee and self-employed programs 
covering any deficits. 

Qualifying Conditions 

Family allowances: Child must be under age 18; 21 if disabled; 



Social Security Programs Throughout the World — 1997 



37 



BELGIUM 



_ : 



or 25 if full-time student or seeking employment. 

Eligible children may include dependent grandchildren, brothers, 

sisters, stepchildren, and other dependent minors. 

Income limit for means-tested allowances: 85,153 francs a quarter 

with 1 child, increasing by 20% for each other child. 

Family Allowance Benefits 

Family allowances: 2,653 francs a month for 1st child (4,004 
francs if child of old-age pensioner or of person unemployed for 
more than 6 months, 5,559 francs if child of disabled worker or 
disabled person), 4,909 francs for 2nd (5,746 francs for 2nd child 
of old-age or disability pensioners), 7,329 francs a month for 3rd 
child of old-age or disability pensioner or unemployed. 
Supplement of 462 francs a month for 1st child aged 6-12, 704 
francs if 12-16, and 743 francs a month if over age 18. Supplement 
for disabled child under age 21: 11,935 francs a month (with 
further increments based on degree of disability). 
Birth grant: 35,942 francs for 1st birth, 27,042 for 2nd and 
subsequent births. 

Means-tested allowance payable to families not eligible for regular 
allowances. 

Adjustment: Periodic adjustment of benefits for wage and price 
changes and other economic factors. 

Contributions under family allowance also are used to finance child 
care centers. 

Administrative Organization 

Ministry of Social Welfare, general supervision. 
National Social Security Office, collection of contributions. 
National Family Allowances Office, distribution of contributions 
among individual funds. 

Family allowances are paid by about 33 approved private 
occupational, regional and specialist funds, and by an auxiliary 
public fund. (National office for family allowances for salaried 
employees.) 



38 



Social Security Programs Throughout the World — 1997 



Old Age, Disability, Death 

First and current law: 1979. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 2 Belize dollars (B$). 

Coverage 

Employed persons aged 14-64, including public servants 
(compulsory retirement at age 65, with option to retire at age 60). 
Exclusions: Casual labor, family labor, persons employed less than 
8 hours a week, domestics working less than 24 hours a week, and 
military personnel. 

Voluntary continuation of coverage for old age and death for some 
workers entering self-employment. 

Source of Funds 

Insured person: Weekly contributions according to four wage 
classes: B$0.12 if weekly earnings under B$40; B$0.55 for 
earnings from B$40-B$69.99; B$0.90 if B$70-B$109.99 and 
B$1.30 for weekly earnings over B$l 10. 
Employer: B$1.63, B$3.30, B$5.40, and B$7.80, respectively, 
according to the four wage classes above. If a pensioner between 
the ages of 60 to 64 is employed, only the employer contributes 
B$1.50 weekly; if the employed pensioner is 65 years of age or 
older, the employer pays B$2.60 weekly. 
Government: 50% of social security contribution, investment 
income from reserves, 33 1/3% from other income, and funds any 
deficit. Also contributes as employer. 

Qualifying Conditions 

Old-age pension: Age 60 and retired from insurable employment 
(latter condition not required if insured person has attained 65 
years of age), with 500 weeks of contribution paid or credited of 
which 150 actually paid. Retirement necessary. 
Disability pension: At least 150 weeks of contribution have been 
paid since inception of program, with at least 1 10 contributions 
paid in last 5 consecutive contribution years immediately before the 
year of disability; and 5 contributions paid or credited out of 13 
weeks immediately before the week in which the illness leading to 
disability commenced. 

Survivor pension: Insured was pensioner or eligible for pension at 
time of death; 50 weekly contributions paid. 

Old-Age Benefits 

Old-age pension: 30% of average weekly earnings, based on 
highest 3 years of earnings in last 15 years, plus 2% of earnings 
for each 50 weeks of contribution in excess of 500 weeks up to 750 
weeks, and 1 % of earnings for each 50 weeks of contribution over 
750. 

Maximum benefit: 60% of average earnings. Minimum benefit: 
B$25.00 per week. 

Retirement grant: Payable to an insured person retiring after age 
60 and not qualifying for a retirement pension. Contribution 
conditions: not less than 26 contributions paid. Amount of grant: 
Six times the average weekly insurable earnings paid or credited, 



or 2-1/2 times the sum of earnings divided by the number of weeks 
of contributions, whichever is greater. 
Minimum grant: B$400.00 

Permanent Disability Benefits 

Disability pension: Same as old-age pension if at least 500 weeks 

of contribution. If less, 25% of average weekly earnings with 150 

to 299 contributions, plus 1% of earnings for each 50 contributions 

from 300 to 499 weeks. 

Maximum benefit: 60% of average earnings. 

Minimum benefit: B$25. 

Disability grant to noninsured: Payable to a disabled person not 
qualifying for a disability pension but who has at least 26 weekly 
contributions paid. Amount of grant: same as retirement grant. 
Minimum grant: B$400.00. 

Survivor Benefits 

Survivor pension: 50% of pension paid or payable to insured, to 
widow at age 50 (or disabled) and to dependent widower. 40% to 
eligible parents. Orphans: 25% of pension of insured payable to 
each child under age 16 (or age 18 if receiving full time education); 
40% if child is disabled. 

Maximum survivor pension: 100% of pension paid or payable to 

the deceased. 

Funeral grant: B$950.00. 

Administrative Organization 

Ministry of Finance and Social Security, general supervision. 
Social Security Board, administration of program. 

Sickness and Maternity 

First and current law: 1979. 

Type of program: Social insurance system. Cash sickness and 
maternity only. 

Coverage 

Employed persons aged 14-64, including public servants. 
Exclusions: Casual labor, family labor, persons employed less than 
8 hours a week, domestics working less than 24 hours a week, and 
military personnel. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 

Government: 21.4% of social security contributions, investment 
income from reserves, 33 1/3% from other income, and funds any 
deficit. Also contributes as employer. 

Qualifying Conditions 

Cash sickness benefits: Currently employed; 50 weeks of 
contributions including 5 of last 13 weeks before onset of illness. 
Maternity benefits: 50 weeks of contribution, including 30 of the 
last 39 consecutive weeks ending 6 weeks before confinement, or 
the day from which the benefit was claimed. 



Social Security Programs Throughout the World — 1997 



39 



BELIZE 



Maternity grant: 50 weeks of contribution, including 25 of 50 
weeks preceding confinement. 



Administrative Organization 

Ministry of Finance and Social Security, general supervision. 
Social Security Board, administration of program. 



Sickness and Maternity Benefits 



Sickness benefit: 80% of average earnings. Payable for up to 

156 days. 

Maternity allowance: 80% of average earnings. Payable for up to 
12 weeks, beginning 6 weeks before confinement or the day from 
which the benefit was claimed. 
Maternity grant: B$100 per child. 

Administrative Organization 

Ministry of Finance and Social Security, general supervision. 
Social Security Board, administration of program. 

Work Injury 

First and current law: 1981. 

Type of program: Social insurance system. 

Coverage 

Employed persons aged 14 and over, including public servants. 
Exclusions: Casual labor, family labor, employed persons working 
less than 8 hours a week, domestics working less than 24 hours a 
week, and military personnel. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 

Government: 28.6% of social security contributions, investment 
income from reserves, 33 1/3% from other income, and funds any 
deficit. Also contributes as employer. 

Qualifying Conditions 

Work-injury benefits: No contribution requirements and no 
minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: 80% of average earnings. Payable 
after 3-day waiting period for up to 156 days. 

Permanent Disability Benefits 

Permanent disability pension: 60% of average earnings if totally 
disabled. 

Partial disability: Percent of full pension proportional to degree of 
disability. Lump-sum grant if disability is less than 25%. 
Constant-attendance allowance: 25% of pension. 

Workers' Medical Benefits 

Medical benefits: Full medical care at government hospital or 
clinic, or treatment abroad if deemed necessary. 
Death benefit: If death is a result of an injury or disease arising out 
of employment, survivors of the deceased qualify for a death 
benefit similar to survivor benefit. 



40 Social Security Programs Throughout the World — 1997 



BENIN 



Old Age, Disability, Death 

First and current law: 1970. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 516 CFA francs. 

Coverage 

Employed persons. Special system for public employees. 
Voluntary provident fund for citizens working abroad. 

Source of Funds 

Insured person: 3.6% of earnings. 
Employer: 6.4% of payroll. 
Government: None. 

Qualifying Conditions 

Old-age pension: 55 (50 if prematurely aged) with 20 years of 
insurance; 60 months of contribution during last 10 years. 
Retirement from gainful employment. 

Disability pension: Loss of 2/3 of earning capacity; 5 years of 
insurance and 6 months of contribution in 12 months preceding 
incapacity. 

Survivor pension: Deceased was pensioner or met pension 
requirements at death. 

Not payable abroad unless reciprocal agreement. 
Old-Age Benefits 

Old-age pension: 30% of average monthly earnings during last 3 
or 5 years (whichever is higher). 

Increment of 2% for every 12 months of insurance beyond 180. 
Minimum pension: 60% of highest minimum wage. 
Maximum: 80% of average monthly earnings. 
Old-age settlement: 1 month's wages per year of insurance, if 
ineligible for pension at age 55 (or 50 if prematurely aged) but at 
least 12 months of contribution. 

Adjustment: Pensions adjusted for cost-of-living changes, 
depending on the financial resources of the system. 

Permanent Disability Benefits 

Disability pension: 30% of average monthly earnings during last 

3 or 5 years (whichever is higher). Years under age 55 at time of 

claim credited as 6-month periods of insurance. 

Increment of 2% for each year of insurance beyond 180 months. 

Minimum pension: 60% of highest minimum wage. 

Maximum, 80% of average monthly earnings. 

Constant-attendance supplement: 50% of pension. 

Adjustment: Pension adjusted for cost-of-living changes, depending 

on the financial resources of the system. 

Survivor Benefits 

Survivor pension: 50% of pension of insured to widow age 50 or 
disabled. Also payable to dependent disabled widower, if married 
at least 1 year before death of spouse. 

Orphans: 25% of pension of insured for each orphan; 40% for 
each full orphan; 50% payable if there are at least 2 orphans. 
Maximum survivor pension: 100% of pension of insured. 



Survivor settlement: 1 month's accrued pension of insured for each 
6 months of insurance, if insured failed to meet qualifying 
conditions for pension. 

Adjustment: Pensions adjusted for cost-of-living changes, 
depending on the financial resources of the system. 

Administrative Organization 

Ministry of Public Administration, Labor and Administrative 
Reform, general supervision. Benin Social Security Office, 
administration of program. 

Sickness and Maternity 

First law: 1952. 
Current law: 1967. 

Type of program: Social insurance system. Maternity benefits 
only. 

Coverage 

Employed women. 

Source of Funds 

Insured person: None. 
Employer: 0.2% of payroll. 
Government: None. 

Qualifying Conditions 

Maternity benefit: 6 months of employment covered by insurance. 
Sickness and Maternity Benefits 

Sickness benefit: None under insurance. (Labor code requires 
employers to provide paid sick leave and pay 60% of all medical 
costs; employee pays 40%.) 

Maternity benefit: 100% of earnings (employer pays half). 
Payable for up to 6 weeks before and 8 weeks after confinement. 

Workers' Medical Benefits 

Medical benefits: None under insurance. 

(Labor code requires employers to provide 60% of health and 

medical services for employees; employee pays 40%.) 

Dependents' Medical Benefits 

Medical benefits for dependents: See Family Allowances, below. 
Dependent children and wife receive same benefits as insured 
according to the labor code. 

Administrative Organization 

Ministry of Public Administration, Labor and Administrative 
Reform, general supervision. 

Benin Social Security Office, administration of program. 
Work Injury 

First law: 1932. 
Current law: 1959. 

Type of program: Social insurance system. 



Social Security Programs Throughout the World — 1997 



41 



BENIN 


Coverage 


source oi runus 


Employed persons, apprentices, students at technical schools, and 


Insured person: None. 


members of cooperatives. 


Employer: 8.8% of payroll. 




Government: None. 


Source of Funds 




Insured person: None. 


Ill lolsiVItTlfT \ f\Y\ f\ st 1 iTkFTl C 

yUdlll Y lilg \_-UllUlLlUIld 


Employer: 1 % to 4% of payroll, according to risk in 


Family allowances: Child must be under age 15 (18 if apprentice, 


establishment. 


21 if student or disabled). 


Government: None. 


Parent must have had 6 months of employment and be currently 




working at least 18 days a month, or be a social insurance 


Qualifying Conditions 


beneficiary (or a widow of beneficiary). 


Work-injury benefits: No minimum qualifying period. 


Prenatal allowance and birth grant: Must undergo prescribed 




medical examinations. 


Temporary Disability Benefits 




Temporary disability benefit: 50% of earnings for first 28 days of 


ramiiy /Allowance oeneiiis 


disability; 66% thereafter. Payable from day following injury until 


Family allowances: 1,500 CFA francs a month for each child 


recovery or certification of permanent disability. 


through the 6th child. 




Prenatal allowance: 500 CFA francs a month for 9 months. 


Permanent Disability Benefits 


Birth grant: Lump sum of 6,000 CFA francs for 1st birth; 3,000 


Permanent disability pension: For total disability, 100% of 


CFA francs each for 2nd and 3rd. 


average earnings. 


Some maternal and child health and welfare services also provided. 


Partial disability: Average earnings multiplied by 50% the degree 


fxUIIlUllSlI all VC \yi gclIIl<t.tlllUflI 


of incapacity for the portion of disability between 1 % and 50%, 


and by 150% the degree of incapacity for the portion above 50%. 


Ministry of Labor, Employment and Social Affairs, general 


Constant-attendance supplement: 40% of earnings. 


supervision. 




Benin Social Security Office, administration of program. 


vvorKers ivieuicdi r>eneiiis 




Medical benefits: Medical and surgical care, hospitalization, 




medicines, appliances, prosthesis and transportation. 




Survivor Benefits 




Survivor pension: 30% of annual earnings of insured, payable to 




widow and dependent disabled widower. 




Orphans: 15% of earnings each for 1st and 2nd orphan, 10% for 




each additional; 20% for each full orphan. 




Dependent parents and grandparents: 10% of earnings each, up to 




a maximum of 30%. 




Maximum survivor pensions: 85% of annual earnings. 




1 dl £1 1 1 1 1 1 1 . 1 All U 1 1 1 Ul i~ . ' /( V ' 1 cl V \_ 1 el m_ l_ tX 1 1 1 1 1 1 1^.> Ul III 1 . 




insured. 




Administrative Organization 




Ministry of Public Administration, Labor and Administrative 




Reform, general supervision. 




Benin Social Security Office, administration of program. 




Family Allowances 




First and current law: 1955. 




Type of program: Employment-related system. 




Coverage 




Employees and social insurance beneficiaries with 1 or more 




children. 




Special system for public employees. 





■12 



Social Security Programs Throughout the World — 1997 



BERMUDA 



Old Age, Disability, Death 

First law: 1967 (old-age and survivor benefits only). 

Current law: 1970 (old-age and survivors) and 1980 (disability). 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 1 Bermuda dollar (B$). 

Coverage 

Employed and self-employed persons over age 16, except full-time 
students who work weekends or during school vacation periods. 
Exclusions: Those not ordinarily resident unless gainfully occupied 
for more than 13 consecutive weeks. 
Voluntary insurance for formerly covered persons. 

Source of Funds 

Insured person: B$20.72 a week; over age 65, none. 
Self-employed, B$41.44 a week; over age 65, B$20.72 a week. 
Employer (including Government as employer): B$20.72 a week. 
Government: None. 

Qualifying Conditions 

Old-age pension: Age 65 and 484 weeks of contribution with 

50 weeks of contribution for each year of insurance (reduced 

pension if 25-49 weeks). 

Retirement not necessary. Payable abroad. 

Noncontributory pension: Age 65 and 10 years of continuous 

residency immediately preceding application, not qualifying for 

regular old-age pension. 

Disability benefit: Age 18 to 64. Employed immediately before 
incapacity, unable to work during a full year, and 150 weeks of 
contribution with 50 weeks of contribution for each year of 
insurance (reduced pension if 25-49 weeks). 
Noncontributory disability benefit: Age 18 to 64. 10 years of 
residency, and permanent incapacity for employment. 
Survivor benefit: Deceased was pensioner or met pension 
requirements, married 3 years. 

Widow credited for contribution purposes every week she receives 
a survivor pension, may substitute husband's contribution record 
for her own. 

Old-Age Benefits 

Old-age pension: B$141 .37 a week, plus 84 cents for every 
26 weeks of contribution over 484. 

Reduced pension: B$3 13.66, B$376.39, B$439.12, B$501.85, or 
B$564.59 a month if yearly average number of weeks of 
contribution is 25-29, 30-34, 35-39, 40-44, and 45-49, respectively. 
Noncontributory pension: B$287.87 a month. 
Minimum pension (means-tested): B$296.21 a month if income is 
under B$4,000 a year. 

Lump-sum old-age grant: If ineligible for pension, refund of 
employer-employee contributions. 

Permanent Disability Benefits 

Disability benefit: B$418.10 a month. 

Reduced pension: Benefit reduced in proportion to number of 

average annual weeks of contribution if less than 50 but 25 or more. 



Noncontributory benefit: B$287.87 a month. 

Lump-sum disability grant: If ineligible for pension, refund of 

employer-employee contributions. 

Survivor Benefits 

Survivor pension: B$627.32 a month. 

Reduced pension: Same as old-age pension. 

Payable for 26 weeks, or until dependent children reach age 16, or 

for life if over age 50 or disabled, or until remarriage. 

Orphans: B$61.26 a month. 

Lump-sum survivor grant: If deceased did not meet qualifying 
conditions, refund of employer-employee contributions. 

Administrative Organization 

Ministry of Finance, general supervision. 

Department of Social Insurance, administration of program. 

Sickness and Maternity 

First and current law: 1970 (hospitalization only). 

Type of program: Compulsory insurance with public or private 

carrier, or approved employer-operated plan. 

Individual or voluntary insurance. 

Coverage 
All residents. 

Employers liable to carry insurance for employees and their 
nonemployed spouses. 

Source of Funds 

Insured person: B$40. 15 a month per employee and nonemployed 

spouse. Other persons, B$80.30 a month. 

Employer: B$40.15 a month per employee and nonemployed 

spouse. 

Government: Cost of care of residents aged 65 to 74 years (80%), 
residents aged 75 and over (90%), resident children, and indigent 
persons (100%) through government grant. 

Qualifying Conditions 

Medical benefits: No minimum qualifying period except 10 
months' waiting period in case of maternity. 

Workers' Medical Benefits 

Medical benefits: The Hospital Insurance Commission , or private 
insurance company or employer plan reimburses hospital for 
services provided. 

Inpatient and outpatient services, including room and board, 
nursing, laboratory services, drugs, appliances, resident doctor 
services, surgery, ambulance services, maternity, and physical 
therapy. Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 



Social Security Programs Throughout the World — 1997 



43 



BERMUDA 



Administrative Organization 

Ministry of Finance through the Department of Social Insurance, 
general supervision. 

Hospital Insurance Commission, administration of program. 



Administrative Organization 

Ministry of Home Affairs, general supervision. 

Agreement between employer and insured on the amount payable 

supervised by courts. Supreme Court administers lump sums. 



Work Injury 

First and current law: 1965. 

Type of program: Individual employer-liability system. 
(The government may require employers to carry insurance.) 

Coverage 

Employed persons and apprentices. 

Exclusions: High earners (white collar only), casual labor, and 
family labor. 

Special system for public employees. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through direct provision of benefits or 
insurance premiums. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period, but 
incapacity must last more than 3 days. 

Temporary Disability Benefits 

Temporary disability benefit: 50% of lost earnings (maximum 
B$170 a week) or lump sum. Total benefit paid out may not exceed 
the permanent disability grant for which the insured would be 
eligible. 

Permanent Disability Benefits 

Permanent disability benefit: If totally disabled, 4 years' 
earnings. Maximum, B$53,000; minimum, B$5,500. 
Constant-attendance supplement: 25%of permanent disability grant. 
Partial disability: Percentage of full grant in proportion to the loss 
of earning capacity. 

Workers' Medical Benefits 

Medical benefits: Cost of necessary medical care, including 
hospitalization (maximum, prevailing public ward charge up to 
56 days), emergency outpatient treatment, surgery (according to 
fee schedule), medical expenses up to B$ 1,000 (including nursing, 
ambulance, and medicines), prosthetic devices up to B$2,000, and 
transportation up to B$250. 

Survivor Benefits 

Survivor benefit: Lump sum equal to 3 years earnings or 
B$42,000 (whichever is less), minus any permanent disability 
payments. Payable to dependents wholly dependent on worker's 
earnings. Partial grant paid to those partially dependent on 
worker's earnings. 

Funeral grant and medical expenses: Up to B$2,000 if no 
dependents. 



44 Social Security Programs Throughout the World — 1997 



BOLIVIA 



Old Age, Disability, Death 

First law: 1956 (implemented 1959). 

Current laws: 1987, 1990 and 1993. 1996 (private insurance, to be 
implemented in 1997) 

Complementary Pension Funds: 1972, 1977 and 1994. 

Type of program: Social insurance system. 

Note: In mid-1997, the social insurance system (old system) will 

be closed. A new mandatory privatized system (new system) will 

take its place. 

Exchange rate: U.S. $1.00 equals 5.17 bolivianos (Bs). 
Coverage 

Old system: All workers. Voluntary coverage for self-employed. 
Special systems for bank employees, military personnel, drivers, 
miners, railroad employees, petroleum workers, and other groups. 
17 complementary pension funds supplement the general social 
security program for particular categories of workers. Each fund is 
administered separately by worker associations under the direction 
and coordination of the National Institute of Pensions. 
New system: All workers. Voluntary coverage for self-employed. 

Source of Funds 

Old system — Insured person: 6% of earnings (2.5% basic 
pension, 3.5% complementary pension). 

Employer: 6% of payroll (4.5% basic pension,l% complementary 

pension, 0.5% for long-term work injury). 

Government: 1.5% of covered earnings. 

New system — Insured person: 10% of earnings for retirement 

plus 2.5% for disability and survivors insurance and administrative 

fee. 

Employer: None. 

Government: Payment of pensions under the old system and social 
assistance under new system. 

Maximum earnings for contribution purposes: 60 times the national 
minimum wage. 

Qualifying Conditions 

Old system — Old-age pension: Age 55 (men) or 50 (women). 
Five years earlier for hazardous occupations. 180 months of 
contribution. 

Reduced pension, age 50 (men) or 45 (women) after involuntary 
and extended unemployment. 
Payable abroad. 

Complementary pension: 2/3 of contributions made since creation 
of the fund. 

Disability pension: Loss of over 50% of earning capacity of a 
similar worker, of the same region, in good health. 60 months of 
contribution, with 18 in last 36 months. 
Survivor pension: Deceased was pensioner, or had at least 
60 months of contribution, with 18 in the last 36 months. 
Complementary pension: Deceased was pensioner or met 
conditions for disability benefit. 1/3 of contributions made since 
creation of fund. 

New system — Old-age pension: Age 65 or when accumulated 
savings and interest permit benefit of at least 70% of average of 
last 5 years' covered earnings. 



Disability pension: Less than age 65 and between 18 months and 

5 years of contributions. 

Survivor pension: Deceased was insured. 

Old-Age Benefits 

Old system — Old-age pension: Basic pension, 30% of average 
earnings in last 12 months of contribution; for workers with 
earnings more than 15 minimum salaries, 30% of average earnings 
in last 24 months of contributions plus 30% of difference between 
insured's total covered earnings and 50 minimum salaries. Plus 
increment of 2% of covered earnings for each 12 months of 
contribution beyond 180 months. 

Complementary pension: 40% of wage base plus increments of 
1 % of wage base for each 12 months of contributions. 
Reduced pension: Old-age pension reduced 8% for each year of 
early retirement. 

Schedule of payments: Pensions paid 13 times a year. 
Adjustment: Pensions automatically adjusted annually for changes 
in wages. 

Old-age settlement: 1 month's pension for each 6 months of 
contribution (or fraction thereof), if 24 months of contribution and 
ineligible for pension. 

Transition: If defer retirement under the old system, receive an 
increment of 2% per year for deferral, up to a maximum of 90%. 
New system — Old-age pension: Insured's contributions plus 
accrued interest. 

Social assistance benefit (bonosol): paid to those over age 65 at 
time of implementation of program. In 1997 equal to $200 per 
year; adjusted every three years by Superintendent of Pensions. 

Permanent Disability Benefits 

Old system — Disability pension: 30% of average earnings in last 
12 months of contribution (24 months for workers with earnings 
over a specified amount). No increment for years of coverage. If 
over 15 years' coverage, benefit equals old-age pension. 
Adjustment: Pensions automatically adjusted annually for changes 
in wages. 

Constant attendance supplement: 50% of pension. 
Disability settlement: 1 month's pension for each 6 months of 
contribution (or fraction thereof), if 24 months of contribution and 
ineligible for pension. 

Complementary pension: Same as for old-age pension, above. 
New system — Disability pension: 70% of average salary during 
last 5 years. If contributions between 18 months and 5 years, 
benefit based on average of last 12 months. Additional 10% of last 
monthly salary made to old-age pension account of disabled 
employee younger than age 65 with at least 18 months on 
contributions in the last 36 months. Benefit payable until age 65 
when eligibility for old-age pension begins. 

Survivor Benefits 

Old system — Survivor pension: 80% of pension of insured. 
Payable for life (lump sum of 3 years' pension for widows who 
remarry). Also payable to dependent widower. 



Social Security Programs Throughout the World — 1997 



45 



BOLIVIA 



Orphans: 20% of pension of insured for up to 2 orphans under age 
19 (no limit if disabled); 50% if 3 or more children. Full orphans, 
80% of widow's pension, divided equally. Lump sums if ineligible. 
Other survivor pensions (if no widow or orphan): 20% of insured's 
pension to dependent aged or disabled parent. Each brother and 
sister under age 19, 10%of pension. (Maximum for all, 60%.) 
Maximum survivor pensions: 100% of pension of insured. 
Survivor settlement: Same as old-age and disability settlements. 
Complementary pension: Same as under basic survivor benefit. 
Funeral grant: 2 months' wages or 3 months' pension on death of 
pensioner (also payable on death of wife or husband of insured). 
New system — Survivor pension: Proceeds of deceased's account 
plus accrued interest. Payable to spouse, dependents, parents or 
siblings. Minimum, 70% of average of last 5 years' earnings or at 
least 18 months of contributions made for between 18 months and 
5 years. After retirement, benefit equals 70% of pension. 
Funeral grant: Bsl,100. 

Administrative Organization 

Old system: Ministry of Housing and Economic Development, 
general supervision. 

National Secretariat of Pensions, budget and administrative control. 
Basic Pension Fund and 25 Complementary Funds, administration 
of program. 

New system: System of Financial Regulation, financial supervision 
of program. 

Superintendent of Pensions, administration of program. 

Sickness and Maternity 

First law: 1949. 

Current law: 1956 (implemented 1959). 

Type of program: Social insurance system. Cash and medical 

benefits. 

Coverage 

All workers. Special systems for bank employees, military 
personnel, drivers, miners, railroad employees, petroleum 
workers, agricultural employees, and other groups. 

Source of Funds 

Insured person: None. (Pensioners, 5% of pension). 
Employer: 10% of payroll. 
Government: None. 

Above contributions also finance temporary work-injury benefits. 
Qualifying Conditions 

Cash sickness benefits: 2 contributions prior to illness. 
Medical benefits: 1 month of contribution in preceding 2 months. 
Maternity benefits (cash and medical): 4 months of contribution 
prior to pregnancy. 

Sickness and Maternity Benefits 

Sickness benefit: 75% of earnings. Payable after 3-day waiting 
period for up to 26 weeks. May be extended to 52 weeks if medical 
assistance will prevent permanent disability. 



Maternity benefit: 90% of earnings. Payable for up to 45 days 
before and 45 days after confinement. 

Nursing and prenatal allowances: See family allowances, below. 
Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients 
through medical facilities of the Institute (or, if not available, on a 
reimbursement basis). Includes general and specialist care, 
preventive care, surgery, hospitalization, medicines, appliances, 
maternity care, and dental care. Duration: 26 weeks in any 12 
months for each illness. May be extended up to 52 weeks if 
reasonable chance of recovery; plus 26 additional weeks for 
tuberculosis. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured worker. 
Administrative Organization 

Ministry of Human Development, general supervision. 
National Health Secretariat through National Health Insurance 
Institute, budget and administrative control. 
National Health Fund, administration of program. 

Work Injury 

First law: 1924. 

Current laws: 1956 (implemented 1959) and 1987. 
Type of program: Social insurance system. 

Coverage 

All workers. Special systems for bank employees, military 
personnel, drivers, miners, railroad employees, petroleum 
workers, and other groups. 

Source of Funds 
Insured person: None. 

Employer: 1.5% of payroll (permanent disability) (0.5% for basic 
pension; 1 % for complementary pension). 
For temporary disability, see sickness and maternity, above. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 90% of earnings, 75% of covered 
earnings for work-related diseases (payable under cash sickness 
and maternity insurance). Payable from 1st day of incapacity. 

Permanent Disability Benefits 

Permanent disability pension: 55% of average covered earnings 
in prior 12 months if 60% disabled. 

Complementary pension: Up to 45% of basic salary according to 
degree of incapacity. 

Partial disability: Percentage of full pension proportional to degree 
of disability. 



46 



Social Security Programs Throughout the World — 1997 



BOLIVIA 



Lump sum of 4 years' pension if 1 1 % to 25% disabled. 
Workers' Medical Benefits 

Medical benefits: Necessary medical, surgical, and dental care, 
hospitalization, medicines, appliances, and rehabilitation. 
Maximum duration: 52 weeks. 

Survivor Benefits 

Survivor pension: See Old Age, Disability, Death, above. 

Administrative Organization 

Medical benefits: See Sickness and Maternity, above. 
Disability and survivors benefits: See Old Age, Disability, 
Death, above. 

Unemployment 

(Labor law requires employer to grant severance pay to dismissed 
employees. Unemployed workers receive medical and maternity 
benefits for 2 months following dismissal.) 

Family Allowances 

First law: 1953. 

Current law: 1956 (implemented 1959) and 1987. 
Type of program: Employment-related system. 

Coverage 

All workers. Special systems for bank employees, military 
personnel, drivers, miners, railroad employees, petroleum 
workers, and other groups. 

Source of Funds 

Insured person: None. 
Employer: Total cost. 
Government: None. 

Qualifying Conditions 

Family allowances: Child must be between age 1 (when nursing 
allowance ceases) and 19 (no limit if disabled). 
Housing allowances payable to both married couples and single 
persons, with or without children. 

Family head must be currently working more than 15 days a month. 
Family Allowance Benefits 

Family allowances: Monthly allowance for each child. Housing 

allowance for single or married workers. 

Prenatal grant: Milk and cash benefit from the 5th month of 

pregnancy 

Birth grant: 1 national monthly minimum wage per child. 
Nursing allowance: Monthly milk allowance for each child for 
12 months following birth (paid in kind). 
Burial allowance: 1 national monthly minimum wage per child 
under age 19. 



Administrative Organization 

Ministry of Housing and Economic Development, general 
supervision. 

National Secretariat of Pensions, through National Institute of 
Pensions, administration of program. 

Employer pays allowances for single and married adults directly to 
own employees. 



Social Security Programs Throughout the World — 1997 



47 



BOTSWANA 



Old Age, Disability, Death 

Special system for public employees only. 
Exchange rate: U.S. $1.00 equals 3.6 pula. 

Sickness and Maternity 

(1963 law requires employer in designated area to provide certain 
medical services for his employees and their families, and also to 
pay 25% of wages to female employees during 6 weeks before and 
6 weeks after confinement.) 

Work Injury 

First law: 1936. 
Current law: 1977. 

Type of program: Employer liability/compulsory insurance with 
private carrier. 

Coverage 

Employed persons, including members of Armed Forces. 
Exclusions: Casual workers and family labor. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through direct provision of benefits or 
insurance premiums. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 66% of earnings up to 6 months; 
may be extended for additional 3-month periods up to 24-month 
maximum, with approval of Minister. Reduced amounts payable 
for partial disability. 

Payable after 7-day waiting period until recovery or certification of 
permanent disability. 

Permanent Disability Benefits 

Permanent disability benefit: Lump sum of 60 months' earnings, 
if totally disabled. (Any temporary disability benefit previously 
paid is deducted). 

M inimum benefit: 10,000 pula. Maximum benefit: 100,000 pula. 
Constant-attendance supplement: 25% of ordinary benefit. 
Partial disability: Percent of full benefit proportionate to degree of 
incapacity, according to schedule. 
Maximum benefit: (lump sum), 10,000 pula. 

Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
medicines, appliances, and transportation, up to maximum of 
30,000 pula. 



Survivor Benefits 

Survivor benefit: Lump sum of 48 months' earnings of deceased 
(less any temporary disability benefit previously paid); minimum, 
5,000 pula; maximum, 80,000 pula. 

Payable to dependents of deceased. Reduced amount paid if 
survivors were only partially dependent on insured. 
Funeral grant: Lump sum of 100 pula. 

Administrative Organization 

Department of Labor and Social Security, enforcement of law. 
Employers may insure liability with private insurance companies. 

Unemployment 

(Employment Bill provides for severance benefit after 60 months of 
continuous employment, and up to 14 days paid sick leave per 
year.) 



48 



Social Security Programs Throughout the World — 1997 



BRAZIL 



Old Age, Disability, Death 

First laws: 1923 (railroads), 1934 (commerce), 1936 (industry). 
Current laws: 1960, 1971 and 1975 (rural workers and employers), 
and 1991. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 1.02 reais (R$). 

Coverage 

Employed persons in industry, commerce, and agriculture, 
domestic servants, clerics, and self-employed. 
Special systems for public employees and military. 

Source of Funds 

Insured person: 8%, 9%, or 10% of earnings according to 3 wage 
levels. Self-employed, 20% of earnings according to 10 wage 
levels and time spent at each wage level. 
Employer: 20% of payroll. 

Employers of domestic workers contribute 12% of payroll. 
Government: Certain ear-marked taxes to finance administrative 
costs and defray deficits as well as contributions with respect to 
employees of state-owned enterprises. 

Maximum earnings for employee contribution purposes: 8.54 times 
the minimum salary. For the highest wage level, R$956.57 as of 
April 1997. 

Minimum equals minimum wage. Employer contributions due on 
total payroll. Minimum wage was R$l 12 a month as of April 1997. 
Above contributions also finance sickness and maternity benefits 
and family allowances. 

Qualifying Conditions 

Old-age pension: Urban employees: Age 65 (men) or 60 (women); 
rural employees: 60 (men) and 55 (women). 15-25 years in various 
types of arduous employment. Requires a minimum of 8 years of 
contributions (rises 6 months per year until the minimum coverage 
reaches 15 years of contributions in the year 2011). 
Length-of-service pension payable after 30 years' service. Reduced 
benefit after 25 years of service. 

Other special conditions for aircraft crews, journalists, veterans, 
and teachers. Retirement unnecessary. 
Payable abroad by reciprocal agreement. 

Disability pension: Permanent incapacity for work. Minimum of 
12 months of contribution. 

Survivor pension: Deceased was pensioner, or paid contributions 

during last 12 months before death. 

Means-tested allowance: Needy persons over age 70. 

Old-Age Benefits 

Old-age pension: 70% of average earnings in last 36 months plus 
1% of average earnings for each year of contribution, up to 100% 
of average earnings. 

Length-of-service pension: 70% of average earnings plus 6% per 
year after 30 years of coverage, up to maximum of 100% of 
earnings. Proportionally reduced benefits payable to women with 
25 years of coverage. 

Schedule of payments: 13 payments per year. 



Minimum benefit: 100% of minimum wage. 

Maximum benefit: R$956.57 (as of April 1997). 

Adjustment: Pensions adjusted to changes in index that determines 

changes in minimum salary for the following month. 

Permanent Disability Benefits 

Disability pension: 100% of indexed earnings in last 36 months 

prior to onset of disability. 

Minimum benefit: 100% of minimum wage. 

Schedule of payments: 13 payments per year. 

Adjustment: Pensions adjusted to changes in index that determines 

changes in minimum salary for the following month. 

Survivor Benefits 

Survivor pension: 100% of disability pension paid or payable to 
insured, or 100% of average of indexed earnings during 36 months 
prior to death of insured, regardless of number of eligible 
survivors. Divided equally among eligible survivors. 
Eligible survivors (in order of priority): Widow, widower, 
companion, children under age 21 or disabled, stepchildren and 
dependent minors, parents, unmarried brothers and sisters under 
age 21 or disabled. 

Schedule of payments: 13 payments per year. 

Adjustment: Pensions adjusted to changes in index that determines 

changes in minimum salary for the following month. 

Minimum benefit: 100% of minimum wage. 

Maximum benefit: R$956.57 as of April 1997. 

Administrative Organization 

Ministry of Social Security and Social Assistance (MPAS), general 
supervision. 

National Social Security Institute (INSS), administration of 
benefits. 

Sickness and Maternity 

First laws: 1923 (railroads), 1934 (commerce), 1936 (industry). 
Current laws: 1974 (maternity benefit) and 1976 (sickness and 
medical benefits), and 1988 (maternity under new Constitution). 
Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Employed persons in industry, commerce, domestic servants, and 
self-employed. 

Special systems for public employees. 
Source of Funds 

Insured person: See pension contribution above. 
Employer: Same, plus 1, 2 or 3% of payroll to finance work 
accident. 

Government: Same. 
Qualifying Conditions 

Contributions by' insured worker during last 12 months. 
No minimum qualifying period for cash maternity benefits. 



Social Security Programs Throughout the World — 1997 



49 



BRAZIL 



Sickness and Maternity Benefits 

Sickness benefit: 91 % of average earnings in last 36 months. 
Payable after 15-day waiting period (during which employer is 
required to pay full wage). 

Schedule of payments: 13 payments a year if insured has been in 

payment status for more than 15 days. 

Minimum benefit: 100% of minimum wage. 

Maternity benefit: Full wage for 120 days: 28 days before and 

91 days after giving birth (if miscarriage, 2 weeks). 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients, in 
both rural and urban areas. Includes general and specialist care; 
hospitalization; medicines (patient shares in cost of some); 
maternity care; dental care; and necessary transportation. 
Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured worker. 

Administrative Organization 

Ministry of Health, general supervision. 

Unified System of Health (SUS), administration of cash benefits. 
Work Injury 

First laws: 1919, 1944, and 1967. 
Current law: 1991. 

Type of program: Social insurance system. 
Coverage 

Employed persons. Special systems for public employees and 
military. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through premiums of l%-3% of payroll 
according to degree of risk. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 
R$956.57. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Permanent disability: Total loss of capacity to work. 
Accident benefit (partial disability): Unable to do work of usual 
occupation but capable of doing some other work. 

Temporary Disability Benefits 

Temporary disability benefit: 91% of average indexed earnings in 
last 36 months prior to accident. Payable after 15-day waiting 
period (during which labor laws require employer to pay full 

wages). 

Schedule of payments: 13 monthly payments a year. 



Permanent Disability Benefits 

Permanent disability pension: 100% of covered earnings on day 
of accident. 

Constant-attendance supplement: 25 % of pension (no maximum if 
self-employed). 

Accident benefit (partial disability): 50% of value of benefit. 
Schedule of payments: 13 payments per year. 

Workers' Medical Benefits 

Medical benefits: Medical and dental treatment, hospital 
treatment, medicines, rehabilitation, and transportation. 

Survivor Benefits 

Survivor pension: 100% of covered earnings of deceased on day 
of accident. Divided equally among eligible survivors. 
Eligible survivors: Same as for ordinary survivor pensions. 
Schedule of payments: 13 payments per year. 

Administrative Organization 

Ministry of Social Security and Social Assistance (MPAS), general 
supervision. 

National Social Secuity Institute (INSS), administration of cash 
benefits. 

Unified System of Health (SUS), Ministry of Health, 
administration of medical benefits. 

Unemployment 

First law: 1965 (Compulsory savings program from the Length of 

Service Guaranty Fund). 

Current laws: 1986 and 1990 (cash benefits). 

Type of program: Social insurance system. 

In addition, employees have access to savings account to which 

employers contribute 8% of earnings. Beneficiary has access in the 

event of unemployment, marriage, retirement, and other 

contingencies. 

Coverage 

Employed persons. 

Source of Funds 

Insured person: None. 
Employer: None. 

Government: Whole cost (proceeds from various ear-marked 

taxes). 

Qualifying Conditions 

Unemployment benefit: 36 months of coverage in last 4 years. 
Unemployment not due to misconduct. 

Beneficiary must lack other resources to support self or family. 
Unemployment Benefits 

Unemployment benefit (means-tested): 50% of average earnings 
in last 3 months of employment, up to 3 times minimum wage. 
Minimum benefit: 100% of minimum wage. 



50 



Social Security Programs Throughout the World — 1997 



BRAZIL 



Payable after 60-day waiting period, during 4 months in any 
16-month period. 

Administrative Organization 

Ministry of Labor, general supervision. 

Worker Assistance Fund, administration of program. 

Family Allowances 

First law: 1941 (large families only). 
Current law: 1963. 

Type of program: Employment-related system. 
Coverage 

Employees with 1 or more children except domestic employees. 
Source of Funds 

Insured person: See Old Age, Disability, Death, above. 
Employer: See Old Age, Disability, Death, above. 
Government: See Old Age, Disability, Death, above. 

Qualifying Conditions 

Family allowances: Child must be under age 14 or disabled. 
Parent must be currently working in job covered by social 
insurance or be pensioner or sickness benefit recipient. Payable to 
both parents if both insured. 

Family Allowance Benefits 

Family allowances: A set amount for each child. Payable monthly. 
Administrative Organization 

Ministry of Social Security and Social Assistance (MPAS), general 
supervision. 



Social Security Programs Throughout the World — 1997 51 



BRITISH VIRGIN ISLANDS 



Old Age, Disability, Death 

First law: 1979 
Current law: 1993 

Type of program: Social insurance system. 
Exchange rate: Uses U.S. currency. 

Coverage 

Employed and self-employed persons ages 16-65. 
Source of Funds 

Insured person: 3.25% of earnings. Self-employed, 6.5%. 
Employer: 3.25%. 
Government: None. 

Maximum earnings for contribution and benefit purposes: $13,800 
a year. 

Qualifying Conditions 

Old-age pension: Age 65 and 500 weeks of contribution. Reduced 
if 251-499 weeks). 

Old-age grant: Age 65 and ineligible for periodic benefit, at least 
49 weeks of contribution. 

Disability pension or grant: Under age 65; permanent incapacity 
for any work. Qualifying conditions same as above. 
Survivor pension: Widow age 40 or caring for a child under age 
15 (18 if student). 

Old-Age Benefits 

Old-age pension: 30% of average covered earnings in best 

3 consecutive years, increased by 1% of average covered earnings 

for every 50 weeks of contributions above 500 weeks. 

Old-age grant: 6 times average weekly earnings for each 50 weeks 

of contribution over 50 and below 500 weeks. 

Disability Benefits 

Disability pension: Same as old-age pension. 
Disability grant: Same as old-age grant. 

Survivor Benefits 

Survivor pension: Widow's benefit, 66-2/3 of worker's pension or 
prospective pension. Child's benefit 1/3 of spouse's benefit. 2/3 if 
full orphan. 

Funeral grant: Depends on age at death. Under age 1, $200; 1-15 
years of age, $1,000; over age 15, $1,500. 

Administrative Organization 

Ministry of Finance, general supervision. 

Social Security Board, administration of program. 

Sickness and Maternity 

First law: 1979. 
Current law: 1993 

Type of program: Social insurance system. Cash benefits only. 



Coverage 

Employed and self-employed persons aged 16-65. 
Source of Funds 

Insured person: 0.75% (self-employed, 1.5%) of covered 
earnings. 
Employer: Same. 
Government: None. 

Qualifying Conditions 

Cash sickness benefits: 26 weeks of contributions, with 8 weeks 

of contribution in the last 13 weeks before illness. 

Cash maternity benefits: 26 weeks of contribution with 20 weeks' 

contributions in the 39 weeks before confinement. 

Maternity grant: Wife of insured worker. 

Sickness and Maternity Benefits 

Sickness benefit: 66 2/3% of average weekly covered earnings. 
Payable for up to 26 weeks. 

Maternity benefit: 66 2/3% of average weekly covered earnings 
in 40 weeks prior to confinement, payable for up to 26 weeks, 
beginning no earlier than 6 weeks before confinement. 
Maternity grant: $200 

Administrative Organization 

Ministry of Finance, general supervision. 

Social Security Board, administration of program. 

Work Injury 

First and current law: 1994. 

Type of program: Social insurance system. 

Coverage 

Same as old-age benefits. 
Source of Funds 

Insured person: None (except self-employed, 0.5% of earnings). 
Employer: 0.5% of wages, up to $13,800. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability pension: 75% of average weekly covered 
earnings, payable for up to 36 weeks. 

Permanent Disability Benefits 

Permanent disability pension: Same as for temporary disability 
benefit, if permanent incapacity of 100%; proportionately reduced 
for partial disability (30% or more). 

A lump sum grant, dependent on degree of disability (1 % or more). 



52 



Social Security Programs Throughout the World — 1997 



BRITISH VIRGIN ISLANDS 



Workers' Medical Benefits 

Medical benefits: Hospitalization, general, specialist and nursing 
care. Also medicines, transportation artificial limbs, etc. 

Survivor Benefits 

Survivor pension: 75% of worker's pension or prospective 
pension. Surviving spouse receives 1/2 of this amount, with 
remainder divided among other eligible survivors. 
Funeral grant: $1,500. 

Administrative Organization 

Ministry of Finance, general supervision. 

Social Security Board, administration of program. 



Social Security Programs Throughout the World — 1997 



53 



BULGARIA 



Old Age, Disability, Death 

First law: 1924. 
Current law: 1957. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 347 leva. 

Coverage 

Employees, self-employed persons, farmers, members of liberal 
professions, artists, and handicraft cooperatives. 

Source of Funds 

Insured person: 2% of earnings. Self-employed, 32% of earnings 

(22% for old age, survivors and disability, only). 

Employer: 37% of payrol (47% or 52% for unusually arduous and 

unhealthy work). 

Government: Any deficit. 

Above contributions also finance all other social security benefits, 
except unemployment insurance. 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 55 (women) with 25 years 
(men) or 20 years (women) of service; at age 65 (men) or 60 
(women) proportionately reduced pension if at least 1/2 of period 
completed. Age and service requirements reduced for arduous and 
unhealthy occupations, teachers, military, handicapped, and 
mothers of 5 or more children. Not payable abroad unless 
reciprocal agreement. 

Disability pension: Permanent or long incapacity for work 
incurred no later than 2 years after work termination; 5 years of 
service, or 

3 years if age 20-25; none if under 20 and insured. 
Survivor pension: Deceased had 5 years of service (3 if age 
20-25), or was pensioner. 

Social pension (income-tested): Over age 70, or totally disabled 
and over age 16. Unemployment more than 3 months because of 
liquidation of enterprise and over 57 (men) or 52 (women) and 
enough years of coverage to qualify for old-age pension. 

Old-Age Benefits 

Old-age pension: 55% of average earnings during highest 
3 consecutive years in last 15 years. All post-retirement earnings 
after January 1, 1997 will be considered in calculating the highest 3 
consecutive years. Increment of 2% of pension per year of service 
(3% per year for teachers). 

Pension and supplements limited to 3 times social pension. 

Minimum pension: 115% of social pension. 

Social pension: 2808 leva a month. 340 leva for electricity. 

Permanent Disability Benefits 

Disability pension: Total disability, 55% of average earnings 
during last 12 months. 

Supplement for total disability (and old-age pensioners) requiring 
constant attendance: 75% of social pension. 
Partial disability: incapacity for usual but not all work. 40% or 
25% of earnings, depending upon degree of disability. 



Increment of 5% of pension if 10-15 years of service, 10% if 15-20 

years, or 15% if over 20 years. Increment of 25% if age 55 and 

25 years of coverage (50 and 20 for women). 

340 leva for electricity. 

Minimum pension: 35 leva a month. 

Survivor Benefits 

Survivor pension: 1 survivor, 50% of disability pension of 
insured; 2 survivors, 75%; 3 or more survivors, 100%. 
Eligible survivors (if dependent on insured): Children, brothers and 
sisters, and grandchildren under age 18, (26 if female student, 28 if 
male student who has completed military service, no limit if 
disabled); aged or disabled parents or spouse; widowed parent 
caring for orphan under 16; and needy grandparents. 
Minimum pension per survivor: 90% of social pension. 
340 leva for electricity. 

Administrative Organization 

National Social Security Institute, general supervision. 
Regional Directorates for Social Security, collection of 
contributions and payment of pensions. 

Sickness and Maternity 

First law: 1918. 

Current laws: 1951, 1973, and 1995. 

Type of program: Social insurance for cash benefits and universal 
system for medical care. 

Coverage 

Cash benefits: Employees, farmers, members of liberal 

professions, and handicraft cooperatives (if insured for all 

contingencies). 

Medical care: All residents. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: Same. 

Government: Same. Also, entire cost of medical care. 
Qualifying Conditions 

Cash sickness and maternity benefits: 3 continuous months of 
employment immediately before claim (payable up to age 18 or in 
case of maternity). 
Medical care: Residence in country. 

Sickness and Maternity Benefits 

Sickness benefit: During first 15 days, 70% of earnings if 3 
months to 10 years of continuous work, 80% if 10-15 years, or 
90% if over 15 years. Thereafter, rates increased by 10% of 
earnings but not to more than 90%. Payable from 1st day for 
duration of sickness.- 

Maternity benefit: 100% of earnings for 4-6 months, depending 
on number of other children in family. Additional leave, paid at 
level of national minimum wage, until child is 2 years old. May be 
followed by leave without pay until child reaches age 3. 



54 



Social Security Programs Throughout the World — 1997 



BULGARIA 



Payable under certain circumstances to father or grandparent, if 
mother agrees. 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients 
through facilities of national health service. General and specialist 
care in health centers, outpatient departments of hospitals, or 
home; hospitalization; prescribed medicines; dental care; and 
necessary appliances. 
Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for family head. 
Funeral grant: 1 national minimum wage (5,500 leva). 

Administrative Organization 

National Social Security Institute and Ministry of Health, general 
supervision. 

National Social Security Institute, administration of cash benefits. 
Employers pay cash benefits of own employees and deduct from 
contributions due. 

National Health Service, administration of medical services. 

Work Injury 

First law: 1924. 

Current laws: 1951 (short-term benefits) and 1957 (pensions). 
Type of program: Social insurance system. 

Coverage 

Employed persons. 

Source of Funds 

Insured person: None. 
Employer: 10% of payroll. 

Government: Same. Also, entire cost of medical care. 
Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: 90% of earnings. 

Payable from 1st day of incapacity until recovery or certification of 

permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: Total disability (disabled for all 
work), 70% of earnings. 
Minimum, 150% of social pension. 

For total disability requiring constant attendance: supplement of 
75% of social pension. May be paid along with other pension. 
Partial disability: Incapacity for usual but not all work. 35% or 
55% of earnings, depending upon degree of disability. 
Minimum: 140% or 115% of social pension. 
340 leva for electricity. 



Workers' Medical Benefits 

Medical benefits: Provided under national health service. 
Survivor Benefits 

Survivor pension: 1 survivor, 50% of work injury disability 
pension of insured; 2 survivors, 75%; 3 or more survivors, 100%. 
Eligible survivors (if dependent on insured): Children, brothers and 
sisters, and grandchildren age 18 and under; aged or disabled 
parents or spouse; parent or widow caring for orphan under age 16. 
Minimum pension: 90% of social pension. 
Funeral grant: 1 national minimum wage(5500 leva). 

Administrative Organization 

National Social Security Institute, general supervision. 
Regional Directorates for Social Security, payment of benefits. 

Unemployment 

First law: 1925. 
Current law: 1989. 

Type of program: Compulsory insurance system. 
Coverage 

Employed persons; graduates of vocational schools and schools of 
higher education. 

Source of Funds 

Insured person: None. 
Employer: 5% of payroll. 

Government: Covers cost of benefits for unemployed government 
workers and graduates of vocational schools and schools of higher 
education (also family allowances for latter). 

Qualifying Conditions 

Unemployment benefit: 6 months of employment in last year or 
for qualified graduates. 

Unemployment not due to voluntary leaving, dismissal for 
misconduct, refusal of suitable offer, transfer, or training. 
Registration at employment offices 7 days after dismissal or 1 
month in case of warning. 

Unemployment Benefits 

Unemployment benefit: For full-time employment, 60% of 
average earnings during last 6 months of which contributions have 
been paid, but not less than 90% or more than 140% of the 
minimum national wage. For part-time employment proportionately 
reduced benefit. Increment for inflation. Different increments if 
taking courses in vocational training or taking care of two or more 
children. 

Duration depends on age and length of coverage: up to 5 years 
regardless of age, 6 months; more than 5 years and up to age 40, 
7 months; more than 5 years and above age 40, 8 months; 10 years 
and above age 45, 9 months; more than 20 and above age 51 
(men), 10 months, (women) 12 months; 25 years and over age 56 
(men), 12 months. 



Social Security Programs Throughout the World — 1997 



55 



BULGARIA 



Payable from first day of unemployment if registered within 7 days 
or 1 month in case of warning after dismissal; otherwise from date 
of registration. 

Persons graduating from higher education and not employed within 
1 month after graduation, 80% of national minimum wage for not 
more than 6 months; persons graduating from vocational schools 
and not employed within three months after registration, 80% of 
minimum wage for 3 months. Eligible also after completion of 
statutory military service. 

Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
National Employment Service, administration of program. 
Regional employment offices, payment of benefits. 

Family Allowances 

First law: 1942. 
Current law: 1968. 

Type of program: Employment-related system. 
Coverage 

Employees, members of liberal professions, handicraft 
cooperatives, collective farmers, and social insurance beneficiaries. 
Special systems for students and single mothers, and military. 

Source of Funds 

Insured person: See pension contribution, above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Family allowances: Child must be under age 16 (or 18 if student). 
Family Allowance Benefits 

Family allowances: 910 leva a month for each child. Benefits 
doubled for handicapped children. Additional payments to single 
mother. 

Birth grants: 1 minimum wage on birth of 1st child, 2 times 
minimum wage for 2nd, 2 1\2 times minimum wage for 3rd, and 
1 minimum wage on birth of 4th and each additional child. 

Administrative Organization 

National Social Security Institute, general supervision and 
administration of program. 

Employers pay allowances to own employees and deduct payments 
from contributions due; Peoples' Councils pay single mothers. 



56 



Social Security Programs Throughout the World — 



1997 



BURKINA FASO 



Ol d Age, Disability, Death 

First law: 1960. 
Current law: 1972. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 516 CFA francs. 

Coverage 

Employed persons, technical students, and apprentices. 
Exclusions: Temporary workers, and temporarily employed aliens 
covered in another country. 
Special system for public employees. 

Voluntary insurance available to self-employed persons who were 
previously covered as employed persons. 

Source of Funds 

Insured person: 4.5% of earnings. 
Employer: 4.5% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 200,000 
francs a month. 

Qualifying Conditions 

Old-age pension: Age 55 (or 50 if prematurely aged, 53 if civil 
servant). 180 months of insurance. 
Retirement from gainful employment necessary. 
Payable abroad. 

Disability pension: Permanent loss of 2/3 of earning capacity for 
any work. 5 years of insurance, including 6 months in last year. 
(No minimum qualifying period if nonoccupational accident ; if 
occupational accident, see Work Injury.) 
Survivor pension: Deceased met old-age or disability pension 
requirements or was pensioner at death. 

Old-Age Benefits 

Old-age pension: 20% of average monthly earnings in last 3 or 
5 years (whichever is higher) plus 1.33% for every 12 months of 
insurance in excess of 180 months. 

Minimum pension: 60% of national minimum wage; maximum, 
80% of insured's average monthly earnings. 
Child's supplement: See Family Allowances, below. 
Old-age settlement: Lump sum equal to 1 month's regular pension 
for every 6 months of insurance, payable to retired workers at age 
55 if ineligible for pension. 

Adjustment: Pensions adjusted to cost-of-living changes. 
Permanent Disability Benefits 

Disability pension: 20% of average monthly earnings in last 3 or 
5 years (whichever is higher) plus 1.33% for every 12 months of 
insurance in excess of 180 months (years under age 55 at time of 
claim credited as 6-month periods). 

Minimum pension, 60% of national minimum wage; maximum, 
80% of insured's average monthly earnings. 
Child's supplement: See family allowances below. 
Constant-attendance supplement: 50% of pension. 
Adjustment: Pensions adjusted to cost-of-living changes. 



Survivor Benefits 

Survivor pension: 50% of pension paid or accrued to insured. 
Payable to widow married to deceased at least 1 year or caring for 
child or pregnant. Also payable to dependent disabled widower. 
Orphans: 25% of pension of insured for each orphan under age 
14 (18 if apprentice, 21 if student or disabled); 40% for each full 
orphan. Maximum survivor pension: 100% of pension of insured. 
Survivor settlement: Lump sum equal to 1 month's old-age pension 
for every 6 months of insurance, payable to survivors if deceased 
did not meet qualifying conditions. 
Adjustment: Pensions adjusted to cost-of-living changes. 

Administrative Organization 

Ministry of Labor, technical supervision. 

Ministry of Finance, financial supervision. 

Ministry of Economic Development, administrative supervision. 

National Social Security Fund, administration of program; 

managed by quadripartite board and director. 

Sickness and Maternity 

First law: 1952. 
Current law: 1972. 

Type of program: Social insurance system. Maternity benefits only. 

Coverage 

Employed women. 

Source of Funds 

Insured person: None. 

Employer: See Family Allowances, below. 

Government: None. 

Qualifying Conditions 

Maternity benefits: 3 months of insured employment. 
Sickness and Maternity Benefits 

Maternity benefit: 100% of earnings (portion up to contribution 
ceiling paid by Social Security Fund, earnings above ceiling paid 
by employer). Payable for 14 weeks, including at least 2 weeks 
before confinement (may be extended up to 3 additional weeks if 
complications). 

Workers' Medical Benefits 

Medical benefits: Working women receive free medical care 
during pregnancy and confinement. (Labor code requires 
employers to provide certain medical services.) 

Dependents' Medical Benefits 

Medical benefits for dependents: See Family Allowances, below. 
Spouse of insured receives same medical benefits as insured 
woman. 

Administrative Organization 

Ministry of Labor, technical supervision. 
Ministry of Finance, financial supervision. 



Social Security Programs Throughout the World — 1997 



57 



BURKINA FASO 



Ministry of Economic Development, administrative supervision. 
National Social Security Fund, administration of contributions and 
benefits. 

Work Injury 

First law: 1932. 
Current law: 1972. 

Type of program: Social insurance system. 
Coverage 

Employed persons (including temporary workers), members of 
cooperatives, technical students, apprentices, and casual workers. 

Source of Funds 

Insured person: None. 
Employer: 2.5% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 200,000 
francs a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 66-2/3% of average daily earnings. 
Payable from day after injury until recovery or certification of 
permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: 85% of average earnings, if totally 
disabled. 

For partial disability, pension proportionate to degree of 
incapacity. Lump sum of 3 years' proportionate pension payable if 
less than 15% disability. 

Constant-attendance supplement: 50% of pension. 
Workers' Medical Benefits 

Medical benefits: Medical, surgical, and dental care, 
hospitalization, medicines, X-rays, laboratory services, 
rehabilitation, retraining, appliances, and transportation. 

Survivor Benefits 

Survivor pension: 30% of earnings of insured. Payable to widow 
or dependent disabled widower. 

Orphans: 10% of earnings for each orphan under age 14 (18 if 
apprentice, 21 if student or disabled); 30% for each full orphan. 
Dependent parents and grandparents: 10% of earnings each. 
Maximum survivor pensions: 85% of earnings. 
Funeral grant: 15 days' covered earnings of insured. 

Administrative Organization 

Ministry of Labor, general supervision. 

Ministry of Finance, financial supervision. 

Ministry of Economic Development, administrative supervision. 



National Social Security Fund, administration of contributions and 
benefits. 

Family Allowances 

First law: 1955. 
Current law: 1972. 

Type of program: Employment-related system. 
Coverage 

Employees (including temporary workers) and social insurance 
beneficiaries with 1 or more children. 
Special system for public employees. 

Source of Funds 

Insured person: None. 
Employer: 11.5% of payroll. 
Government: Any deficit. 

Maximum earnings for contribution purposes: 200,000 francs a 
month. 

Above contributions also finance maternity benefits. 
Qualifying Conditions 

Family allowances: Child must be under age 14 (18 if apprentice, 
21 if student or disabled). 

Parent must have had 3 months of employment. Payable also to 
guardian. Payable to pensioners. 

Family and prenatal allowances subject to medical care prescribed 
for mother and child. 

Family Allowance Benefits 

Family allowances: 1,000 francs a month for each child through 
the 6th. 

Prenatal allowance: 350 francs a month for 9 months (paid in 
3 installments). 

Some maternal and child health and welfare services also provided. 

Administrative Organization 

Ministry of Labor, technical supervision. 

Ministry of Finance, financial supervision. 

Ministry of Economic Development, administrative supervision. 

National Social Security Fund, administration of program. 



58 



Social Security Programs Throughout the World — 1997 



BURMA (Myanmar) 



Old Age, Disability, Death 

Special pension system for public employees only. 
Exchange rate: U.S. $1.00 equals 170 kyats. 

Survivor Benefits 

(Funeral grant of 1,000 kyats payable under sickness insurance.) 

Sickness and Maternity 

First and current law: 1954. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Employees of firms with 5 or more workers in industry and 
commerce; employees of specified industries and services. 
Coverage being extended gradually to different regions; now 
applies in Yangon, Mandalay, Mawlamyaing, Pathein, Bago and 
68 townships. 

Source of Funds 

Insured person: 1-1/2% of earnings, according to 10 wage classes. 
Employer: 1-1/2% of payroll, according to 10 wage classes. 
Government: Subsidies if necessary. 

Maximum earnings for contribution and benefit purposes: 1,000 
kyats a month. 

Qualifying Conditions 

Cash sickness benefits: 17 weeks of contributions in last 26 weeks 
(or registered as unemployed for not over 26 weeks). 
Cash maternity benefit: 26 weeks of contributions in 52 weeks 
before confinement. 

Medical benefits: Currently in insured employment (or registered 
as unemployed for not over 26 weeks). 

Sickness and Maternity Benefits 

Sickness benefit: 50% of earnings, according to 10 wage classes; 
minimum, 2.00 kyat a day. Payable from first day of incapacity for 
up to 26 weeks for one illness. 

Maternity benefit: 2/3 of earnings, according to 10 wage classes; 
minimum, 2.55 kyats a day. Payable for 6 weeks before and 6 
weeks after confinement. 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients 
through the Social Security Board's dispensaries and hospital, 
dispensaries of large employers, and public hospitals. 
Includes medical care at dispensary, emergency domiciliary care, 
specialist and laboratory services at diagnostic center, necessary 
hospitalization, maternity care, and medicines. Duration: 26 weeks 
for one illness (may be extended in special cases). 

Administrative Organization 

Ministry of Labor, general supervision. 
Social Security Board, administration of program. 



Work Injury 

First law: 1923 

Current law: 1954 (social insurance). (Earlier work-injury law still 
in force for nonagricultural employees not yet covered by social 
insurance; provisions not shown.) 
Type of program: Social insurance system. 

Coverage 

Employees of firms with 5 or more workers in industry and 
commerce; employees of specified industries and services. 
Coverage being extended gradually to different regions; now 
applies in Yangon, Mandalay, Mawlamyaing, and 68 other districts. 

Source of Funds 
Insured person: None. 

Employer: 1 % of payroll, according to 10 wage classes. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 1,000 
kyats a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 2/3 of earnings, according to 
10 wage classes. Payable from first day of incapacity for up to 
52 weeks. 

Permanent Disability Benefits 

Permanent disability pension: 2/3 of earnings, according to 

10 wage classes, if totally disabled. 

Constant-attendance supplement: 25% of pension. 

Partial disability: Percentage of full pension, corresponding to 

percent loss of capacity (converted to lump sum equivalent to 

5 years pension if below 20%). 

Workers' Medical Benefits 

Medical benefits: Same as for ordinary sickness, but with no limit 
on duration; appliances also provided. 

Survivor Benefits 

Survivor pension: 28-267 kyats a month, according to 10 wage 
classes (equals about 27% of covered earnings). Orphans: 
14-133.50 kyats a month, according to 10 wage classes for each 
orphan under age 16 (about 13% of covered earnings). Each full 
orphan receives 21-200 kyats (about 20% of earnings). Other 
eligible survivors (if no widow or orphan): Aged or disabled 
dependent relatives. 

Maximum survivor pensions: 2/3 of earnings. 
Funeral grant: 1,000 kyats. 

Administrative Organization 

Ministry of Labor, general supervision. 

Social Security Board, administration of contributions and benefits. 



Social Security Programs Throughout the World — 1997 



59 



Old Age, Disability, Death 

First law: 1956. 
Current law: 1990. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 315 francs. 

Coverage 

Employed persons. Special system for public employees. 
Exclusion: Casual or temporary labor. 

Source of Funds 

Insured person: 3% of earnings (4% under arduous conditions). 
Employer: 5.5% of payroll (6.5% under arduous conditions). 
Government: None. 

Maximum earnings for contribution and benefit purposes: 80,000 
francs a month. 

Qualifying Conditions 

Old-age pension: Age 55 (or age 50 if prematurely aged; age 45 if 

working under particularly stressful and arduous conditions). 

15 years of insurance. Retirement unnecessary. 

Disability pension: Loss of 2/3 of earning capacity. 3 years of 

insurance, including 6 months of contribution during last 12 

months. (No minimum qualifying period if nonoccupational 

accident.) 

Survivor pension: Deceased met pension requirements, was 
pensioner, or had 180 months of insurance at death. 

Old-Age Benefits 

Old-age pension: 30% of average monthly earnings during last 3 
or 5 years (whichever is most favorable), plus 2% for every 12 
months of insurance beyond 180 months. Minimum pension: 60% 
of highest legal minimum wage; maximum, 80% of average 
earnings. 

Old-age settlement: Lump sum equal to average monthly earnings 
times number of years (units of 12 months) of contribution. 

Permanent Disability Benefits 

Disability pension: 30% of average monthly earnings during last 
3 or 5 years (most favorable), plus 2% for every 12 months of 
insurance beyond 180 months. 

Minimum pension: 60% of highest minimum wage; maximum, 
80% of average earnings. (In computing the benefit, the pensioner 
is given 6 months' credit for every year disability onset precedes 
normal retirement age.) 

Constant-attendance supplement: 50% of pension. 
Survivor Benefits 

Survivor pension: 50% of pension of insured to widow caring for 
child or pregnant, if married at least 1 year prior to death of 
insured. Also payable to widower if marriage lasted at least 1 year. 
Orphans: 25% of earnings of insured for each orphan under age 16 
(18 if apprentice, 21 if student, no limit if disabled); 40% for each 
full orphan. Dependent parents and grandparents: Each receives 
25% of earnings of insured. 



Maximum survivor pension: 100% of pension of insured. 
Survivor settlement: Lump sum, calculated as a percentage of the 
old-age pension the deceased could have claimed if he/she had been 
of pensionable age at time of death. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Social Security Institute, administration of program; 
managed by tripartite board and director. 

Sickness and Maternity 

1966 labor code requires employer to pay 2/3 of wages to workers 
for up to 3 months illness per calendar year and to provide medical 
care for workers and their dependents. Code also requires 
employers to pay 50% of wages during maternity leave of up to 12 
weeks (14 weeks if complications), including 6 weeks minimum 
after confinement, if the woman has 6 months' service during year 
preceding confinement. 

1980 law provides for medical benefits for public employees and 
members of the Armed Forces. 

1984 provision established medical assistance program to provide 
medical, surgical, maternity, hospitalization, dental, and 
pharmaceutical services to low-income population. 

Work Injury 

First law: 1949. 
Current law: 1990. 

Type of program: Social insurance system. 
Coverage 

Employed persons, apprentices, trainees, and technical students. 

Source of Funds 

Insured person: None. 
Employer: 2% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 80,000 
francs a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 2/3 of earnings; minimum benefit, 
regional minimum wage. 

Payable from the 31st day after the date of the accident. 
Permanent Disability Benefits 

Permanent disability pension: 100% of average monthly earnings 
if totally disabled. 

Partial disability: Percent of full pension proportionate to degree of 
incapacity if 15% or more disabled. Lump sum of 3 years' 
proportionate pension if less than 15% disabled. 
Constant-attendance supplement: 50% of pension. 



60 



Social Security Programs Throughout the World — 1997 



BURUNDI 



Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
laboratory services, drugs, dental care, transportation, appliances, 
rehabilitation, prescription glasses, physical therapy, and 
retraining. 

Survivor Benefits 

Survivor pension: 50% of earnings of insured. Payable to widow 
or widower. Lump sum of 6 months' pension paid to widow or 
widower who remarries. 

Orphans: 20% of earnings of insured for each orphan under age 16 
(21 if student, no limit if disabled); 40% for each full orphan. 
Dependent parents and grandparents: 20% of earnings of insured 
for each. 

Maximum survivor pensions: 100% of pension insured would have 
received if totally disabled. 

Funeral grant: Lump sum equal to 30 times average daily earnings. 
Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Social Security Institute, administration of contributions 
and benefits. 

Medical services provided by the Institute and governmental or 
approved private medical institutions. 

Family Allowances 

First law: 1971. 
Current law: 1977. 

Type of program: Employment-related system. 
Coverage 

Employed persons and apprentices, if they have dependent wife 
and 1 or more children. Special system for public employees. 

Source of Funds 

Insured person: None. 
Employer: Whole cost. 
Government: None. 

Qualifying Conditions 

Family allowances: Child must be unmarried and under age 16 
(21 if student or apprentice, no limit if disabled). 
Wife must not be engaged in paid employment. 
Parent must be working at least 4 hours a day. 

Family Allowance Benefits 

Family allowances: Specified monthly payments for wife and for 
each child. (Reduced by half if beneficiary works less than 4 hours 
a day.) 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
Individual employers pay benefits directly to workers. 

Please note: This information is more than 4 years old. 

Social Security Programs Throughout the World — 1997 61 



CAMEROON 


Old App Disability Death 


Pension divided equally among other relatives when no survivors 


in the above-mentioned categories. 


First law: 1969. 


Maximum survivor npnsion - 100% of npnsion of insured 

IrlUA 1 1 1 1 VI 1 1 1 OVJ1 1 1 * VII J lO 1VJ 1 1 . L \J\J /V \J 1 IIV 1 IJ 1 \J 11 Ul IIIJU1 LVI. 


Current law 1984 1990 


Survivor settlement: Lump sum of 1 month's pension for each 


Type of program: Social insurance system. 


6 months of contribution by insured. 


Exchange rate: U.S. $1.00 equals 516 CFA francs. 




Administrative Organization 


Coverage 


Ministry of Labor and Social Security, general supervision. 


Employed persons. Voluntary coverage available. 


National Social Insurance Fund, administration of program; 


Special system for public employees. 


managed by tripartite council and director-general. 




Ministries of Finance and of Public Functions, administration of 


Source of Funds 


pension branches and that which concerns state agencies that are 


Insured person: 2.8% of earnings. 


relevant to the Labor Code. 


Employer: 4.2% of payroll. 


; ! 


Cinvprnmpnt* Nnnp 


Sirknpss find IVTafprnitv 

VJ» IV I\I II. .J.i 11 1 1 1 3 till J 


Maximum earnings for contribution and benefit purposes: 300,000 




francs a month. 


First law: 1956. 




Current law: 1967. 


Qualifying Conditions 


Type of program: Social insurance system. Maternity benefits only. 


Old-age pension: Age 60 (or early retirement at age 50) with 


Coverage 


20 years of insurance and 180 months of contribution, including 


60 in last 10 years. Retirement necessary. 


Employed women. 


Not payable abroad, unless reciprocal agreement. 




Disability pension: Loss of 2/3 of earning capacity; 5 years of 


Source of Funds 


insurance, and at least 6 months of contributions in last year. 


Insured person: None. 


No contribution required if disability caused by a non-work-related 


Employer: See family allowance contributions, below. 


accident. 


Government: None. 


Survivor pension: Deceased was pensioner or met pension 


Maximum earnings for contribution purposes: 300,000 francs a 


requirements at death. 


month. 


Olii-acrp orant* 60 vpars (c\v SO vpars in rasp of parlv retirement^ at 

V_/1U ilL,V. l^lilHl. YJW V Vdl O \^** YK-dlJ 111 V^tloV- wl VC1I 1 V 1 V- 1 1 1 V. I 1 IV- 1 1 1 / £11 




least 12 months of contributions. 


Qualifying Conditions 


Survivor grant: deceased satisfied requirements for old-age grant. 


Maternity benefits: 6 months of consecutive employment, subject 




to insurance in force at date of confinement. 


Old-Age Benefits 




Old-age pension: 30% of average monthly earnings in last 3 or 


Sickness and Maternity Benefits 


5 years (whichever is higher) plus 1 % for every year of 


Sickness benefit: None under insurance. (Labor code requires 


contributions beyond 180 months. 


employers to provide some paid sick leave.) 


Minimum npnsinn* 50% of minimum wapp in 7onp 1 of flip 

1 VI 1 1 1 1 1 1 1 LI 1 1 1 1 'V. 1 I J 1 V ' 1 1 . *J\J /V VII 1 1 1 1 1 1 1 1 1 1 VJ 1 1 1 HUtV 111 I^VII IV. 1 V'l VI IV. 


IVf iitprnitv hpnpfit" 100% of parninps Pavahle dnrinp 4 wppks 

IriUIVI Ullj UV11V.11V. 1V_IV_I/U > ' 1 *_tlllllll^^. 1 CI V (IUIV. VJVlllllC^ T v*V.VIVi] 


insured's activity sector; maximum, 80% of minimum wage. 


hpforp and 10 wppks after confinpmpnt Onav hp pxtpnded un to 

UV. 1 VII V> C1IIVJ 1 V_l VY VVIVJ HllVI VUI 1 1 1 1 IV. 1 1 IV. 1 1 1 \ I l HI Y LIV. V.A1V.IIV1LVI 1 


Old-age settlement: Lump sum equal to insured's average monthly 


6 additional weeks if complications). 


earnings times the number of years of coverage (counting 12-month 




periods). 


Workers' Medical Benefits 


Constant-attendance supplement: 40% of pension. 


Medical benefits: Working women and spouses of insured, receive 




1,400 francs toward expenses in connection with childbirth and 


Permanent Disability Benefits 


200 francs for each prenatal examination and child's pediatric 


Disability pension: 30% of average monthly earnings in last 3 or 


pxamination during first 6 months (.Some frpp medical carp 

^■yWlllllllVlLlVIll VI VI 1 1 1 1 111 Ol VJ lllWlllllO. VvJv/lllV. I1V.V. HIVVIIVCll VU 1 V 


5 years (whichever is higher) plus 1 % for every 12 months of 


provided under 1962 law by government health facilities. Labor 


contributions beyond 180. (Years under age 60 at time of claim 


code also requires employers to provide certain medical services.) ' 


credited as 6-month periods.) 




Constant-attendance supplement: 40% of pension. 


Dependents' Medical Benefits 




Medical benefits for dependents: See benefits under Family 


Survivor Benefits 


Allowances, below. 


Survivor pension: 50% of old-age pension payable to all 




non-divorced spouses of any age. Orphans: 15% of pension of 


Administrative Organization 


insured for each orphan, 25% if full orphan. 


Ministry of Labor and Social Security, general supervision. 


Dependent parents: 10% of pension of insured. 


National Social Insurance Fund, administration of program. 


62 Social Security Programs Throughout the World — 1997 



CAMEROON 



I Work Injury 

First law: 1944. 
Current law: 1977. 

Type of program: Social insurance system. 
Coverage 

Employed persons (except public employees), apprentices, 
seafarers, technical students, and persons in training. 
Voluntary coverage available for self-employed. 

Source of Funds 
Insured person: None. 

Employer: 1.75%, 2.5%, or 5% of payroll, according to risk in 
industry. 

Government: None. 
Qualifying Conditions 

Work-Injury benefits: No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit : 66% of earnings. 
Maximum earnings for benefit purposes, 17,933 francs a day. 
Payable from day after injury until recovery or certification of 
permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: For total disability, 85% of 
average earnings. Maximum and minimum earnings for benefit 
purposes, 537,994 francs and 24,075 francs a month. 
Constant-attendance supplement: annual benefit, based on the first 
salary level and the zone of the activity sector where the victim is 
recovering. 

Partial disability: If disability is at least 20%, the pension is 
proportionate to the degree of incapacity; if disability is less than 
20%, a lump sum equal to 10 years' partial pension is paid. 

Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
medicines, appliances, x-rays, laboratory services, and 
rehabilitation. 

Survivor Benefits 

Survivor pension: 85% of average earnings of insured. 
Pension divided among the following eligible survivors, according 
to schedule in law: Surviving spouse, children under age 14 (18 if 
apprentice, 21 if student or disabled), dependent parents. 
Funeral grant: Cost of burial. 

Administrative Organization 

Ministry of Labor and Social Security, general supervision. 
National Social Insurance Fund, administration of program. 

Family Allowances 

First law: 1956. 



Current law: 1967. 

Type of program: Employment-related system. 
Coverage 

Employed persons with 1 or more children. Special systems for 
apprentices with families. Exclusion: Self-employed. 

Source of Funds 
Insured person: None. 

Employer: 7% of payroll (5.65% in agriculture, 3.7% for private 
schools). 

Government: None. 

Maximum earnings for contribution purposes: 300,000 francs a 

month since the end of July 1989. 

Above contributions also finance maternity benefits. 

Qualifying Conditions 

Family allowances: Child must be under age 14 (18 if apprentice, 
21 if student or disabled). 

Parent must be working 18 days or 120 hours a month (payments 
continued during incapacity from industrial accident, during 
6 months of illness, regular leave, 3 months of involuntary 
unemployment, 14 weeks of maternity leave, and 3 months for 
widow of beneficiary). 

Prenatal allowance and birth grant: Prescribed medical 
examinations. 

Family Allowance Benefits 

Family allowances: 1,800 francs a month for each child (paid 
every quarter). 

Prenatal allowance: 1,800 francs a month for 9 months (paid in 
2 installments). 

Birth grant: 21,600 francs for each birth. 

Some child health and welfare services also provided mother and 

child. 

Administrative Organization 

Ministry of Labor and Social Security, general supervision. 
National Social Insurance Fund, administration of program. 



Social Security Programs Throughout the World — 1997 



63 



CANADA 



Old Age, Disability, Death 

First laws: 1927 (old-age assistance), 1937 (blind assistance), and 
1955 (disability assistance). 

Current laws: 1951 (universal pension), 1965 (earnings-related 

pension), and 1966 (income-tested supplements). 

Type of program: Dual universal pension and social insurance 

system. 

Exchange rate: U.S. $1.00 equals 1.34 Canadian dollars (C$). 
Coverage 

Universal pension: All residents, but subject to recovery for high 
income earners. 

Earnings-related pension: Employees and self-employed persons 
(unless earnings below C$3,500 a year, as adjusted to industrial 
wage index). 

Exclusions: Casual employment, brief agricultural employment. 
Provinces may opt-out of the Federal plan, if they establish 
comparable programs. This is the case with the Quebec pension 
plan; benefits portable between the two plans. 

Source of Funds 

Insured person: Universal pension, none; earnings-related 
pension, 3% (employees) or 6% (self-employed) of earnings. 
Employer: Universal pension, none; earnings-related pension, 3% 
of payroll. 

Government: Universal pension, whole cost. Also whole cost of 
income-tested benefits. 

Minimum earnings for benefit and contribution purposes: C$3,500 
a year. 

Maximum: C$35,800 a year. (Earnings limit adjusted based on 

increase in the average industrial wage). 

Contributions not payable on first C$3,500 of annual earnings. 

Qualifying Conditions 

Old-age pension: Universal pension: Age 65 and 10 years 

residence in Canada. Earned at rate of l/40th of maximum pension 

for each year of residence in Canada after age 18, up to maximum 

of 40 years. Benefits are subject to recovery from high income 

earners. Payable abroad if beneficiary resided in Canada for 20 

years or more after age 18. Retirement not necessary. 

Earnings-related pension: Age 65 (60-64 with 0.5% reduction per 

month; partial or complete cessation of work required). Must have 

made at least 1 year of contribution. 

Disability pension: No universal pension. 

Earnings-related pension: Severe and prolonged incapacity from 

substantial gainful activity. Contributions in 2 of the last 3 years; 

5 of the last 10 years. 

Survivor pension: No universal pension. 

Earnings-related pension: Contributions during the lesser of 10 

years or 1/3 of the years in which contributions could have been 

made (but not less than 3 years). 

Old-Age Benefits 

Old-age pension: Universal pension, C$400.71 a month. 
Income-tested supplement, amount raising pension to maximum of 



C$876.91 for single person, C$1,421.78 for couple, in 
combination with universal pension. 

Earnings-related pension (in addition to above), 25% of average 
covered earnings. A maximum of 15% of low-income years may 
be disregarded, plus years in which the worker was caring for a 
child under age 7. 

Increment of 0.5% of pension per month of deferral until age 70. 

Maximum pension: C$736.81 a month. 

Pension credits accumulated by both spouses may be divided 

equally if marriage ends after 1 or more years. 

Recorded earnings revalued for changes in national average wages. 

Income-tested pension for old-age pensioner's spouse age 60-64. 

Maximum: C$710.89 a month. 

(Assistance available under federal-provincial program for needy 
aged persons not eligible for regular benefits. 6 provinces and 2 
territories have guaranteed income plans to assist low-income 
pensioners.) 

Adjustment: Automatic adjustment for changes in consumer price 
index, quarterly for universal pension and annually for 
earnings-related pension. 

Permanent Disability Benefits 

Disability pension: No universal pension. 
Earnings-related pension: C$330.49 a month, plus 75% of 
retirement pension. Recorded earnings revalued for changes in 
national average wages. 
Maximum pension: C$883.10 a month. 

Child's supplement: C$166.63 a month (C$52.90 in Quebec) for 
each child below age 18, age 25 if student. 
(Assistance available under federal-provincial program for needy 
disabled persons not eligible for regular benefits.) 
Adjustment: Automatic annual adjustment of all benefits for 
changes in consumer price index. 

Survivor Benefits 

Survivor pension: No universal pension. (Survivor age 65 or over 
receives universal old-age pension and, if age 60-64, income-tested 
supplement in own right, regardless of when spouse dies.) 
Earnings-related pension (surviving spouse pension): 60% of 
retirement pension, if surviving spouse is age 65 or older, up to 
maximum C$442.09 a month (same in Quebec). If surviving 
spouse between ages 45 and 65: 37.5% of the retirement pension 
and C$128.90; maximum pension, C$405.25. (In Quebec, if age 
55-64, maximum pension: C$675.89; if age 45-54, maximum 
pension: C$606.76). If surviving spouse under age 45 and neither 
disabled nor caring for a child: maximum pension, C$360.94; if 
surviving spouse under age 45, not disabled but caring for child: 
maximum, C$583.14; if surviving spouse under age 45 and 
disabled: maximum, C$606.75. 

Orphans: C$166.63 a month for each orphan below age 18 (25 if 
student, no limit if disabled). (Quebec, C$52.90 each for all 
children.) 

Death benefit: 6 months' retirement pension. 

Maximum benefit, lump sum equal to 10% of earnings ceiling 

(i.e., C$3,580). 



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CANADA 



Adjustment: Automatic annual adjustment of benefits for increases 
in price index. 

(Assistance available under federal-provincial program for needy 
survivors not eligible for regular benefits.) 

Administrative Organization 

Department of Human Resources Development, administration of 
universal and earnings-related pensions and income-tested 
supplements, through district and local offices. 
Department of National Revenue, collection of contributions for 
earnings-related pensions. Quebec Department of Revenue and 
Quebec Pension Board, administration of earnings-related pension 
program in Quebec. 

Sickness and Maternity 

National laws: Federal-Provincial Fiscal Arrangements and Federal 
Post-Secondary Education and Health Contributions Act, 1977; 
Canada Health Act, 1984. 

Enabling laws in all 10 provinces and 2 territories conform to 
federal standards. 

Provision for provincial administering authorities to pay providers 
for virtually all costs of medically required hospital and physicians' 
services. 

Type of program: Compulsory insurance programs: employment 
insurance (cash benefits) and health insurance (physician and 
hospital services). 

Coverage 

All residents satisfying federal and provincial criteria for eligibility 
and insured status. (Virtually entire eligible population covered.) 
Coverage portable from province to province, and for emergency 
care anywhere in the world. In the latter case, payment is limited 
to the rate payable in the person's home province. 
Special provisions for certain groups, including members of the 
Armed Forces and other special groups. 

Source of Funds 

Insured person: Premiums in Alberta and British Columbia. 
Ontario has a "fair share health care levy" which varies from 0.2 
to 2.0% of taxable income. None in other provinces. 
Employer: Varies by province (l%-4.5%) in Newfoundland, 
Quebec, Ontario and Manitoba. Optional amounts elsewhere 
determined by union contracts. 

Government: Bulk of costs met from provincial general revenues. 
Federal government makes contributions to provinces through 
block grants, part of which are conditional on provinces meeting 
federal program requirements as set out in the Canada Health Act. 

Qualifying Conditions 

Hospitalization and medical benefits: Generally, 3 months' 
residence in province required to be insured when moving from 
another province which continues coverage during this waiting 
period. In Alberta and British Columbia, payment of premiums is 
an additional condition, but such payment can not be linked to 
entitlement to service. 



Cash sickness and maternity benefits: Paid under unemployment 
insurance (see below). 

Sickness and Maternity Benefits 

Sickness and maternity benefits: See unemployment benefit, 
below. 

Workers' Medical Benefits 

Hospital and medical benefits: Paid directly by provincial 
authorities according to predetermined formulas and agreed fee 
schedules. Hospital benefits include standard ward care, necessary 
nursing, pharmaceuticals provided in hospital, and diagnostic and 
therapeutic services. 

Medical benefits include general medical and maternity care; 
surgical, specialist, and laboratory services. 
Other benefits include oral surgery if required and performed in an 
approved hospital and, in some provinces, services of osteopaths, 
chiropractors, optometrists, dental care for children, prosthetics 
and prescribed drugs, etc. Some cost-sharing may be required in 
such cases. 

In some provinces, welfare recipients and persons over age 65 
eligible for free drugs, eyeglasses, subsidized nursing-home care, 
and dental care for children. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for family head. 
Administrative Organization 

Health Canada administers programs for groups not covered under 
provincial plans and monitors provincial compliance with 
conditions of national legislation and provides provinces with 
technical, consultative, and coordinating services. 
Provincial authorities administer their health insurance plans, 
establish resident eligibility status, assess hospital and medical 
claims, pay providers, and monitor all aspects of programs. 
Providers are usually public, not-for-profit hospitals, other 
specialized institutions, and doctors and allied practitioners in 
entrepreneurial practice. 

Work Injury 

First and current Provincial laws: 
Alberta, 1918 and 1992. 
British Columbia, 1916 and 1990. 
Manitoba, 1916 and 1991. 
New Brunswick, 1918 and 1994. 
Newfoundland, 1908 and 1993. 
Northwest Territories, 1989. 
Nova Scotia, 1915 and 1995. 
Ontario, 1914 and 1990. 
Prince Edward Island, 1949 and 1995. 
Quebec, 1908 and 1992. 
Saskatchewan, 1911 and 1991. 
Yukon Territory, 1993. 

Type of program: Compulsory insurance with public carrier 
(Provincial programs). 



Social Security Programs Throughout the World — 1997 



65 



CANADA 



Coverage 

Employees in industry and commerce (some differences among 
provinces). 

Common exclusions: Domestics, professional athletes, and sports 
clubs. 

Special systems for merchant seamen and Federal civil servants. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through contributions varying by industry 
according to risk (large firms in some provinces may self-insure). 
Government: None. 

Maximum earnings for benefit purposes: C$27, 000-C$52, 500 a 
year, according to province. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: Varies from 75% to 90% of gross 
earnings according to province. 

Minimum, C$0-C$301.44 a week, according to province. 
Permanent Disability Benefits 

Permanent disability pension: Varies, according to temporary 
benefit. Maximum, C$l,687.50-C$3,387.50 a month, according to 
province, with lump sums payable in some provinces (maximum of 
C$97,370 in Manitoba). In most provinces the pension is either 
75% or 90% of the worker's earnings. 
Partial disability: Proportion of full pension corresponding to 
impairment of earning capacity (converted to lump sum if 
impairment 10% or less in some cases). 

Workers' Medical Benefits 

Medical benefits: Medical, surgical, nursing, and hospital 
services, medicines, and appliances, in all provinces. 

Survivor Benefits 

Survivor pension: C$550-C$2,625 a month, plus lump sum of 
C$l,300-C$83,084, according to province (in Alberta, British 
Columbia, Manitoba, New Brunswick, Newfoundland, Ontario, 
Quebec, and Saskatchewan, pension is percentage, either 75% or 
90%, of deceased worker's earnings). Payable to widow or 
widower. 

Orphans: Either monthly flat-rate pensions slightly higher than for 
children residing with a parent, or a percentage of the deceased's 
wages, according to province. 

Other dependents (if no spouse or orphan): Reasonable sum 
proportionate to pecuniary loss. 

Funeral grant: C$l,900-C$6,000, according to province. 
Administrative Organization 

Workers' Compensation Board in each province (Commission in 
New Brunswick, Newfoundland, and Quebec), fixing and 
collection of assessments, management of accident fund, award and 
payment of benefits, rehabilitation and adaptive services. 



Unemployment 



Family Allowances 

First and current laws: Income Tax Act (provisions with effect on 
1 January 1993) replaced the previous system of benefits under the 
Family Allowance Act (1944). 
Type of program: Refundable tax credit. 



First law: 1940 (1935 law declared unconstitutional). 
Current law: 1971 (last amended 1996). 
Type of program: Social insurance system. 

Coverage 

All wage and salary earners, including federal government 

employees; also, self-employed fishermen. 

Voluntary coverage for provincial government employees with 

consent of provincial government. 

Exclusions: All other self-employed persons. 

Source of Funds 

Insured person: 2.9% of insured earnings. 

Employer: 4.13% of insured earnings (1.4 times insured person's 

rate.) 

Government: None. 

Maximum yearly insured earnings: C$37,000 in 1997. 
Qualifying Conditions 

Unemployment benefit: Varies, depending on unemployment rate 
of region, from 420 to 700 hours in covered employment during 
last year. 

Registered, able, willing, and available to work; unable to obtain 
suitable employment, or unable to work because of sickness, 
maternity, or providing parental care. If unemployment due to 
voluntary leaving without just cause or due to misconduct the 
disqualification is indefinite, and applies until worker requalifies 
for the benefit. 

In the event of refusal of suitable offer employment, or failure to 
undergo training, disqualification from 7 to 12 weeks; if 
unemployment due to labor dispute, imprisonment, or residence 
outside Canada, disentitlement for as long as condition exists. 

Unemployment Benefits 

Unemployment benefit: 55% of previous average insured earnings 
and a family supplement for low income earners (less than 
C$25,921) with dependant children. Maximum, C$413 a week. 
Payable after 2-week waiting period for up to 50 weeks depending 
on claimant's employment history and regional unemployment 
rates; payable up to 15 weeks for loss of earnings due to sickness 
or maternity, or 10 weeks for parental care. 

Administrative Organization 

Human Resources Development Canada, general supervision. 
Canada Employment Insurance Commission, with bipartite 
membership, administration of program through its regional and 
local offices. 



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Social Security Programs Throughout the World — 1997 



CANADA 



Coverage 

All residents with 1 or more children. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 

Qualifying Conditions 

Family allowances: Child must be under age 18. Benefits decline 
as family net income increases. 

An earned-income supplement is available only to low-income 
families that are in the work force. 

Child Tax Benefit 

Child Tax Benefit: A basic benefit of C$1,020 per year is payable 
for each qualified child, plus an additional C$75 for the third and 
each additional child. The benefit is reduced at the rate of 5% of 
family net income in excess of C$25,921 for families of 2 or more 
children, and at 2.5% for single child families. 
An earned-income supplement provides additional support for 
low-income working parents. The supplement increases at a rate of 
8% of annual earnings up to a maximum of C$500; It is reduced at 
a rate of 10% of family income over C$20,921. 
Families not claiming a tax deduction for child care receive an 
additional C$213 per year for each child under age 7. 
Benefits are paid monthly based on total family income during 
previous years. 

Administrative Organization 

Department of National Revenue, determines eligibility for Child 
Tax Benefits and administers the program. 



Social Security Programs Throughout the World — 1997 



67 



CAPE VERDE 



Old Age, Disability, Death 

First law: 1957. 

Current laws: 1983 and 1995. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 82.22 escudos. 

Coverage 

Employed persons. Special system for public employees. 

Source of Funds 

Insured person: 3% of earnings. 
Employer: 7% of payroll. 
Government: None. 

Qualifying Conditions 

Old-age pension: Age 65 (men) or 60 (women) with 36 months of 
contributions. 

Disability pension: Loss of 1/3 of salary or wage, or 2/3 disabled, 
and 36 months of contributions. Payable abroad. 
Survivor pension: Age 65 (men) or 60 (women); children with 
some physical or mental incapacity. Temporary 12-month survivor 
pension for able-bodied but unemployed widow if under age 60, 
widower under age 65, or child under age 18. 

Old-Age Benefits 

Old-age pension: 20% of average earnings (based on 36 highest 
paid months in last 5 years) plus 1.5% for each year of coverage, 
up to a maximum of 85% of earnings. 
Minimum pension: 4,200 escudos a month. 

Permanent Disability Benefits 

Disability pension: Same as old-age pension. 
Minimum pension: 4,200 escudos a month. 
Maximum pension, 85% of average earnings. 

Survivor Benefits 

Survivor pension: 50% of pension of insured, payable to widow 
or widower. Orphans: 25% of pension of insured for each child 
under 18. Full orphan: 50% of pension of insured for each child 
under 18. 

Maximum survivor pension: 100% of pension of insured. 
Funeral grant: Payable under family allowance program below. 

Administrative Organization 

Ministry of Labor, Youth and Social Action, general supervision. 
National Institute of Social Security, general administration. 

Sickness and Maternity 

First law: 1976. 

Current laws: 1983 and 1995. 

Type of program: Social insurance system. Cash and medical 
benefits. 



Coverage 

Employed persons. Special system for public employees. 

Source of Funds 

Insured person: 4% of earnings. 
Employer: 4% of payroll. 
Government: None. 

Qualifying Conditions 

Cash sickness and maternity benefits: No qualifying period. 
Medical benefits: No qualifying period. 

Sickness and Maternity Benefits 

Sickness benefit: 70% of most recent earnings or of average 
earnings during last 6 months, whichever is higher. Payable for up 
to 36 months. Employer pays 100% of earnings for first 3 days and 
30% for 4th - 90th days. 

Maternity benefit: 90% of last salary or of average earnings in 
last 6 months, whichever is higher. Payable for 30 days. 
Nursing allowance: 900 escudos a month for 6 months (payable 
under family allowance program below). 

Workers' Medical Benefits 

Medical benefits: General and specialist care, hospitalization, 

house calls, medicines, and partial dental care. 

75% of the cost of pharmaceuticals; 100% if pensioner or 

dependent. Reimbursement for transportation and living expenses if 

treatment away from home: insured and dependents, 900 escudos 

daily; pensioners and dependents, total cost. 

Partial payment (up to 75 % of cost) for prosthetic devices and 

appliances. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 

Administrative Organization 

Ministry of Health, general supervision. 
National Health Service, general administration. 

Work Injury 

First law: 1960. 
Current law: 1978. 

Type of program: Social insurance system. 
Coverage 

Employed persons, tenant farmers and sharecroppers, certain 
volunteer workers, members of cooperative enterprises, 
apprentices, and other on-the-job trainees. 
Special program for government workers. 

Source of Funds 
Insured person: None. 

Employer: 2% of payroll for service workers, 6% of payroll for 
all other workers; for domestic servants, 50 escudos a month (full 
time) or 30 escudos a month (part time). 



68 



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CAPE VERDE 



Government: Original capitalization of program. 

Maximum earnings for contribution purposes: 300 escudos a day. 

Qualifying Conditions 

Work-injury benefits: No qualifying period. 

Permanent disability: At least 100% loss of capacity to work. 

Partial disability: Partial loss of capacity to work. 

Disability decided according to National Schedule of Accidental 

Disability. 

Temporary Disability Benefits 

Temporary disability benefit: 40% of average wage during first 
14 days; 70% thereafter. 

If hospitalized, benefit is 40%; with dependents, 70%. 
Partial disability benefit: 25% of average wage . 

Permanent Disability Benefits 

Permanent disability pension: 70% of average base. 
Constant attendance supplement: Up to 30% of average base. 
Partial disability: Percentage of total disability pension 
proportionate to degree of disability between 10% and 100%. 
Payable from the day following accident (employer pays wage on 
day of accident). 

Workers' Medical Benefits 

Medical benefits: Medical treatment, surgery, hospitalization, 
prosthetic devices, appliances, and transportation. 

Survivor Benefits 

Survivor pension: 30% of deceased's average wage on day of 
accident. 

Payable to dependent widow, or dependent widower aged 65 if not 
remarried. Payable to divorced spouse or spouses (divided equally) 
if right to alimony. 

Orphans: Half-orphan, 15% of deceased's average wage per child, 
including the unborn, up to age 18 (24 if student, no limit if 
disabled); full orphan, 45%. 

10% of deceased's average wage to other dependent relatives 
(maximum, 30%). 

Combined pensions not to exceed 70% of average wage. 
Funeral grant: Up to 7,500 escudos. 

Administrative Organization 

Ministry of Labor, Youth and Social Action, general supervision. 
Private Insurance Company, general administration. 

Family Allowances 

First law: 1957. 

Current laws: 1983 and 1995. 

Coverage 

Employed persons. Special system for public employees. 

Source of Funds 
Insured: None. 



Employer: 3% of payroll. 
Government: None. 

Qualifying Conditions 

Family allowances: Payable after 1st day of enrollment. Children 
must be under age 14 (24 if student; no limit if disabled). 
Allowance paid with respect to employee's parents if their income 
is less than 2,000 escudos. 

Family Allowance Benefits 

Family allowances: 300 escudos a month for each dependent child; 
up to 900 escudos per month for each disabled child up to age 8, 
and for those age 8-14, 1,200 escudos. 

Payable for maximum of 4 children. (Maximum does not apply if 
parent is pensioner or the insured person is deceased and the 
mother is unemployed.) 

Nursing allowance: See maternity benefit above. 
Funeral grant: Cost of burial up to maximum of 14,000 escudos for 
insured and spouse; 9,000 escudos for children aged 5-14 and 
5,000 escudos for children up to 5 years of age. 

Administrative Organization 

Ministry of Labor, Youth and Social Action, general supervision. 
National Institute of Social Security, general administration. 



Social Security Programs Throughout the World — 1997 



69 



CENTRAL AFRICAN REPUBLIC 



Old Age, Disability, Death 

First law: 1963. 
Current law: 1981. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 516 CFA francs. 

Coverage 

Employed persons, including government officials, members of 
public groups (if not otherwise covered), students in professional 
schools, trainees and apprentices (even if nonsalaried), members of 
religious orders, and domestic workers. 

Source of Funds 

Insured person: 2% of earnings. 
Employer: 3% of payroll. 
Government: None. 

Qualifying Conditions 

Old-age pension: Age 55 (men) or 50 (women); payable 5 years 
earlier if "prematurely aged." 20 years of coverage with 60 months 
of contributions during last 10 years. Retirement necessary. 
Not payable abroad unless reciprocal agreement. 
Disability pension: Loss of 2/3 of earning capacity. 5 years of 
coverage, including 6 months of contributions in year preceding 
incapacity (waived for currently employed if non-occupational 
accident; if occupational accident, see Work Injury, below). 
Payable after 6 consecutive months of incapacity, provided 
disability is expected to last another 6 months or more. 
Survivor pension: Deceased met requirements or was pensioner at 
death. 

Old-Age Benefits 

Old-age pension: 30% of average monthly earnings in last 3 or 
5 years (whichever is higher), plus 1% for each 12 months of 
contribution beyond 240 months. 

Minimum pension: 60% of highest regional minimum wage; 
maximum, 80% of average monthly earnings. 
Constant attendance supplement (payable to prematurely aged): 
50% of pension. 

Old-age allowance: Lump sum of insured's average monthly 
earnings for every 12 months of coverage. Payable to insured age 
55 (50 if prematurely aged) with at least 12 months of coverage, 
but ineligible for pension. 

Permanent Disability Benefits 

Disability pension: 30% of average monthly earnings in last 3 or 
5 years (whichever is higher), plus 1 % for each 12 months of 
contribution beyond 240 months. (Years under age 55 at time of 
claim credited as 6-month periods.) 
Constant-attendance supplement: 50% of pension. 

Survivor Benefits 

Survivor benefit: 50% of pension of insured to widow age 50 (45 
if prematurely aged), age 30 if caring for child, or disabled, 
provided married at least 2 years prior to death of insured. 



Amount equally divided if more than 1 widow. Also payable to 
dependent widower age 55 (50 if prematurely aged). 
Orphans: 50% of pension of insured; 100% if full orphan. 
Maximum survivor pension: 100% of pension of insured. 
Survivor settlement: Lump sum of 1 month's old-age pension for 
every 6 months of insurance, if insured ineligible for pension. 

Administrative Organization 

Ministry of Public Administration, Labor, Social Security, and 

Professional Training, general supervision. 

Central African Social Security Office, administration of program. 

Sickness and Maternity 

First law: 1952. 

Current law: 1965. (Sickness insurance law of 1970 not yet 
implemented.) 

Type of program: Social insurance system. Maternity benefits only. 

Coverage 
Employed women. 

Source of Funds 
Insured person: None. 

Employer: See contribution to Family Allowances, below. 
Government: None. 

Qualifying Conditions 

Maternity benefits: 6 months of insured employment. 
Sickness and Maternity Benefits 

Sickness benefit: None under insurance. (Labor code requires 
employers to provide paid sick leave.) 

Maternity benefit: 50% of earnings. Payable for up to 8 weeks 
before and 6 weeks after confinement (9 weeks if complications). 

Workers' Medical Benefits 

Medical benefits: None under insurance. (Labor code requires 
employers to provide certain medical services.) 

Dependents' Medical Benefits 

Medical benefits for dependents: See Family Allowances, below. 
Administrative Organization 

Ministry of Public Administration, Labor, and Social Security, 
general supervision. 

Central African Social Security Office, administration of program. 
Work Injury 

First laws: 1935 and 1959. 
Current law: 1965. 

Type of program: Social insurance system. 
Coverage 

Employed persons and members of producers' cooperatives. 



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CENTRAL AFRICAN REPUBLIC 



Source of Funds 

Insured person: None. 
Employer: 3% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 200,000 
CFA francs a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 50% of earnings for first 28 days of 
disability; 66-2/3% thereafter. 

Payable from day following injury until recovery or certification of 
permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: For total disability, 100% of 
average earnings. Partial disability: Average earnings multiplied by 
1/2 the degree of incapacity for the portion of disability between 
10% and 50%, and by 1-1/2 the degree of incapacity for the 
portion above 50%. Constant-attendance supplement: 40% of 
pension. 

Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
medicines, appliances, rehabilitation, and transportation. 

Survivor Benefits 

Survivor pension: 30% of earnings of insured. 
Orphans: 15% of earnings each for 1st and 2nd orphan, 10% for 
each additional; 20% for each full orphan. Dependent parents and 
grandparents: 10% of earnings each. Maximum survivor pensions: 
85% of earnings. 

Burial grant: 1/50 of maximum annual income of victim, based on 
maximum earnings of 200,000 CFA francs a month. 

Administrative Organization 

Ministry of Public Administration, Labor, and Social Security, 
general supervision. 

Central African Social Security Office, administration of 
contributions and benefits. 



Government: None. 

Maximum earnings for contribution purposes: 200,000 CFA francs 
a month. Above contributions also finance maternity benefits. 

Qualifying Conditions 

Family allowances: Child must be under age 15 (18 if apprentice, 
20 if student or disabled). School attendance required for children 
of school age. Parent must have had 6 months of employment and 
be currently working 20 days a month or be a social insurance 
beneficiary. Must undergo medical examinations for prenatal 
allowance. 

Family Allowance Benefits 

Family allowances: 1,200 CFA francs a month for each child. 
Prenatal allowance: 1,200 CFA francs a month for 9 months. 
Young Family's Allowance: Lump sum of 10,000 CFA francs for 
each of first 3 births. Some maternal and child health and welfare 
services also provided. 

Administrative Organization 

Ministry of Public Administration, Labor, and Social Security, 
general supervision. 

Central African Social Security Office, administration of program. 



Family Allowances 

First law: 1956. 
Current law: 1965. 

Type of program: Employment-related system. 
Coverage 

Employees and social insurance beneficiaries with 1 or more 
children. Special system for public employees. 

Source of Funds 

Insured person: None. 
Employer: 12% of payroll. 



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Old Age, Disability, Death 

First and current law: 1977 (implemented in 1984). 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 516 CFA francs. 

Coverage 

Salaried workers regulated by the Labor Code. 

Source of Funds 

Insured person: 2% of earnings. 
Employer: 4% of payroll. 
Government: None. 

Workers' incomes are determined by the provisions of the Labor 
Code. 

Qualifying Conditions 

Old-age pension: Age 55 (50 if prematurely aged). 180 months of 
insurance or 60 months of contributions during last 10 years. 
Retirement necessary. 

Disability pension: Loss of 2/3 of earning capacity. 5 years of 
insurance, including 6 months of contribution in year preceding 
incapacity. (No qualifying period if nonoccupational accident; if 
due to work accident, benefits paid under Work Injury). 
Survivor pension: Deceased met pension requirements, was 
pensioner, or had 180 months of insurance at death. 

Old-Age Benefits 

Old-age pension: 30% of average monthly earnings during last 3 
or 5 years (whichever is higher), plus increment of 1.2% for every 
12 months of insurance beyond 180. 

Minimum pension, 60% of highest minimum wage; maximum, 
80% of earnings. 

Old-age settlement (if ineligible for pension): Lump sum equal to 
1 month's wages per year of insurance, if aged 55 (50 if 
prematurely aged). 

Permanent Disability Benefits 

Disability pension: 30% of average monthly earnings during last 
3 or 5 years (whichever is higher). (Credit given for years under 
age 55 at time of claim.) Increment of 1.2% for every 12 months 
of insurance beyond 180. 

Minimum pension, 60% of highest regional minimum wage; 
maximum, 80% of earnings. 
Constant-attendance supplement: 50% of pension. 

Survivor Benefits 

Survivor pension: 50% of pension of insured to widow 40 or 
over, caring for child, pregnant, or disabled, provided married at 
least 1 year prior to death of insured. Amount equally divided if 
more than 1 widow. Also payable to dependent disabled widower if 
marriage lasted at least 1 year. 

Orphans: 25% of pension of insured for each orphan; 40% for 
each full orphan. 

Survivor settlement: Lump sum payment if insured ineligible for 

pension. 



Administrative Organization 

Ministry of Labor and Public Affairs, general supervision. 
National Social Insurance Fund, administration of program. 

Sickness and Maternity 

First law: 1952. 
Current law: 1966. 

Type of program: Social insurance system. Maternity benefits only. 

Coverage 
Employed women. 

Source of Funds 

Insured person: None. 
Employer: See family allowances, below. 
Government: See family allowances, below. 

Qualifying Conditions 

Maternity benefits: 6 months of employment immediately prior to 
cessation of work. 

Sickness and Maternity Benefits 

Sickness benefit: None under insurance. 
(Labor code requires employers to provide paid sick leave.) 
Maternity benefit: 50% of earnings. Payable for 6 weeks before 
and 8 weeks after confinement. 

May be extended for another 3 weeks in case of duly verified 
illness caused by pregnancy or confinement. 

Workers' Medical Benefits 

Medical benefits: None under insurance. 
(Labor code requires employers to provide certain medical 

services.) 

i 

Dependents' Medical Benefits 

Medical benefits for dependents: See Family Allowances, below. 
Administrative Organization 

Ministry of Labor and Public Affairs, general supervision. 
National Social Insurance Fund, administration of program. 

Work Injury 

First law: 1935. 
Current law: 1966. 

Type of program: Social insurance system. 

Coverage 
Employed persons. 

Source of Funds 

Insured person: None. 
Employer: 2.5% of payroll. 
Government: None. 



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Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. Accident 
must be reported within 48 hours. 

Temporary Disability Benefits 

Temporary disability benefit: 2/3 of average daily wage received 
by worker during the 30 days preceding accident. 
Payable from day after injury until recovery or for 2 years until 
certification of permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: For total disability, 100% of 
average earnings. Partial disability: Average earnings multiplied by 
1/2 the degree of incapacity for disability up to 50%, and by a 
maximum of 1/2 of the degree of incapacity exceeding 50%. 
Constant-attendance supplement: 40% of pension. 

Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
medicines, appliances, and transportation. 

Survivor Benefits 

Survivor pension: 30% of earnings of insured. 

Orphans: 15% of earnings for each orphan; 20% for each full 

orphan. Dependent parents and grandparents: 10% of earnings 

each. 

Maximum survivor pensions: 85% of earnings of insured. 
Funeral grant : Reimbursement for burial expenses up to 1/24 of 
covered earnings. 

Administrative Organization 

Ministry of Labor and Public Affairs, general supervision. 
National Social Insurance Fund, administration of program. 

Family Allowances 

First law: 1956. 
Current law: 1966. 

Type of program: Employment-related system. 
Coverage 

Employees with 1 or more children. 
Separate system for public employees. 

Source of Funds 

Insured person: None. 

Employer: 6% of payroll. 

Government: Subsidy from earmarked taxes. 

Maximum earnings for contribution purposes: 130,000 CFA francs 

a month. 

Above contributions also finance maternity benefits. 
Qualifying Conditions 

Family allowances: Child must be under age 15 (18 if apprentice, 
21 if student or disabled). 



Parent must have had 6 months of employment and be currently 
working 20 days a month (or be widow of beneficiary). 

Family Allowance Benefits 

Family allowances: 600 CFA francs a month for each child. 
Prenatal allowance: 5,400 CFA francs for each month of 
pregnancy (paid in 2 installments). 

Birth grant: Lump sum of 6,000 CFA francs for each of first 3 
births. 

Some maternal and child health and welfare services also provided. 
Administrative Organization 

Ministry of Labor and Public Affairs, general supervision. 
National Social Insurance Fund, administration of program. 



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Old Age, Disability, Death 

First law: 1924. 

Current laws: 1952 (2 laws establishing separate programs for 
wage earners and salaried employees); 1980 and 1981 (laws 
establishing new social security system). 
Type of program: Social insurance system (old system) and 
mandatory private insurance system (new system). 
Exchange rate: U.S. $1.00 equals 420 pesos. 

Coverage 

Old system — Wage earners' program: Wage earners and 
self-employed. Salaried employees' program: Salaried employees 
in private employment. 

Special systems for railroad employees, seamen and port workers, 
public employees, the Armed Forces and over 35 other occupations. 
New system — Wage and salary workers, mandatory coverage. 
Self-employed, voluntary coverage. 

Since the introduction of the new system in May 1981, the old 
system is being phased out. Workers entering the labor force after 
December 31, 1982 have to join the new system. 

Source of Funds 

Old system— Insured person: Wage earners, 18.84% of wages; 
salaried employees, 20.70% of salary. 
Employer: None. 

Government: Special subsidies needed to finance program. 
New system — Insured person: Minimum for old-age pension, 
10% of wage or salary; for survivor and disability pension, about 
3% of wage or salary, depending on the pension fund management 
company (AFP) chosen. 
Employer: None. 

Government: Subsidies for guaranteed minimum pension. 
Maximum monthly earnings for contribution purposes (old and new 
systems): 60 monetary units {unidades de fomento). In January 
1997, a monetary unit equalled 13,426.11 pesos. The value of the 
monetary unit for pension purposes is adjusted monthly to changes 
in the consumer price index. 

Qualifying Conditions 

Old system — Old-age pension: Wage earners, age 65 and 1040 
weeks of contributions; or 800 weeks of contributions and 50% of 
weeks since initial coverage (men); or age 60 and contributions in 
520 weeks (women). 

Salaried employees, age 65 and at least 10 years of contributions 
(men); or age 60 and at least 10 years of contributions (women). 
Disability pension: Wage earners, declared totally or partially 
disabled, less than age 65 (men) or less than age 60 (women) at 
onset of disability; minimum of 50 weeks' contribution, of which 
at least 40% in last 5 years were also 50% of weeks since initial 
coverage (women are excused from this last requirement as are 
men with at least 400 weeks of coverage). 
Salaried employees, 67% incapacity and 3 years of contributions. 
Survivor pension: Wage earners — Deceased was pensioner, or 
had 50 weeks of paid coverage which must span at least 50% of the 
period of enrollment, of which at least 40% were in last 5 years. 



These requirements do not apply to persons with at least 400 weeks 
of insurance. 

Salaried employees — Deceased was pensioner or had at least 3 
years' contributions. 

New system — Old-age pension: Age 65 (men) and 60 (women). 
20 years of contribution to receive minimum benefit. 
Retirement permitted before normal retirement age if pension 
equals at least 50% of average wage over last 10 years and is at 
least equal to 1 10% of minimum old-age pension. 
Disability pension: Loss of 2/3 of capacity to work. Partial 
disability, loss of capacity between 50% and two-thirds percent. 
Survivor pension: Deceased was covered or was pensioner at 
death. 

Old-Age Benefits 

Old system — Old-age pension: Wage earners: 50% of base wage 
(average monthly wages during last 5 years, first 2 years readjusted 
for wage changes), plus 1 % of wages for each 50 weeks of 
contribution above 500 weeks. 
Minimum: set by law; maximum, 70% of base wage. 
Increment of 10% for each 150 weeks of contributions paid after 
award of pension. 

Salaried employees: 1/35 of base salary times years of 
contribution. Increment of 1/35 of base salary for each dependent 
child for women with over 20 years of contribution; 2/35 if widow. 
Maximum: 100% of base salary. 

Adjustment: Automatic annual adjustment of pensions for changes 
in price index. 

New system — Old-age pension: Insured's contributions plus 

accrued interest. Value of insured's contributions under the public 

system provided as indexed bond. 

Minimum pension guaranteed by government. 

At retirement, insured may make withdrawals from individual 

account, regulated to guarantee income for expected lifespan, or 

buy annuity from private insurance company, or a combination of 

the two. 

Permanent Disability Benefits 

Old system — Disability pension: Wage earners: For total 
disability, 50% of base wage (average monthly wages during last 
5 years, first 2 years adjusted for wage changes), plus 1 % of 
wages for each 50 weeks of contribution beyond 500 weeks. 
Maximum: 70% of base wage. 
Partial disability: One-half of total disability pension. 
Salaried employees: 70% of base salary, plus 2% of salary for 
each year of contribution beyond 20 years. 
Maximum: 100% of base salary. 

Adjustment: Automatic annual adjustment of pensions for changes 
in price index. 

New system — Disability pension: Following certification by 
medical committee, benefit financed for 3 years by AFP; benefit 
equal to 50-70% of base salary in case of total disability; 35-50% if 
partial disability. 

Long-term pension: following second level of certification, the 
pension is financed through individual account; same as old-age, 
survivors and disability. 
Minimum pension guaranteed by government. 



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Survivor Benefits 

Old system — Survivor pension: Wage earners: Widow of any age 
or disabled widower, 50% of base wage or 100% of pension of 
insured, whichever is more favorable. Each orphan under age 15 
(18 if student, no limit if disabled), 20% of base wage or average 
pension in preceding year. Mother of natural children of deceased, 
60% of widow's pension. 

Salaried employees: Widow or dependent widower, 50% of 
pension or base salary of insured in last 5 years. Each orphan (less 
than 18, 25 if student, any age if disabled) and dependent parents, 
15% of pension or average salary. 

Maximum survivor pensions: 100% of pension or salary of 
insured. 

Funeral grant: Wage earners and salaried employees, 3 months' 
minimum income. 

New system — Survivor pension: Widow, or disabled widower, 
60% of pension; 50% if pension also paid to children; 36% to 
mother of natural children acknowledged by deceased if children 
have right to pension, 30%. any orphan, 15% to age 18 (25 if 
student, any age if disabled); 50% to parents if no other 
beneficiaries. 

Administrative Organization 

Old system — Ministry of Labor and Social Welfare through 
Superintendent of Social Security, general supervision. 
Institute of Social Security Standarization, administration of 
program. 

New system — Superintendent of Pension Fund Management 
Companies, general supervision. 

Individual pension fund management companies (AFP's), 
administration of individual capitalization accounts. 

Sickness and Maternity 

First law: 1924. 

Current laws: 1978,1981 and 1985. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Public system — National Health Service system. 
Private system — Social security health institutes. 

Coverage 

Public system — All public and private sector workers, pensioners, 
persons receiving work injury, unemployment or family allowance 
benefits. 

Private system — Covered workers and their dependents. Persons 

not receiving family allowances may contract in. 

Both systems exist at the same time. One can choose either system. 

Source of Funds 

Public system — Insured person: Wage earners and salaried 
employees, 7% of earnings. Pensioners, 7% of pension. 
Employer: None, except subsidies for maternity benefits. 
Government: Partial subsidy. 

Private system — Insured person: Wage and salary workers and 
self- employed, 7% of earnings. 



Employer: None. 
Government: None. 

Maximum monthly earnings for contribution purposes (old and new 
systems): 60 monetary units {unidades de fomento, see Old Age, 
Disability, Death, above). 

Qualifying Conditions 

Cash sickness and maternity benefits: Wage earners and salaried 
employees, currently covered, a total of 6 months and 3 months of 
contribution in last 6 months. 

Self-employed, currently covered with 12 months of enrollment 
and 6 months of contributions in last 12 months before illness. 
Medical benefits: All workers currently covered. 
Qualifying conditions for both systems are the same. 

Sickness and Maternity Benefits 

Public system — Sickness benefit: For public employees, 100% of 
net earnings. For private sector employees, the average monthly 
net earnings in the 3 months before the onset of illness. 
Maternity benefit: Same as sickness benefit; payable for 6 weeks 
before and 12 weeks after confinement. 

Private system — Sickness benefit: Employee signs a minimum 
12-month contract with individual health institute. Benefits vary by 
contract, but cannot be less than those provided by the public 
system. 

Adjustment of benefits: adjusted after every 12 consecutive months 
of benefits paid to the insured. 

Workers' Medical Benefits 

Public system — Medical benefits: Includes general and specialist 
care, periodic medical examinations, hospitalization, medicines, 
dental care, and maternity care. 
Duration: No limit. 

Private system — Benefits vary by contract, but generally include 
medical and surgical care, hospitalization, pharmaceuticals, and 
maternity care. Some contracts also provide dental care. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured person. 
Private system — Same as cash sickness and maternity benefits. All 
pregnant women up to 6 months after pregnancy and children 
under 6 years of age are entitled to regular checkups. 

Administrative Organization 

Public system — Ministry of Health, general supervision. National 
Health Services, administration of benefits and services. 
Private system — Superintendent of Health Institutions, oversees 
individual health institutions. 

Work Injury 

First law: 1916. 
Current law: 1968. 

Type of program: Social insurance system. 



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Coverage 

Employed persons, government workers, students, and some self- 
employed persons. 

Source of Funds 

Insured person: None, except for the self-employed. 

Employer: 0.90% of payroll, plus up to 6.8% of payroll according 

to industry and risk (for wage earners and salaried employees). 

Employers may contract out of system by offering equal or 

improved benefit provisions. 

Government: Subsidizes public sector program. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: Same as under cash sickness 
benefit. 

Payable from day of injury up to 12 months (may be extended up 
to 24 months). 

Adjustment: Readjusted as wages rise either by law or collective 
agreement. 

Permanent Disability Benefits 

Permanent disability pension: 70% of base wage, if totally (at 
least 70%) disabled. 

Constant-attendance supplement: 30% of base wage. 

Partial (40% -69%) disability: 35% of base wage. 

Lump-sum grant of up to 15 months' base wages for 15% to 39% 

disability. 

Workers' Medical Benefits 

Medical benefits: Necessary medical, dental, and pharmaceutical 
services, hospitalization, appliances, rehabilitation, and 
occupational retraining. 

Survivor Benefits 

Survivor pension: 50% of pension of insured, payable to widow 
over age 45 or caring for child. Payable at any age to disabled 
widow. 

Orphans: 20% of pension for each orphan under age 18 (age 23 if 
student or any age if disabled); 50% for each full orphan. 
Funeral grant: 3 times monthly minimum wage. 

Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
Superintendent of Social Security, administration of contributions 
and cash benefits through Institute of Social Security 
Standardization, Private Salaried Employees' Welfare Fund, other 
private enterprises, and by employers' nonprofit mutual insurance 
groups. 

National Health Service, provision of medical benefits. 
Unemployment 
First law: 1937. 



Current law: 1981. 

Type of program: Employment-related system (unified program for 
wage and salaried workers). 

Coverage 

Employed persons. 

Source of Funds 

Insured person: None. 
Employer: None. 

Government: Whole cost through Unified Family Allowances and 
Unemployment Fund. 

Qualifying Conditions 

Unemployment benefit: 52 weeks of coverage during previous 
2 years (for wage earners and salaried employees). 
Registered for employment, able and willing to work. 
Unemployment not due to reasons within claimant's control. 

Unemployment Benefits 

Unemployment benefit: First 90 days, 15,620 pesos a month; 
between 91 and 180 days, 10,414 pesos a month; between 181 and 
360 days, 7,810 pesos a month. 

Persons eligible for unemployment benefits also continue to receive 
family allowances, maternity, and medical benefits. 

Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
Superintendent of Social Security, through Institute of Social 
Security Standarization, and Family Allowance Compensation 
Funds, administration of program. 

Family Allowances 

First laws: 1937 (salaried employees) and 1953 (wage earners). 
Current law: 1981 (wage earners and salaried employees). 
Type of program: Employment-related system (unified program for 
wage and salaried workers). 

Coverage 

Employed persons and pensioners with 1 or more children or other 
eligible dependents. Special program for the needy. 

Source of Funds 

Insured person: None. 
Employer: None. 

Government: Whole cost through Unified Family Allowances and 
Unemployment Fund. 

Qualifying Conditions 

Family allowances: Child must be under age 18 (24 if student, no 
limit if disabled); also payable from 5th month of pregnancy. 
Allowances also paid for dependent wife, disabled husband, 
widowed mother, stepchildren, orphaned or abandoned 
grandchildren and great-grandchildren, orphans, and disabled or 
aged parent over age 65. 



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Family Allowance Benefits 

Family allowances (wage earners and salaried employees): 
Periodically adjustable fixed amount a month per dependent. 
Disabled persons receive a double allowance. 

Administrative Organization 

Ministry of Labor and Social Welfare, and Superintendent of 
Social Security, general supervision. 

Family Allowance Compensation Fund, Institute of Social Security 
Standardization and other public and private organizations, 
payment of benefits. 

Special program administered by Emergency Social Fund. 



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Old Age, Disability, Death 

First law: 1951. 

Current laws: 1953, 1978, 1986, 1991, and 1996. 
Type of program: Local government social insurance (basic 
pension) and/or employer-provided plans (individual retirement 
accounts) systems. 

(Provincial and city/county social insurance agencies and 
employers adapt central government guidelines to local conditions.) 
Exchange rate: U.S. $1.00 equals 8.29 yuan. 

Coverage 

Employees in state-run enterprises. Some locales provide 
conditional coverage to employees in collective, private, and 
foreign-invested enterprises (Chinese nationals only) and/or the 
self-employed, with similar or separate programs. Employees of 
government and party organizations, and cultural, educational, and 
scientific institutions are covered under government-funded 
employer-administered system. 

Source of Funds 

Insured person: Basic pension insurance — Up to 3%-5% earnings 
base, depending on local government provisions. Individual 
retirement accounts — At least 3% of earnings base, to gradually 
rise to 8%. 

Employer: Basic pension insurance — Average 20% of payroll, 
depending on local government provisions, if participating in 
city/county retirement pension pools, or whole cost if not 
participating. Individual retirement accounts — up to 11% of 
earnings base, plus a nominal credit of up to 5% of average local 
(city-wide or county-wide) earnings to the employee's account. 
Government: Basic pension insurance and individual retirement 
accounts — Central and local government subsidies as needed. 
Earnings base for purposes of contribution: employee's average 
monthly earnings (including wage, bonus, allowances and 
subsidies) in preceding year. Minimum monthly contributions, 
60% of monthly local earnings; maximum, 200%-300% monthly 
local earnings, according to local government provisions. 
Provincial and city/county governments adjust contribution base 
and/or rate according to local conditions. 

Qualifying Conditions 

Old-age pension: Age 60 for men and professional women, 55 for 
non-professional salaried women, 50 for other women (55 for men 
and 45 for women, if arduous or unhealthful work) with 10 years' 
continuous service. 

Early retirement at age 50 (men) or age 45 (women) with 10 years' 
continuous service, if totally disabled. 

Disability pension: Total incapacity for work and ineligible for 
early retirement. 

Survivor grant: Deceased was in covered employment or 
pensioner. 

Old-Age Benefits 

Central government guidelines — Old-age basic pension 
insurance: 2-part benefit for employees in enterprise participating 



in city/county retirement pools: a basic pension of 20%-25% of the 
average city-wide or county-wide wage; plus 1 %-1.4% of every 
full calendar year of coverage, depending on local government 
provisions. 

Partial basic pension: lump-sum equal to 200% of local average 
wage, payable to employees with more than 1 but less than 10 full 
calendar years' coverage. 

Central government guidelines — Individual retirement accounts in 
addition to basic pension insurance: Up to 100% of employee 
contributions to basic pension insurance plus interest. 
Central government guidelines — Individual retirement accounts 
as replacement of existing basic pension insurance: benefit equal to 
basic pension insurance above, payable to employees at retirement 
age with more than 15 years' contributions and at least 10 full 
calendar years' contribution at same enterprise under the basic 
pension insurance. Or, monthly benefit equal to total of employer 
and employee contributions plus interest divided by 120 months, 
payable to workers employed after the establishment of individual 
retirement accounts. Benefit payments beyond 120 months will be 
paid out of reserve funds from balance of employer contributions to 
individual accounts closed due to death of account holders (see 
Central government guidelines for survivor grants under individual 
retirement accounts below. Central government guidelines make no 
provisions for any shortfalls, which presumably will be subsidized 
by local governments). 

Minimum pension: Provincial and city/county governments set the 
amount according to local standards of living. 

Permanent Disability Benefits 

Central government guidelines — Disability basic pension 
insurance: 40% of wage. Provincial and city/county governments 
set the minimum benefit according to local standards of living. 
Central government guidelines — Disability under individual 
retirement accounts: None. Provisions by local governments vary. 

Survivor Benefits 

Central government guidelines — Survivor grant under basic 
pension insurance: Lump sum of 6-12 months' wage, according to 
number of surviving dependents. 

Funeral grant: Death of insured — lump sum of 2 months' average 
earnings of all employees in same enterprise; death of dependent 
immediate family members, 1/3-1/2 of 1 month's average wage 
depending on age of deceased. 

Central government guidelines — Survivor grant under individual 
retirement accounts: lump-sum equal to balance of employee's total 
contributions to the account plus interest, payable to legal heir of 
deceased. 

Administrative Organization 

Ministry of Labor, Department of Social Insurance, general 
guidance. 

Provincial or city/county social insurance agencies, administration 
of retirement pension pools under basic pension insurance for 
participating enterprises. 

Individual enterprises, administration of programs not included in 
retirement pools, management of individual retirement accounts. 



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S ickness and Maternity 

First law: 1951. 

Current law: 1953, 1978 (permanent employees) 1986 (contract 
workers), 1988 (women employees), and 1996 (local government 
medical insurance pilot experiments). 

Type of program: Separate employer-provided programs based on 
central government guidelines. A number of city and county 
governments have been designated to experiment with a variety of 
medical insurance and medical savings plans by setting up separate 
funds pooled for medical and maternity care. 
(Employers adapt central government guidelines to local 
conditions.) 

Coverage 

Permanent and contract employees in state-run enterprises and 
some collective enterprises. 

Employees of government and party organizations, cultural, 
educational, and scientific institutions and, university students are 
covered under government-funded and employer-administered 
programs. 

Source of Funds 

Insured person: Up to 1 % of wages. 

Employer: Average 10% of total payroll (may or may not include 
non-wage subsidies), depending on local government provisions, if 
local government plans available and if enterprise participating. 
Non-participating enterprise: Whole cost. 
Government: Central and local government subsidies as needed. 

Qualifying Conditions 

Sickness, maternity, and medical benefits: No minimum 
qualifying period. 

Sickness and Maternity Benefits 

Central government guidelines for permanent workers — Sickness 
benefit: 60%-100% of wage, according to length of service (60% 
if employed less than 2 years, 70% if 2 but less than 4 years, 80% 
if 4 but less than 6 years, 90% if 6 but less than 8 years, and 100% 
if employed 8 years or more). Payable by employer for up to 6 
months each year; 40% to 60% payable by employer thereafter 
until recovery or determination of permanent disability: 40% if 
employed less than 1 year, 50% if 1-3 years, and 60% if employed 
3 years or more. 

Maternity benefit: 100% of earnings payable by employer for up 
to 90 days in connection with childbirth. 100% of earnings payable 
for up to 30 days in case of abortion. 

Central government guidelines for contract workers — Same as for 
permanent workers. 

Workers' Medical Benefits 

Central government guidelines for permanent workers — Medical 
benefits: Medical services either provided in employer's clinic or 
hospital, or paid for directly by employer. Includes treatment by 
doctor, maternity care, bed, and full cost of surgery and ordinary 
medicines. Employee pays registration fee for both outpatient and 



inpatient care, house calls, and board if hospitalized. Central 
government guidelines for contract workers — Same as for 
permanent workers. 

(Medical care available to general population in public institutions, 
within limits of facilities available and subject to various fees). 

Dependents' Medical Benefits 

Central government guidelines for permanent workers — Medical 
benefits for dependents: Treatment by doctor in employer's 
clinic, and 50% of cost of surgery and ordinary medicines, if 
dependents not otherwise covered. 

Central government guidelines for contract workers — Same as for 
permanent workers. 

Administrative Organization 

Ministry of Labor, Department of Social Insurance, general 
supervision of cash benefits. 

Ministry of Public Health, general guidance of health care. 
Individual state-run enterprises, administration of programs. 

Work Injury 

First law: 1951. 

Current laws: 1953 and 1978 (permanent employees), 1986 
(contract workers). 

Separate employer-provided programs based on central government 
guidelines. About one-third of city and county governments are 
experimenting with a variety of plans including setting up pooled 
funds for disability pensions and medical care. 
(Employers adapt central government guidelines to local 
conditions.) 

Coverage 

Employees in state-run enterprises, and some collective enterprises. 
Employees of government and party organizations, cultural, 
educational, and scientific institutions, and university students 
covered under government-funded and employer-administered 
programs. 

Source of Funds 

Insured person: None. 
Employer: Whole cost. 

Government: Central and local government subsidies as needed. 
Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disabibty Benefits 

Central government guidelines — Temporary disability benefit: 
100% of wage during temporary disability until recovery or 
determination of permanent disability. 

Permanent Disability Benefits 

Central government guidelines — Permanent disability pension: 

80%-90% of wage, if totally disabled. 



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Minimum pension: Provincial and city/county governments set 
minimum pension amounts according to local standard of living. 
Partial disability: 10% to 30% of wage, according to earnings loss: 
10% of wage if ll%-20% earnings loss; 20% if 21%-30% 
earnings loss; and 30% of wage if 30% or more earnings loss. 

Workers' Medical Benefits 

Medical benefits: Medical treatment, surgery, nursing, medicine, 
appliances, transportation, and hospitalization. 

Survivor Benefits 

Central government guidelines — Survivor pension: 25%, 40%, or 
50% of wage of deceased, for 1, 2, or 3 or more dependents. 
Funeral grant: 3-6 months' wages. 

Administrative Organization 

Ministry of Labor, Department of Social Insurance, general 
guidance. 

Individual state-run enterprises, administration of programs. 

Unemployment 

First and current law: 1986, and 1993. 

Provincial and city/county social insurance system based on central 
government guidelines. 

(Provincial and city/county governments adapt central government 
guidelines to local conditions.) 

Coverage 

Permanent and contract workers in state-run enterprises. 

Source of Funds 
Insured person: None. 

Employer: 0.6%-l % of wage, depending on local government 
provisions. 

Government: Local government subsidies. 
Qualifying Conditions 

Unemployment benefit: At least 1 year in covered employment, 
involuntary termination of employment, registration at and 
regularly reporting to local employment service agencies, and 
actively seeking employment. 

Unemployment Benefits 

Unemployment benefit: 120%-150% of local public assistance 
benefit. Payable for 1 year if less than 5 years of coverage, and for 
2 years if 5 or more years of coverage. 

Administrative Organization 

Ministry of Labor, Department of Employment, general guidance. 
Local employment service agencies, administration of program. 



80 



Social Security Programs Throughout the World 



— 1997 



COLOMBIA 



Old Age, Disability, Death 

First law: 1946 (implemented in 1965). 

Current law: 1993 (implemented in April 1994). 

Type of program: Parallel social insurance (public) and private 

insurance (private) systems. 

Exchange rate: U.S. $1.00 equals 995 pesos. 

(Labor code requires larger employers to provide generally similar 

benefits to employees in regions where either program has not yet 

been applied.) 

Coverage 

All employees except agricultural employees in some regions. 
Voluntary coverage for self-employed. Program gradually being 
extended to all regions of the country. Special system for 
employees of state oil company (Ecopetrol), teachers, and military 
and national police. 

Source of Funds 

Insured person: 3.375% of earnings. Additional 1% of earnings 
for those earning over 4 times minimum wage (142,125 pesos per 
month) for the solidarity fund which provides the minimum benefit 
for low earners. 

Employer: 10.125% of payroll. 

Government: Partial subsidy to solidarity fund. 

Minimum earnings for contribution and benefit purposes: Legal 

minimum wage. Domestic workers, half the legal minimum wage. 

Qualifying Conditions 

Old-age pension: May choose between public or private systems; 
may change every 3 years. 

Public system: Age 60 (men) or 55 (women). (Age to rise to 62 

and 57, respectively in 2014.) 1,000 weeks of contribution. 

Private system: Capital accumulation in individual investment 

account sufficient to purchase an annuity equal to 110% of 

minimum wage. May change from one pension fund management 

company (SAFP) to another every 6 months. 

Disability pension: At least 50% loss of normal earning capacity. 

26 weeks of contribution in year prior to onset of disability. 

Review of disability eligibility every 3 years. 

Survivor pension: Deceased met contribution conditions for 

old-age or disability pension or was pensioner at death. 

Old-Age Benefits 

Old-age pension — public system: 65% of base earnings — average 
earnings in 10 years prior to receiving pension — plus increment of 
2% of earnings for each 50 weeks of contribution between 1,000 
and 1 ,200 weeks, up to a maximum of 73 % of basic monthly 
wage. Plus 3% for each 50 weeks between 1,200 and 1,400, up to 
a maximum of 85% of basic monthly wage. Those who have the 
age requirements but not the sufficient number of contributions 
receive a pension equal to base earnings times the number of weeks 
of contributions. Minimum pension: minimum wage. 
Schedule of payments: 14 payments a year. 
Adjustment: Annual adjustment of pensions for changes in 
consumer price index. 



Private system: Insured's contributions plus accrued interest. 
Capital accumulation in individual investment account sufficient to 
purchase an annuity equal to 1 10% of minimum wage. Value of 
insured's contributions under the public system provided as pension 
bond. At retirement, insured may make withdrawals from 
individual account, regulated to guarantee income for expected 
lifespan, or buy annuity from private insurance company, or a 
combination of the two. Minimum pension guaranteed by 
government. 

Permanent Disability Benefits 

Disability pension: 45% of basic monthly wage plus increment of 
1.5% of earnings for each 50 weeks of contribution over 500 
weeks, when the disability is between 50-66%. 54% of basic 
monthly wage plus increment of 2% of earnings for each 50 weeks 
of contribution over 800 weeks, when the disability is greater than 
66%. 

Maximum pension, 75% of basic monthly wage; minimum, 
minimum monthly wage. 

Those who have the age requirements but not the sufficient number 
of contributions receive a substitute benefit equal to an old-age 
benefit. 

Schedule of payments: 14 payments a year. 

Adjustment: Annual adjustment of pensions for changes in 

consumer price index. 

Survivor Benefits 

Survivor pension: 45% of basic monthly wage plus increment of 
2% for each 50 weeks of contribution over 500 weeks, up to a 
maximum of 75% of basic monthly wage. 

Minimum pension: minimum monthly wage. Payable to: spouse or 
permanent companion; children less than 18 years old, students 
between 18 and 25, and disabled children of any age, all 
economically dependent on deceased; dependent parents and 
dependent disabled siblings. 

Orphans, 20% of pension of insured for each orphan as defined 

above; 30% if full orphan. Maximum survivor pensions, 100% of 

pension of the insured. 

Schedule of payments: 13 payments a year. 

Funeral grant: Actual expenses up to monthly old-age pension but 

not less than 5 or no more than 10 times minimum wage. 

Administrative Organization 

Public system: Ministry of Labor and Social Security, general 
supervision. 

Social Security Institute, national administration of program. 
Regional funds and local offices, established and supervised by 
Institute, local administration of contributions and benefits. 
Private system: National Banking Superintendency, general 
supervision. Individual pension fund management companies 
^SAFP's), administration of individual capitalization accounts. 

Sickness and Maternity 

First law: 1938. 

Current law: 1993 (implemented in 1995). 



Social Security Programs Throughout the World — 1997 



81 



COLOMBIA 



Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Coverage to be extended gradually to all inhabitants of Colombia, 
regardles of their ability to pay. 

Source of Funds 

Insured person: 4% of earnings; self-employed, 12% of earnings. 
Employer: 8% of payroll. 

Government: Funds program for low earners through solidarity 
fund (see Old Age, Disability, Death, above) and additional 
government contributions. 

Minimum earnings for contribution purposes: minimum wage. 
Qualifying Conditions 

Cash sickness and medical benefits: 4 weeks of contribution 

immediately prior to claim, except in emergency cases. 

Cash maternity benefits: 12 weeks of contribution before birth. 

Sickness and Maternity Benefits 

Sickness benefit: 66-2/3% of earnings. Payable after 4-day waiting 
period for up to 180 days (may be extended to 360 days). 
Maternity benefit: 100% of earnings, payable for 12 weeks. 
Benefits also payable to adoptive parents of children under age 7. 

Workers' Medical Benefits 

Medical benefits: Insured may choose between public or private 
health care. All include medical, surgical, hospital, 
pharmaceutical, maternity, and dental care, and related services; 
pre-existing conditions must be covered, although they may be 
subject to a waiting period except no waiting period is permitted 
for pregnant women and babies under one year old. 
Benefits and facilities vary depending on the plan. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 

Administrative Organization 

Ministry of Health, general supervision. 

National Social Security Council on Health, administration of 

program. 

Work Injury 

First law: 1915. 

Current laws: 1993 and 1994. 

Type of program: Social insurance system. 

Coverage 

Employees in industry and commerce. 

Source of Funds 
Insured person: None. 



Employer: 0.348%-8.7% of payroll, according to degree of risk. 

In addition, 1 % of employers' contribution funds work injury fund 

which promotes health and safety for workers. 

Government: None. Contributes to work injury fund from general 

revenues. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. If 
employer delays payment of contribution for 2 consecutive months, 
automatically disqualified from program. 

Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings in the month 
prior to injury until rehabilitation, reintegration, cure or 
determination of permanent disability or death. 

Permanent Disability Benefits 

Permanent disability pension: Benefit in proportion to the degree 
of disability, between 5% and 49% loss of working capacity, from 
one times base earnings to up to a maximum of 24 times base 
earnings — average earnings in last six months for work accidents 
or in last 12 months for occupational diseases. Between 50% and 
66%, 60% of base earnings; more than 66%, 75% of base 
earnings. 

Constant attendance supplement: pension increased by 15%. 
Workers' Medical Benefits 

Medical benefits: Medical, surgical, and hospital care; medicines; 
appliances; rehabilitation; and transportation. 

Survivor Benefits 

Survivor pension: 100% of earnings of insured. Payable to each 
orphan under age 18 (25 if student, no limit if disabled); widow; 
permanent companion if lived together 2 years prior to the death of 
the insured, or if had children together; and dependent disabled 
widower. 

Administrative Organization 

Ministry of Labor and Social Security, Ministry of Health, 
National Banking Superintendent, and National Council of 
Professional Risks, general supervision. 
Professional Risk Administrators: Social Insurance Institute and 
life insurance companies authorized by the Banking 
Superintendent, national administration of program. 

Unemployment 

Public sector: Labor code requires employer to provide 1 month's 
severance pay (with 12% interest) per year of service. For 
dismissal without just cause, an additional indemnity is paid. For 
each year of service disregarding the first year, the additional 
indemnity equals 60 days' pay if 1-5 years of service; 65 days' pay 
if 5-10 years of service; and 75 days' pay if more than 10 years of 
service. 

Private sector: Previous rights under public system rolled over to 
newly created private termination indemnity program, as of 



S2 



Social Security Programs Throughout the World — 1997 



COLOMBIA 



January 1, 1991. Program is voluntary for employees covered 
under public system, mandatory for new hires as of January 1 , 
1991. 

Family Allowances 

First law: 1957. 

Current laws: 1963 and 1982. 

Type of program: Employment-related system. 

Coverage 

All employees. 

Source of Funds 

Insured person: None. 
Employer: 4% of payroll. 
Government: None, except as employer. 

Qualifying Conditions 

Family allowances: Child must be under age 18 (23 if student, no 
limit if disabled); parents over age 60 or 60% disabled. 
Parent must have completed 60 days of continuous employment 
with same employer, of which not less than 96 hours were credited 
during last 25 working days; also monthly income cannot exceed 4 
times the legal minimum wage. 

Family Allowance Benefits 

Family allowances: Amounts vary among funds, may be paid in 
cash or in kind. 

Child disabled 60% or more receives double allowance. 
Surviving spouse allowance: 12 months' payment to surviving 
spouse or custodian of dependent children. If dependent dies, 
family receives lump sum equal to 12 monthly payments. 

Administrative Organization 

Ministry of Labor and Social Security, general supervision of 
funds. 

Superintendency for Family Subsidies, supervision of family 
allowance funds. 



Social Security Programs Throughout the World — 1997 



83 



CONGO (Brazzaville) 



Old Age, Disability, Death 

First law: 1962. 
Current law: 1986. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 516 CFA francs. 

Coverage 

Employed persons. Special system for public employees. 
Source of Funds 

Insured person: 2.4% of earnings. 
Employer: 3.6% of payroll. 
Government: None. 

Minimum earnings for contribution and benefit purposes: 23,500 
CFA francs a month. No maximum. 

Qualifying Conditions 

Old-age pension: Age 55 (or 50 if prematurely aged). 
Insurance in last 20 years, or 240 months' total insurance with 
60 months in last 5 years. Pension proportionately reduced if 60 
months to 239 months of contributions. 
Retirement from paid employment. 
Not payable to aliens abroad unless reciprocal agreement. 
Disability pension: Loss of 2/3 of capacity for any work. 5 years 
of insurance and 6 months of contribution in last year before claim. 
(No minimum qualifying period if incapacity caused by 
nonoccupational accident; if occupational accident, see Work 
Injury, below.) 

Survivor pension: Deceased met qualifying conditions or was 
pensioner at death. 

Old-Age Benefits 

Old-age pension: 40% of average monthly earnings in last 3 or 
5 years (whichever is more favorable). These years must have 
occurred in the 10 year period prior to the date of eligibility for a 
pension. In addition, 2% of average monthly earnings may be 
added for every 12 months of insurance accumulated beyond 240. 
Minimum pension: 60% of highest guaranteed minimum wage; 
maximum, 80% of earnings. 

Child supplements: Equal to current family allowance (see below). 
Old-age settlement: Lump sum equal to insured's average monthly 
earnings for every 12-month insurance period credited at age 55 
(or 50 if prematurely aged) if ineligible for pension. 
Adjustment: Pensions adjusted for cost-of-living changes. 

Permanent Disability Benefits 

Disability pension: 40% of average monthly earnings in last 3 or 
5 years (whichever is more favorable), plus 2% for every 12 
months of insurance beyond 240. (Years under age 55 at time of 
claim credited as 6-month periods.) 

Minimum pension: 60% of highest guaranteed minimum wage; 

maximum, 80% of earnings. 

Constant-attendance supplement: 50% of pension. 

Child supplements: Equal to current family allowance (see below). 

Adjustment: Pensions adjusted for cost-of-living changes. 



Survivor Benefits 

Survivor pension: 30% of pension of insured. Payable to widow 
or disabled widower. Orphans: 50% of pension of insured. 
Maximum survivor pension: 80% of pension of insured. 
Survivor settlement: 1 month's basic old-age pension for each 
6 months of contribution by deceased, if pension requirements not 
met. Descendants, 20% of the pension of insured. 
Adjustment: Pensions adjusted for cost-of-living changes. 

Administrative Organization 

Ministry of Labor and Social Security, supervision. 
National Social Security Fund, administration of program; 
managed by tripartite board and director-general. 

Sickness and Maternity 

First law: 1952. 
Current law: 1986. 

Type of program: Social insurance system. Maternity benefits only. 

Coverage 

Employed women. 

Source of Funds 

Insured person: None. 
Employer: 0.2% of payroll. 
Government: None. 

Maximum earnings for contribution purposes: 600,000 CFA francs 
a month. Minimum: 23,500 CFA francs a month. 

Qualifying Conditions 

Maternity benefits: 3.5 months of insured employment. 
Sickness and Maternity Benefits 

Sickness benefit: None under insurance. (1975 labor code requires 
employers to provide paid sick leave.) 

Maternity benefit: 50% of earnings (employer required to pay 
remaining 50% of earnings). Also costs of medical care. Payable 
for 15 weeks, including at least 9 weeks after confinement (may be 
extended in case of complications). 

Workers' Medical Benefits 

Medical benefits: None, except free maternity care, including 
cost of confinement. 

Dependents' Medical Benefits 
Medical benefits for dependents: None. 

Administrative Organization 

Ministry of Labor and Social Security, supervision. 
National Social Security Fund, administration of program. 

Work Injury 

First law: 1935. 
Current law: 1986. 



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Social Security Programs Throughout the World — 1997 



CONGO (Brazzaville ) 



Type of program: Social insurance system. 
Coverage 

Employed persons, members of workers' cooperatives, 
apprentices, and technical establishment students. Special system 
for public employees. 

Source of Funds 

Insured person: None. 
Employer: 2.25% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 600,000 
CFA francs a month. Minimum: 23,500 CFA francs a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of covered earnings, 
following advance notice, for up to 3 months; 66-2/3% thereafter. 
Payable from day after injury until recovery or certification of 
permanent disability. 

Permanent Disabikty Benefits 

Permanent disability pension: For total disability, 100% of 
average earnings. Partial disability: Average earnings multiplied by 
1/2 the degree of incapacity for the portion of disability between 
10% and 50%, and by 1-1/2 the degree of incapacity for the 
portion above 50%. 

Constant-attendance supplement: 50% of pension. 
Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
medicines, appliances, and transportation. 

Survivor Benefits 

Survivor pension: 30% of earnings of insured. Orphans: 50% of 
earnings of insured; father and mother, 20% of earnings. 

Administrative Organization 

Ministry of Labor and Social Security, supervision. 

National Social Security Fund, administration of contributions 

and benefits. 

Family Allowances 

First law: 1949. 
Current law: 1986. 

Type of program: Employment-related system. 
Coverage 

Employees with 1 or more children, whether or not married. 
Special system for public employees. 

Source of Funds 
Insured person: None. 



Employer: 10.03% of payroll. 
Government: None. 

Maximum earnings for contribution purposes: 600,000 CFA francs 
a month. Minimum: 23,500 CFA francs a month. 

Qualifying Conditions 

Family allowances: Child must be under age 16 (17 if apprentice, 
20 if student or disabled). 

Parent must have had 6 months of employment and be currently 
working 20 days or 133 hours a month (or be widow of 
beneficiary). 

Family Allowance Benefits 

Family allowances: 1,200 CFA francs a month per child. 
Prenatal allowance: 1,200 CFA francs a month for 9 months (paid 
in 2 installments). 

Birth grant: Lump sum of 1,100 CFA francs for each of first 3 
births of the first marriage. 

Some maternal and child health and welfare services also 
provided. 

Administrative Organization 

Ministry of Labor and Social Security, supervision. 
National Social Security Fund, administration of program. 



Social Security Programs Throughout the World — 1997 



85 



CONGO (Kinshasa) 



Old Age, Disability, Death 

First law: 1956. 

Current law: 1961. (New Social Security Code enacted in 1988 not 
yet in effect.) 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 93,076 new zaires. 

Coverage 

Employed persons, including domestic workers, casual workers, 
and sailors. Special system for public employees. 
Voluntary coverage for nonemployed persons if at least 5 years of 
covered employment and requested within 6 months after cessation 
of paid employment. 

Source of Funds 

Insured person: 3.5% of earnings. 
Employer: 3.5% of payroll. 

Government: Annual subsidy up to amount fixed by decree. 
Voluntarily insured: 7% of most recent 6 months' covered 
earnings, according to 3 wage categories. 

Qualifying Conditions 

Old-age pension: Age 63 (men) and 60 (women), or 55 if 

prematurely aged. 60 months of insurance in last 10 years. 

Retirement from paid employment. 

Payable abroad under reciprocal agreement. 

Disability pension: Loss of 2/3 of earning capacity. 36 months of 

insurance in last 5 years. (No minimum qualifying period if 

nonoccupational accident.) 

Survivor pension: Deceased met pension requirements or was 
pensioner at death. 

Old-Age Benefits 

Old-age pension: Annual benefit of 1/60 of average monthly 

covered earnings times months of insurance. 

Minimum pension: 50% of legal minimum wage. 

Old-age settlement: Lump sum equal to 10 times annual pension, 

based on years of insurance completed (not less than 50% of 

minimum pension), payable to retired workers from age 58 if 

ineligible for pension. 

Adjustment: Pensions adjusted to wage index. 
Permanent Disability Benefits 

Disability pension: Annual benefit of 1/60 of average monthly 
covered earnings times months of insurance. 
Minimum pension: 50% of legal minimum wage. 
Adjustment: Pensions adjusted to wage index. 

Survivor Benefits 

Survivor pension: 40% of pension of insured to widow age 50 or 
disabled. Also payable to dependent disabled widower. 
Widow's grant (if ineligible for pension): Lump sum equal to 
12 months' pension of deceased. 



Orphans: Lump sum equal to 25% of widow's grant for each 
orphan under age 16 (25 if student, no limit if disabled), or 50% 
for each full orphan. Maximum, 100% of widow's grant. 
Adjustment: Pensions adjusted to wage index. 

Administrative Organization 

Ministry of Labor, Manpower and Social Security, general 
supervision. 

National Social Security Institute, administration of program; 
managed by tripartite board and President-Delegate. 

Sickness and Maternity 

Labor code requires employers to pay 2/3 of wages plus family 
allowances to their workers during sickness and 14 weeks of 
maternity leave, and provide medical care for workers and their 
dependents. 

(Medical care available in government hospitals and dispensaries to 
old-age and disability pensioners and their dependents.) 

Work Injury 

First law: 1949. 
Current law: 1961. 

Type of program: Social insurance system. 
Coverage 

Employed persons, including domestic and casual workers, sailors, 
apprentices, and students in vocational and craft schools. 

Source of Funds 
Insured person: None. 

Employer: 1.5% of payroll (may be increased for higher risk). 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 66-2/3% of average daily earnings 
during the 3 months preceding injury, plus family allowances 
where applicable, if at least 60% disabled. Benefits reduced during 
hospitalization if no dependents. Payable from day after injury or 
onset of occupational illness until recovery or certification of 
permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: 85% of average monthly earnings 
during the 3 months preceding injury, if totally disabled. 
Constant-attendance supplement: 50% of pension. 
Partial disability: Percent of full pension corresponding to degree 
of incapacity (paid as a lump sum equal to 3 times annual pension 
if incapacity less than 15%). 



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Social Security Programs Throughout the World — 1997 



CONGO (Kinshasa) 



Workers' Medical Benefits 

Medical benefits: Medical, dental, surgical, and hospital care; 
X-rays; laboratory services; pharmaceuticals; appliances; and 
transportation. 

Survivor Benefits 

Survivor pension: 20% of earnings of insured payable to widow at 
any age. Also payable to dependent disabled widower. (Lump sum 
equal to 12 months' pension payable to widow or widower who 
remarries.) 

Orphans: 15% of earnings for each orphan under age 16 (25 if 
student, no limit if disabled). 

Maximum survivor pensions: 100% of total disability pension of 
insured. 

Funeral grant: Lump sum equal to 90 days' legal minimum wage. 
Administrative Organization 

Ministry of Labor, Manpower, and Social Security, general 
supervision. 

National Social Security Institute, administration of contributions 
and benefits. 

Family Allowances 

First law: 1951. 
Current law: 1961. 

Type of program: Employment-related system. 
Coverage 

Employed persons and social insurance beneficiaries with 1 or 
more children. Special system for public employees. 

Source of Funds 

Insured person: None. 
Employer: 4% of payroll. 
Government: None. 

Qualifying Conditions 

Family allowances: Child must be under age 16 (25 if student, no 
limit if disabled). 

Family Allowance Benefits 

Family allowances: 10% of legal minimum wage. 

Administrative Organization 

Ministry of Labor, Manpower, and Social Security, enforcement of 
law. 

National Social Security Institute, administration of program for 
social insurance beneficiaries in the Shaba region. 
In all other national territories, the employer must pay allowances 
to own employees. 

Please note: This information is more than 6 years old. 



Social Security Programs Throughout the World 



— 1997 



87 



COSTA RICA 



Old Age, Disability, Death 

First law: 1941. 
Current law: 1995. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 217.07 colones. 

Coverage 

Employed persons in public and private sector. 
Voluntary coverage for self-employed. 

Source of Funds 

Insured person: 2.5% of earnings. Self-employed, 4.50-7.25% of 
earnings. 

Employer: 4.75% of payroll. 

Government: 0.25% of total covered earnings. (Full amount not 
paid regularly in the past.) 

Qualifying Conditions 

Old-age pension: Age 61 and 1 1 months (men); age 59 and 
11 months (women). Required monthly contributions decrease with 
age at retirement; 466 at earliest retirement age, down to 240 at 
age 65 . 

Retirement from covered employment unnecessary. 
Payable abroad. 

Disability pension: Loss of 66-2/3% of usual earning capacity. 
Number of required contributions varies by age. 
Minimum: up to age 24, 12 contributions. 
Maximum: age 52-65, 120 contributions. 

Survivor pension: Deceased was eligibile for old age or disability 
pension, or had 12 contributions in the last 24 months, or 180 
contributions at any time. 

Old-Age Benefits 

Old-age pension: 60% of average earnings based on highest 
48 monthly wage or salary payments during last 5 years of 
coverage. Basic benefit increased by 0.0835% of average earnings 
for each month of contribution above 240. 
Increment of 1.5% , 2%, and 2.5% of pension for 1st, 2nd, and 
3rd year retirement is deferred beyond age of initial eligibility. 
Minimum pension: 21,000 colones a month (if computed amount 
smaller, lump sum is paid). 

Maximum pension: 226,056 colones a month (up to 319,869 

colones in case of deferred retirement). 

Schedule of payments: 13 payments a year. 

Adjustment: Adjustment of pensions twice a year, in January and 

July. 

Permanent Disability Benefits 

Disability pension: Same as old-age pension. 

Lump-sum grant: 7 months' average earnings. 

Schedule of payments: 13 payments a year. 

Adjustment: Adjustment of pensions twice a year, in January and 

July. 



Survivor Benefits 

Survivor pension: Widow or female companion under age 50, 
50% of pension of insured; 60% if survivor between ages 50 and 
under age 60; 70% if over age 60 or disabled. 
Minimum pension: one survivor, 70% of pension of insured; two 
survivors, 100%. Orphans: Under age 18, students (ages 18-25) or 
disabled, 30% of pension of insured. Dependents over age 55 or 
full orphan, 60%. Other eligible survivors: parents and siblings, 
20% for each. 

Maximum survivor pension: 100% of pension of insured. 
Funeral grant: Cost of burial; minimum, 20,000 colones: 
maximum, 80,000 colones. 

Adjustment: Adjustment of pensions twice a year, in January and 
July. 

Administrative Organization 

Costa Rican Social Insurance Fund, administration of program 

directed by executive president and 9-member board. 

A State Auditor supervises the financial operations of the Fund. 

Sickness and Maternity 

First law: 1943. 

Current laws: 1952 and 1982. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Employed persons, including self-employed. Pensioners also 
covered for medical benefits. 
Medical care: All residents. 

Source of Funds 

Insured person: 5.5% of earnings. Self-employed pay 6.43% of 
earnings (average). Pensioners pay 12.25% of pension. 
Employer: 9.25% of payroll. 
Government: 0.25% of total covered earnings. 

Qualifying Conditions 

Cash sickness and medical benefits: Contribution in month 
preceding onset of illness, and currently registered for cash 
sickness. For medical benefits, coverage begins in the month in 
which insured registers. 

Cash maternity benefits and maternity care: 26 weeks of 
contribution during last 52 weeks. Wife of insured eligible for 
maternity care if insured contributed in month preceding birth. 

Sickness and Maternity Benefits 

Sickness benefit: 60% of earnings during last 3 months. 
Maximum payment: there is no maximum limit. 
Maternity benefit: 50% of earnings, payable for 30 days before 
and 90 days after confinement for a total of 4 months. 

Workers' Medical Benefits 

Medical benefits: Medical services ordinarily provided directly to 
patients through medical facilities of Social Insurance Fund. 



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Social Security Programs Throughout the World — 1997 



COSTA RICA 



Includes general and specialist care, hospitalization, medicines, 
dental, auditory, and limited optometry services; maternity care, 
and appliances (at reduced cost). Social assistance to low income 
groups. 

Payable up to 52 weeks (may be extended in special cases). 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 

Lump sum death benefit: Minimum, 20,000 colones; maximum: 

80,000 colones (payable for insured, spouse or female companion). 

Administrative Organization 

Costa Rican Social Insurance Fund, administration of program. 
Fund owns and operates 29 hospitals and 152 clinics and is 
gradually extending jurisdiction over others according to law for 
integration of services with the Ministry of Health. 

Work Injury 

First law: 1925. 

Current law: 1982 (labor code). 

Type of program: Mixed compulsory and voluntary insurance with 
public carrier. 

Coverage 
Employed persons. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through insurance premiums varying 
according to risk. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 75% of daily earnings for first 
45 days; thereafter 100% of first 841 colones per day, 75% of 
earnings over 841 colones per day. 

Minimum benefit equals legal minimum wage at the time that the 
injury occurred. Payable from day of injury for up to 2 years. 

Permanent Disability Benefits 

Permanent disability pension: Total disability: If the incapacity is 
more than 67%, 100% of minimum wage plus 90% of earnings 
that exceed the minimum wage, payable monthly. 
Grants awarded to purchase, rent or modify a house. 
Partial disability: If the incapacity is between 50% and 67%, 
benefit equals 67% of earnings payable for up to 10 years. 
If the permanent incapacity is between 0.5% and 50%, benefit 
equals percent of incapacity times the annual earnings, payable for 
up to 5 years. May be extended for additional five year periods if 
the insured shows economic need. 

Constant attendance allowance: 14,000 colones a month (as of 
1993). 



Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
medicines, appliances, and rehabilitation. 

Survivor Benefits 

Survivor pension:Widow or disabled widower, 40% of earnings 
of insured if sole survivor; 30% if there are other eligible 
dependents. Payable for 10 years. May be extended for additional 
five year periods if there is economic need. 20% of earnings of 
insured payable to the mother or 30% if there are no dependent 
children, for 10 years. 

Orphans: 15% to 40% of earnings if 1-3 orphans under age 18 (25 
if student in higher education, no limit if disabled), 35% if full 
orphan (20% each if two or more). Also payable to dependent 
father or other dependent adults including those aged 60 and unable 
to work. 

Maximum survivor pensions: 75% of earnings of insured, provided 
this amount exceeds the minimum wage; if not, 100% of the 
minimum wage. 

Funeral grant: 35,000 colones (as of 1993). 
Administrative Organization 

Ministry of Labor and Social Security, enforcement of law. 
National Insurance Institute, administration of program. 

Family Allowances 

First law: 1974. 

Type of program: Social assistance. 
Coverage 

Indigent, old age, survivors and disability pensioners. 

Source of Funds 

Insured person: None. 

Employer: 5% of payroll. 

Government: Percent of yield of sales tax. 

Qualifying Conditions 

Family allowances: Payable to persons over age 65, disabled 
persons, widows with dependents under age 18 or disabled at any 
age, widows over age 50 with no dependents and those ineligible 
for benefits under contributory system with demonstrated need. 

Family Allowance Benefits 

Family allowances (means-tested): Up to 9,750 colones a month 
for a beneficiary with 3 or more dependents. Reduced benefit if 
fewer dependents. 

Administrative Organization 

Ministry of Labor and Social Security, general supervision. 
Social Development and Family Allowances Fund, direction of 
program. 

Costa Rican Social Insurance Fund, administration of program. 



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COTE D'lVOIRE 



Old Age, Disability, Death 



First law: 1960. 

Current laws: 1968, 1971, and 1988. 

Type of program: Social insurance system; also mandatory private 
pension system. 

Exchange rate: U.S. $1.00 equals 516 CFA francs. 
Coverage 

Employed persons. Exclusion: Self-employed, and certain 
categories of agricultural workers. Special system for public 
employees. 

Source of Funds 

Insured person: 1.6% of earnings. 
Employer: 2.4% of payroll. 
Government: None. 

Maximum earnings for contribution purposes: 1,647,315 CFA 
francs a month (45 times the guaranteed minimum wage). 

Qualifying Conditions 

Old-age pension: Age 55 with 10 years of covered employment 
after program began. Early retirement: Age 50; 5% reduction for 
each year under age 55. Retirement from gainful activity 
necessary. Payable abroad. 

Disability pension: Age 50, permanent incapacity for any work 
with 10 years of covered employment after the program began. 
Survivor pension: Deceased was pensioner or met requirements 
for pension. 

Old-Age Benefits 

Old-age pension: 1.33% of average earnings times years of 

coverage and periods of incapacity (some employment before 

program began credited toward coverage). 

Pension reduced by 5% for each year under age 55. 

Child's supplement: 10% of pension for each child under age 16; 

maximum, 30% of pension. 

Lump sum payment for workers over age 55 with less than 10 
years' employment. 

Permanent Disability Benefits 

Disability pension: About 1.33% of average earnings times years 
of coverage (some employment before program began credited 
toward coverage). 

Child's supplement: 10% of pension for each child under age 16. 
Maximum: 30% of pension. 

Disability allowance for workers age under age 50 with at least 
10 years of contributions, if ineligible for pension. At age 50 the 
allowance is converted to an old-age benefit without reduction. 

Survivor Benefits 

Survivor pension: 50% of pension of insured payable to widow 

married at least 2 years or with dependent child. 

Orphans: 20% of pension of insured for each full orphan under age 

16 (21 if student). Maximum for all orphans: 100% of pension of 

insured. 



Administrative Organization 

Ministry of Employment, Public Administration and Social 
Insurance, general supervision. 

National Social Insurance Fund, administration of program; 
managed by tripartite board. 

Sickness and Maternity 

First law: 1952. 

Current laws: 1964, 1968, 1971, and 1988. 

Type of program: Social insurance system. Cash maternity benefits 
only. 

Coverage 

Employed women and employed workers' wives. 
Special system for public employees. 

Source of Funds 

Insured person: None. 
Employer: 0.5% of payroll. 
Government: None. 

Maximum earnings for contribution purposes: 70,000 CFA francs 
a month. 

Qualifying Conditions 

Cash maternity benefits: 3 months of insured employment. 

Sickness and Maternity Benefits 
Sickness benefit: None provided. 

Maternity benefit: 100% of earnings. Paid monthly. 100% of 
costs of medical care provided in public hospital, or 5,000 CFA 
francs for confinement in private clinic or other establishment. 
Payable for 6 weeks before and 8 weeks (3 weeks more if 
complications) after confinement. Reimbursement from 3 months 
of pregnancy for pharmaceuticals. 

Workers' Medical Benefits 

Medical benefits: Medical care provided to insured worker by 
socio-medical centers of the Fund. 

Employers must provide medical services for their workers. 
Dependents' Medical Benefits 

Medical benefits for dependents: Health care provided to mothers 
and children at socio-medical centers managed by the National 
Social Insurance Fund. 

Administrative Organization 

Ministry of Employment, Public Administration and Social 
Insurance, general supervision. 

National Social Insurance Fund, administration of program. 
Work Injury 



First law: 1930. 

Current laws: 1968, 1971, and 1988. 
Type of program: Social insurance system. 



90 



Social Security Programs Throughout the World — 1997 



COTE D'lVOIRE 



Coverage 

Employed persons, seamen, certain self-employed, apprentices, 
and members of cooperatives. Self-employed may affiliate 
voluntarily. 

Source of Funds 

Insured person: None (except voluntarily affiliated self-employed). 
Employer: 2% to 5% of payroll, according to risk in industry. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 70,000 
CFA francs a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 50% of earnings for first 28 days of 
disability; 66-2/3% thereafter. Family benefits also payable. 
Payable from day following injury until recovery or certification of 
permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: For total disability, 100% of 
average earnings. 

Partial disability: Average earnings multiplied by the percentage of 
disability. 

Constant-attendance supplement: 40% of pension. 
Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
medicines, appliances, transportation, and rehabilitation. 

Survivor Benefits 

Survivor pension: 30% of earnings of insured. 

Orphans: 15% of earnings each for 1st and 2nd orphan, 10% for 

each other; 20% for each full orphan. 

Dependent parents and grandparents: 10% of earnings each. 

Maximum survivor pensions: 85% of earnings. 

Funeral grant: Lump sum covering cost of burial. 

Adjustment: Pensions adjusted yearly to changes in the average 

salary subject to contribution. 

Administrative Organization 

Ministry of Employment, Public Administration and Social 
Insurance, general supervision. 

National Social Insurance Fund, administration of contributions and 
benefits. 

Family Allowances 

First law: 1955. 

Current law: 1968, 1971, 1988 and 1995. 
Type of program: Employment-related system. 

Coverage 

Employees with 1 or more children. 



Special system for public employees. 

Source of Funds 

Insured person: None. 
Employer: 5% of payroll. 
Government: None. 

Maximum earnings for contribution purposes: 70,000 CFA francs 
a month. 

Qualifying Conditions 

Family allowances: Child under age 14 (18 if apprentice, 21 if 
student or disabled). Parent must have had 3 months of 
employment and be currently working 18 days or 120 hours a 
month (or be widow of beneficiary). 

Prenatal allowance and birth grant: Must undergo prescribed 
medical examinations. 

Family Allowance Benefits 

Family allowances: 1,500 CFA francs a month for each child. 
Prenatal allowance: 13,500 CFA francs payable in 3 installments. 
Birth grant: Lump sum of 18,000 CFA francs on birth of each of 
first 3 children. 

Maternity allowance: 18,000 CFA francs paid in 3 installments 

from birth through the child's first year. 

School allowance: One-time payment of 4,500 CFA francs per 

child. 

Some maternal and child health and welfare services also provided. 
Administrative Organization 

Ministry of Public Health and Social Affairs, general supervision. 
National Social Insurance Fund, administration of program. 



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91 



CROATIA 



Old Age, Disability, Death 



occurs before age 30. Compensation for loss or damage of a part of 
the body or of an organ: Insurance coverage during at least 1/3 of 
working life. 

Survivor pension: Deceased was a pensioner or had 5 years of 
insurance or 10 years of pensionable periods. 
Attendance supplement: All pensioners and some categories of 
handicapped employed persons who need constant care and 
attention of another person, means tested. 

Old-Age Benefits 

Old-age pension: At least 35% (men) or 40% (women) of average 
earnings during highest consecutive 10 years of insurance 
coverage. (Salaries adjusted by increase in average salaries.) 
Maximum pension: 85% after 40 years (men) or 35 years (women) 
of pensionable periods. 

Early retirement pension: Reduction of 1.33% for each year of 
early retirement. Reduction cancelled once pensioner attains 
normal retirement age. 

Minimum pension: 1,116.53 HRK per month. 
Maximum pension: 3,532.12 HRK per month. 
Adjustment: Periodic adjustment of pensions for changes in 

average wages. 



Permanent Disability Benefits 

Disability pension: Minimum pension: 45% (men) or 55% 
(women) of average earnings during highest consecutive 10 years 
of insurance coverage. Maximum pension: 85% after 35 years 
(men) or 30 years (women) of pensionable periods. 
Compensation benefit for loss or damage of a part of the body or 
of an organ: 12-40% from lump sum base according to the degree 
of disability (30%-100%). 

Constant attendance allowance: 332.61 HRK per month in case of 
total incapacity or 250.68 per month for partial incapacity. Blind 
persons receive 416.21 HRK. 

Adjustment: Periodic adjustment of benefits for changes in average 
wages. 

Survivors Benefits 

Survivor pension: 1 survivor, 70% of pension paid to deceased or 
accrued at time of death; 2 survivors, 80%; 3 survivors, 90%; 
4 survivors or more, 100%. 

Eligible survivors: Widows age 45 or widowers aged 60, or caring 
for eligible children, or disabled. Children up to age 15 (26 if 
student, without limit if disabled). 

Minimum benefits: 1,116.53 HRK per month for 4 or more family 
members, 1,004.88 HRK for 3 family members, 893.22 HRK for 
2 family members, and 781.57 HRK for one family member. 
Adjustment: Periodic adjustment of benefit for changes in average 
wages. 

Administrative Organization 

Ministry of Labour and Social Care: General supervision. 
Separate Pension and Disability Insurance Funds for employees, 
for the self-employed, and for farmers: Benefit administration. 
Joint management by representatives of persons insured and 
beneficiaries appointed by Government. 

Common administration for the three funds by the Central Office 
of the Republic Fund of Pension and Disability Insurance of 
Workers. The Central Office has 16 Regional Offices. 

Sickness and Maternity 

First law: 1954. 
Current law: 1993. 

Type of program: Social insurance system. 
Coverage 

Employed persons, public employees and non-agricultural 
self-employed persons. 

Medical care only: Self-employed agricultural workers, pensioners, 
and unemployed persons. 

Source of Funds 

Insured person: 7% of earnings; non-agricultural self-employed, 
14%; self-employed agricultural workers 11%. 
Employer: 7% of payroll. 

Government: Contributions from State and District budgets. 



First law: 1922. 

Current laws: 1983 and 1991. 

Type of program: Social insurance system. 

Exchange rate: US$1.00 equals 5.35 Croatian kunas (HRK) 

Coverage 

Persons employed in industry, commerce or services, public 
employees and apprentices. 

Special systems for self-employed workers in non-agricultural and 
agricultural areas. 

Source of Funds 

Insured person: 12.75% of earnings. 
Employer: 12.75% of payroll. 

Government: Covers all or part of the costs for civil servants, 
military personnel, police, etc. 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 55 (women) and 20 years of 
coverage; age 65 (men) or 60 (women) and 15 years of insurance 
coverage, and any age with 40 years (men) or 35 years (women) of 
coverage. 

Lower age requirements for persons employed in arduous or 
unhealthy employment in relation to the period completed in such 
occupations. 

Early retirement pension: Age 55 and 35 years of coverage (men) 
or age 50 and 30 years of coverage (women). 
Disability pension: Permanent and total loss of capacity to work in 
the same job or other comparable jobs (total disability). Insurance 
coverage during at least 1/3 of working life after age 20 (age 23 for 
insured persons with higher education; age 26 for insured persons 
with university degree). More favourable conditions if disability 



92 



Social Security Programs Throughout the World — 1997 



CROATIA 



Qualifying Conditions 

Cash benefits and medical services: No minimum qualifying 
period. 

Sickness and Maternity Benefits 

Sickness benefit: No fixed amount. Benefits vary between 80 and 
100% of the average monthly salary earned in previous 6 month 
period according to the cause of the absence. Payable for 14 
months. Employer pays for the first 42 days. 
Maternity benefit: 100% of salary for 180 days (from 28-45 days 
before estimated date of birth). Also payable during additional 
maternity leave until the child attains the age of 1 for the first and 
second child, or the age of 3 for twins and for the third and every 
subsequent child. 

Minimum sickness and maternity benefit: 1,540.00 HRK per 
month. Maximum amount: 4,188.25 HRK per month. 
Maternity grant: Lump sum payment of 1,360.00 HRK. 
Funeral grant: Lump sum payment of 850.00 HRK. 

Workers' Medical benefits 

Medical benefits: Provided by public or private medical services. 
Includes primary and specialist treatment, hospitalization, 
orthopedic and other aids, dental care, approved pharmaceuticals, 
laboratory services, maternity care, preventative care services, 
emergency aid, rehabilitation services, appliances and 
transportation. 

Cost sharing by patients varies according to the kind of service 
provided. 

Free services are provided for people with low incomes. 
Dependents' Medical Benefits 

Medical benefits: Same as for insured person. Medical care for 
children up to 15 years is free of charge. 

Administrative Organisation 

Ministry of Health: General supervision. 
Croatian Health Insurance Institute with 20 District Offices: 
Benefit administration. Institute is governed by tripartite Managing 
Council, composed of representatives of the medical professions, 
1 the insured and the employers. 

Work Injury 

There is no specific scheme. Benefits are provided by the programs 
for old age and disability insurance (pensions and other benefits) 
and health insurance (cash benefits and medical care). In all 
instances, benefits for work injury and occupational illness are 
granted under more favourable conditions and at higher rates than 
other benefits. 

Type of program: Social insurance program. 
Coverage 

Persons covered by insurance schemes for old age, disability and 
death and sickness. 



Source of Funds 

See contributions above for old age, disability and death; and 
sickness benefits. 

Qualifying Conditions 

Disability benefits in cases of work injury or occupational illness: 
No qualifying period required. 

Temporary Disability Benefits 

Cash sickness benefit: 100% of previous monthly salary. Payable 
for up to 14 months. Paid in full by employer. 
Temporary disability pension is not provided. 

Permanent Disability Benefits 

Permanent disability pension: 85% of average salary, 
independent of the number of years of insurance coverage. 
Minimum pension: 1,116.53 HRK per month. 
Compensation benefit for loss or damage of a part of the body or 
of an organ: Paid at higher rate than those specified for old-age, 
disability and death benefits not related to work injury and 
occupational illness. 

Workers' Medical Benefits 

Medical benefits: Provided through sickness insurance. 
Survivor Benefits 

Survivor pension: 85% of the pension regardless of pensionable 
period completed. Benefit ranges from 70%-100% of that amount, 
depending on number of family members. 

Administrative Organization 

Same as above for old age, disability and death; and sickness and 
maternity, above. 

Unemployment 

First law: 1952. 
Current law: 1996. 

Type of program: Social insurance system. 
Coverage 

Employed persons, public employees and military personnel. 
Source of Funds 

Insured person: 0.85% of earnings. 
Employer: 0.85% of payroll. 

Government: Periodic subsidies. Total or partial cost of special 
categories of persons. 

Qualifying Conditions 

Unemployment benefit: 9 months of uninterrupted employment 
or, if with interruptions, 12 months employment in last 18 months. 
No qualifying period required for unemployed mothers caring for 
children under 1 year of age, or for twins, third and every 
subsequent child under the age of 3. Persons whose employment 



Social Security Programs Throughout the World — 1997 



93 



CROATIA 



ceased as a result of his/her wilful misconduct or by agreement 
with employer are not entitled to unemployment benefit. 
Unemployed older workers with 30 years (men) or 25 years 
(women) of employment or within 5 years of retirement are also 
covered. 

Temporary incapacity for work for up to 12 months covered under 
unemployment program. 

Unemployment Benefit 

Unemployment benefit: 415.00-900.00 HRK per month for 78 to 
312 days depending on the duration of prior employment. 
Unemployment assistance: Payable to unemployed people who 
participate in vocational training and who are not eligible for 
unemployment benefit. 415.00 HRK per month. 

Administrative Organization 

Croatian Employment Institute, general supervision and 
administration of program. Institute managed by tripartite 
management committee. 

Benefit Administration: by central office, 21 regional offices and 
86 local offices. 

Family Allowances 

First law: 1949. 
Current law: 1977. 

Type of program: Social insurance system. 
Coverage 

Employed persons, public employees and military personnel. 
Source of Funds 

Insured person: 2.2% of earnings. 
Employer: None. 

Government: Total or partial cost of special categories of persons. 
Qualifying Conditions 

Family allowances: 12 months of uninterrupted employment or, if 
with interruptions, 20 months employment in last 2 years. No 
qualifying period required for employed single parent. 

Family allowances 

Family allowance: The rate depends on the amount and source of 
income received by family members. Single parents receive a rate 
45% higher, parents of handicapped children a rate 50% higher. 
Minimum benefit: 26.68 HRK. 
Maximum benefit: 430.20 HRK 

Administrative Organization 

Ministry of Labour and Social Care: General supervision. 
Administered by the Fund for Pension and Disability Insurance of 
Workers. 



94 



Social Security Programs Throughout the World — 



1997 



CUBA 



Old Age, Disability, Death 

First laws: Numerous laws and decrees established separate 
pension systems for over 50 different occupations, superseded and 
unified by 1963 law. Self-employed, liberal professions, charcoal 
makers, and members of fishery cooperatives brought into 
consolidated system in 1964. 
Current law: 1979. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 0.74 pesos. 

Coverage 

All wage earners. 

Special system for members of armed forces, Interior Ministry, 
self-employed, artists, and agricultural cooperatives. 

Source of Funds 

Insured person: None. (10% of earnings if self-employed.) 
Employer: 14% of payroll. 

Government: Makes up deficit and also contributes as employer. 
Above contributions also finance sickness and maternity and work- 
injury programs. 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 55 (women) with 25 years of 
employment (55 and 50 if last 12 years or 75% of employment is 
in dangerous or arduous work). 

Reduced pension, age 65 (men) or 60 (women) with 15 years of 
employment. 

Retirement unnecessary, but total current income cannot exceed 
former income. Not payable abroad. 

Disability pension: Full pension, physical or mental inability to 
work. Partial pension, inability to perform usual work. Employed 
when incapacity occurs if under age 23. If age 23 or over, number 
of years of employment needed to qualify increases with age. 
Partial pension at age 28 or older, requires 3 years of employment. 
Survivor pension: Deceased was employed or pensioner at death, 
or employed within 6 months thereof and for 3/4 of adult life. 

Old-Age Benefits 

Old-age pension: 50% of average earnings (that portion of 

earnings above 3,000 pesos a year is reduced by 50%) during 

highest 5 of last 10 years, plus 1 % of earnings for each year of 

employment beyond 25 years (1.5% if dangerous or arduous 

work). Increments of 1.5% to 4% for each year between the ages 

60 and 65 for men and between the ages 55 and 60 for women for 

each year of deferred pension, 1 % a year thereafter. 

Reduced pension, 40% of average earnings, plus 1% of earnings 

for each year of employment beyond 15 years. 

Minimum pension varies depending on level of average earnings 

and number of years of employment. 

Minimum pension: 59 pesos per month or 79 pesos per month or 
80% of wages, depending on average level of earnings and number 
of years of employment. 
Maximum: 90% of average earnings. 



Permanent Disability Benefits 

Disability pension: 40% of average earnings (that portion of 
earnings above 3,000 pesos a year is reduced by 50%) during 
highest 5 of last 10 years, plus 1 % of earnings per year of 
employment beyond 15 years. 

Minimum and maximum pensions: Same as old-age pension. 
Partial disability: 30% to 50% (40% to 60% in case of work injury 
or occupational disease) of lost earnings depending on number of 
years of employment up to 25 years, increased 1 % for each year of 
employment above 25 years. During rehabilitation, 70% of former 
earnings. 

If unable to find employment, 50% of former earnings in first year, 
25% thereafter. 

Survivor Benefits 

Survivor pension: If deceased was employed at time of death, 
pension will be 100% of of earnings the first month and 50% for 
the next two months; if deceased was receiving a pension, then 
100% of pension of insured for 3 months. Thereafter, 70%, 85%, 
or 100% of pension of insured for 1, 2, or 3 or more dependent 
survivors, respectively, (80%, 90%, or 100% if pension of insured 
is less than 60 pesos a month). Divided equally among eligible 
dependents. Eligible dependents: Widow or female that had 
permanent relationship and is single, needy widower or male that 
had permanent relationship and is single, age 60 or disabled, 
orphans under age 17 or disabled, and needy parents. 
Maximum pension for working widow: 25% of survivor pension. 
Nonworking widow under age 40 and without dependents receives 
full pension for 2 years. 

Widows age 40 or above who are unemployed receive complete 
pension. 

Administrative Organization 

Ministry of Labor and Social Security, administration of program 
through its Social Security and Social Assistance Directorate. 
Municipal social security offices and work centers process 
applications. Pensions paid through the Popular Savings Bank. 

Sickness and Maternity 

First law: 1934 (maternity benefits only). 
Current laws: 1974 (maternity) and 1979 (sickness). 
Type of program: Dual social insurance (cash benefits) and 
universal (medical care) systems. 

Coverage 

Cash sickness benefits: Employed persons, members of some 
producers' cooperatives, and workers under special systems. 
Cash maternity benefits: Employed persons. 
Medical benefits: All residents. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: Same. 

Government: Same. Also covers cost of medical services. 



Social Security Programs Throughout the World — 1997 



95 



CUBA 



Qualifying Conditions 

Cash sickness benefits: Currently employed. 
Cash maternity benefits: Currently employed with 75 days of 
employment in the 12 months preceding maternity leave. 
Medical benefits: Residence in country. 

Sickness and Maternity Benefits 

Sickness benefit: 60% of earnings (50% if hospitalized). 

Minimum benefit: 1.5 pesos a day (80% of earnings if wage is less 

than 1.65 pesos a day); maximum, 90% of earnings. Payable after 

3-day waiting period until medical certification expires (new 

certification by a medical committee is required every 26 weeks ) 

or disability pension granted. 

Tuberculosis benefit: 100% of earnings until cured. 

Maternity benefit: 100% of earnings, payable for 6 weeks before 

(8 weeks in some cases) and 12 weeks after confinement. 

Minimum benefit: 20 pesos a week. 

Maternity social benefit: beginning after the birth, if the mother is 
unable to work because she has to care for the child, she receives a 
social security payment of 60% of earnings until the child is 6 
months old. 

Workers' Medical Benefits 

Medical benefits: Free medical services provided to patients by 
public medical centers. Includes medical and dental care, maternity 
care, pre- and post-natal care, hospitalization, medicines during 
hospitalization, and rehabilitation. Provided until recovery. In work 
injury cases, also covers medicines when hospitalization not 
required and appliances. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for family head. 
Administrative Organization 

Ministry of Labor and Social Security, administration of program 
through its Social Security and Social Assistance Directorate. Work 
centers assume the costs and pay cash benefits. Ministry of Public 
Health supervises administration of medical services provided by 
public medical and hospital centers. 

Work Injury 

First law: 1916. 

Current law: 1979 (in effect, 1980). 

Type of program: Dual social insurance (cash benefits) and 

universal (medical care) systems. 

Coverage 

Employed persons and members of some producers' cooperatives, 
self-employed, and liberal professions. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: Same. 



Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 80% of earnings (70% if 
hospitalized). Minimum and maximum benefits: Same as sickness 
benefit above. Payable from the first day of incapacity until 
medical certification expires (new certification by a medical 
committee is required every 26 weeks) or disability pension is 
granted. 

Permanent Disability Benefits 

Permanent disability pension: 50% of average earnings during 
highest 5 of last 10 years, plus 1 % of earnings per year of 
employment beyond 25 years. Supplement for work injuries: 10% 
of pension. 

Constant-attendance supplement of another person: 20% of 
pension. Minimum and maximum pensions: Same as old-age 
pension above. Provisions for partial disability. 

Survivor Benefits 

Survivor pension: Same as survivor pension above. Free burial 
services provided by the government for all residents. 

Administrative Organization 

Ministry of Labor and Social Security, administration of program 
through its Social Security and Social Assistance Directorate. Work 
centers assume the costs and pay short-term cash benefits. Ministry 
of Public Health supervises administration of medical services 
provided by public medical and hospital centers. 

Family Allowances 

(Dependents of young workers conscripted into military service are 
eligible for assistance from Social Security Fund.) 



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Social Security Programs Throughout the World — 1997 



CYPRUS 



Old Age, Disability, Death 

First law: 1956. 

Current law: 1980 (social insurance), 1995 (social old-age pension) 
Type of program: Dual social insurance and non-contributory 
social old-age pension system. 
Exhange rate: U.S. $1.00 equals 0.46 pound (£). 

Coverage 

Employed and self-employed persons aged 16-64. 

Voluntary coverage for formerly covered persons and for Cypriots 

working abroad for Cypriot employers. 

Social old-age pension: Persons aged 68 who are entitled to a 

pension or similar payment from any source. 

Source of Funds 

Insured person: 6.3% of earnings (self-employed, 11.6% of 

earnings; voluntarily covered, 10% of earnings). 

Employer: 6.3% of payroll. 

Social old-age pension: None. 

Government: 4% of earnings. 

Social old-age pension: Total cost. 

Above contributions also finance cash sickness, maternity, 

work-injury, and unemployment benefits. 

Maximum earnings for contribution purposes: £ 331 a week. 

Qualifying Conditions 

Old-age pension: Age 65; age 63 for women born before 1/1/35. 
Age 63 if weekly average of real and credited earnings is at least 
equal to 70% of weekly basic earnings. (Basic earnings level is 
about 45.8% of national average wage.) 

Contribution conditions: contributions paid for at least 3 years and 
earnings in lower band (covered earnings up to basic earnings 
level) are 156 times weekly basic earnings, and weekly average 
earnings (paid and credited) since 1964 or age 16 are 25% of basic 
earnings. 

Widow may substitute husband's coverage record for her own for 
period prior to his death. 

Lump sum payable at age 68 to persons who do not meet 
contribution conditions; persons who satisfy first but not second 
condition receive lump sum of 15% of total covered earnings. 
Retirement necessary for miners aged 60-64. 
Social pension: Age 68 and 20 years residence after age 40, or 
35 years after age 18. 

Disability pension: Permanent incapacity for work. 
Contribution conditions: same as for old-age, plus paid or credited 
contributions in previous year must correspond to at least 20 times 
weekly basic earnings. (Alternatively, average of 20 times basic 
earnings in last 2 years.) 

If disability is caused by accident, same qualifying conditions as for 
cash sickness benefits below. 

Survivor pension: Contribution conditions: same as for old-age. 
(Lump sum paid if qualifying conditions are not met.) If death is 
caused by accident, same qualifying conditions as for cash sickness 
benefits below. 

For full orphans, 1 week of contributions paid by either parent. 
All pensions payable abroad. 



Old-Age Benefits 

Old-age pension: Basic pension equal to 60% of average basic 
credited earnings plus supplementary pension equal to 1.5% of 
average credited earnings above the basic for each year of 
contribution. 

Dependents' supplements: 20% of average basic credited earnings 
for 1st dependent, 10% each for 2nd and 3rd dependents. 
Schedule of payments: Pensions paid 13 times a year. 
Lump-sum payment: 15% of total credited earnings. 
Social pension: £ 92.56 per month. 

Adjustment: Past earnings are adjusted once a year according to 
changes in wages. Pensions in payment are adjusted in January and 
July each year (basic part according to changes in wages and 
supplementary part according to changes in prices). 

Permanent Disability Benefits 

Disability pension: Basic pension: Same as basic old-age pension, 
including dependents' supplements. 

Supplementary pension: For each year of contribution, the total of 
weekly average credited earnings projected to age 63 on the basis 
of average earnings during the 5 years preceding disability, 
multiplied by 1.5%. 

Schedule of payments: Pensions paid 13 times a year. 
Medical services provided in government hospitals and 
dispensaries. 

Adjustment: Same as old-age pension. 
Survivor Benefits 

Survivor pension: Same as basic old-age pension, plus 60% of 

supplementary old-age pension. 

Payable to widow or to dependent disabled widower. 

Lump-sum payment: Equal to 1 year's pension, payable upon 

remarriage. 

If not eligible for survivor benefits, same as for old-age pension. 
Orphans: £22.04 a week, plus 30% of supplementary old-age 
pension (60% divided equally among 2 or more orphans) to each 
full orphan under age 15 (23 if female, 25 for males if student or in 
military service, no limit if disabled). 

Lump sum equal to 1 year's orphan pension payable on termination 
of pension due to age. 

Half-orphan: £11.02 a week for first orphan, £5.51 per week for 
2nd and 3rd. 

Schedule of payments: Pension paid 13 times a year. 

Missing person's benefit: Same as basic old-age pension, including 

dependents' supplements for spouse or £22.04 a week for each full 

orphan. 

Funeral grant: £226 upon death of insured or pensioner, £113 upon 
death of dependent. 

Adjustment: Same as for old-age pension. 
Administrative Organization 

Ministry of Labor and Social Insurance, through Department of 
Social Insurance, administration of program. 
Program directed by Director of Social Insurance in Ministry and 
tripartite advisory Social Insurance Boaid 



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CYPRUS 



Sickness and Maternity 

First law: 1956. 
Current law: 1980. 

Type of program: Dual social insurance for cash benefits and 
national health service for medical care. 

Coverage 

Cash Benefits: Employed and self-employed persons aged 16-63. 
Voluntary coverage for Cypriots aged 16-63 working abroad for 
Cypriot employers. Persons between 64-65 are covered only if they 
are not entitled to old-age pension. 

Medical care: All residents of limited means, public employees, 
police, and members of the Armed Forces. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 

Government: Same. Also, whole cost of medical care. 
Qualifying Conditions 

Sickness benefits: 26 weeks of paid contributions and 

20 contributions paid or credited in last year. After entitlement is 

exhausted, person can requalify upon payment of 13 contributions. 

Maternity benefits: 26 weeks of paid contributions and 

20 contributions paid or credited in last year. 

Cash maternity grant: 26 weeks of paid contributions, and 

20 contributions paid or credited in last year. 

Medical benefits: Limited means. 

Sickness and Maternity Benefits 

Cash sickness benefit: 60% of basic credited average earnings in 
last year, plus supplement of 50% of average earnings above basic 
amount in last year, up to maximum of 2 times basic earnings. 
Dependents' supplements: Same as for old-age pension. 
Maximum cash benefit and supplements: £110.20 a week. 
Payable after 3-day waiting period (18 days for self-employed) for 
up to 52 weeks (minimum, 13 weeks plus 1 day for each 
contribution paid in excess of 26). 

Cash maternity benefit: 75% of average credited earnings during 
the last year. Payable for 16 weeks beginning between the 6th and 
2nd week before confinement. 

Maternity grant: £168. (Payable also to non-working wife of 
insured.) 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients in 
government hospitals and dispensaries. Includes medical treatment, 
hospitalization, maternity care, and medicines. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured person. 
Administrative Organization 

Ministry of Labor and Social Insurance, through Department of 
Social Insurance, administration of cash benefits. 



Program directed by Director of Social Insurance in Ministry and 
tripartite advisory Social Insurance Board. 
Ministry of Health, provision of medical services through 
government hospitals. 

Work Injury 

First law: 1942. 
Current law: 1980. 

Type of program: Social insurance system. 

Coverage 

Employed persons. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: £33.06 a week, plus £11.02 for 1st 
dependent, £5.51 each for 2nd and 3rd dependents. 
Minimum benefit and supplements: £55.10 a week. 
Supplement: 50% of average earnings above basic in last year. 
Maximum benefit and supplements: £110.20 a week. 
Payable after 3-day waiting period for up to 12 months. 

Permanent Disability Benefits 

Permanent disability pension: £33.06 a week. Supplementary 
permanent disability pension: 60% of average earnings above basic 
earnings in last 2 years. 

Dependents' supplements: £11.02 a week for 1st dependent, £5.51 
each for 2nd and 3rd dependents. 

Adjustment of earnings and pensions: Same as for old-age pension. 
Constant-attendance supplement: £17.98 a week. 
Partial disability: Percent of full pension proportionate to degree of 
incapacity (20%-99% disablement) or lump sum (10%-19%). 

Workers' Medical Benefits 

Medical benefits: Necessary medical treatment and hospitalization 
in government dispensaries and hospitals. 

Survivor Benefits 

Survivor pension: Same as basic permanent disability pension, 

plus 60% of supplementary permanent disability pension. Payable 

to widow or to dependent invalid widower. 

Lump-sum payment: Equal to 1 year's pension, payable upon 

remarriage. 

Orphans: £22.04 a week, plus 30% of supplementary permanent 
disability pension (60% divided equally among 2 or more orphans) 
to each full orphan under age 15 (23 if female, 25 for males if 
student or in military service, no limit if disabled). 



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Lump sum equal to 1 year's orphan pension payable on termination 
of pension due to age. Half-orphans: £11.02 for 1st orphan and 
£5.51 per week for 2nd and 3rd orphans. Dependent parent (if no 
spouse or child): £22.04 a week plus 30% of supplementary 
permanent disability pension. 
Funeral grant: £226. 

Administrative Organization 

Ministry of Labor and Social Insurance, through Department of 
Social Insurance, administration of contributions and cash benefits. 
Program directed by Director of Social Insurance in Ministry and 
tripartite advisory Social Insurance Board. 

Unemployment 

First law: 1956. 
Current law: 1980. 

Type of program: Social insurance system. 
Coverage 

Employed persons aged 16-63 (including voluntarily insured 
persons who work for Cypriot employers abroad). Employed 
persons between 64-65 are covered only if they are not entitled to 
old-age pension. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: Same. 

(6% of contributions paid by insured person, employer, and 
government are transferred to Unemployment Benefit Account to 
finance unemployment benefit.) 

Qualifying Conditions 

Unemployment benefits: 26 weeks of paid contributions and 
20 contributions paid or credited in last year. After entitlement is 
exhausted, requalification upon payment of 26 weeks of 
contribution. Capable of and available for work; weekly reporting 
at employment exchange. If unemployment is due to voluntary 
leaving, misconduct, direct participation in trade dispute, refusal of 
suitable offer, or failure to avail self of job opportunity, 
disqualification for up to 6 weeks. 

Unemployment Benefits 

Unemployment benefit: Same as cash sickness benefit, including 
supplements. 

Payable after 3-day waiting period (30 for voluntarily insured) for 
up to 26 weeks (minimum, 13 weeks, plus 1 day for each weekly 
contribution paid in excess of 26). 

Administrative Organization 

Ministry of Labor and Social Insurance, through Department of 
Social Insurance, administration of program. 
Program directed by Director of Social Insurance in Ministry and 
tripartite advisory Social Insurance Board. 



Family Allowances 

First law: 1987. 

Type of program: Universal system. 
Coverage 

All residents with 4 or more children. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 

Qualifying Conditions 

Family allowances: Residence in country. 

Family Allowance Benefits 

Family allowances: Family must include 4 or more dependent 
children. A child is dependent if: under 15; between 15-18 and 
unmarried; 18-25 and in military service; 18-25 if male and 
attending full-time education; 18-23 if female and attending 
full-time education; and disabled irrespective of age. 

Cash benefits for insured workers 

Family allowances: £24.12 per month for each dependent child. 
Adjustment: Benefits are adjusted in January each year according 
to changes in the cost of living index. 

Administrative Organization 

Ministry of Labor and Social Insurance, through Department of 
Social Insurance, administration of program. 
Program directed by Director of Social Insurance in Ministry and 
tripartite advisory Social Insurance Board. 



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99 



CZECH REPUBLIC 



Old Age, Disability, Death 

First laws: 1906 (salaried employees) and 1924 (wage earners). 
Current law: 1995. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 26.76 crowns. 

Coverage 

Employees, members of industrial production cooperatives, 
advanced students, farmers, artists, and self-employed persons. 

Source of Funds 

Insured person: 6.5% of earnings. 
Employer: 19.5% of payroll. 
Government: Any deficit. 

Above contributions also finance work-injury cash benefits. 
Maximum earnings for benefit purposes: 5,600 crowns a month, 
plus 30% of earnings between 5,600 and 11,200 crowns and 10% 
of earnings over 1 1 ,200 crowns. 

Qualifying Conditions 

Old-age pension: From January 1, 2007, men, age 62; women, 
age 57 to 61, according to number of children raised. (During the 
period from January 1, 1996 to December 31, 2006, retirement age 
is being gradually increased by 2 months per year for men and by 
4 months per year for women.) 25 years of insurance (15 years at 
age 65). Early retirement possible up to 3 years before normal 
retirement age (4 years after 2001; 5 years after 2006). 
Substantial limitation of work necessary during the first 2 years 
following retirement age. 

Disability pension: Total disability (66% loss of earning capacity), 
or partial disability (33% loss of earning capacity). 5 years of 
insurance in last 10 years (1-4 years if under age 28). 
Survivor pension: Deceased met pension requirements or was 
pensioner at time of death. 

Old-Age Benefits 

Old-age pension: Basic flat rate: 920 crowns plus earnings related 
portion of 1.5% of average indexed earnings for each year of 
insurance after 1985. 

Minimum pension: Basic flat rate plus 770 crowns. 

Increment of 4% per year of work and deferral of pension beyond 

normal retirement age. 

Reduction of 4% (for unemployed persons) or 2.4% per year in 
case of early retirement. 

Permanent Disability Benefits 

Disability pension: For total disability, basic flat rate of 1,060 
crowns plus earnings-related portion of 1.5% of average indexed 
earnings for each year of insurance after 1985. Minimum pension: 
Same as for old-age pension. 

Constant-attendance supplement: 300, 600, or 900 crowns per 
month, according to degree of disability. 
Partial disability: Basic flat rate of 1,060 crowns plus earnings- 
related portion of 0.75% of average indexed earnings per year of 
insurance. 



Survivor Benefits 

Survivor pension: Basic flat rate of 1,060 crowns plus 50% of the 
earnings-related portion of deceased's pension. Payable to all 
widows or widowers for 1 year; thereafter, only to widows age 55 
or widowers age 58, or any age if disabled, caring for dependent 
or disabled child or for disabled parent. 

Orphans: Basic flat rate of 1,060 crowns plus 40% of the earnings- 
related portion of deceased's pension for each dependent child (for 
full orphans, the basic flat rate is payable only once). 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
Social Security Administration, administration of benefits through 
joint office. 

Sickness and Maternity 

First law: 1888. 

Current laws: 1956 (cash sickness benefits), 1968 (maternity 

benefits), 1992 (medical care). 

Type of program: Social insurance system. 

Coverage 

Cash benefits: Employees, members of industrial production 
cooperatives, and advanced students. For self-employed persons 
sickness insurance is voluntary. 

Source of Funds 

Insured person: Cash sickness and maternity benefits, 1.1% of 
earnings. Medical care, 4.5%. 

Employer: Cash sickness and maternity benefits, 3.3% of payroll. 
Medical care, 9%. 
Government: Any deficit. 

Qualifying Conditions 

Cash sickness and medical benefits: Currently insured. No 
minimum period of coverage. 

Eligibility continues for 6 weeks after coverage ceases. 

Cash maternity benefits: 270 days of insurance in last 2 years. 

Eligibility continues for 6 months after employment ceases. 

Sickness and Maternity Benefits 

Sickness benefit: For 1st 3 days, 50% of earnings; from 4th day, 
69%. Maximum earnings for benefit calculation, 270 crowns a 
day. Payable from 1st day of incapacity for up to 1 year, or 2 years 
if recovery likely. 

Maternity benefit: 69% of earnings. Maximum, 186 crowns a 
day. Payable for 28 weeks (37 weeks for single mother and 
multiple births) including at least 6 weeks before confinement. 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients 
through facilities of public and private health service. Medical 
treatment, hospitalization, medicines, dental care (with limited cost 
sharing), maternity care, appliances, travel expenses, sanatorium 
and spa treatment, and partial cost of holiday camps. 



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Duration: No limit. 
Dependents' Medical Benefits 

Medical benefits for dependents: Same medical services as for 
family head. In addition, all resident children under age 18 receive 
medical care in own right, as do all women in case of maternity 
care. 

Administrative Organization 

Cash benefits: Ministry of Labor and Social Affairs, general 
supervision. Subsidiary offices on a regional and district level, 
administration of cash benefits. Employers of big firms pay 
employees' benefits. 

Medical services: Ministry of Health, general supervision. Social 
Security Administration, administration of program. Services 
provided through district health centers and hospitals, local health 
centers, and clinics in individual establishments and paid for by 
individual health insurance companies. 

Work Injury 

First law: 1887. 

Current laws: 1956 (short-term benefits), 1990 (self-employed), 
1995 (pensions). 

Type of program: Social insurance system. 
Coverage 

Employees and members of industrial production cooperatives, 
farmers and other self-employed persons. 

Coverage 

Insured person: See pension and sickness contributions, above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefits: Same as cash sickness benefits, 
above. 

Permanent Disability Benefits 

Permanent Disability Benefits: Same as for general disability, 

above. 

Workers' Medical Benefits. 

Medical benefits: Same as for ordinary sickness. 

Survivor Benefits 

Survivor benefits: Same as general survivor benefits. 
Funeral grant: Lump sum of 3,000 crowns. 
(In addition the Labor Code requires that employees or their 
suvivors receive a benefit for occupational accidents or 
occupational diseases.) 



Administrative Organization 

Temporary disability benefits: Ministry of Labor and Social 
Affairs, general supervision. Subsidiary offices on a regional and 
district level, administration of benefits. Employers of big firms 
pay employees' benefits. 

Permanent disability and survivor pensions: Ministry of Labor 
and Social Affairs, general supervision. Social Security 
Administration, administration of benefits through joint office. 
Medical benefits: Ministry of Health, general supervision. 
Services provided through district and local health centers and 
factory clinics. 

Unemployment 

First law: 1991. 

Current law: 1992 and 1996 (amendment). 
Type of Program: Social insurance system. 

Coverage 

Czech Republic citizens, at least 15 years old and capable of 
working. 

Source of Funds 

Insured person: 0.4% of earnings. 
Employer: 3.2% of payroll. 
Government: Any deficit. 

Qualifying Conditions 

Unemployment benefit: Registered with the Labor Office as 
looking for work. Employment for at least 12 months in the past 
three years. ("Substitute periods" can be considered employment, 
such as basic military service, care for a child up to age 4, etc.) 

Unemployment Benefits 

Unemployment benefit: 60% of earnings during first 3 months; 
50% for next 3 months; 70% in case of retraining. Maximum: 
4,788 crowns per month; 5,702 crowns in case of retraining. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision; Labor 
offices and district social security offices, administration of 
benefits. 

Family Allowances 

First law: 1945. 

Current law: 1995. 

Type of program: Universal system. 

Coverage 

Families with children. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 



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CZECH REPUBLIC 



Qualifying Conditions 

Family allowances: Dependent child (up to age 26 if student). 
Family Allowance Benefits 

Family allowances (means-tested): If family income below 1.1 of 
living minimum, benefit equal to 32% of living minimum of 
children for each child; if family income from 1.1 to 1.8 of living 
minimum, 28% of living minimum of children for each child; if 
family income from 1.8 to 3.0 of living minimum, 14% of living 
minimum of children for each child; if family income over 3.0 of 
living minimum, no entitlement. 
Birth grant: 4 times the living minimum of children. 
Parents' allowance: If caring for child at home, 1.1 of living 
minimum of adult persons up to age 4 of child. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
District social security offices, administration of benefits. 



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DENMARK 



Old Age, Disability, Death 

First laws: 1891 (old age) and 1921 (disability). 
Current laws: 1964 (employment-related pensions), 1986 (partial 
pension), and 1984 (social pension — includes old-age pension plus 
early pension providing income-tested benefits for survivors and 
the disabled). 

Type of program: Dual universal and social insurance systems. 

Note: Provisions and benefit amounts shown as of January 1996, 

unless otherwise specified. 

Exchange rate: U.S. $1.00 equals 5.84 kroner. 

(Note: Widow's and disability pensions were abolished as separate 

programs in 1984 and are part of the early pension program; for 

consistency they are reflected here in their usual position). 

Coverage 

Universal pension: Resident citizens; aliens meeting minimum 
residency requirements or covered by reciprocity agreements. 
Employment-related old-age pension: Employees (aged 16-66, 
including persons on parental leave, recipients of cash sickness or 
unemployment benefits). Exclusions: Self-employed. 

Source of Funds 

Insured person: Universal pension, none. Employment-related 
pension: up to 894 kroner (maximum tax, full time worker) a year. 
Employer: Universal pension, none. Employment-related pension: 
up to 1,788 kroner (maximum tax, full time worker) per employee 
a year. 

Government: Universal pension, financed by the national 
government. Employment-related pension, none. 

Qualifying Conditions 

Old-age pension: Universal pension: citizens at age 67; Full 

pension: 40 years' residence after age 15. 

Universal early pension: Age 18-66 if ability to work reduced by at 
least 1/2 for physical or mental reasons, age 50-66 if social and 
health related reasons. 

Income tested (age under 70): Annual income under 90,723 kroner 
(single), 136,084 kroner (married couple), plus 8,676 kroner per 
child. 

Universal partial pension: Aged 60-66, was employed full time for 
at least 10 years out of previous 20; must continue to work 12-30 
hours a week. 

Employment-related pension: payable at age 67. No income test. 
Payable abroad. 

Disability pension (anticipatory pension): Universal disability 
pension, age 18-59; ability to work reduced to negligible amount 
(full pension) or 2/3 (reduced pension — also paid at age 60-66 if 
work ability is negligible); other income below specified limits. 
Disability allowance: Ineligible for pension due to high earnings, 
but medically determined to have at least 66 2/3 diminution in 
work capacity or deafness resulting in serious communication 
problems. 

Survivor pension (anticipatory pension): Universal survivor 
pension, age 18-66; ability to work reduced by at least 1/2 for 
health and other reasons; other income below specified limits. 
Payable abroad. 



Old-Age Benefits 

Universal old-age pension: Basic amount, 3,810 kroner a month 
(income-tested)(as of January 1997). 

Supplement (income-tested): 1,880 kroner a month (singles); 1,629 
kroner a month (others). Special supplement for singles 
(income-tested): 2,268 kroner a month (only for period from 
1 January 1994 to 1 January 1988). 

Adjustment: Automatic adjustment of pensions each year for 
changes in the wage index. 

Partial pension: Maximum, 75,396 kroner a year if work reduced 
to 12 hours a week. 

Employment-related old-age pension: Average annual pension 
(1996) for new pensioners having paid full contribution from 1964 
to 1996: 14,500 kroner. 

Permanent Disability Benefits 

Disability pension: Universal disability pension — Full pension (if 
100% disabled) consists of basic pension amount of 3,810 kroner a 
month (income-tested), plus disability and unemployability 
supplements (1,854 kroner and 2,558 kroner a month, respectively, 
no income test); reduced pension (if 2/3 disabled), basic benefit 
plus pension supplement (same as old-age pension). 
Early pension supplement: 968 kroner a month (as of January 
1997). 

Assistance allowance: 1,930 kroner a month; constant-attendance 
allowance, 3,850 kroner a month (both, no income test). 
Disability allowance: 1,858 kroner a month. 
Adjustment: Automatic adjustment of pensions each year for 
changes in the wage index. 

Survivor Benefits 

Survivor pension: Universal survivor benefit (as of January 1997), 
3,810 kroner a month (income-tested) plus supplement (same as for 
old-age pension). 

Early pension supplement: 968 kroner a month (as of January 
1997). 

Adjustment: Automatic adjustment of pensions each year for 
changes in the wage index. 

Employment-related survivor benefit: Lump sum, related to the 
employment-related old-age pension paid or accrued to deceased. 
Payable to surviving spouse and each child under age 18. 
Funeral grant: Lump sum (maximum of 6,550 kroner, dependent 
on the assets of the deceased), provided under sickness insurance 
and adjusted for changes in price index. 

Administrative Organization 

Universal pension: Ministry of Social Affairs, general supervision 
and national administration. 

Local communal (municipal) governments: Local administration of 
pensions. 

National Directorate of Social Security and Assistance, administers 
universal pensions paid abroad. 

Employment-related pensions: Ministry of Labor, general 
supervision. 

Labor Market Supplementary Pensions Institution, administration 
of program. Managed by employee-employer board. 



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103 



DENMARK 



Sickness and Maternity 

First law: 1892. 

Current laws: 1971 (medical benefits) and 1972 (cash benefits). 
Type of program: Dual universal (medical benefits) and direct 
provision (cash benefits) systems. 

Coverage 

Medical benefits: All residents. 

Cash sickness benefits: Employees after 13 weeks with same 
employer, and self-employed. 

Cash maternity benefits: Employees and self-employed. 
Source of Funds 

Insured person: Cash and medical benefits, none. (Self-employed 
may voluntarily contribute to cash benefit insurance against initial 
3 weeks of incapacity.) 

Employer: Cash benefits, whole cost first 2 weeks. Medical 
benefits, none. 

Government: Cash benefits, local government whole cost 
beginning 3rd week. Medical benefits, whole cost (counties). 

Qualifying Conditions 

Medical benefit: Resident of Denmark. If moving from another 

country, 6 weeks' qualifying period. 

Cash sickness benefit: 120 hours employment in preceding 

13 weeks. 

Cash maternity benefits: 120 hours employment in preceding 

13 weeks. 

Sickness and Maternity Benefits 

Sickness benefit: Up to 2,625 kroner a week (as of January 1997), 
based on hourly wage; employees, payable from 1st day of illness; 
self-employed, payable from 4th week of illness (may insure 
voluntarily for 1st 3 weeks). 

Benefits under the national cash benefit program are payable 
weekly for 52 weeks within any 18-month period. 
Maternity benefit: Up to 2,625 kroner a week (as of January 
1997); employees, payable up to 28 weeks, including 4 weeks 
before and 24 weeks after confinement (father may take 2 weeks' 
paternity leave), plus up to 3 months if child hospitalized for 
disease contracted in connection with birth. 

Workers' Medical Benefits 

Medical benefits: Free service benefits with restricted choice of 
doctor, or patient pays part of expenses with free choice of doctor. 
Includes general practitioner care, specialist care, treatment by 
psychologists under special circumstances (70% of expenses), 
hospitalization in public hospital, 50% to 75% of cost of most 
prescribed drugs, maternity care by midwife or doctor, home 
nursing, chiropractic (30 percent of expenses), physiotherapy, 
limited dental care (the government pays 40% of most expenses) 
and transportation (pensioners only). Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for family head. 



Administrative Organization 

Ministry of the Interior and National Social Security Office, 
general supervision and national administration. 
Communal (municipal) and county governments, local 
administration. 

Work Injury 

First law: 1898. 
Current law: 1996. 

Type of program: Dual universal (medical benefits) and direct 
provision (cash benefits) systems; compulsory insurance with 
private carrier (disability pension). 

Note: Provisions and benefit amounts shown as of January 1997. 
Coverage 

Employed persons, and self-employed persons in fishing and 
shipping. Persons born with congenital injury/disease as a 
consequence of the mother's work/employment during early 
pregnancy. 

Source of Funds 

Insured person: None. Permanent disability, none. Self-employed, 
whole cost of insurance. 

Employer: Cash benefits, same as sickness and maternity. 
Permanent disability, whole cost of insurance through private 
carrier. 

Government: See Sickness and Maternity, above. 
Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: See sickness benefits, above. 
Permanent Disability Benefits 

Permanent disability pension: 80% of average earnings, if totally 
disabled. Maximum earnings: 305,000 kroner, adjusted annually 
for changes in average wages. 

Partial disability: Percent of full pension proportionate to loss of 
earning capacity, if 50% to 99% disabled. 
Lump sum equal to commuted value of partial pension, if 15% to 
49% disabled. At age 67, pension discontinued, lump sum of 
2 years benefit paid. 

Compensation for long-term incapacity to perform daily routine 
tasks: 369,000 kroner if 100% incapacitated; compensation 
reduced at lower degrees of incapacity. 
Adjustment: Automatic adjustment of benefits to changes in 
average wages. 

Workers' Medical Benefits 

Workers' medical benefits: Appliances only, or sometimes 
necessary specialist care (most medical services obtained under 
ordinary sickness insurance). 



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DENMARK 



Survivor Benefits 

Survivor pension: 30% of earnings of insured, paid up to 
10 years. Payable to spouse, or cohabitant of at least 5 years. 
Benefit not discontinued when contracting new marriage. At age 
67, pension discontinued, lump sum of 2 years' benefit paid. 
Orphans: 10% of earnings for each orphan, up to 40% maximum. 
20% each full orphan, up to 50% maximum. Payable through age 
18 (21 if student). Total survivor and orphans' pensions payable: 
70% of earnings of insured. 

Special death benefit: Lump sum of 96,000 kroner payable to 
spouse, or cohabitant of at least 5 years. 
Adjustment: Automatic adjustment of benefits to changes in 
average wages. 

Administrative Organization 

Ministry of Social Affairs, general supervision; National Board of 
Industrial Injuries, direct supervision. 

Unemployment 

First law: 1907. 

Current laws: 1970 (employees) and 1976 (self-employed). 
Type of program: Subsidized voluntary insurance system. 

Coverage 

Self-employed, and employees aged 16-65, young persons who 
have completed 18 months vocational training, admitted to 
approved unemployment funds established voluntarily by trade 
unions in industry, commerce, office work, agriculture, 
handicrafts, catering, transport, and quarrying. 

Source of Funds 

Insured person: Membership contribution for the unemployment 
fund. 

Employer: A part of the supplementary 3 % value-added tax base 
of the enterprise. 

Government: Cost above insured person's and employer 
contributions. Costs partially recouped from labor market 
contribution paid by employees and self-employed from January 
1,1995. 

Qualifying Conditions 

Unemployment benefit: Membership in unemployment fund 
during last 12 months (self-employed included) and 26 weeks of 
employment in last 3 years. Must be registered for employment, 
capable of and willing to work. 

Unemployment not due to voluntary leaving, misconduct, labor 
dispute, or refusal of suitable offer. 

Voluntary early retirement benefit: Resident aged 60-66 (including 
self- employed) and member of unemployment fund for 20 years 
during last 25 years, or 10 years during the last 15 if born before 
March 1, 1952. 



Unemployment Benefits 

Unemployment benefit: 90% of earnings, up to 525 kroner a day 
(as of January 1997). Payable from 1st day of unemployment, 5 
days a week for a limited duration. 

Voluntary early retirement benefit: 90% of earnings first 30 
months, 82% thereafter (up to 135,980 kroner and 111,540 kroner, 
respectively). May work up to 200 hours in 12 month period. 

Administrative Organization 

Ministry of Labor and National Employment Office, general 
supervision. 

Recognized unemployment funds (at least 5,000 members), 
national administration of program; usually managed by union 
officials. 

Local branches of funds, collection of contributions and payment of 
benefits. 

Family Allowances 

First law: 1952. 

Current law: 1986. 

Type of program: Universal system. 

Coverage 

Resident citizens, aliens having resided in Denmark 1 or more 
years (3 years for special supplement) or aliens covered by 
reciprocal agreements. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 

Qualifying Conditions 

Family allowances: Child must be under age 18. 
Family Allowance Benefits 

Family allowances: Basic annual allowance (as of January 1997), 
10,500 kroner per child 0-2 years old, 9,400 per child 3-6 years 
old, 7,400 kroner if 7-17 years of age. 
General supplement: 4,520 kroner a year per child (if single 
provider, pensioner, etc.). 

Extraordinary supplement: 3,452 kroner a year (for single parent 
or pensioner). 

Special supplement: 17,352 kroner a year (orphans) or 8,676 
kroner (children of pensioners and children of only one parent) 
multiple births, 5,588 kroner a year when 0-6 years of age; 
adoption, one-time grant of 32,212 kroner. 
Adjustment: Allowance and supplements adjusted once a year by a 
percentage fixed by law. 

Administrative Organization 

Ministry of Social Affairs, general supervision and national 
administration. 

Administered by local communal (municipal) governments. 



Social Security Programs Throughout the World — 1997 



105 



DOMINICA 



Old Age, Disability, Death 

First law: 1970 (provident fund). 
Current law: 1975. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 2.70 East Caribbean (E.C.) 

dollars. 

Coverage 

Employed and self-employed persons and apprentices aged 14-60. 
Source of Funds 

Insured person: 3% of earnings; self-employed, 7%. 
Employer: 6.75% of payroll. 
Government: None. 

Maximum earnings for contribution purposes: EC $60,000 per year 
(as of June 1,1995). 

Qualifying Conditions 

Old-age pension: Age 60 and at least 300 weeks of contributions 
paid or credited (with at least 150 actually paid). 
Disability pension: Under pensionable age, with 150 weeks of 
contributions paid or credited. 

Survivor pension: Fully insured or pensioner at death, married at 
least 3 years. 

Old-Age Benefits 

Old-age pension: 30% of average earnings in 3 best years of last 
10, plus 2% for every 50 weeks of contributions between 500 and 
750, and 1 % for every 50 weeks of contributions over 750. 
Maximum, 70% of earnings. 

Delayed retirement: Increase of 6% of the regular pension for 
every full year of postponement. 

Old-age grant: Lump sum of 3 times average weekly covered 
earnings for every 50 weeks of contributions paid or credited, if 
age 60 but ineligible for pension. 

Permanent Disability Benefits 

Disability pension: Same as old-age pension. 
Disability grant: Same as old-age grant. 

Survivor Benefits 

Survivor pension: 50% of pension of insured, payable at age 50 to 

widow or widower. If married less than 3 years, widow or 

widower receives survivor pension for one year. 

Orphans: 1/4 of pension of insured (1/3 if full orphan or disabled), 

payable to dependent children under age 16 (18 if full-time 

student). 

Minimum benefit: EC$40 per month. 

Maximum survivor pension: 100% of pension of insured. 

Survivor grant: Same as old-age grant. 

Funeral grant: EC$ 1,800. 

Administrative Organization 

Ministry of Health and Social Security, general supervision. 
Social Security Board, administration of program. 



Sickness and Maternity 

First and current law: 1975. 

Type of program: Social insurance system for cash benefits. 
Coverage 

Employed persons and apprentices aged 14-60. 
Source of Funds 

Insured person: See pension contribution above. 
Employer: Same. 
Government: None. 

Qualifying Conditions 

Cash sickness benefits: In current employment for the 

13 weeks immediately preceding illness, with 8 of the 13 weeks 

contributions actually paid. 

Cash maternity benefits: 30 weeks of contributions, with at least 
20 in the 30 weeks prior to 6 weeks before confinement. 
Cash maternity grant: Insured woman or non-insured spouse of 
worker, with at least 26 weeks of contributions paid in the last year. 

Sickness and Maternity Benefits 

Sickness benefit: 60% of average weekly earnings during last 
13 weeks, payable on the first day of illness, provided that the 
illness lasts beyond four days. Paid for up to 26 weeks. 
Maternity benefit: 60% of average weekly earnings during last 
30 weeks, payable 6 weeks before and 6 weeks after confinement 
(may be as late as 3 weeks before to 9 weeks after). 
Maternity grant: EC$500 (effective July 1,1996). 

Workers' Medical Benefits 

Medical benefits: Free medical services and supplies paid for 
through Government funds. 

Administrative Organization 

Ministry of Health and Social Security, general supervision. 
Social Security Board, administration of program. 

Work Injury 

First law: 1937. 
Current law: 1975. 

Type of program: Employer liability/compulsory insurance with 
private carrier. 

Coverage 

Employed persons and apprentices aged 14-60. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through direct provision of benefits or 
insurance premiums. 
Government: None. 



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Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Disability must last at least 3 days. 

Temporary Disability Benefits 

Temporary disability benefit: 60% of average earnings in last 
13 weeks for an adult; 66-2/3% of average earnings for a child 
(under age 17), until disability ends. If less than 13 weeks, the 
average for those weeks, with at least 2 weeks as the divisor. 

Permanent Disability Benefits 

Permanent disability benefit: Same as temporary disability. 
Partial disability benefit: Percentage of permanent benefit 
proportional to degree of disability, lump sum if more than 1 % and 
less than 30% disabled. 

Workers' Medical Benefits 

Medical benefits: Same as medical benefits under sickness for 
local cases, overseas cases subject to EC$3,000 maximum. 

Survivor Benefits 

Survivor benefit: Same as survivor pension above. 
Burial grant: ECS 1,800, effective June 1, 1995; for death of 
spouse, ECS 1,500 and for death of dependent child under age 18 
between EC$300-EC$1,200. 

Administrative Organization 

Ministry of Health and Social Security, general supervision. 
Social Security Board, administration of program. 



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DOMINICAN REPUBLIC 



Old Age, Disability, Death 

First law: 1947. 
Current law: 1948. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 13.39 pesos. 

Coverage 

Persons aged 14-59 (64 in some cases) who are employed, 
domestic workers, or wage earners in government-owned 
corporations. 

Exclusions: White-collar workers earning over 2,050 pesos a 
month, self-employed, family labor, and apprentices earning up to 
5 pesos a week. Special system for government employees. 

Source of Funds 

Insured person: 2.5% of earnings, according to 15 wage classes. 
Employer: 7.5% of payroll, according to wage class. 
Government: 2.5% of total taxable earnings and any deficit. 
Maximum earnings for contribution and benefit purposes: 2,050 
pesos a month. 

Above contributions also finance sickness and maternity benefits. 
Qualifying Conditions 

Old-age pension: Age 60 (65 if first covered after age 45) and 
800 weeks of contribution (reduced pension if 400-799 weeks). 
Retirement from covered employment necessary before age 65. 
Disability pension: Loss of 66-2/3% of earning capacity. 
250 weeks of contribution (reduced pension if 1-249 weeks). 
Survivor benefit: Deceased had 20 weeks of contribution in last 
year, was incapacitated by illness, or was pensioner at death. 
Funeral grant: 8 weeks of contributions in last 6 months or was 
pensioner at death. 

Old-Age Benefits 

Old-age pension: 40% of average earnings during last 2 years, 
plus 2% of earnings for each 100 weeks of contribution (or fraction 
thereof) in excess of 800 weeks. 

Dependents' supplements: 5% of average earnings for dependent 
spouse, child under age 14, or dependent relative over age 60 not 
in receipt of pension. 

Minimum pension: 500 pesos a month. Maximum: 70% of 
earnings. 

Reduced pension: Percent of full pension proportionate to number 
of weeks of contribution. 13th payment at Christmas may be 
awarded by the Board of Directors. 

Refund of contributions: Employee contributions paid, plus 5% 
accrued interest, if 1-399 weeks of contribution. 

Permanent Disability Benefits 

Disability pension: 40% of average earnings during last 2 years, 
plus 2% of earnings for each 100 weeks of contribution (or fraction 
thereof) beyond 250 weeks. 

Dependents' supplements: 5% of average earnings for dependent 
spouse, child under age 14, or dependent relative over age 60 not 
in receipt of pension. 



Minimum pension: 500 pesos a month. Maximum: 70% of 
earnings. 13th payment at Christmas may be awarded by the Board 
of Directors. 

Reduced pension: Percent of full pension proportionate to number 
of weeks of contribution. 

Survivor Benefits 

Survivor benefit: Lump sum of 60% of average earnings during 
last year. Payable to widow and to orphans under age 17; if none, 
to dependent parents or grandparents over age 60 or disabled (if 
not in receipt of another pension). 
Funeral grant: 50% of salary. 

Administrative Organization 

Board of Directors headed by Minister of Labor, general 
supervision. 

Dominican Social Insurance Institute, administration of program 
through 28 regional offices; managed by tripartite council and 
director-general. 

Sickness and Maternity 

First law: 1947. 
Current law: 1948. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Employed persons and wage earners in government-owned 
corporations; certain pensioners also covered for disability and/or 
medical benefits. 

Exclusions: White-collar workers earning over 2050 pesos a 
month, domestic workers, and family labor. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Cash sickness benefits: 6 weeks of contribution during last 

9 months (special provisions for unemployed, depending on 
number of months of previous contributions). 

Cash maternity benefits: 30 weeks of contribution during last 

10 months before childbirth. 

Medical benefits: Contribution in last week. For maternity care, 
15 weeks of contribution by insured woman in last 10 months; or, 
for wife of insured worker, 30 weeks of contribution by husband in 
last 10 months. 

Sickness and Maternity Benefits 

Sickness benefit: 50% of earnings (reduced by half if hospitalized). 
Payable after 3-day waiting period for up to 26 weeks. 
Maternity benefit: 50% of earnings, payable for 6 weeks before 
and 6 weeks after confinement. 



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DOMINICAN REPUBLIC 





Nursing allowance: 15% of earnings, payable in cash or kind for 
up to 12 months after child's birth. 

Workers' Medical Benefits 

Medical benefits: Free choice of medical services provided by 
medical facilities of Social Insurance Institute or by private 
facilities under contract. Includes general, specialist, and surgical 
care, hospitalization, medicines, midwife care, and dental 
treatment. 

Maximum duration: 26 weeks. 
Dependents' Medical Benefits 

Medical benefits for dependents: Wife of insured worker receives 
maternity care only. 

Newborn infant of insured woman receives pediatric care for 
12 months. 

Other medical services not provided to dependents. 
Administrative Organization 

Board of Directors headed by Minister of Labor, general 
supervision. 

Dominican Social Insurance Institute, administration of program. 
Institute operates own dispensaries and hospitals, but also contracts 
for other doctor, clinical, and hospital services. 

Work Injury 

First and current law: 1932. 
Type of program: Social insurance system. 

Coverage 

Manual employees of firms with 3 or more workers, or 5 or more 
in agriculture. 

Exclusions: Domestic servants and family labor. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through contributions varying with risk 
(average 2.5% of payroll). 
Government: None. 

Maximum earnings for contribution and benefit purposes: 
5,000 pesos a year. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: 50% of earnings. 
Maximum benefit: 30 pesos a week, not to exceed 2,400 pesos. 
Payable after a 3-day waiting period for up to 80 weeks. (May be 
extended for an additional 40 weeks at 25 % of earnings in case of 
permanent incapacity.) 

Permanent Disability Benefits 

Permanent disability pension: 50% of earnings, if totally 
disabled. Payable up to 160 weeks. 



Maximum pension: 30 pesos a week. Cumulative maximum: 
4,800 pesos. 

Partial disability: 50% of earnings for 5-120 weeks, depending on 
kind of accident. Cumulative maximum, 3,600 pesos. 

Workers' Medical Benefits 

Medical benefits: Same as provided under general health insurance 
program. 

Survivor Benefits 

Survivor pension: 50% of earnings. Payable for 166 weeks to 
widow or disabled widower and to orphans under age 18; if none, 
for shorter periods to other dependent relatives. 
Cumulative maximum: 5,000 pesos. 
Funeral grant: Up to 150 pesos. 

Administrative Organization 

Board of Directors headed by Minister of Labor, general 
supervision. 

Dominican Social Insurance Institute, administration of 
contributions and benefits through its Work Accidents Department. 

Please note: This information is more than 4 years old. 



Social Security Programs Throughout the World — 1997 



109 



ECUADOR 



Old Age, Disability, Death 

First law: 1928. 
Current law: 1988. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 3,506 sucres. 

Coverage 

Employees in industry, commerce, agriculture, government, 

independent, and self-employed. 

Optional for President of the Republic and Ministers. 

Exclusions: congressmen and family labor working in family 

enterprise ( father, mother, spouse, and sons under 18 years and 

dependents). 

Special system for peasants. 
Source of Funds 

Insured person: 6% of earnings in industry and commerce; 8% in 
banking; 8% in government; 8% in teaching; 6% in agriculture. 
Domestic workers, 6%. Self-employed, 10.39% of earnings; 
independent workers, 8.39%. 

Employer: 2.39% of payroll in industry and commerce; 2.39% in 

banking; 0.39% government employees; 0.39% teachers; 2.39% 

for agricultural and domestic workers. 

Government: 40% subsidy on pensions for old age, disability, 

death. 

Maximum limit for benefits: 10 times minimum wage. 

Minimum for contribution purposes: Legal minimum wage: 95,000 

sucres a month. 

Qualifying Conditions 

Old-age pension: Age 55 and 360 months of contribution, or at 
any age with 420 months of contribution; beginning with age 60, 
the minimum number of monthly contributions is reduced. 
Retirement necessary. 

Reduced pension at age 45 with 300 months of contribution and 6 
months of unemployment. 

Disability pension: 5 years of contribution. Incapacitated for all 
work. 

Survivor pension: 5 years of contribution by insured, or deceased 
was pensioner at death. 

Death grant: 6 months of contribution in last year. 
Old-Age Benefits 

Old-age pension: 75% of average earnings during 5 highest 
earnings years (need not be consecutive), plus increments of 1.25% 
of earnings per year of contribution beyond 30 years. 
Schedule of payments: 12 montly payments a year, plus 13th, 14th 
and 15th salaries. 

Minimum pension: Equal to legal minimum wage (95,000 sucres) 
plus Costs of Living Compensation (175,000 sucres) and 16th 
salary (15,833 sucres) in monthly payments. 
Also, annual payments of 13th (95,000 sucres), 14th (190,000 
sucres) and 15th (50,000 sucres) salaries. 



Adjustment: Pensions adjusted periodically for increases in the 
legal minimum wage, Costs of Living Compensation and increase 
in pensions. 

Permanent Disability Benefits 

Disability pension: 43.75% of average earnings during 5 highest 
years (need not be consecutive), plus increment of 1.25% of 
average earnings per year of contribution beyond 5 years. 

Survivor Benefits 

Survivor pension: 40% of pension of insured, payable to widow, 
disabled widower, common law wife of at least 2 years, or mother 
of deceased's children. 

Orphans: 20% of pension of insured, or 40% if full orphan, for 
each orphan under age 21 (no limit if disabled). 
Other survivors (if dependent on deceased): Mother or disabled 
father, 20% of pension; brother or sister under age 21, disabled, or 
student, 10% of pension each. 

When insured deceased paid under 60 contributions, these are 
refunded as lump sum. 

Minimum survivor pension: legal minimum wage plus living costs 
compensation for family group. 

Maximum survivor pension: 100% pension of insured for family 
group. 

Death grant: 21 times the minimum wage, less funeral grant below. 
Funeral grant: 10 times minimum wage. 

Administrative Organization 

Ministry of Social Welfare, general supervision. 

Ecuadorian Social Security Institute, administration of program. 

Sickness and Maternity 

First law: 1935. 

Current laws: 1942, 1964 and 1988. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

See old-age pension, above. 

Medical care available to all insured persons. 

Source of Funds 

Insured person: None for active insured and retired; widows not 
insured or retired contribute 4.15% of their widow pension for 
medical attention. 

Employer: 4.71 % of wages for medical benefits (includes 3.41 % 
for medical benefits; 1.30% subsidy for sickness and maternity). 
Government: None. 

Qualifying Conditions 

Cash sickness benefits: 6 months of contribution with at least 
2 months of contribution in six months prior to onset of illness. 
Cash maternity benefits: 6 months of contribution during year 
prior to birth. For self-insured, 12 contributions required. 



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ECUADOR 



Medical benefits: 26 weeks of contribution, including 8 weeks 
before illness. 

Sickness and Maternity Benefits 

Sickness benefit: For first 10 weeks, 75% of average earnings in 
3 months prior to onset of illness, payable after 4-day waiting 
period for up to 70th day; 66% thereafter up to a maximum of 180 
days. 

Maternity benefit: 75% of last earnings of insured; payable for 
12 weeks, for 2 weeks before and 10 weeks after confinement. 
Layette provided (cash equivalent to a general minimum wage. 

Workers' Medical Benefits 

Medical benefits: Medical services ordinarily provided directly to 
patients through medical facilities of Social Security Institute. 
Includes general and specialist care, surgery, hospitalization, 
medicines, laboratory services, and dental care. 

Dependents' Medical Benefits 

Medical benefits for dependents: Pediatric care for infants during 
first year, including drugs and hospitalization. 

Administrative Organization 

Ministry of Social Welfare, general supervision. 

Ecuadorian Social Security Institute, administration of program. 

Institute operates own clinics, dispensaries, and hospitals. 

Work Injury 

First law: 1921. 

Current laws: 1964 and 1988. 

Type of program: Social insurance system. 

Coverage 

All insured persons. 
Source of Funds 

Insured person: None; 1.5% for self-employed, voluntarily 
insured persons and artisans. 
Employer: 1.5% of payroll. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Occupational disease: 6 months of contribution. 

Temporary Disability Benefits 

Temporary disability benefit : For first 10 weeks, 75 % of 
average earnings in 10 weeks prior to onset of illness; 66% 
thereafter. If disability extends more than 1 year, 80%. 

Permanent Disability Benefits 

Permanent disability pension: 80% of average earnings during 
last year, or during previous 5 years if higher earnings (100% of 
earnings in severe cases). 



Partial disability: Percent of full pension proportionate to degree of 
disability, according to schedule in law. 
Schedule of payments: 15 payments a year. 

Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
appliances, medicines, and rehabilitation. 

Survivor Benefits 

Survivor pension: 40% of pension of insured to widows; 80% to 
orphans. 

Funeral grant: 24 times the minimum wage. 

Administrative Organization 

Ministry of Social Welfare, general supervision. 

Ecuadorian Social Security Institute, administration of program. 

Unemployment 

First law: 1951. 

Current laws: 1958 and 1988. 

Type of program: Social insurance system (lump-sum benefit). 
Coverage 

Employees in private and public sectors. 
Exclusions: Volunteers. 

Source of Funds 

Insured person: 2% of earnings. 
Employer: 1% of payroll. 
Government: None. 
(Additional insurance purchasable.) 

Qualifying Conditions 

Unemployment benefit : (lump sum): 24 months of contribution. 
Payable after at least 60 days of unemployment. 

Unemployment Benefits 

Unemployment benefit: Lump sum varying according to earnings 
and length of service (exact amounts fixed annually). 
Survivor benefit (lump sum): Paid to widow, children under age 
21, disabled widower, or, if none, certain other qualified relatives. 

Administrative Organization 

Ministry of Social Welfare, general supervision. 

Ecuadorian Social Security Institute, administration of program. 



Social Security Programs Throughout the World — 1997 



111 



Old Age, Disability, Death 

First laws: 1950 (social assistance) and 1955 (provident and 

insurance fund). 

Current laws: 1975 , 1984 . 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 3.40 pounds. 

Coverage 

Employed persons aged 18 and over (16 and over if government 
employees). Special systems for casual agricultural workers, 
domestic servants, and self-employed persons with modest income. 

Source of Funds 

Insured person: 14% of basic wage; 11% of variable wage. 

Employer: 26% of basic wage; 24% of variable wage. 

Government: 1 % of payroll plus any deficit. 

Basic wage is base pay up to 337.5 pounds per month (to be 

increased to 500 pounds over next few years). 

Variable wage is base pay over 500 pounds per month, plus certain 

other compensation, such as bonuses and commissions. 

Maximum earnings for contribution and benefit purposes consists 

of limit on combined basic and variable wage depending on wage 

class. 

Qualifying Conditions 

Old-age pension: Age 60. For pension based on basic wage, 
120 months of contribution. For pension based on variable wage, 
age 50 with 240 months of contribution. 
Retirement from insured employment. 

Disability pension: Total and permanent incapacity for any gainful 
employment. Contributions during 3 consecutive months, or for 
total of 6 months. 

Survivor pension: Deceased met contribution conditions for 
disability pension or was pensioner at death. 
Lump sum compensation (if not qualified for pension): Age 60; 
leaving country; totally disabled; widow age 51. 

Old-Age Benefits 

Old-age pension: 1/45 (up to 1/36 for periods of arduous work) of 
average monthly earnings during last 2 years times number of 
years of contribution up to 36 years (contribution periods under 
earlier public and private programs may be credited). 
Lump-sum benefit: 15% of average annual wage for each year of 
contribution over 36. 

Minimum pension: 55 pounds a month; maximum, 80% of average 
earnings or 590 pounds a month, whichever is less. 
Lump-sum compensation (if not qualified for pension): 15% of 
average annual wage during last 2 years times years of contribution. 
Special pension payable to all persons not covered under 
compulsory program; 25 pounds a month for universal pensions, 
21 pounds a month for social pensions. 

Permanent Disability Benefits 

Disability pension: 1/45 of average monthly earnings during the 
last year for each year of contribution plus 3 extra years, or 50% 



of average monthly earnings, whichever is greater. To the resulting 
amount is added half the difference between it and 80% of average 
monthly earnings. 

Constant-attendance allowance: 20% of pension. 

Partial disability: Lump sum of 4 years' pension proportionate to 

degree of disability, if less than 30% disabled. 

Minimum and maximum pensions: Same as under old-age pension. 

Lump-sum compensation (if not qualified for pension): 15% of 

average annual wage during last 2 years times years of contribution. 

Special pension payable to all persons not covered under 

compulsory program. 

Survivor Benefits 

Survivor pension: 1/45 of average monthly earnings during the 
last year for each year of contribution plus 3 extra years, or 50% 
of average monthly earnings, whichever is greater. To the resulting 
amount is added half the difference between it and 80% of average 
monthly earnings . 

Minimum pension: greater of 65% of average earnings or 29 
pounds per month. Maximum pension: Same as under old-age 
pension. Pension divided among following survivors according to 
schedule in law: dependent widow or widower; divorcee without 
other source of income and married at least 20 years; dependent 
sons and brothers under age 21 (26 if student, no limit if disabled); 
unmarried daughters and sisters; and dependent parents. Also 
payable to disabled widower. 

Lump-sum compensation (if not qualified for pension): 15% of 
average annual wage during last 2 years times years of contribution. 
Death grant: 3 times the wage or pension in month death occurred. 
Funeral grant: 2 month's pension; minimum, 100 pounds. 

Administrative Organization 

Ministry of Social Insurance, general supervision. 
Social Insurance Organization, administration of program through 
regional and district offices; managed by tripartite board. 
Insurance and Pensions Organization, administration of program 
for government employees through regional offices. 

Sickness and Maternity 

First law: 1959 (enabling provisions only) and 1964 (workers in 
public and private sectors). 
Current law: 1975. 

Type of program: Social insurance system (cash and medical 
benefits). 

Coverage 

Employed persons aged 18 and over (16 and over if government 
employees), and gradually being extended to students. 
Exclusions: Casual agricultural workers, domestic servants, and 
self-employed. 

Source of Funds 

Insured person: 1% of earnings. Pensioner pays 1% of pension. 
Widow, 2% of survivor pension (optional). 



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EGYPT 



Employer: 4% of payroll (may be reduced to 3% for employers 
that provide cash and medical benefits to own employees). 
Government: None. 

Qualifying Conditions 

Cash sickness and medical benefits: Contributions throughout last 

3 months, or for 6 months including last 2 months. 

Cash maternity benefits: Contributions throughout last 10 months. 

Sickness and Maternity Benefits 

Sickness benefit: 75% of daily wage during 1st 90 days of 
sickness; 85% of earnings thereafter. 100% of earnings payable in 
case of specified chronic diseases. Minimum benefit: 12 pounds a 
month. Payable for up to 180 days in a calendar year, or without 
limit on duration for specified chronic diseases. 
Maternity benefit: 75% of daily wage. Payable for up to 50 days 
before and after confinement, 3 months for government employees. 

Workers' Medical Benefits 

Medical benefits: Service benefits provided by employer, public, 
or other facilities under contract with the Health Insurance 
Organization which pays benefits directly. Includes general and 
specialist care, surgery, hospitalization, maternity care, dental 
care, laboratory services, medicines, appliances, and 
transportation. Patients required to pay small fees for some 
services. Maximum duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Medical care and treatment 
provided widow of the insured. 

Administrative Organization 

Ministry of Health, general supervision. 
Social Insurance Organization and Insurance and Pensions 
Organization, administration of contributions and cash benefits. 
Health Insurance Organization, administration of medical benefits 
through its own hospitals. Managed by tripartite board. 

Work Injury 

First law: 1936. 
Current law: 1975. 

Type of program: Social insurance system. 
Coverage 

Employed persons aged 18 and over (16 and over if government 
employees). Exclusions: Casual agricultural workers, domestic 
servants, and self-employed. 

Source of Funds 
Insured person: None. 

Employer: 3% of payroll (may be reduced to 2% or less if 
employer provides temporary disability benefits to own employees). 
Government: None. 



Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings. Payable from 1st 
day after injury until recovery or certification of permanent 
disability. 

Permanent Disability Benefits 

Permanent disability pension: 80% of average monthly earnings 
during last year (up to 100% when coupled with old-age, survivors 
or disability pension), if totally disabled. 

Minimum pension: 20 pounds a month; maximum, 200 pounds a 
month. 

Partial disability: Percent of full pension proportionate to degree of 
disability, if latter 35% or over. 

Lump sum of 4 years' pension proportionate to degree of 
incapacity, if less than 35% disabled. 

Both pensions increased by 5% each 5 years disability continues, 
up to age 60. 

Workers' Medical Benefits 

Medical benefits: General and specialist care, surgery, 
hospitalization, medicines, X-rays, appliances, and rehabilitation. 

Survivor Benefits 

Survivor pension: 80% of average monthly earnings of deceased 
during last year (up to 100% when coupled with old-age, survivors 
or disability pension). 

Minimum pension: 20 pounds a month; maximum, 200 pounds a 
month. 

Pension divided among following survivors, according to schedule 
in law: widow of any age, dependent sons and brothers under age 
21 (26 if student, no limit if disabled); unmarried daughters and 
sisters; and dependent parents. Any pension may be commuted to 
lump sum. Also payable to disabled widower. 
Funeral grant: 2 months' pension; minimum, 50 pounds. 

Administrative Organization 

Ministry of Social Insurance, general supervision. 
Social Insurance Organization and Insurance and Pensions 
Organization, administration of contributions and cash benefits. 
Health Insurance Organization, administration of medical benefits. 

Unemployment 

First law: 1959 (enabling provisions only). 
Current law: 1975. 

Type of program: Compulsory insurance system. 

Coverage 

Employed persons. 

Exclusions: Casual agricultural workers, domestic servants, family 
labor, public employees, and employees over age 60. 



Social Security Programs Throughout the World — 1997 



113 



EGYPT 



Source of Funds 

Insured person: None. 
Employer: 2% of payroll. 
Government: Any deficit. 

Qualifying Conditions 

Unemployment benefit: 6 months of contribution, including 
3 consecutive months. Able and willing to work; registration and 
regular reporting at manpower office. Unemployment not due to 
voluntary leaving, discharge for misconduct, refusal of suitable job 
offer, or refusal of training. 

Unemployment Benefits 

Unemployment benefit: 60% of last monthly wage. Payable after 
7-day waiting period for up to 16 weeks (may be extended to 28 
weeks if contributions paid throughout last 24 months). 

Administrative Organization 

Ministry of Social Insurance, general supervision. 

Social Insurance Organization, administration of program, in 

collaboration with local manpower offices. 

Note: This information is more than 8 years old. 



114 



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EL SALVADOR 



Old Age, Disability, Death 



First law: 1953 (pension provisions first implemented in 1969). 
Current law: 1996 (mandatory private insurance, to be 
implemented in 1997). 

Type of program: Social insurance system and mandatory private 
insurance. 

Exchange rate: U.S. $1.00 equals 8.76 colones. 
Note: The 1996 law established a new private insurance system 
while eventually phasing out the old social insurance system. Until 
the new private system is implemented, sometime in 1997, the old 
one remains in force, referred to below as the old system. Once 
the provisions for private pensions are implemented, the old social 
security system will be closed to new entrants and modified, 
referred to below as the public system. Provisions of the new 
private system are referred to below as private system. 

Coverage 

Old system — Employees in industry, commerce, and services, 
domestic employees and self-employed. Exclusions: Agricultural, 
and casual labor. Special system for public employees. 
Public system — Within the first 6 months of implemention of the 
private system all insured who are more than 36 and less than 55 
years old may remain in old system. Closed to new entrants. 
Private system — All employees in private, public, and municipal 
sectors. 

Source of Funds 

Old system — Insured person: 1 % of earnings. Recipients of 
sickness, maternity, and work-injury benefits also contribute 2% of 
benefits. 

Employer: 2% of payroll. 
Government: 0.5% of earnings. 

Maximum earnings for contribution and benefit purposes: 18,414 
colones a month; minimum, 300 colones a month. 
Public system: Insured person 3.5% of earnings (rising gradually 
to 7% by 2002). 

Employer: 4.5% of payroll (rising gradually to 7% by 2002). 
Government: For those individuals who switch to the private 
system, payment of value of insured's contributions under the old 
system. 

Private system: Insured person: 3% of earnings for the first year 
to cover administrative costs; 1 % for the second year, rising to 
3.25% in the seventh year. Additional cost for disability and 
survivors' insurance. 

Employer: 4.5% of earnings for the first year to cover 
administrative costs; 5% for the second year, rising to 6.75% in 
the seventh year. 

Government: Guarantees minimum pension. 

Minimum earnings: legal minimum wage. Ceiling for contribution 

purposes: gross monthly earnings. 

Qualifying Conditions 

Old system — Old-age pension: Age 60 (men) or 55 (women) with 
750 weeks of contribution. Reduced pension payable up to 5 years 
earlier with 1,250 weeks of contribution, if unemployed during 



preceding 12 months or 50% disabled due to unhealthful or 
arduous occupation. Retirement necessary. Payable abroad. 
Old-age settlement: Age 60 (men) or 55 (women), with at least 
250 weeks of contribution and unemployed during preceding 

3 months. 

Disability pension: Loss of 2/3 of earning capacity. Contribution 
requirement varies with age, ranging from 100 weeks during past 

4 years to 300 weeks during last 1 1 years. 

Survivor pension: Deceased was pensioner, or covered at death 
with at least 750 weekly contributions. 

Public system — Old-age pension: Age 60 (men) and 55 (women) 
with 25 years of contribution. If 30 years of contribution, no age 
requirement. 

Old-age settlement: Age 60 (men) and 55 (women) with 50 weeks 
of contributions and earnings less than minimum salary. 
Disability pension: Loss of 2/3 earnings capacity for total 
disability and 50-66% for partialy disability with 36 months of 
contributions half of which must have been in the 6 months prior to 
onset of disability. Applies to those below age 60 (men) or 55 
(women); at these ages, become eligible for old-age pension. 
Survivor pension: Deceased was old-age or disability pensioner or 
had 5 years of contributions or 12 months of unemployment, or 
10 years of contributions with 12 months of unemployment. 
Private system — Old-age pension: Age 60(men) or 55 (women) 
with 25 years of contributions or no age requirement with 30 years 
of contributions. Retirement also permitted if pension equals at 
least 70% of basic earnings or 160% of current minimum pension. 
Disability pension: Loss of 2/3 earning capacity for total disability 
or 55-66% for partial disability. Has not reached the age 
requirements for an old-age pension. 

Survivor pension: Deceased was pensioner or had 6 months of 
contributions in the 12 months prior to death. 

Old-Age Benefits 

Old system — Old-age pension: 40% of average monthly earnings, 
plus 1.25% of earnings for each 50 weeks of contribution beyond 
150 weeks. Minimum: 700 colones a month. 
Increment of 3% of earnings for each 50 weeks retirement deferred 
beyond pensionable age. 

Maximum pension: 90% of average monthly earnings. 
Reduced pension: 30% of average monthly earnings, plus 1.25% 
of earnings for each 50 weeks of contribution beyond 150 weeks. 
Old-age settlement: Lump sum equal to 50% of monthly earnings 
for each 50 weeks of contribution or fraction thereof. 
Adjustment: Pensions adjusted to increases in cost of living. 
Public system — Old-age pension: 30% times 3 years of 
contributions at the base salary. Base salary is equal to the average 
of the last 120 months of earnings. Increment of 1.5% for each 
additional year. Minimum pension: 700 colones per month. 
Maximum pension: 100% of base salary. 
Old-age settlement: 10% of base salary for each month of 
contribution. 

Private system — Old-age pension: Insured's contributions plus 
accrued interest. Value of insured's contributions under the public 
system provided as indexed bond. At retirement, insured may 
make withdrawals from individual account, regulated to guarantee 
income 



Social Security Programs Throughout the World — 1997 



115 



EL SALVADOR 



9 



for expected lifespan, or buy annuity from private insurance 
company, or a combination of the two. 

Permanent Disability Benefits 

Old system — Disability pension: 40% of average monthly 
earnings, plus 1.25% of earnings for each 50 weeks of contribution 
beyond 150 weeks. Minimum: 700 colones a month. Granted 
initially for provisional period of 2-3 years. 
Constant-attendance supplement: 20% of average monthly 
earnings. 

Maximum pension: 90% of earnings. 
Public system — Disability pension: 30% times 3 years of 
contributions at the base salary. Base salary is equal to the average 
of the last 120 months of earnings. Increment of 1.5% for each 
additional year. Minimum pension: 700 colones per month. 
Private system — Disability pension: 70% of base salary for total 
disability; 50% for partial disability. 

Survivor Benefits 

Old system — Survivor pension: 60% of pension paid or accrued 
to insured. Payable for life if widow over age 55 or disabled; 
otherwise for 3 years or until minor children reach age 16. 
Orphans: 30% of pension paid or accrued to insured, or 40% if full 
orphan, for each child under age 16 (21 if student) or disabled. 
Other survivors: 60% of pension for 2 surviving parents, 40% for 
one. 

Maximum survivor pensions: 90% of pension of insured. 
Funeral grant: 2 month's earnings. Minimum, 2,768.40 colones. 
Public system — Survivor pension: 50% of pension of insured 
payable to widow (married at least 6 months prior to death of 
insured), female companion (cohabiting for the last 3 years prior to 
death of insured, except if pregnant, has child or is disabled) and 
disabled widower. 

Orphans: 25-40% of pension of insured for each child less than 18 
years old (24 if student, no limit if disabled) up to a maximum of 
100%, 

Other eligible survivors: direct descendants, 40% of pension of 
insured. 30% each to father at least age 60 and mother at least age 
55. 

Funeral grant payable under Sickness and Maternity, below. 
Private system — Survivor pension: 60% of pension of insured 
payable to spouse with no eligible children; 50% if children. 25% 
to each child. 20% each to father and mother, 30% if only one. If 
no spouse, 40% each to father and mother; 80% if only one. 

Administrative Organization 

Public System: Salvadorian Social Insurance Institute, an 
autonomous agency, responsible for planning, management and 
administration of program. 

Supervised by board of twelve directors including the Minister of 
Labor, representatives of other ministries, the Director of Social 
Insurance, and representatives of management, labor and other 
professional groups. 

Private system: Superintendent of Pension Fund Management 
Companies, general supervision. 

Individual pension fund management companies (AFP's), 
administration of individual capitalization accounts. 



Sickness and Maternity 

First law: 1949. 
Current law: 1953. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Employed and self-employed persons in industry and commerce 
and pensioners. Exclusions: Agricultural, domestic, and casual 
employees. Special system for public employees. (When new 
system is implemented, public employees' health care system will 
be unified.) 

Source of Funds 

Insured person: 3% of earnings. Self-employed, 10.50% of 
earnings. Pensioners, 7.8% of old-age and disability pensions; 6% 
of work injury pensions. Covered public employees, 2.67% of 
earnings. 

Employer: 7.50% of payroll. Covered public employees, 6.68% 
of payroll. 

Government: Annual subsidy of not less than 5,000,000 colones 
(adjusted every 5 years). 

Maximum earnings for contribution and benefit purposes: 6,000 
colones a month; minimum, 300 colones a month. 
Above contributions also finance work-injury benefits. 

Qualifying Conditions 

Cash sickness benefits: No minimum qualifying period for 
persons currently employed. If unemployed, 8 weeks of 
contribution during last 3 calendar months preceding application. 
Maternity benefits: 12 weeks of contribution during last 
12 calendar months before confinement. 
Medical benefits: No minimum qualifying period for persons 
currently employed. If unemployed, 8 weeks of contribution during 
last 4 months preceding application. 

i 

Sickness and Maternity Benefits 

Sickness benefit: 75% of average monthly earnings received 
during first 3 of last 4 months. 

Payable after 4-day waiting period for up to 52 weeks. 
Maternity benefit: 75% of average earnings, payable for up to 
12 weeks. Also, free milk for up to 12 weeks with medical 
prescription and layette. 

Workers' Medical Benefits 

Medical benefits: Medical services ordinarily provided through 
facilities of Social Insurance Institute or private services. Home 
care available in emergency cases. Includes medical and surgical 
care, hospitalization, drugs, laboratory services, maternity care, 
dental care, and appliances. Duration: 26 weeks (may be extended 
to 52 weeks). 

Dependents' Medical Benefits 

Medical benefits for dependents: Wife receives pre- and 
post-natal care, milk allowance, layette, and medical and dental 



116 



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EL SALVADOR 



benefits for sickness and accidents. Children up to age 6 receive 
ambulatory care but no dental care. 

Administrative Organization 

Salvadorian Social Insurance Institute, an autonomous agency, 
responsible for planning, management and administration of 
program. Supervised by board of twelve directors including the 
Minister of Labor, representatives of other ministries, the Director 
of Social Insurance, and representatives of management, labor, and 
other professional groups. 

Institute operates own clinics and hospitals; it also contracts 
services from the Ministry of Health and the private sector where 
required. 

Work Injury 

First law: 1911 (replaced by 1963 labor code, in force for workers 
to whom social insurance not yet extended; provisions not shown). 
Current law: 1953 (social insurance). 
Type of program: Social insurance system. 

Coverage 

Employed and self-employed persons in industry and commerce. 
Exclusions: Domestic and casual employees. 
Special system for public employees. 

Source of Funds 

Insured person: See sickness insurance contributions above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 75% of average monthly earnings 
received during first 3 of last 4 months. Payable from day after 
injury, until recovery or award of pension, for up to 52 weeks. 

Permanent Disability Benefits 

Permanent disability pension: 70% of average monthly earnings 
during last year if disability greater than 66%. Minimum: 700 
colones a month. 60 colones a month for each dependent child 
under age 16 (21 if student) or disabled. 
Child's supplement: Same as old-age benefit. 
Constant-attendance supplement: 50% of pension. 
Partial permanent disability: Percent of full pension corresponding 
to loss of earning capacity, if disability between 35% and 66%; if 
between 20% and 35%, temporary pension equal to double amount 
of permanent pension according to percent of disability, payable 
for up to 3 years. 

Workers' Medical Benefits 

Medical benefits: Same as for ordinary sickness above. 



Survivor Benefits 

Survivor pension: Same as survivor pension under Old Age 
Disability Death, above. 

Funeral grant: 2 month's earnings during the 2 years prior to death 
of insured. 3,811.4 colones. 

Administrative Organization 

Salvadorian Social Insurance Institute, an autonomous agency, 
responsible for planning, management and administration of 
program. 

Supervised by board of twelve directors including the Minister of 
Labor, representatives of other ministries, the Director of Social 
Insurance, and representatives of management, labor, and other 
professional groups. 

Institute operates own clinics and hospitals.; it also contracts 
services from the Ministry of Health and the private sector where 
required. 



Social Security Programs Throughout the World — 1997 



117 



EQUATORIAL GUINEA 



Old Age, Disability, Death 

First law: 1947. 

Current laws: 1984 and 1990. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 516 francs. 

Coverage 

Employees, public officials, military, self-employed, clergy, 
members of production cooperatives, students and other groups. 

Source of Funds 

Insured person: 4.5% of earnings. 
Employer: 21.5% of earnings. 

Government: No less than 25% of annual social security receipts. 
Qualifying Conditions 

Old age pension: Age 60 and 120 months of contributions of 
which 60 were in the 10 years immediately preceding retirement. 
Required period of contributions reduced for public officials and 
members of the military who were between 50 and 60 years old 
when the law was first implemented. 

Disability pension: Substantial inability to perform all types of 
work or total inability to perform usual occupation. 
Partial disability: Partial inability to perform usual occupation. 
Survivors' pension: Deceased was insured or pensioner at death. 

Old-Age Benefits 

Old age pension: 40% of average salary in last two years. 
Increase of 2% for each year of contribution over 10 years, up to 
80% of average salary. 

Permanent Disability Benefits 

Disability pension: Disabled for all types of work: 40% of base 
salary. 

Constant attendance supplement: 80% of base salary. 
Partial disability: 40% of base salary payable for 6 months. 

Survivor Benefits 

Survivor pension: 40% of base salary payable to widow with 
children, widow over age 30 or disabled. If the deceased was a 
pensioner, 80% of pension of deceased. Childless widow under age 
30 receives pension for 24 months only. Also payable to dependent 
widower. 

Orphans: 20% of base salary up to age 14 (no limit if student or 
disabled). Benefit is doubled if there is no surviving spouse. 
Funeral grant: 2 months of base salary. 

Administrative Organization 

Ministry of Labor, Social Security and Women's Welfare. 
Social Security Institute, administration of program. 

Sickness and Maternity 

First law: 1947. 

Current laws: 1984 and 1990. 



Type of program: Social insurance. 
Coverage 

Employees, public officials, military, self-employed, clergy, 
members of production cooperatives, students and other groups, 
insured's family members, pensioners and the disabled. 

Source of Funds 

See Old Age, Disability, Death, above. 
Qualifying Conditions 

Temporary disability: One year of contributions immediately 
prior to incapacity. Payable to insured and wife of insured. 
Maternity benefit: One year of contributions immediately prior to 
birth. 

Sickness and Maternity Benefits 

Temporary disability: 50% of base salary, payable from the 
fourth day of incapacity. 

Maternity benefit: 75 % of base salary 6 weeks before and 6 
weeks after confinement. 

Workers' Medical Benefits 

Medical Benefits: Medical care up to 26 weeks, according to fee 
schedule. 

Free medicine during hospitalization and during pregnancy and 
post-natal period. 

In all other cases, insured pays 50% of cost of medicine. 
Dependents' Medical Benefits 

Medical Benefits for Dependents: Same as for insured. 
Administrative Organization 

Ministry of Labor, Social Security and Women's Welfare. 
Social Security Institute administers system and provides medical 
assistance according to agreements with public and private medical 
and pharmaceutical facilities. 

S i 

Work Injury 

First law: 1947. 
Current laws: 1984 and 1990. 
Type of program: Social insurance system. 

Coverage 

Employees, public officials, military, self-employed, clergy, 
members of production cooperatives, students and other groups. 

Source of Funds 

See Old Age, Disability, Death, above. 
Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: Same as for sickness benefits. 



118 



Social Security Programs Throughout the World — 1997 



EQUATORIAL GUINEA 



Permanent Disability Benefits 

Permanent disability pension: Total incapacity for all work, 50% 
of base salary. Inability to perform usual occupation: 50% of base 
salary, payable for 48 months. 

Partial disability pension: Inability to perform usual occupation: 
50% of base salary, payable for 24 months. 
Constant attendance supplement: 100% of base salary. 

Workers' Medical Benefits 

Medical benefits: Free medical care and medicines. 

Survivor Benefits 

Survivor pension: 50% of base salary. 
Administrative Organization 

Ministry of Labor, Social Security and Women's Welfare. 
Social Security Institute, administration of program. 

Family Allowances 

First law: 1950. 

Current laws: 1984 and 1990. 

Type of program: Social insurance system. 

Coverage 

Employees, public officials, military, self-employed, clergy, 
members of production cooperatives, students and other groups. 

Source of Funds 

See Old Age, Disability, Death, above. 
Qualifying Conditions 

Family allowances: Insured must be married, widow with 
children, or single with natural children. Dependents related to 
insured, if under 14 years of age, student or disabled may also 
qualify. 

Family Allowance Benefits 

Family allowances: Determined according to a family point system 
set by regulation. 

Administrative Organization 

Ministry of Labor, Social Security and Women's Welfare. 

Social Security Institute, administration of program through Family 

Fund. 



Social Security Programs Throughout the World — 1997 



119 



ESTONIA 



1 



Old Age, Disability, Death 

First law: 1924. 

Current law: 1993, 1995, 1996. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 12.19 Kroons (EEK). 

Coverage 

All persons currently residing in Estonia. 
Source of Funds 

Insured person: Employees, none. Self-employed, individual 
farmers and members of the liberal professions, 20% of income 
equal to or above the minimum salary. 

Employer: Portion of social tax, (20% of employee's gross salary). 
Government: Any deficit; funeral grants. 

Qualifying Conditions 

Old-age pension: Minimum pensionable length of service: 15 
years in the Republic of Estonia. 

Until January 1, 1994, the retirement age was 60 for men and 55 
for women. Since then, the pensionable age has been rising by 6 
months per year, and will continue to rise until it reaches 65 for 
men and 60 for women in 2007. 

In certain cases, persons have the right to old-age pension under 
favorable conditions such as: mothers who have given birth to 5 or 
more children, persons who have reared a disabled child, and 
persons who have worked under extremely unhealthy and arduous 
conditions may be eligible for retirement 10 years before the 
normal pensionable age (minimum length of service 20-25 years 
for men, 15-20 years for women.) 
National pension: Age 65 for men, 60 for women. 
Disability pension: Full or partial permanent or long-term 
disability for work regardless of pensionable length of service. 
Survivor pension: Survivors incapable of gainful activity; the 
children and surviving spouse are entitled to pension whether they 
were dependents of the breadwinner or not. 
Survivors include: children, siblings, grandchildren under age 18 
or disabled; parent, surviving spouse or guardian not gainfully 
employed and raising the breadwinner's children, brothers, sisters 
or grandchildren under 14 years of age. 
Pensions are not taxed. 

Old-Age Benefits 

National pension: Set by legislature and adjusted for changes in the 
cost of living. 360 EEK, rising to 410 EEK April 1, 1995. 
Old-age pension: The basic pension sum is equal to the national 
pension. This is supplemented by a certain percentage of the 
national pension rate for every year of pensionable coverage: 15-19 
years, 3.2%; 20-24 years, 3.3%; 25-29 years, 3.4; 30-34 years, 
3.7%; 35-39 years, 3.8%; 40 or more years, 4.0%. 
National pension: Set by legislature and adjusted for changes in the 
cost of living. 135% of national pension rate (410 EEK). 



Permanent Disability Benefits 

Disability pension: In three categories, depending on the degree of 
disability. Benefit categories are 200%, 170% and 135% of 
national pension rate. 

Disabled child under 16: 140% of national pension (210% if 
entitled to survivor pension, 255% if orphan). 

Survivor Benefits 

Survivor pension: For every adult, 150% of national pension rate; 
for every child under age 18, 140% of national pension rate; for an 
orphan, 170% of natonal pension rate. 
Funeral grant: 1,250 EEK. 

Administrative Organization 

Ministry of Social Affairs: General management and supervision. 
National Social Insurance Board: Overall planning and 
guaranteeing payment of pensions. 
Regional pension offices: Administration on local level. 

Sickness and Maternity 

First law: 1924. 
Current law: 1991. 

Type of program: Social insurance system. 
Coverage 

Cash sickness and maternity benefits: Insured employees, 
employers, farmers, individual workers and their families. 
Medical benefits: All permanent residents. 

Source of Funds 

Insured person: Employees, none; self-employed, individual 
farmers and members of the liberal professions, 13% of income in 
excess of minimum salary. 

Employer: Part of social tax (13% of employee's gross salary). 
Government: None 

Qualifying Conditions 

Sickness benefits and medical care: Current affiliation regardless 
of length of service. 

Medical benefits: Permanent residence. 
Sickness and Maternity Benefits 

Sickness benefit: Compensation equivalent to a certain percentage 
of worker's average income is paid for each calendar day: 60% for ■ 
hospital treatment; 65% for sanatorium; 80% for polyclinic or 
home treatment. 

From first day of sickness: Caring at home for a family member 

over 14 years of age, 80% for 7 calendar days; caring at home for 

a child under 3 years of age (up to 16 years for a disabled child) if 

the mother is ill, 80% for 14 calendar days; caring for a child 

under 14, 100% for 14 calendar days. 

Maternity benefits: 100% of worker's average income for 

126 calendar days; in the case of multiple births: 140 calendar days. 



120 



Social Security Programs Throughout the World — 1997 



ESTONIA 



Workers' Medical Benefits 

Medical benefits: Provided by state and local medical institutions: 
diagnosis, maintenance and treatment. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for workers. 
Administrative Organization 

Ministry of Social Affairs: General management supervision and 
planning. 

Central Sickness Fund: Coordination of health insurance. 
Local sickness funds: Administration of health insurance in 
counties and towns. Medical care provided by doctors, polyclinics, 
hospitals, etc. Benefits are paid to the insured by the sickness fund 
through the employer. 

Work Injury 

First law: 1924. 
Current law: 1991. 

Type of program: Social insurance system. 
Coverage 

Insured employees, farmers, self-employed and their families. 
Source of Funds 

Insured person: See pension and sickness insurance contributions, 
above. 

Employer: Same. 

Government: Payment of compensation for injured employees 
whose employer is insolvent. 

Quakfying Conditions 

Work-injury benefits: All permanent residents. 
Temporary Disability Benefits 

Temporary disability benefits: 100% of average income until 
recovery or determination of degree of disability. 

Permanent Disability Benefits 

Permanent disability benefits: Same disability pension as in other 
cases of disability. 

The responsible employer pays the disabled person compensation 
for loss of earnings from which the disability pension is subtracted. 

Workers' Medical Benefits: 

Medical benefits: Same as in other cases of illness. 

Survivor Benefits 

Survivor pension: Same pension as in other cases of survivor 
pensions. The responsible employer pays compensation for loss of 
earnings from which the survivor pension is subtracted. 

Administrative Organization 

Ministry of Social Affairs: General management and supervision. 



Local sickness funds: Administration of health insurance in 
counties and towns. Medical care provided by doctors, polyclinics, 
hospitals, etc. 

Regional Pension Offices: Administration and payment of 
permanent disability benefits. 

Unemployment 

First law: 1991. 
Current law: 1994. 

Type of program: Unemployment assistance. 
Coverage 

Permanent residents aged 16 or over (up to pensionable age) who 
are capable of gainful activity. 

Source of funds 

Insured person: None. 
Employer: None. 
Government: Total expenditure. 

Qualifying Conditions 

A person who has been registered as unemployed by the 
employment service and has worked for at least 180 days during a 
period of 12 months before becoming unemployed. 

Unemployment Benefits 

Unemployment benefit: 240 EEK for 180 calendar days; may be 
extended for additional 90 days under exceptional circumstances. 
The grant for attending retraining courses is at least 1 .5 times 
higher than unemployment benefit (in 1997, 450 EEK). Payable for 
up to 6 months. Also a benefit for persons with diminished ability 
to compete, such as disabled, young people ages 16-20, persons 
who will reach pensionable age within 5 years and prisoners 
regaining freedom. One-time grant of up to 8,000 EEK for 
first-time job seekers. 

Administrative Organization 

Ministry of Social Affairs: General management and supervision. 
Labour Market Board with local employment offices: Registering 
the unemployed, job search, retraining, guaranteeing payment of 
benefits. 

Family Allowances 

First law: 1922. 
Current law: 1994. 

Type of program: Social insurance system. 
Coverage 

Families with children permanently residing in Estonia. 

Source of Funds 

Insured person: None. 
Employer: None 
Government: Total cost. 



Social Security Programs Throughout the World — 1997 



121 



Qualifying Conditions 

Family allowances: All children until age 16, age 19 if full time 
student. 

Family Allowance Benefits 

Family allowance benefits: 150 EEK per child. Additional 35 
EEK for second, 85 EEK for each subsequent child. Children on 
partial state subsistence receive 50% of regular child benefit. Child 
benefit, adjusted for cost of living. 
Birth grant: 12 times child's benefit. 

Subsistence benefit: A parent on maternity leave or not working 
receives two times the child's benefit for each child child under 
18 months of age. A parent on maternity leave or not working with 
children aged 18 months to 3 years receives one child's benefit for 
each child; a non-working parent with a disabled child aged 
between 1.5 and 18 years receives 2 times a child's benefit for 
each disabled child. Benefit for a child of a serviceman in the 
national armed forces: one child's benefit for each child, payable 
for the whole period of the parent's service. 
Guardian's benefits: Payable if child is under age 16 (age 19 if 
full-time student) at two times the child benefit for each child. 
School benefit: Payable once a year at the rate of 1 child's benefit 
for each child who studies full time at school. 
Single parents receive: if parent is disabled, 1.5 times child benefit 
for each child; single mother or where other parent has disappeared 
and is not contributing child support, 0.6 times child benefit for 
each child. 

Start-in-life allowance: Children establishing their own first 
residence are entitled to a one-time allowance of 4,000 EEK. 
Paid leave for parent of disabled child: One working parent of a 
disabled child is entitled to paid leave of one extra day per month. 
Level of payment is based on the parent's average salary. 
Additional benefits for families with 4 or more children: A parent 
on maternity leave or non-working, receives 1 15 EEK per month 
for each child aged 1-1/2 to 3 years; a non-working parent with 
children aged 3 to 16 (19 in case of full-time schooling) receives 
230 EEK per month for the family until the youngest child has 
finished the first class. 

Administrative Organization 

Ministry of Social Affairs: General management and supervision. 
National Social Insurance Board: Overall planning and guarantee of 
benefits. Benefits are paid by the regional pension offices. 



122 



Social Security Programs Throughout the World — 1997 



Old Age, Disability, Death 



Type of program: Employer liability system. 



First law: 1963. 

Separate law for employees of government-owned undertakings: 
1975. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 6.41 birr. 

Coverage 

Public employees, employees of government-owned companies and 
employees of national youth, women's, and similar associations. 

Source of Funds 

Insured person: 4% of basic monthly salary. 
Employer: 6% of basic monthly salary. 
Government: None. 

Qualifying Conditions 

Old-age pension: Age 55 with a minimum of 10 years of service 
and contributions. 

Disability pension: A minimum of 10 years of service and 
contribution. 

Survivor pension: Deceased met contribution conditions for old- 
age pension or was pensioner at death. 

Old-Age Benefits 

Old-age pension: 30% of average monthly salary during the last 
3 years, plus increment of 1% of average monthly salary for each 
year of service beyond 10, up to a maximum benefit of 60%. 
For those who do not fulfill the qualifying conditions, there are 
lump-sum payments. 

Permanent Disability Benefits 

Disability pension: Same as old-age pension. 

Survivor Benefits 

Survivor pension: Widow receives 50% of the pension of the 
deceased. Upon re-marriage, a lump sum of 2 years' pension is 
paid. 

Orphan: 10% of the pension of the deceased (full orphan 20%). 
Parents: 10% to 20% of the deceased's pension. 

Administrative Organization 

Office of the Prime Minister, general supervision. 

The Social Security Authority, administration of program, 

managed by board and general manager. 

Sickness and Maternity 

(1975 labor decree requires sick leave and maternity leave of 
45 days.) 

Work Injury 

First law: 1963. 
Current law: 1974. 



Coverage 

Public employees, employees of Government-owned companies 
and of national youth, women's, and similar associations. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: Same. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: Payable as a lump-sum equal to 
45% of monthly salary, multiplied by 5 years and degree 
(percentage) of incapacity due to injury. 
Private insurance on basis of Labour Proclamation. 

Permanent Disability Benefits 

Permanent disability benefit: 45%-60% of the monthly basic 
salary. 

Survivor Benefits 

Survivor pension: Same as old-age pension. 

Administrative Organization 

Office of the Prime Minister, general supervision. 

The Social Security Authority, administration of program, 

managed by board and general manager. 



Social Security Programs Throughout the World — 1997 



FIJI 



Old-Age, Disability, Death 

First law: 1966. 
Current law: 1985. 

Type of program: Provident fund system. (Special benefits for 
widows and married women.) 

Exchange rate: U.S. $1.00 equals 1.40 Fiji dollars (F$). 

Coverage 
Employed workers. 

Voluntary coverage for death benefit for nonemployed aged 16-50, 
domestic workers and for self-employed. 
Exclusions: Public employees, military personnel, police force 
appointed before November 1971, who have elected to continue in 
the old scheme under the provisions of the Civil Service Act; 
members of equivalent private plans approved by Fiji National 
Provident Fund Board. 

Source of Funds 

Insured person: 7% of wages. 
Employer: 7% of payroll. 
Government: None. 

For death benefit, F$12 deducted annually from each currently 
eligible member's provident fund account. 

Qualifying Conditions 

Old-age benefit: Age 55. Lump sum payable at any age upon 
permanent departure from country, or to female employee upon 
marriage. May elect monthly pension with at least 10 years of 
contribution (reduced pension if less than 10 years). 
Disability grant: Incapacity for work in covered employment. May 
elect monthly pension. 

Survivor grant: Death of insured before retirement. Sole survivor 
may elect monthly benefits. 

Old-Age Benefits 

Old-age benefit: Lump sum equal to total employee and employer 
contributions, with accumulated interest; or 25% of total 
contributions plus accumulated interest may be paid as monthly 
pension at insured's option. A couple may elect to receive 2/3 of 
25% for as long as either spouse lives. 

Permanent Disability Benefits 

Disability benefit: Lump sum equal to total employee and 
employer contributions, with accumulated interest; or 25% of total 
contributions plus accumulated interest may be paid as monthly 
pension at insured's option. A couple may elect to receive 2/3 of 
25% for as long as either spouse lives. 

Survivor Benefits 

Survivor benefit: Lump sum equal to total employee and employer 

contributions, with accumulated interest. 
Payable to nominated survivors. 

Monthly pension equal to 25% of total benefit may be paid in lieu 
of lump sum to one dependent survivor at survivor's option. 
Death benefit: Lump sum of F$4,500. 



Administrative Organization 

National Provident Fund Board, general supervision and 
enforcement of law. 

Permanent Secretary for Labor and Industrial Relations. 

Work Injury 

First and current law: 1965. 

Type of program: Employer-liability system. 

Coverage 

Employed persons and apprentices. 

Exclusions: Casual and family labor and some public employees or 
other workers designated by the Government. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through direct provision of benefits. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: Injury must totally incapacitate the worker 
for at least 3 days. 

Temporary Disability Benefits 

Temporary disability benefit: 66% of weekly earnings. 
Maximum total benefits: F$16,000. 
May be converted to lump-sum payment in certain cases. 
Payable after 2-day waiting period for up to 260 weeks. 

Permanent Disability Benefits 

Permanent disability benefit: Lump sum of 260 weeks' earnings, 
if totally disabled. Maximum total benefits: F$22,000. Minimum, 
F$6,000. 

Constant-attendance supplement: Additional 25% of lump-sum 
payment. 

Partial disability: Percentage of full benefit proportionate to degree 
of disability. Maximum total benefits: F$24,000. Minimum, 
F$3,000. 

Workers' Medical Benefits 

Medical benefits: Medical and hospital care, surgery, medicines, 
appliances, and transportation. 

Survivor Benefits 

Survivor benefit: Lump sum of 208 weeks' earnings. Maximum 
total benefits: F$24,000. Minimum, F$9,000. 

Administrative Organization 

Permanent Secretary for Labor and Industrial Relations, 
enforcement of law. 

Individual employer must pay compensation directly to own 
employee except lump-sum and survivor benefits. Local courts 
dispense lump-sum and survivor benefits. 



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FINLAND 



Old Age, Disability, Death 

First law: 1937. 

Current laws: 1956 (universal pensions), 1961 (earnings-related 
pensions), 1969 (survivor pensions — amended 1990 to include 
widowers), 1986 (partial pension and early pension), and 1996 
(amendments). Type of program: Universal pension program and 
statutory earnings-related pension plans. 
Exchange rate: U.S. $1.00 equals 4.58 marks. 

Coverage 

Universal pension (income-tested): All Finish citizens residing in 
Finland for at least 3 years as well as citizens of other countries 
residing in Finland for 5 years or more immediately preceding 
pension; or, aged 16 and older. 

Employment-related pensions: All regular employees aged 14 and 
older (each employer must establish pension plan for own 
employees). 

Exclusions: Employees working less than 1 month for same 
employer, or earning less than 1,135.40 marks per month. 
Special systems for seasonal, maritime, public employees, and for 
farmers and the self-employed. 

Source of Funds 

Insured person: Universal pension-employees, none. 
Self-employed (as of January 1996): 20.4%; if under age 43 and 
becoming self-employed for the first time 1996, 10.2% in the 
start-up year and the two following years; maximum earnings for 
contribution purposes: 446,700.51 marks a year. 
Earnings-related pension, 4.5% of taxable income. 
Employer: Universal pension: 2.4% to 4.9% of payroll (private 
employers, depending on capital of employer) or 3.95% of payroll 
(public employers). 

Earnings-related pension: 16.8% for employers with fewer than 
50 employees; 9.46% to 25.34%, according to age and sex of 
employee, for employers with more than 50 employees. 
Government (as of January 1996): About 36% of universal 
pensions (about 3/4 of this borne by local governments); and all 
universal survivor pensions. Also pays cost of earnings-related 
pension for self-employed and farmers not covered by their own 
contributions. 

Employment- related pension contributions are paid on total wage. 
Average for all employees and employers: 21.2% of payroll in 
1997. 

Qualifying Conditions 

Old-age pension: Universal pension (income-tested) — age 65; 

retirement not necessary; not payable abroad after 1 year, unless 

resident of Finland for at least 10 years before beginning pension 

or abroad for medical reasons. Early pensiomage 60-64. 

Earnings-related pension — age 65 and retirement from covered 

employment. 40 years' coverage for full pension. 

Early pension: age 60-64; individualized early pension: payable 

age 58-64 (or 55-64 if born before 1940), unable to perform on job 

due to job pressures, technological changes, etc. 

Part-time pension (earnings-related pension only): Aged 58-64. 

Reduced work schedule (16-28 hours per week and earnings equal 



to 35% to 70% of full-time earnings), employed full-time for 12 of 
past 18 months, and covered during at least 5 of preceding 15 
years. 

Unemployment old-age pension: Payable at age 60 after exhausted 
unemployment benefit for maximum duration of 500 days and 
covered for at least 5 of last 15 years. 

Disability pension: Universal pension (no income-test) 

permanent incapacity for suitable work, aged under 65. 
Early disability pension: Payable age 58-64 (from age 55 if born 
before 1940), unable to work due to mental or physical exhaustion. 
Disabled person's allowance: aged 16-64 who are not pensioners. 
Child care allowance: children under age 16 with disability or 
long-term illness. 

Earnings-related pension — At least 60% or more permanent loss 
of work capacity, or 40-59% permanent loss for partial pension; 
payable after exhaustion of 300 days of cash sickness benefits. 
Rehabilitation benefit: Payable to disabled employee or the 
self-employed, at least 60% or more temporary loss of work 
capacity (40-59% loss for partial disability), undergoing treatment 
or rehabilitation. 

Survivor pension: Universal pension (no income-test) — deceased 
lived in Finland at date of death for at least 3 years if citizen (if not 
citizen, 5 years); widow(er), if Finnish citizen must have lived in 
Finland at date of death or move to Finland within one year of 
death of spouse (non-citizen must have lived in Finland 5 years 
before date of death). Widow(er) must be under age 65, married to 
deceased before age 65, caring for a child under age 18 or, if 
childless, be at least 50 years old at spouse's death; in addition, 
must have been married at least 5 years. 

Supplementary survivor's pension (income-tested): Same as under 
universal old-age pension. 

Universal orphan's pension: Under age 18 (under age 20 if 
student); resident of Finland or moved to Finland within one year. 
Orphan's supplement (income-tested): Under age 18 (not for 
students aged 18-20). 

Earnings-related pension, deceased was pensioner or met pension 
requirements at death, married before the deceased spouse's 65th 
birthday; if childless, couple must have been married for at least 5 
years, and survivor must have been at least age 50 at time of 
marriage. Paid to widow(er) on equal terms, and to children and 
former spouse. 

Old-Age Benefits 

Universal old-age pension (income-tested): 60-2,547 marks per 
month, according to municipality, marital status, other income 
(including other pension) received. Income test: Benefit reduced to 
50% of the difference between outside income and 245 marks per 
month; pension not payable if other income exceeds 4,406-5219 
marks per month, according to family status and municipality. 
The amount is also adjusted to the length of residence in Finland, 
with the full amount payable after 40 years of residence, reduced 
on a pro-rata basis if less than 40 years. 
Other components (as of January 1996): Housing allowance, 
proportional to income and housing expenses, up to 722 to 2,594 
marks a month, according to municipality, marital status, and 
number of family members; pensioner care allowance: 



Social Security Programs Throughout the World — 1997 



125 



278, 691, or 1,382 marks a month, based on extent of care needed. 
Early pension: Payable from age 60; amount reduced by 4-6 
percent per year claimed before age 65. 
Deferred pension: Increment of 1 percent of pension for each 
month deferred after age 65 . 

Universal pension and supplements adjusted automatically each 
year for changes in cost-of-living index. 

Earnings-related old-age pension: Full pension, 1.5% (2.5% for 
years at age 60 and older) of average pensionable earnings (based 
on average annual earnings from 1991, but no more than 10 years, 
eliminating highest and lowest earnings years) times years of 
coverage (maximum: 40 years from age 23) until age 65. For each 
year before 1 July 1962, 0.5% is credited. 

Early pension: payable at age 60, amount reduced by up to 6% per 
year. 

Individualized early pension: Same as disability pension below. 
Part-time pension: 50% of the difference between former full-time 
income and part-time income. 

Unemployment old-age pension: Same as disability pension below. 
Adjustment: Employment-related benefits payable to pensioners 
aged 65 and older are adjusted yearly according to 20% of the 
annual average increase in wage (or 50% if pensioner under age 
65) and 80% of annual average increase in price (50% if pensioner 
under age 65) changes. 

Permanent Disability Benefits 

Universal disability pension (income-tested): Same as old-age 
pension. Full pension if resident of Finland, 80% of time after age 
16 and before disability or disabled before age 21 while resident of 
Finland. 

Disabled person's allowance: 278, 691, or 1,382 marks a month, 
depending on harmful effects of illness or injury, the need for 
assistance, and for additional expenses caused by illness or 
disability. 

Universal pensions and allowances adjusted each year for changes 
in the cost-of-living index. 

Earnings-related disability pension: 1.5% of wage for each year 
of service up to onset of disability, plus 1.5% per year to age 50, 
1.2% per year of projected service between ages 50 and 60, and 
0.8% per year from age 60 to 65. Maximum (including universal 
disability pension): 60% of earnings. 

Partial pension, 1/2 of full pension (if loss of work capacity is 
between 40-59%). 

Rehabilitation benefit (for treatable disability): same as full or 
partial-disability benefit, plus 33% increment for periods of active 
vocational rehabilitation arranged for the applicant by the employer. 
Adjustment: Employment-related benefits payable to pensioners 
aged 65 and older are adjusted yearly according to 20% of the 
annual average increase in wage (or 50% if pensioner under age 
65) and 80% of annual average increase in price (50% if pensioner 
under age 65) changes. 

Survivor Benefits 

Universal survivor pension: First 6 months following spouse's 
death, maximum basic pension of 1,351 marks a month, plus 
means-tested supplement up to 1,196 marks a month, and housing 
allowance — according to geographical area — payable to widow(er). 



From 7th month, means-tested (same as universal old-age basic 
benefit, except if surviving spouse caring for dependent child). 
Adjusted for length of residence of the deceased. 
Orphans (under age 18, or age 20 if student): Up to 264 marks a 
month; full orphan, up to 528 marks a month; either may be 
increased by maximum 352 marks a month (means-tested); 
increase not applicable to student aged 18-20. 
Adjustment: Universal pension and allowances adjusted 
automatically each year for changes in the cost-of-living index. 
Earnings-related survivor pension: Widow(er), up to 50% of 
pension payable to insured (no means test for first 6 months), if 50 
years old, disabled, has/had a child with the deceased, or is caring 
for child(ren) aged 18 or younger. Pensions reduced beginning the 
7th month if spouse received pensions in his/her own right and if 
exceeding specified amount. 

Orphans (under age 18): 1/3 of insured's pension for 1, up to 5/6 
for 4 or more. Full orphan's pension increased by another 1/6, not 
to exceed insured's pension. 

Adjustment: Employment-related benefits payable to pensioners 
aged 65 and older are adjusted yearly according to 20% of the 
annual average increase in wage (or 50% if pensioner under age 
65) and 80% of annual average increase in price (50% if pensioner 
under age 65) changes. 

Administrative Organization 

(as of January 1996) 

Ministry of Social Affairs and Health, general supervision of the 
private-sector social security pension program. 
Social Insurance Institution, administration of universal and 
disability pensions through district offices; managed by governing 
body appointed by Parliament. 

Local boards determine old-age and survivors' benefit. Disability 
claims are determined by central administration. 
Municipalities collect universal pension contribution with 
communal (municipal) taxes. 

Central Pension Security Institute, supervision of employment- 
related pension plans, including transfer of rights among plans; 
tripartite board. 

Carriers for employment-related pension plans are approved 
private insurance companies, pension funds, and pension 
foundations; 

farmers' pensions through Farmers' Social Insurance Institution. 
Pension programs in the public sector are administered by the 
Local Government Pensions Institute (under the general supervision 
of the Ministry of the Interior), and for the State employees by the 
State Treasury Office (under the general supervision of the 
Ministry of Finance). 

Sickness and Maternity 

First and current law: 1963. 

Type of program: Social insurance system (cash and medical 
benefits). 

Note: Health care is provided by both a private sector sickness 
insurance program and a public sector (municipal) health services 
program financed primarily by local and national taxes. 



126 



Social Security Programs Throughout the World — 1997 



Coverage 

Medical benefits: All residents. 

Cash benefits: All employed, self-employed, and students aged 
16-64. 

Source of Funds 

(as of January 1996) 

Insured person: Employee contributes 1.9% on income up to 
80,000 marks a year and 3.35% on annual income above 80,000 
marks. Pensioner contributes 4.9% and 6.35% on similar income 
levels. 

Employer: 1.60% of payroll (private employers) or 2.85% to 
7.85% of payroll (public employers). 
Government: Remaining cost. 

Qualifying Conditions 

Cash sickness benefits: Employment during last 3 months, unless 
involuntarily unemployed. 

Cash maternity benefits: Residence in country; immigrants must 
complete 180 day waiting period. 
Medical benefits: Residence in country. 

Sickness and Maternity Benefits 

Sickness benefit: 70% of daily earnings, if annual earnings 
132,800 marks or less; plus 40% of daily earnings for annual 
earnings between 132,800 and 203,520 marks, plus 25% of daily 
earnings for annual earnings 203,520 marks or more. 
Minimum benefit, 11.85 marks per day. 

Sickness allowance (means-tested): payable if annual earnings less 
than 5,320 marks, and after 60 days of disablement. 
Payable after 10-day waiting period for up to 300 weekdays. 
Rehabilitation benefit: Same as cash sickness benefit, if receiving 
medical treatment and/or vocational training under social security 
rehabilitation program. 

Maternity benefit: Same as sickness benefit above; minimum 
benefit, 60 marks per day. Payable to mother starting 50 to 30 days 
before estimated delivery (except if exposed to risk factors that can 
not be eliminated, in which case a special maternity allowance is 
payable throughout the pregnancy), continuing for 105 work days 
(maternity allowance). Thereafter payable to either parent for 158 
weekdays (parent's allowance). 

Payable for 218 days if multiple birth, 100-234 days if adoption. 
Special care allowance: Payable for 60 days a year to parents 
caring for sick child at hospital or home (90 days if seriously ill). 

Workers' Medical Benefits 

Medical benefits: Under sickness insurance — cash refund for 
certain medical expenses, based on predetermined schedule. 
Includes 60% of private doctor's fee, 60%-90% of private dentist's 
fee (for those born 1956 or later), 75% of cost of prescribed 
examinations and prescribed treatment over 70 marks deductible, 
50% of cost of medicines over 50 marks (75%-100% 
reimbursement for drugs used to treat grave and prolonged illness 
over 25 marks deductible, full refund if annual cost of prescription 
drugs exceed 3, ,184.79 marks), and 100% transportation expenses 
in excess of 



45 marks (full refund if annual deductible expenses exceed 
900 marks). 

Sickness insurance also covers 50% of the occupational health care 
costs incurred by the employer. 

Under municipal health services — 100 marks fee for first annual 
visit; subsequent visits are free of charge. 
Free hospital care, except for a 100 mark fee per outpatient visit, 
125 marks per inpatient day. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for family head. 
Administrative Organization 

Ministry of Social Affairs and Health, general supervision. 
Sickness insurance: Social Insurance Institution, national 
administration of program. 

Employees sickness funds reimbursed by Social Insurance 
Institution. 

Employers providing medical benefits directly to own employees 
are reimbursed by Social Insurance Institution. 
Public health and hospital services: Provided by municipalities or 
federation of municipalities. 

Work Injury 

First law: 1895. 

Current law: 1948; farmers, 1981. 

Type of program: Statutory insurance with private carrier. 
Coverage 

Employed persons. Special systems for farmers and public 
employees. 

Source of Funds 
Insured person: None. 

Employer: 0.5% to 11.7% of payroll, according to risk (average: 
1.4%). 

Government: None. 
Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings, reduced 
proportionately for partial disability of 10% or more. 
Payable from day after accident occurred (unless incapacity less 
than 3 days) for up to 12 months, 7 days a week. 

Permanent Disability Benefits 

Permanent disability pension: Basic pension equal to 85% of 
earnings for total disability up to age 65, thereafter 70%; 
proportionally reduced for partial disabilities of 10% or more. 
Constant-attendance supplement: Up to 116 marks a day. 
Hardship allowance: payable in cases of permanent general 
handicaps (in 20 disability categories): Amount according to age 
and gender. 



Social Security Programs Throughout the World — 1997 



127 



Workers' Medical Benefits 

Medical benefits: Medical attendance, surgery, hospital treatment, 
medicines, appliances, rehabilitation. 

Survivor Benefits 

Survivor pension: Payable to widow, widower, and orphans. 
Maximum survivor pension: 70% of earnings of insured. 
Funeral grant: 19,100 marks. 

Administrative Organization 

Ministry of Social Affairs and Health, general supervision. 
Federation of Accident Insurance Institutions (FAII), legal 
co-ordinating body for the application of statutory accident 
insurance legislation among member companies and statistics. 
Insurance written and largely administered by licensed private 
companies. 

Farmers' coverage through Farmers' Social Insurance Institution. 
Public employees through State Treasury Office. 

Unemployment 

First laws: 1917 (unemployment insurance), 1960 (unemployment 
assistance). 

Current law: 1984 (Unemployment Security Act). 
Type of program: Dual subsidized voluntary insurance 
(unemployment fund) and unemployment assistance systems. 

Coverage 

Insurance: Gainfully employed workers aged 17-64. 
Assistance: Residents of Finland aged 17-64. 

Source of Funds (as of January 1996) 

Insured person: About 5.5% of unemployment funds' 
expenditures. 

Employer: 47% of unemployment funds' expenditures, payable 
through Central Fund that coordinates payments to individual 
funds. 

Government: Cost of basic benefits; 47.5% of unemployment 
fund's expenditures. Unemployment assistance is fully financed by 
the government. 

Qualifying Conditions (as of January 1996) 

Unemployment benefit: Basic benefit — No qualifying period, 
except first-time employees or job-seekers must have been 
employed or actively seeking employment for at least 5 months. 
Earnings-related (unemployment fund) benefit — Member of 
unemployment fund; worked at least 26 weeks during 24 months 
prior to becoming unemployed. 

Unemployment not due to voluntary leaving, work stoppage, or 
refusal of offer of suitable employment. 

Unemployment Benefits 

Unemployment benefit: Basic benefit (means-tested), 1 18 marks 
a day (plus 24 marks a day for 1 child, 35 marks for two, 
and 45 marks for 3 or more children), payable up to 500 days. 



Earnings-related (unemployment fund) benefit — If monthly 
earnings less than 10,620 marks, 118 marks a day, plus 42% of 
daily wage; if monthly earnings equal to 10,620 marks or more, 
266.57 marks a day plus 20% of daily earnings in excess of 471.73 
a day. Supplement for dependent child(ren): Same as under Basic 
unemployment benefit above. 

Maximum (including child increases): 90% of insured's daily wage. 
Payable up to 500 days in 4 consecutive years (if the recipient 
reaches age 55 before the benefit has been paid for 500 days, 
payable until the end of the calendar month in which the recipient 
reaches age 60), 5 days a week. 

Administrative Organization 

Ministry of Social Affairs and Health, supervision of 
unemployment insurance. 

Basic benefit program — Administered by the Social Insurance 
Institution through its local offices. 

Earnings-related (unemployment fund) program — Administered by 
approved unemployment funds. At least 3,000 members required in 
fund in order to receive full government support. 

Family Allowances 

Current law: 1948 and 1985 (Child Home Care Allowance). 
Type of program: Universal system. 

Coverage 

All residents with 1 or more children. 

Source of Funds 

Insured person: None. 
Employer: None. 

Government: Entire cost. Municipal authorities, entire cost of 
child home care allowance. 

Qualifying Conditions 

Family allowances: Child must be under age 17. Birth grant: 
Provided to citizen upon birth of child. Foreign nationals with one 
year residence are also eligible. 

Child home care allowance (as of January 1996): Child must be 
under age 3. 

Maternity benefits no longer payable. One of parents must care for 
child at home. 

Family Allowance Benefits 

Family allowances: 6,420 marks a year for 1 child, 14,300 marks 

for 2 children, 23,650 marks for 3 children, 34,460 marks for 

4 children, and 12,280 marks a year for each additional child. Also 

single parent supplement (or legally separated or unmarried 

parent): 2,400 marks a year for each qualifying child. 

Birth grant: 760 marks, usually payable in kind. 

Child home care allowance (as of January 1996): Basic amount of 

18,000 marks per year for each child under 3. 

Sibling increase of 3,600 marks per year for each additional child 

under age 7 cared for at home. 

Means-tested supplement up to 1 ,200 marks per month. 



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Social Security Programs Throughout the World — 1997 



FINLAND 



Partial home care allowance: 375 marks per month payable to 
parent who reduces working hours to maximum of 30 hours per 
week. 

Administrative Organization 

Ministry of Social Affairs and Health, general supervision; 
Social Insurance Institution, national administration of Family 
Allowance program. 



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Social Security Programs Throughout the World — 1997 



129 



Old Age, Disability, Death 

First law: 1910. 

Current laws: 1945, 1967, 1971, 1975, 1980, 1982, 1988, 1993, 
1994 and 1995. 

Type of program: Social insurance system; also mandatory private 
pension systems. 

Exchange rate: U.S. $1.00 equals 5.16 francs. 
Coverage 

Employed persons. Special systems for agricultural, mining, 
railroad, public utility, and public employees; seamen; 
nonagricultural self-employed; and agricultural self-employed. 
Voluntary affiliation for nonworking head of household (old-age 
pension only), nonemployed persons caring for disabled family 
member and those employed abroad. 

Compulsory old-age pension affiliation for women receiving 
certain family benefits (See Family Allowances, below.) and those 
caring for a disabled person. 

Source of Funds 

Insured person: 6.55% of pensionable earnings plus 0.1 % of total 
earnings for surviving spouse's allowance. General Social 
Contribution (CGS): An additional 3.4% of 95% income generally 
from all sources (of which 1 % is directed towards financing family 
allowances.) 

Employer: 8.2% of covered earnings plus 1.6% of total payroll. 
Government: Variable subsidies. 

Maximum earnings for contribution and benefit purposes: 13,720 
francs a month. 

Disability and survivor benefits financed under sickness and 
maternity program (see below). 

Qualifying Conditions 

Old-age pension: Age 65 (or 60 disabled, or working mother) and 
150 quarters of coverage for a full pension — equal to 50% of 
covered earnings. If less than 150 quarters of coverage, pension is 
subject to porportionate reductions (reduced by 1/150 for each 
quarter of shortfall). Full pension also payable at age 60 if 154 
quarters of coverage (as of 1997). 

Coverage requirement is being raised each year, scheduled to reach 
160 quarters by January 1, 2003 for retirees born in 1943 and 
after. If less than 154 quarters, subject to pension reduction in 
addition to proportionate reduction. Additional reduction is 
function of quarters below 154 and months below age 65 
(Maximum additional reduction: 25 percentage points). Benefits 
are payable abroad under reciprocal agreements. 
Disability pension: Under age 60. Loss of at least 2/3 of earning 
capacity, in any occupation. Entry into insurance 12 months before 
incapacity and 800 hours of employment in last 12 months, 
including 200 hours in last 3 months. 

Survivor pension: Aged at least 55 and married for 2 years unless 
there is a child from the marriage. Personal income less than 
78,853 francs per year. 

Surviving spouse's allowance: Aged less than 55 and has or has 
had a dependent child. Personal income less than 11,524 francs per 
quarter. 



Old-Age Benefits 

Old-age pension: Depending on age and duration of insurance 
coverage, 25 to 50% of average salary for the best 25 years 
(adjusted since 1947) as of January 1, 2008, (between January 1, 
1994 and December 31, 2007, the number of years taken into 
account will vary between 1 1 and 24 years depending on the year 
of birth). 50% of adjusted average salary if 160 quarters of 
coverage in any scheme as of January 1, 2003 (between January 1, 
1994 and December 31, 2002, the number of quarters required will 
vary between 151 and 159 according to year of birth), or if 
disabled, aged 65, working mother or war veteran. 
Full pension if 150 quarters in general scheme only, otherwise 
reduced according to number of quarters. 
Pension only payable where employment in previous occupation 
ceased definitely. Possibility of taking up other employment. 
Minimum pension: Pension calculated on basis of 50% rate cannot 
be less than 38,524.90 francs per year if have 150 quarters of 
coverage in general scheme. Otherwise, minimum reduced 
depending on length of coverage. 

Maximum: 50% of maximum earnings for contribution purposes 
(82,320 francs). 

Spouse's supplement (income-tested): 4,000 francs a year at age 65 
(aged 60-64 if disabled) if insured had 150 quarters of coverage; 
otherwise, proportionately reduced. Child's supplement: 10% of 
pension if insured reared 3 children. 
Old-age supplement : 24,050 francs a year to low income 
pensioners if single (39,612 francs for married couple). 
Old-age allowance: 17,147 francs per year to low-income 
pensioners who are 65 years old (60 if disabled) and if single, earn 
42,193 francs a year ( 73,906 francs a year per couple). 
Means-tested allowance: 17,147 francs a year to low-income aged 
workers ineligible for pension. 
Constant attendance allowance: 17,147 francs a year. 
Adjustment: Adjustment of pensions for changes in cost of living. 

Permanent Disability Benefits 

Disability pension: 50% of average earnings in highest paid 

10 years if incapable of any professional activity, up to a maximum 

of 82,320 francs a year. 

Partial disability: 30% of average earnings in highest paid 10 
years, if capable of some form of work, up to a maximum of 
49,392 francs per year. 
Minimum pension: 17,147 francs a year. 

Constant-attendance supplement: 67,158 francs to 82,320 francs a 
year. 

Disability allowance: 17,147 francs a year to low-income 
pensioners. 

Means-tested allowance: 17,147 francs a year to low-income 

disabled workers if ineligible for pension. 

Adjustment: Adjustment of pensions for changes in cost of living. 

Survivor Benefits - 

Survivor pension (income-tested unless disabled): 54% of 
insured's pension. Payable to widow, divorced or deserted wife, or 
widower; must not have remarried. Pension proportionately 
divided if more than 1 qualified surviving spouse. 



130 



Social Security Programs Throughout the World — 1997 



FRANCE 



Old-age pension payable to disabled widow or widower age 55 
whose spouse was also disabled, regardless of income or length of 
marriage. 

Minimum pension: 17,147 francs a year if insured had 60 
trimesters of coverage. Amount of survivor pension limited if also 
receiving old-age or disability pension. 
Child's supplement: 10% if surviving spouse gave birth to or 
raised 3 children. 

Child-care supplement: 5,896 francs per year. 

Adjustment: Adjustment of pensions for changes in cost of living. 

Surviving spouse's allowance (income-tested): Payable up to 

3 years following death of insured. Amount equals 3,073 francs a 

month during 1st year, 2,019 francs during 2nd year and, 

1,537 francs during 3rd year. If beneficiary is at least age 50, 

payment is extended until age 55 at 3rd year rate. 

Death grant: 90 days' earnings of deceased. Minimum: 1,646.40 

francs; maximum, 41,160 francs. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision and 
issuance of regulations. 

National Old-Age Pension Insurance Fund, administration of old- 
age pensions and surviving spouse's allowances. 
National Sickness Insurance Fund, administration of disability and 
survivor pensions. 

Contributions collected by joint collection agencies. 
Sickness and Maternity 
First law: 1928. 

Current laws: 1945, 1967, 1971, 1974, and 1978. 
Type of program: Social insurance system. 

Coverage 

Employed persons. Pensioners and some groups of nonearners also 
covered for medical benefits. 

Special systems for agricultural, clergy, mining, railroad, public 
utility, and public employees; seamen; nonagricultural 
self-employed; and agricultural self-employed (medical benefits 
provided under general system for some groups). 
Voluntary affiliation for residents not working in covered 
employment. 

Source of Funds 

Insured person: 5.6% of total earnings; old-age pensioners (low- 
income pensioners exempt), 1.4% of old-age pension and 2.9% of 
private pension; unemployed, 2% of guaranteed minimum income 
for unemployed; 1% of unemployment benefits and training 
allowances. Flat-rate contributions for students, young persons, 
and others not covered otherwise. 
Employer: 12.80% of total payroll. 

Government: Proceeds from 12% surcharge on automobile 
insurance premiums plus proceeds from tax on costs of 
pharmaceutical advertising, alcohol, and tobacco; also funds for 
new hospital construction and part of cost for certain health and 
social services. 

Above contributions also finance disability and survivor benefits. 



Qualifying Conditions 

Cash sickness and maternity benefits: 200 hours of paid 
employment in the last 3 months. 

Medical benefits: 60 hours paid employment in the last 30 days 
with contributions paid on wages amounting to at least 60 times the 
minimum wage, or 120 hours of employment in the last 90 days 
with contributions on an amount equal to 120 times the minimum 
wage. Under these conditions, benefits can be paid for 1 year. 
With 1,200 hours of employment in the course of one year or 
contributions on an amount equal to 2,030 times the minimum 
wage, benefits are paid for 2 years. 

Sickness and Maternity Benefits 

Sickness benefit: 50% of covered earnings, up to social security 
ceiling. Minimum, 47 francs a day (no minimum during first 6 
months of benefit). Maximum, 229 francs a day. Rising to 66 
2/3%. Minimum, 63 francs a day; maximum, 305 francs a day 
after 30 days if 3 or more children. 

For ordinary illness, payable after 3-day waiting period (employer 
pays for 1st 3 days) for up to 360 days in a 3 consecutive year 
period. For serious, chronic or prolonged illness, each period of 
illness calculated separately during a 3-year period. 
Maternity benefit: 100% of net earnings up to social security 
ceiling. Duration depends on number of children in family and 
number of children requiring care. For 1st child, payable for 6 
weeks before and 10 weeks after confinement; 2nd and subsequent 
children, 8 weeks before and 18 weeks after confinement (or 10 
weeks and 16 weeks, respectively) ; 12-24 weeks before, and 22 
weeks after, if multiple births. In cases of adoption, entitled to 
corresponding postnatal period. 

Payable additional 2 weeks before confinement if complications. 
Minimum, 47 francs a day. Maximum, 457 francs a day. 

Workers' Medical Benefits 

Medical benefits: Cash refunds of part of medical expenses. 
Includes general and specialist care, hospitalization, laboratory 
services, medicines, dental care, maternity care, appliances, and 
transportation. Insured normally pays for services, and is 
reimbursed by local sickness fund. Amount reimbursed depends on 
the type of service, for example, 70% for medical services, 60% 
for paramedical services, 80% for hospitalization and 35 to 65% 
for pharmaceuticals. Insured pays 70 francs a day for 
hospitalization room and board charges (disabled children, war and 
work accident victims exempt) in addition to above cost-sharing 
arrangements. Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured person 
except for in-kind benefits. Following divorce from or death of 
insured, medical benefits payable for 1 year or until youngest 
child's third birthday. Unlimited protection for eligible person who 
has raised three children or more. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 



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FRANCE 



National Sickness Insurance Fund, coordination of regional funds 
and financial equalization; bipartite governing body. 
Regional Sickness Insurance Funds, coordination of local funds; 
bipartite governing bodies. 

Primary (local) Sickness Insurance Funds, registration of insured, 
payment of cash benefits, and refunds of medical expenses; 
bipartite governing bodies. 

Contributions collected by joint collection agencies. 

Work Injury 

First law: 1898. 

Current laws: 1946 and 1972 (agriculture). 
Type of program: Social insurance system. 

Coverage 

Employed persons, vocational education students, and certain 
nonpaid members of social service organizations. 
Special systems for agricultural, mining, railroad, public utility, 
and public employees; seamen; nonagricultural self-employed; and 
agricultural self-employed. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through contributions varying with risk. 
Average, 2.26% of total payroll. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: During first 28 days, 60% of 
earnings; maximum, 823.85 francs a day. Thereafter, 80%; 
maximum, 1,098.47 francs a day. 
Payable from day following incapacity for work. 

Permanent Disability Benefits 

Permanent disability pension: 100% of average earnings during 
last 12 months, if totally disabled, with minimum and maximum 
established by formula. 

Constant-attendance supplement: 40% of pension; minimum, 
67,158.71 francs a year. 

Partial disability: Average earnings multiplied by 50%, then 
multiplied by the degree of incapacity for a disability between 10% 
and 50%; multiplied by 150%, then multiplied by the degree of 
incapacity for a disability above 50%. 
Lump sum payable if less than 10% incapacity. 

Workers' Medical Benefits 

Medical benefits: All necessary care, including medical treatment 
and surgery, hospitalization, medicines, appliances, rehabilitation, 
and transportation. 

Services paid for directly by fund, with no cost sharing by patient. 



Survivor Benefits 

Survivor pension: 30% of earnings of insured if under age 55, or 
50% if age 55 or disabled. Payable to widow or widower. 
Orphans: 15% of earnings for each of first 2 children under age 16 
(17 if unemployed, 18 if apprentice, 20 if student or disabled), 
10% for each additional child; or 20% each if full orphan. 
Other dependent relatives: 10% of earnings each, up to maximum 
of 30%. 

Maximum survivor pensions: 85% of earnings of insured. 
Funeral grant: Cost of burial up to 6,860 francs. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Sickness Insurance Fund, administration of program at 
national level. 

Primary Sickness Insurance Funds, payment of benefits. 
Contributions collected by joint collection agencies. 

Unemployment 

First law: 1905. 

Current laws: 1967 (legal extension of 1958 labor-management 
agreement on unemployment insurance), 1972 (guaranteed income 
for unemployed aged 60 and over), 1974 (agriculture), and 1984. 
Type of program: Dual compulsory employee-employer and 
government-funded system. 

Coverage 

Unemployment insurance: Employed persons. 

Special systems for building and dock workers, merchant seamen, 

aviators, domestic workers, seasonal workers, and public sector 

workers. 

Solidarity program (means-tested): Young job seekers; recently 
widowed, divorced, separated, or single women with 1 or more 
children; recently discharged military veterans; prisoners; 
apprentices; long-term unemployed having exhausted 
unemployment insurance. 

Source of Funds 

Insured person: 3.01% of monthly earnings up to 13,720 francs. 
3.60% of earnings between 13,720 francs and 60,320 francs. 
Employer: 5.13% of payroll up to 13,720 francs and 5.26% for 
higher amounts. 

Government: Whole cost of solidarity program. 

Maximum earnings for contribution and benefit purposes: 54,880 

francs a month. 

(Supplementary contributions by employer and employee for 
supervisory personnel.) 

Qualifying Conditions 

Unemployment benefit: Under age 60 (or between 60 and 65 
without enough quarters of coverage to qualify for a full old-age 
pension), with at least 91 days or 507 hours of paid employment in 
the preceding 12 months. Must live in France, be registered at 
employment office, capable of and available for work. 



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Social Security Programs Throughout the World — 1997 



Unemployment not due to voluntary leaving, misconduct, or 
refusal of suitable job offer. 

Solidarity benefit: Long term unemployed and meets certain 
conditions regarding previous activities. Income tested. 

Unemployment Benefits 

Unemployment benefit: The initial benefit equals 57.4% of the 
daily reference wage, for a period (4-27 months) that varies 
according to age and length of covered employment. An additional 
period of reduced benefits may follow which also varies in length 
according to age and work history. The benefit is further reduced 
every 6 months. 

Minimum benefit: 101.92 francs a day. Increased to 127.82 if 

52 years or older, unemployed more than a year, with 20 years of 

employment in Assedic-affiliated enterprise, with one consecutive 

or 2 separate years of employment in last 5 years. 

Solidarity benefit: From 74.01 to 106.30 francs a day, depending 

on age, years of coverage, or family situation. 

Solidarity allowance: Variable amount renewed every 6 months. 

Ages 59 years, 6 months and older, with 12 years of earnings, can 

maintain benefits, up to age 65, until eligible for retirement. 

Administrative Organization 

Unemployment insurance organizations (UNEDIC-ASSEDIC) with 
bipartite (management-labor) governing bodies, administration of 
unemployment insurance and payment of unemployment insurance 
benefits. 

Family Allowances 

First law: 1932. 

Current laws: 1946 as amended through 1994. 
Type of program: Universal system. 

Coverage 

Family allowances: Families living in France for at least 3 months. 
Source of Funds 

Insured person: None, except self-employed and agricultural 
workers. 

Employer: 5.4% of payroll, (low earnings are partially or totally 
exempt.) 

Government: 1.1 % of total revenues used to finance family 
allowances. 

Qualifying Conditions 

Family allowances: At least 2 children; must be under age 18, age 
20 if apprentice, student, trainee, or disabled. 
Young child allowance: Paid from 5 months of pregnancy until age 
3. Income-tested. 

Family supplement: 3 or more children over age 3. Income-tested. 
Accommodation allowance: At least one child. Paying rent or 
monthy mortgage payments. Income-tested. 
Single parent allowance (income-tested): Single person caring for 
1 or more children for a limited period. 



Parental education allowance: Parent who stops paid work or 
reduces paid activity to raise 2nd or subsequent child; employed 
24 months during last 5 or 10 years preceding birth or adoption. 
Paid until child reaches age 3. 

Home child care allowance: Covers social security contributions 
where employed parents pay for a person to mind their young child 
at home. 

Accredited child care benefit: Children under age 6, if parents are 
working and pay for child care by an accredited carer. Includes 
cash benefit and payment of social security contributions. 
Special education allowance: Caring for a handicapped child. 
Beginning of school year allowance: Children aged between 6 and 
18 years old. Income-tested. 

Education allowance: to low-income families with children ages 
11-16. 

Family Allowance Benefits 

Family allowances: 675 francs for each of first 2 children; 
864 francs for subsequent children. Additional 190 francs for child 
between 10 and 15; 337 francs for children over 15 (except for the 
first in a 2-child family). 

Family supplement (income-tested): 878 francs a month. 
Young child allowance: 969 francs per family. 
Single parent allowance: 3,163 francs per month during pregnancy; 
4,217 francs for one child and 1,054 for each additional child. 
Parents education allowance: 3,006 francs (full rate). 
Accommodation allowance: Variable amount depending on rent 
level, income and number of children. 

Child care benefit for hiring help: 811 francs a month for a child 
under 3; 406 francs for child aged 3-6. 
Special education allowance: 675 francs a month, additional 
amount from 506 francs to 5,597 francs depending on level of 
handicap of child. 

Beginning of school year allowance: Special amount of 1 ,000 
francs in September 1996. 

School aid: 341 or 1,093 francs depending on family income. 
Adoption allowance: 969 francs a month. 

Survivors Benefits 

Family support allowances: Payable for orphan or abandoned 
child or child of unknown parentage. 474 francs a month or 633 
francs a month if full orphan. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Family Allowances Fund, coordination of funds and 
financial equalization; bipartite governing body. 



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GABON 



Old Age, Disability, Death 

First law: 1963. 
Current law: 1975. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 516 CFA francs. 

Coverage 

Employed persons. Special system for public employees. 
Separate system for self-employed and state workers under contract. 

Source of Funds 

Insured person: 2.5% of earnings. 
Employer: 5% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 
1,500,000 CFA francs a month. 

Qualifying Conditions 

Old-age pension: Age 55 (50 if prematurely aged). 20 years of 
insurance and 120 months of contribution during last 20 years. 
(Qualifying conditions for those insured since May 1, 1964, are 
60 months of contribution during last 10 years.) 
Retirement from paid employment. 

Disability pension: Loss of 2/3 earning capacity. 5 years of 

insurance and 30 months of contribution during last 5 years. 

(Waived for currently employed workers if nonoccupational 

accident; if occupational accident, see Work Injury.) 

Survivor pension: Deceased had 120 months of contribution, met 

contribution condition for pension, or was pensioner at death. 

Survivor settlement: Deceased worked until age 55 but did not 

have 120 months of contributions. 

Payable abroad under reciprocal agreement only. 

Foreign workers who permanently leave country may receive 

reimbursement of their contributions. 

Old-Age Benefits 

Old-age pension: 40% of average earnings during last 3 or 5 years 

(whichever is higher). Increment of 1 % of earnings for each 

12 months of contribution beyond 240 months. 

Old-age settlement: Lump sum equal to 50% of average monthly 

earnings for every six months of contribution, if ineligible for 

pension. 

Permanent Disability Benefits 

Disability pension: 60% of old-age pension payable as if worker 
had worked until age 55. 

Minimum pension: 60% of highest minimum wage. 
Survivor Benefits 

Survivor pension: 50% of old-age pension of insured to 
nonworking or disabled widow; also payable to dependent disabled 
widower. If more than one widow, 50% is divided equally. 
Survivor pension cannot exceed 85% of average earnings. 
Orphans: 20% of insured's pension for each orphan; 35% if full 
orphan or mother ineligible for widow's pension. 



Maximum survivor pensions: 85% of insured's pension. 
Survivor settlement: Lump sum equal to 100% of regular monthly 
old-age pension of insured for every 6 months of contribution, if 
ineligible for survivor pension. 

Administrative Organization 

Ministry of Social Affairs and National Solidarity, general 
supervision. National Social Security Fund, administration of 
contributions and benefits. 

Sickness and Maternity 

First law: 1952. 

Current laws: 1975 (maternity) and 1976 (pharmaceuticals). 
Type of program: Social insurance system. Maternity and medical 
benefits only. 

Coverage 

Employed women, maternity benefits. 
Employed persons and their dependents, medical benefits. 
Separate system for self-employed, state workers under contract, 
and the indigent. 

Source of Funds 
Insured person: None. 

Employer: 2% of payroll for pharmaceuticals, 1.5% for 
hospitalization, and 0.6% for medical evaluations. Also, see 
contribution to family allowance program below. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 
1,500,000 CFA francs a month. 

Qualifying Conditions 

Maternity benefit: Women in insured employment for at least 
4 months. 

Medical benefits: No minimum qualifying period. 
Sickness and Maternity Benefits 

Sickness benefit: None under insurance (1962 labor code requires 
employers to provide paid sick leave). 
Maternity benefit: 50% of earnings. 
Also, free maternity care. 

Payable for up to 6 weeks before and 8 weeks after confinement 
(extended to 11 weeks if complications). 

Workers' Medical Benefits 

Medical benefits: Medical services provided by hospitals and 
dispensaries operated by National Social Security Fund, and by 
other participating establishments. 

Includes hospitalization, inpatient and outpatient treatment, and 
pharmaceuticals. 

(1962 labor code requires employers to provide certain medical 
services.) 

Dependents' Medical Benefits 

Medical benefits for dependents: See Family Allowances, below. 



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GABON 



Administrative Organization 

Ministry of Social Affairs and National Solidarity, general 
supervision. National Social Security Fund, administration of 
program; managed by tripartite board. 

Work Injury 

First law: 1935. 
Current law: 1975. 

Type of program: Social insurance system. 
Coverage 

Employed persons, including members of cooperatives, 
apprentices, and students. Also, certain categories of self-employed 
persons. Separate system for self-employed and state workers 
under contract. 

Source of Funds 

Insured person: None. 
Employer: 3% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 
1,500,000 CFA francs a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings received by 
worker during 30 days preceding accident. Payable from day after 
injury until recovery or certification of permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: For total disability, 100% of average 
earnings. 

Partial disability: Average earnings multiplied by 1/2 the degree of 
incapacity for the portion of disability between 10% and 50%, and 
by 1-1/2 the degree of incapacity for the portion above 50% . 
Lump sum payable if disability 10% or less. 
Constant-attendance supplement: 40% of pension. 

Workers' Medical Benefits 

Medical benefits : Medical, dental, and surgical care; 
hospitalization, medicines, appliances, laboratory services, X-rays, 
rehabilitation, and transportation. 

Survivor Benefits 

Survivor pension: 50% of earnings of insured. Payable to widow 
or widower. 

Orphans: 20% of earnings of insured for each orphan; 35% if full 
orphan, or if mother of orphan not receiving pension. Dependent 
parents and grandparents: each receives 10% of earnings of insured. 
Maximum survivor pensions: 85% of earnings of insured. 
Survivor settlement: Lump sum equal to 6 months' earnings of 
deceased, payable to nearest relative, if no survivors qualify for 
pension. 



Funeral grant: Lump sum covering cost of burial. Maximum, 8 
times average monthly earnings of insured. 

Administrative Organization 

Ministry of Social Affairs, and National Solidarity, general 
supervision. 

National Social Security Fund, administration of program. 

Family Allowances 

First law: 1956. 
Current law: 1975. 

Type of program: Employment-related system. 
Coverage 

Employed persons with 1 or more children and pensioners caring 
for child born before retirement. Special system for public 
employees. Separate system for self-employed, state workers under 
contract, and the indigent. 

Source of Funds 

Insured person: None. 
Employer: 8% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 
1,500,000 CFA francs a month. Above contributions also finance 
maternity benefits. 

Qualifying Conditions 

Family allowances: Child must be under age 16 (17 if apprentice, 
20 if student or disabled). 

Parent must have had 4 consecutive months of employment and be 
currently working 20 days a month (or be widow of beneficiary). 
Prenatal allowance: Must undergo regular medical examinations, 
as specified in law. 

Family Allowance Benefits 

Family allowances: 3,000 CFA francs a month for each child. 
Prenatal allowance: 13,500 CFA francs, paid in 2 installments. 
Birth grant: Lump sum of 8,000 CFA francs for each birth, and 
45,000 for layette. 

School allowances: 10,000 CFA francs per year to dependent 
primary, secondary, or technical school students. Some maternal 
and child health and welfare services also provided. 

Administrative Organization 

Ministry of Social Affairs and National Solidarity, general 
supervision. 

National Social Security Fund, administration of program; 
managed by tripartite board and director-general. 



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135 



Old Age, Disability, Death 

First law: 1981 (Provident Fund). 

Current law: 1987 (Pension Scheme). 

Type of program: Pension scheme and provident fund system 

(lump-sum benefits only). 

Exchange rate: U.S. $1.00 equals 10.04 dalasi. 

Coverage 

Pension Scheme: Employed persons in quasi-government 

institutions and in participating private companies. 

Exclusions: Civil servants and armed forces personnel. 

Provident Fund: Employed persons in the private sector. 

Exclusions: Civil servants and armed forces personnel. 

Special pension scheme system for civil servants and armed forces 

personnel. 

Source of Funds 

Pension scheme — Insured person: None. 
Employer: 19% of payroll. 
Government: None. 

Provident fund — Insured person: 5% of earnings. 
Employer: 10% of payroll. 
Government: None. 

Qualifying Conditions 

Pension scheme and provident fund — Old age pension: Age 55. 

Voluntary retirement: Age 45 if no employment for 2 years 
preceding application. 

Old-Age Benefits 

Pension scheme — Old-age pension: With a minimum of 5 years 
of contributions but less than 10 years, a lump sum of up to 25% 
of total contributions is paid; the remainder may be paid as a 
pension or a lump sum. 

With 10 or more years of contributions, a lump sum of 25% of 
total contributions is paid, the remainder paid as a pension. 
Provident fund — Early retirement or optional withdrawal of 
benefit: Benefits are paid to members whose employment is 
terminated due to layoffs, who marry (female members only), have 
reached the compulsory retirement age and have paid a minimum 
of 5 years of contributions. The level of benefit (percentage) 
depends on age of claimant and length of service. 
The balance in the member's account shall be payable only at 
normal retirement or on entitlement under other contingencies 
thereafter. 

Provident fund — Old-age grant: lump sum equal to total 
employer and employee contributions plus accrued interest. 

Permanent Disability Benefits 

Pension scheme — Disability pension: A lump sum of 25% of total 
contributions is paid, the remainder paid as a pension. 
Provident fund — Disability grant: Lump sum equal to total 
employer and employee contributions plus accrued interest. 



Survivor Benefits 

Pension scheme — Survivor pension: Lump sum equal to twice the 
annual salary of deceased payable to beneficiaries, irrespective of 
length of contributions. 

Provident fund — Survivor grant: Lump sum equal to total 
employer and employee contributions plus accrued interest. 
Payable to nominated survivors. 

Administrative Organization 

Social Security and Housing Finance Corporation, administration 
of both pension scheme and provident fund. 

Work Injury 

First law: 1940. 

Current law: 1990. 

Type of program: Employer liability. 

Coverage 

Employed persons. Exclusions: Armed forces personnel, casual 
workers, and family labor. 

Source of Funds 
Insured person: None. 

Employer: Whole cost, contributes 1 % of payroll to maximum of 

1,500 dalasi per month. 

Government: Contributes for civil servants. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 60% of earnings; maximum 
benefit: calculated on earnings up to 1,500 dalasi per month 
(reduced rates payable for partial disability). Payable after 5-day 
waiting period until recovery or certification of permanent 
disability grant. Benefit commuted to lump sum if beneficiary 
leaves the country. 

Permanent Disability Benefits 

Permanent disability benefit: 60% of earnings during 10 years, if 
totally disabled. Maximum benefit, calculated on earnings up to 
1,500 dalasi per month; minimum: 100 dalasi per month. 
Constant-attendance supplement: 25% of grant. 
Partial disability: Smaller lump-sum amounts, according to 
schedule in law. 

Workers' Medical Benefits 

Medical benefits: Medical, surgical, hospital, nursing care, and 
medicines (75% paid by Injuries Compensation Fund, 25% paid by 
employer). 

Survivor Benefits 

Survivor benefit: Lump sum of 120 months' earnings of insured, 
calculated on earnings up to 1,500 dalasi per month. Maximum, 
180,000 dalasi. 



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GAMBIA 



Payable to dependents of deceased; reduced amounts if survivors 
were only partially dependent on insured. 
Funeral grant: If no dependents, 1,000 dalasi. 

Administrative Organization 

Social Security and Housing Finance Corporation, enforcement of 
law. 

Injuries Compensation Fund, administration of program. 



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137 



Old Age, Disability, Death 

First law: 1956. 
Current law: 1992. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 1.2 lavi 

Local authorities and employers may provide supplementary 

benefits out of their own budgets. 

Coverage 

All employed persons residing in Georgia. Special provisions for 
teachers, professional athletes, and test pilots. Special social 
pension for aged, disabled, and survivors not otherwise eligible for 
social insurance (i.e., employment-related pension) benefits. 

Source of Funds 

Insured person: 1% of earnings. 

Employer: 37% of payroll for state-owned and private enterprises 
(26% of payroll for budget institutions, e.g. schools, hospitals and 
government agencies, etc.). 

Government: Subsidies as needed. Full cost of social pensions. 
Above contributions also finance benefits for cash sickness, 
maternity, work-injury, and for family allowances. 

Qualifying Conditions 

Old-age pension: Age 60 and 25 years of covered employment 
(men) or age 55 and 20 years of work (women); requirements 
reduced for hazardous or arduous work, for mothers of 4 or more 
children or of disabled children, and for the blind. Earnings test for 
pensioners in gainful employment. Social pension: nonworking 
citizens not eligible for old-age pension and aged 65 for men and 
60 for women. 

Disability pension: Total disability (incapacity for any work): 
Group I disability, requiring constant attendance; Group II 
disability, not requiring constant attendance. 
Partial disability (incapacity for usual work): Group III disability. 
Insured has a minimum of 1 to 15 years of covered employment, 
depending on age of onset of disability. 

Social pensions: disabled citizens not eligible for disability pension 
or disabled children under age 16. 

Survivor pension: Insured has 1 to 15 years of work (depending 
on age of insured at death), payable to surviving children whether 
or not dependents of the insured; and to nonworking dependents 
(including spouse; either parent, if disabled and not yet of 
pensionable age; grandparents, if no other support available; and 
other relatives — regardless of their age or ability to work — if 
employed by the deceased to care for grandchildren, children, or 
siblings under age 8). 

Social pension: payable to qualified surviving dependents who are 
ineligible for survivor pension due to insufficient length of covered 
employment of insured. 

Old-Age Benefits 

Old-age pension: 55% of average earnings (average wage in last 
year or last 5 years, whichever is higher), plus 1 % of earnings for 
each year in excess of 25 (men) or 20 (women) years of work. 



Payable monthly. 

Minimum: 100% of minimum wage. 
Social pension: 100% of minimum pension per month. 
Partial pension (if insufficient years of covered employment): 
Monthly benefit reduced in proportion to number of years below 
required years of coverage. 

Adjustment: Periodic benefit adjustments (in flat amount added to 
existing pensions) according to cost of living changes. 

Permanent Disability Benefits 

Disability pension: Group I disability pension, 55% of earnings 
(100% of old-age pension if 25 years of covered employed for men 
or 20 years for women) plus supplement for constant attendance; 
Group II disability, 55% of earnings (or 100% of old-age pension 
if 25 years of covered employment for men or 20 years for 
women); Group III disability, 30% of earnings. 
Minimum: Group I and II disability, 100% of minimum old-age 
pension; Group III disability, 50% of minimum old-age pension. 
Partial pension (if insufficient years of covered employment): 
Monthly benefit reduced in proportion to number of years below 
required years of coverage. 

Social pension for Group I disability if disability began in 
childhood, and disabled children under age 16: 100% of minimum 
old-age pension per month. Group II disability for adults, 50% of 
minimum old-age pension per month. Group III disability, 30% of 
minimum old-age pension per month. 

Adjustment: Periodic benefit adjustment (in flat amount added to 
existing pensions) according to cost of living changes. 

Survivor Benefits 

Survivor pension: Payable monthly at 30% of earnings for each 
dependent survivor. Minimum pension, 100% of minimum wage 
(200% if loss of both parents, or death of single mother). 
Social pension: for each orphan under age 16 (older if disabled 
since childhood), 50% of minimum pension. 
Adjustment: Periodic benefit adjustment (in flat amount added to 
existing pensions) according to cost of living changes. 

Administrative Organization 

Republic Ministry of Labor and Social Protection; general 
coordination and supervision. 

Regional departments of labor and social protection; administration 
of program. 

Sickness and Maternity 

First and current law: 1955, as amended in 1984, 1990 and 1992. 
Type of program: Dual social insurance (sickness and maternity 
benefits) and universal (medical care) systems. 

Coverage 

Cash benefits for sickness and maternity: Persons in covered 
employment; on leave from employment while pursuing secondary, 
technical or advanced education; and registered unemployed. 
Medical benefits: All residents. 



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Social Security Programs Throughout the World — 1997 



GEORGIA 



Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 

Government: Cash benefits: see pension contributions above; 
medical care: whole cost. 

Qualifying Conditions 

Cash and medical benefits: Sickness benefits according to length 
of service. No minimum qualifying period for medical care and 
maternity benefits. 

Sickness and Maternity Benefits 

Sickness benefit: 60% of last month's wage, if less than 5 years' 
uninterrupted work; 80% if 5-8 years; 100%, if over 8 years. 
Maternity benefit: 100% of wages. Benefits payable monthly for 
70 days before and 56 calendar days after confinement (latter may 
be extended to 70 calendar days in case of difficult birth or 
multiple births). 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly by 
government health providers, including general and specialist care, 
hospitalization, prostheses, medication, and other medical care 
services. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for head of household. 
Administrative Organization 

Cash benefits for sickness and maternity: Ministry of Labor and 
Social Protection; general supervision. Provided directly by the 
enterprises, as well as by local departments of labor and social 
protection. 

Medical care: Ministry of Public Health and health departments of 
local governments, general supervision and coordination; provision 
of medical services through government clinics, hospitals, 
maternity homes, and other facilities administered by the Health 
Ministry and local health departments. 

Work Injury 

First and current laws: 1955 (short-term benefits) and 1991 
(pensions). 

Local authorities and employers can provide supplementary 
pension benefits out of their own budgets. 
Type of program: Dual social insurance (cash benefits) and 
universal (medical care) system. 

Coverage 

Cash benefits: Employed persons. 
Medical care: All residents. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: Same. 

Government: Same; cost of medical care. 



Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings. Payable from 
first day of incapacity, until recovery or award of disability 
pension. 

Permanent Disability Benefits 

Permanent disability pension: Same as general disability pensions 
above. 

Workers'Medical Benefits 

Medical benefits: Medical services provided directly to patients by 
governmental health providers, including general and specialist 
care, hospitalization, laboratory services, transportation, plus full 
cost of appliances and medicines. 

Survivor Benefits 

Survivor pension: Same as general survivor pensions above. 
Administrative Organization 

Temporary disability benefits: Enterprises and employers pay 
benefits to own employees. 

Pensions: Same as under old-age, disability and survivor pensions 
above. 

Medical care: Republic Ministry of Health, and health departments 
of local governments, general supervision and coordination; 
provision of medical services through clinics, hospitals, and other 
facilities administered by the Health Ministry and local health 
departments. 

Unemployment 

First and current law: 1991 (effective July 1993). 
Type of program: Social insurance system. 

Coverage 

Citizens aged 16-59 (men) or 16-54 (women). 

Source of Funds 

Insured person: None. 
Employer: 3% of payroll. 

Government: Subsidies as needed from Republic and local 
governments. 

Qualifying Conditions 

Unemployment benefit: Registered at employment office; ability 
and willingness to work. Benefits may be reduced, suspended or 
terminated if worker is discharged for violating work discipline; 
leaving employment without good cause; violating conditions for 
job placement or vocational training; or filing fraudulent claims. 

Unemployment Benefits 

Unemployment benefit: Unemployment benefits are paid for 



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6 months, equal to 200% of subsistence wage for months 1-2; 
250% for months 3-4; 200% for months 5-6. 
Adjustments: a flat-rate of cost-of-living adjustment is paid 
monthly according to price changes. 

Administrative Organization 

Republic Ministry of Labor and Social Protection: general 
supervision. 

State Employment Exchange and regional employment exchanges, 
administration of program. 

Unified State Fund of Employment: Financing of the program. 

Note: Information is not readily available for "Family 
Allowances." 



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— 1997 



GERMANY 



Old Age, Disability, Death 

First law: 1889. 

Current laws: 1911 (insurance code), 1957, and 1973. 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 1.52 marks. 

Note: Following the unification of the Federal Republic of 
Germany (FRG) and the German Democratic Republic (GDR), on 
October 3, 1990, the social security system of the FRG remained 
in force while the system of the GDR continued to apply on an 
interim basis within the former GDR territory. The FRG and GDR 
systems were merged effective January 1, 1992, at which time Part 
IV of the Social Act came into force throughout the entire Federal 
territory. For the new Federal states, however, a number of 
transitional provisions and adjustments are still applicable. Thus, 
until December 31, 1996, new pensions were calculated under the 
old GDR legislation if it would result in a higher pension. In the 
summary that follows, particular provisions that remain in place in 
the new Federal states are preceded by the designation "E — ." As 
of January 1, 1997, all new pensioners will be treated uniformly 
throughout Germany. 

Coverage 

Employed persons (including apprentices), certain self-employed, 
persons caring for a child under age 3, recipients of social benefits 
(such as unemployment benefits), and voluntary care workers. 
Separate systems for wage earners and salaried employees, with 
identical provisions. Special systems for self-employed persons, 
miners, public employees (supplementary insurance), and farmers. 
Voluntary affiliation for all others age 16 or older currently exempt 
from compulsory insurance, including German citizens residing 
abroad and resident aliens. 

Source of Funds 

Insured person: 10.15% of earnings; none if earnings below 
DM 610 (E— DM 520) a month; self-employed, 18.6%. 

Employer: 10.15% of payroll; 20.3% if employee earns below 
DM 610 a month (E— DM 520). 

Government: Annual subsidy of about 20% of total cost of 
pension insurance. 

Maximum earnings for contribution purposes: DM 98,400 a year 
(E— DM 85,200); minimum, DM 610 a month (E— DM 520). 

Qualifying Conditions 

Old-age pension: Age 63 with 35 years of coverage; age 65 with 
5 years; age 60 with 15 years of coverage and unemployed 1 year 
in the last 18 months; for women if they have 10 years of 
compulsory coverage after age 40; and for severely disabled 
individuals at least age 60 who have a minimum of 35 years of 
coverage. Partial retirement available for pensioners under 65 with 
partial cessation of employment; if remaining earnings less than 
DM 810 a month (E— DM 520), full pension paid; if earnings 
above this part pension paid at 2/3, 1/2 or 1/3 depending on 
earnings level (E — age 65 (men), age 60 (women) and 15 years of 
insured employment. Additionally women with 5 or more children 
meet the eligibility requirements.) 



Disability pension: General disability, incapacity for any gainful 
activity. Occupational disability, 50% reduction of earning capacity 
in usual occupation. Total of 60 months coverage and 36 months of 
contribution out of last 5 years. (E — minimum loss of 2/3 earning 
capacity). 

Survivor pension: Deceased had 60 months of coverage or was 
pensioner at death. (E — Deceased met requirements for a pension 
and survivor was dependent on the worker.) Widow must be age 
60, widower age 65. Payable earlier if disabled or raising children. 

Old-Age Benefits 

Old-age pension: The total of earnings points multiplied by the 
pension factor and by the pension value, where: 

1 earnings points are the individual's annual earnings 
divided by the average earnings of all contributors. 
Periods of incapacity to work, unemployment and 
schooling after age 17 are also taken into account. 

2 the pension factor is one, and 

3 pension value is the monthly benefit amount for one year's 
average covered earnings, adjusted for changes in wages. 
From July 1, 1996 to June 30, 1997: DM 46.67 (E— DM 
38.38). 

For delayed retirement after age 65, an added factor of 1.0 plus 
.005 for each month is used to increase the benefit. 
Pension for low income earners: For people with 35 years of 
insurance, earning points are adjusted, if need be, up to 1.5 times 
the average value, up to a maximum of 75% of average earnings of 
all insured. 

(E — Fixed amount plus increase of 1 % of average salary over the 
last 20 years for each year of employment; additional periods also 
taken into account.) 

Adjustment: Benefits adjusted annually for changes in the real 
value of pensions compared to changes in earnings. 

Permanent Disability Benefits 

Disability pension: for general disability, same as old-age benefits; 
for inability to perform previous employment, pension factor is 
0.667. If disability occurs before age 60, the period up to age 55 is 
fully taken into account together with 1/3 of the period from age 
55-60 up to a maximum of 20 months. 
Adjustment: See old-age pension. 

Survivor Benefits 

Survivor pension: Same as old-age pension. 100% of insured's 
pension payable for 3 months. Thereafter, 60% of pension if age 
45, disabled, or caring for at least 1 child; otherwise 25%. Payable 
to widow or widower. (E — Widow or widower's benefit equals 
60% of the worker's disability pension, payable without minimum 
benefit for 2 years.) 

Orphans: 10% of insured's general disability pension for orphan; 
20% for full orphans. Supplement depending on length of coverage 
plus other factors. (E — 30% of worker's pension, without 
supplements.) Payable to orphan age 18-25 if apprentice and net 
income less than limit, for higher income, 40% is offset against 
pension. 



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Adjustment: Benefits adjusted annually for changes in the real 
value of pensions compared to changes in earnings. 

Administrative Organization 

Federal Ministry of Labor and Social Affairs, general supervision. 
Different organizations for wage earners, salaried employees and 
miners, benefit administration. 

Sickness funds collect contributions for employees, others 
(self-employed, etc.) pay directly to the pension fund. 

Sickness and Maternity 

First law: 1883. 

Current laws: 1924 (maternity benefits), 1988 (sickness insurance), 
1994 (long-term care). 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

All wage and salary earners earning up to DM 73,800 a year 
(E — DM 63,900) and pensioners and students. Special systems for 
miners, artists, public employees, and self- employed farmers. 
Long-term care: All persons covered by the statutory sickness 
insurance scheme, persons covered by their employer in private 
sickness insurance and some special groups. Persons with private 
health insurance must buy equivalent private coverage for 
long-term care. 

Source of Funds 

Insured person: On average, 6.8% of covered earnings, according 
to fund; no contribution if earnings less than DM 610 a month 
(E — DM 520). Pensioners contribute average 6.8% of pension 
(E — 6.5%). 

Employer: On average, 6.8% of payroll, according to fund ; 
13.6% for employees earning less than DM 610 a month (E — DM 
520). 

Government: Subsidy for maternity benefits; benefits for 
unemployed and persons in authorized training; also subsidy for 
pensioned farmers' and students' health benefits. Pension system 
also contributes toward pensioners' medical coverage. 
Maximum earnings for benefit and contribution purposes: 
DM 73,800 (E— DM 63,900) a year. (Adjusted annually to 75% of 
pension contributions ceiling.) 

Long-term care — Insured person: In one state 1.7%, in the rest, 
0.85% of earning. 

Employer: In one state 0%, in the rest 0.85% of earnings. 
Government: Contributes for unemployed, farmers, and students 
receiving a training allowance. 

Pension Funds: 0.85% of pension of covered pensioners. 
Maximum earnings for benefit and contribution purposes: 
DM 73,800 (E— DM 63,900) a year. (Adjusted annually to 75% of 
pension contributions ceiling.) 

Qualifying Conditions 

Cash sickness and medical benefits: Membership in sickness 
fund. No minimum qualifying period for sickness. 



Cash maternity benefits: 12 weeks of insurance, or continuous 
employment relationship from 10th to 4th month preceding 
confinement; must be working or excused from work 6 weeks prior 
to expected confinement. 

No minimum employment period for entitlement to medical 
benefits (except for intensive care needs) and maternity grant. 
Long-term care benefits: Payable in 3 stages: 

1 Substantial need for care with need for at least 1 daily 
procedure 

2 Severe need for care with need for daily procedure 3 
times per day. 

3 Critical need for care with need for round-the-clock care. 

In addition, all 3 stages must have need for home health care. In 
1997, to be eligible, the insured must have at least 2 years' (3 
years' in 1998, rising to 5 years' in 2000) coverage in a health care 
facility. 

Sickness and Maternity Benefits 

Sickness benefit: Employer pays full wage or salary for first 
6 weeks. Thereafter, sickness funds pay 70% of gross earnings (up 
to a maximum of 90% net earnings) for up to 78 weeks in 3 years. 
Maternity benefit: 100% of female worker's net earnings payable 
6 weeks before and 8 weeks after confinement. 
Maximum rate: DM 25 per day. 

Lump sum of DM 150 payable per birth if insured not eligible for 
maternity benefit. 

Maternity grant: DM 150 or more for each birth, according to 
fund. Sickness funds provide paid leave up to 5 days a year per 
sick child under age 8 requiring care by insured, and paid help 
during hospitalization of insured or spouse if needed for child 
under age 8 in household. 

Long term care: Carer's allowance payable in cases when the 
insured provide care themselves. Range from DM 400, 800 or 
1,300 per month depending on the level of care required. 
Allowance can also be claimed in kind (see medical benefits, 
below). 

Workers' Medical Benefits 

Medical benefits: Benefits provided to patients by doctors, 
hospitals, and druggists under contract with and paid by sickness 
fund. Includes comprehensive medical and dental care, preventive 
examinations and treatment, lab tests, maternity care with midwife 
or doctor, hospitalization, surgery, appliances, and prescribed 
medicines. Co-payment required for medicines, appliances, 
hospitalization, and transportation. Not required for particularly 
disadvantaged cases. 

Long term care: Home care benefits:Includes various aids and 
services, appliances and 

technical assistance (such as home modification), day or night care 
(including services partially provided by a health care 
establishment), short term institutional health care. Amounts fixed 
for the different services. 

Institutional health care: (from July 1, 1996): Covers costs up to 
maximum amounts. Insured pay for room and service costs. 



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Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 
Female dependents receive lump-sum maternity grant of DM 150 
for each birth. 

Administrative Organization 

Federal Ministry of Labor and Social Affairs, general supervision. 
Federal Insurance Institute, supervision of federal health insurance. 
Sickness funds: Administration of contributions and benefits. 
Funds managed by elected representatives of insured persons and 
employers, and joined into federations at the State and national 
level. Regional physicians' associations contract with funds on 
payment for medical services. Total sum paid by sickness funds to 
physicians' associations is apportioned to participating doctors on 
fee-for-service basis. 

Long-term care: Federal Ministry of Labor and Social Affairs, 
general supervision. 

Separate funds for long term care organized by sickness funds and 
private sickness insurance funds, administration of benefits. 

Work Injury 

First laws: 1884 (work accidents) and 1925 (occupational diseases). 
Current law: 1997. 

Type of program: Social insurance system. 
Coverage 

Employed persons, most categories of self-employed, apprentices, 
students, children in kindergarten, and family helpers. 
Special system for public employees. 

Source of Funds 
Insured person: None. 

Employer: Contributions varying according to risk. Average 
contribution, 1.46% of payroll. 

Government: Subsidy to agricultural accident insurance fund and 
for coverage of students and children in kindergarten. 
Maximum earnings for benefit purposes: DM 144,000 a year. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: Same as for ordinary sickness, 
including payment by employer for first 6 weeks. 
Thereafter, payment is assumed by the accident insurance fund. 
Payable from day after injury to recovery or certification of 
permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: 66 2/3% of latest year's earnings, 
if totally disabled. 

Supplement for severely disabled (earnings capacity loss of 50% or 
more) with no other pension: 10% of basic pension. 
Constant attendance supplement: DM 529-DM 2,1 16 a month. 
(E— DM 451 to DM 1,724) 



Partial disability: Percent of full pension corresponding to earnings 
capacity loss if 20% or more. 

Workers' Medical Benefits 

Medical benefits: Comprehensive medical care, occupational 
rehabilitation, and appliances. Provided exclusively by accident 
funds. Agricultural accident insurance covers assistance for 
farming operations and home help. 

Survivor Benefits 

Survivor pension: 40% of earnings of insured if age 45, disabled, 
or caring for a child: otherwise 30% of earnings. Payable to widow 
or widower. Income over a certain limit offset against benefits. 
Orphans: 20% of earnings for each orphan under age 18 (25 if 
student or disabled), or 30% if full orphan. Earnings over a certain 
limit are offset against beneficiaries over age 18. 
Parents and grandparents (if needy): 20% of earnings of insured if 
single beneficiary, 30% if couple. 

Maximum survivor pensions: 80% of earnings of the insured. 
Death grant: DM 7,320. 

Administrative Organization 

Federal Ministry of Labor and Social Affairs, supervision of 
accident prevention and primary care. 

Federal Insurance Institute or relevant State authorities, supervision 
of other areas. 

Accident insurance funds (non-agricultural, agricultural, public 
authorities), scheme administration. Bipartite management by 
elected representatives of employers and the insured. Special 
accident insurance carriers for public employees. 

Unemployment 

First law: 1927. 
Current law: 1969. 

Type of program: Compulsory insurance system. 
Coverage 

Employed persons, including homeworkers, apprentices and 
trainees; also includes other groups (including participants in 
occupational training schemes). Exclusions: Short-term 
employment. 

Source of Funds 

Insured person: 3.25% of covered earnings . 
Employer: 3.25% of covered earnings. 

Government: Subsidies under employment promotion law and for 

any deficit; also cost of unemployment assistance and social 

insurance contributions for unemployed. 

Maximum earnings for contribution and benefit purposes: 

DM 98,400 a year (E— DM 85,200). 

Qualifying Conditions 

Unemployment' benefit: Registered at employment office, capable 
of and available for work. 360 days of insured employment in last 
3 years (180 days for seasonal workers). 



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GERMANY 



Unemployment assistance: Based on need, available for workers 
with 150 days employment in last year or who have exhausted their 
statutory unemployment benefits. 

In certain cases, the right to unemployment benefit can be 
suspended (for up to 12 weeks). 



payable only if the family allowances are higher, and then only for 
the difference. 



Unemployment Benefits 

Unemployment benefit: 67% of net earnings for unemployed with 



Administrative Organization 

Federal Finance Office, administration of benefits through the 
Federal Institute for Labor (through regional and local labor 
offices) under the title Family Fund. 
Separate administration of schemes for public employees. 



children (60% if no children). Payable from 1st day for 78 to 832 
weekdays according to duration of insured employment and age. 
Unemployment assistance (means-tested): 57% (53% if no child) of 
net earnings payable to workers ineligible for regular benefits, and 
after exhaustion of regular benefits. No limit on duration. 
Partial unemployment benefit: Paid to workers who are 
unemployed for short periods. 

Bad weather allowance: Paid to construction workers where work 
is halted due to bad weather; payable after 151st hour of stoppage 
between January 1 and March 31 and November 1 and December 
31 of any year. 

Cost of living allowance: Paid to participants in occupational 
training, retraining and rehabilitation. 

Administrative Organization 

Federal Ministry of Labor and Social Affairs, general supervision. 
Local employment offices, placement, career guidance and 
administration of benefits. 
Sickness funds collect contributions. 

Family Allowances 

First law: 1954. 

Current law: 1996. 

Type of program: Universal system. 

Coverage 

Residents who are subject to income tax with 1 or more children. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 



Qualifying Conditions 

Family allowances: Child must be under age 18 (under age 21 if 
unemployed, 27 if student or trainee or if no training place 
available, no limit if disabled). 

For children above 18 years of age, the amount of the childrens' 
allowance is dependent on their income. 

Family Allowance Benefits 

Family allowances: DM 220 a month for 1st and 2nd child, 
DM 300 for the 3rd child and DM 350 for each subsequent child. 
(Lower rates may be paid if children reside in countries where cost 
of living is lower.) 

In the event child supplements from the statutory work accident or 
pension programs are paid, a benefit under family allowances is 



144 Social Security Programs Throughout the World — 1997 



Old Age, Disability, Death 



Sickness and Maternity 



First law: 1965. 
Current law: 1991. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 1710 cedi. 

Coverage 

Employed persons. Self employed persons have option to join. 
Voluntary affiliation for persons covered under previous 
discontinued program. Special system for members and officers of 
the armed forces. 

Source of Funds 

Insured person: 5% of earnings. Self-employed, 17.5% of income. 
Employer: 12.5% of payroll. 
Government: None. 

Qualifying Conditions 

Old-age benefit: Age 60 (55-59 with reduction, unless work is in 
underground mine, steel mill, or other hazardous employment) 
with minimum contribution of 240 months. Old-age grant payable 
to workers who lack sufficient contributions for old-age pension. 
Disability benefit: Permanent incapacity for any gainful 
employment; 12 months contributions within last 36 months. 
Survivor benefit: Death of insured person before age 72. 

Old-Age Benefits 

Old-age benefit: Minimum pension, 50% of average annual salary 

for 3 highest years' earnings; increased by 1.5 percentage points 

for each 12 months of contribution beyond 240 months. 

Maximum pension, 80% of average earnings of members with 

earnings in the top 5 percent. 

Workers may take 25% of pension as a lump sum. 

Old-age grant for non-qualifying contributors: Lump sum equal to 

refund of contributions plus interest equal to 50% of prevailing 

government treasury rate. 

Permanent Disability Benefits 

Disability benefit: Same as old-age benefit. 

Survivor Benefits 

Survivor benefit (payable to nominated dependents): If deceased 
was pensioner, lump sum benefit computed on present value of 
unexpired pension up to age 72. If deceased with 240 months of 
contribution was not a pensioner, a lump sum benefit is payable 
equal to present value of 12 years' pension; if deceased had less 
than 240 months contribution and was not a pensioner, lump sum 
benefit equal to present value of 12 years' pension based on 50 
percent of the average of the best 3 years salary. (Present value of 
pension computed using prevailing real rate of interest.) 

Administrative Organization 

Ministry of Finance and Economic Planning, general supervision. 
Social Security and National Insurance Trust, administration of 
programs through tripartite management board. 



Sickness and Maternity Benefits 

No statutory benefits. Employers provide medical care for 
employees and dependents through collective agreements. 

Work Injury 

First law: 1940. 
Current law: 1987. 

Type of program: Employer liability/compulsory insurance with 
private carrier. 

Coverage 

Employed persons. 

(Earnings ceiling has been abolished.) 

Source of Funds 
Insured person: None. 

Employer: Whole cost, through direct provision of benefits or 
insurance premiums. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: Minimum qualifying period is 6 months. 
Temporary Disability Benefits 

Temporary disability benefit: Periodic payment of difference in 
earnings before accident and actual or potential earnings after 
accident. Payable after 5-day waiting period for up to 24 months at 
the discretion of the Chief Labour Officer. 

Permanent Disability Benefits 

Permanent disability benefit: Lump sum of 96 months' earnings 
at time of injury, if totally disabled. 

Constant-attendance supplement: 25% of total disability benefit. 
Partial disability: Smaller lump-sum amounts, according to 
schedule in law. 

Workers' Medical Benefits 

Medical benefits: Medical, surgical, hospital, and nursing care; 
medicines and appliance expenses up to specified amounts. 

Survivor Benefits 

Survivor benefit: Lump sum of 60 months' earnings at time of 
injury. Payable to dependents of deceased; reduced amounts if only 
partial dependents survive. 

Administrative Organization 

Labor Department, Ministry of Mobilization and Social Welfare, 
enforcement of law. 

Employers may insure liability with private insurance companies. 



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145 



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Old Age, Disability, Death 

First law: 1934. 

Current laws: 1951, 1981 (special noncontributory old-age 

pension), 1990, 1992 and 1996. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 239.4 drachmas. 

Coverage 

Employees in industry, commerce, and related occupations and 
certain urban self-employed workers. Employees affiliated with 
approved occupational and establishment funds providing 
equivalent benefits are exempt from general system. Special 
systems for agricultural workers, public employees, and tradesmen 
and craftsmen. Voluntary coverage for Greeks living abroad. 

Source of Funds 

Insured person: 6.67% of earnings; 8.87% if in arduous or 
unhealthy employment. 

Employer: 13.33% of payroll; 14.73% if in arduous or unhealthy 

employment. 

Government: 10%. 

Maximum earnings for contribution and benefit purposes: 
6,069,000 drachmas a year or 14 monthly salaries of 417,500 
drachmas. 

Qualifying Conditions 

Old-age pension: Age 65 (men) and 60 (women) with 4,500 days 

of contributions. Age 65 (men and women) who first start working 

after 1993. Age 60 (men) and 55 (women) with 4,500 days of 

contributions of which at least 3,600 in arduous or unhealthy 

employment, including at least 1,000 days in last 10 years. Age 62 

(men) and 57 (women) and 10,000 days of contribution. Age 58 

(men and women) and 10,500 days of contribution. Age 55 

(women with dependent and/or disabled children) and 5,500 days 

of contribution. Reduced pension: Age 50 (women with dependent 

and/or disabled children) and 5,500 days of contribution. For men 

and women, age 60 with 4,500 days of contribution. 

Benefit is suspended if beneficiary is working and his earnings 

exceed 50 times minimum wage of unskilled worker. (266,850 

drachmas as of 7/1/95) 

Payable abroad under reciprocal agreement. 

Pensioners' Social Solidarity Grant: Age 65, monthly pension 

amount in June 1996 less than 110,000 drachmas, annual income in 

1995 from pension and earnings up to 1,400,000 drachmas, yearly 

personal taxable income up to 1,800,000 drachmas and family 

taxable income up to 2,800,000 drachmas. 

Disability pension: Loss of 80% of normal earning capacity for 

100% disability; at least 50% loss for partial disability. 

Worker must have 4,500 days of contribution or 1,500 days, 

including 600 days in 5 years preceding disability. 

For those not yet age 21, 300 days required in 5 years preceding 

disability, with this number gradually increased to 4,200 days by 

adding 120 work days for each year after age 21. 

(Different requirements for persons who start working after 1993.) 

Pensioners' Social Solidarity Grant: Same as for old-age pension, 

above. 



Survivor pension: Deceased met disability contribution 
requirement or was pensioner or eligible for pension at death. 
Age 65 (men and women) who first start working after 1993. 
Pensioners' Social Solidarity Grant: same as for old-age pension, 
above. 

Old-Age Benefits 

Old-age pension: 30% to 70% of average earnings during last 
5 years, varying inversely with earnings level, according to 28 
wage classes, plus 1 % of earnings for each 300 days of 
contribution between 3,300 and 7,800 days, and 1.5 to 2.5% 
(depending on earnings level) for each 300 days beyond 7,800. For 
persons who first start working after 1993, 1,714% of average 
earnings during last 5 years. 

Minimum pension, 86,940 drachmas a month, increased by 
dependents' supplements. 

Pension reduced 0.5% for each month of early retirement. 
Dependents' supplements: 7,698 drachmas a month for nonworking 
wife or dependent disabled husband; 20% of basic pension for first 
child, 15% for second, 10% for third. (For persons who first start 
working after 1993, 8%, 10%, and 12% for children, respectively; 
no dependent supplement for spouse.) 

Maximum pension: Earnings on which pension has been calculated. 

Schedule of payments: 14 per year. 

Adjustment: Pensions indexed to pensions of civil servants. 

Pensioners' Social Solidarity Grant (as of July 1996): 

1 1,400 drachmas per month for pension up to 100,000 drachmas; 

8,550 drachmas per month for pension up to 104,000 drachmas; 

5,700 drachmas per month for pension up to 107,000 drachmas; 

2,850 drachmas per month for pension up to 1 10,000 drachmas. 

Permanent Disability Benefits 

Disability pension: Same as for old-age pension, including 
supplements. Pension begins after cash sickness benefits end. 
Serious disability, loss of 80% of normal earning capacity: full 
old-age pension. 

Ordinary disability, loss of 67-79% of earning capacity: 75% of 
full old-age pension. 

Partial disability, loss of 50-66% of earning capacity: 50% of full 
old-age pension. 

Minimum pension, 86,940 drachmas a month. 
Schedule of payments: 14 per year. 

Pensioners' Social Solidarity Grant: same as for old-age pension, 
above. 

Survivor Benefits 

Survivor pension: 70% of basic pension of insured, payable to 
widow or dependent disabled widower. Married 6 months; 2 years 
if deceased was pensioner; waived if accidental death or child born 
from marriage. For persons who first start working after 1993, 
surviving spouse receives 50% of pension; monthly income must 
not exceed 40 times minimum daily wage, and spouse must be 
disabled, age 45, or have 2 dependents. 
Orphans: 20% of basic pension of insured, or 60% for full 
orphans, if under age 18 (24 if student, no limit if disabled). For 
persons who first start working after 1993, each orphan receives 
25%. 



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Social Security Programs Throughout the World — 1997 



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Grandchild or parent (in absence of above): 20% of pension, or 
40% if widowed mother. 

Maximum survivor pensions: 100% of pension of insured, or 80% 
if spouse not a survivor. Minimum: 78,240 drachmas a month. 
Funeral grant (under sickness insurance): Lump sum of 130,480 
drachmas. 

Schedule of payments: 14 per year. 

Pensioners' Social Solidarity Grant: Same as for old-age pension, 
above. 

Administrative Organization 

Ministry of Health, Welfare, and Social Security, general 
supervision. 

Social Insurance Institute, administration of program through 
branch offices for most covered workers; managed by governor 
and tripartite governing body. 

Numerous special occupational and establishment funds administer 
programs for workers exempt from general system. 

Sickness and Maternity 

First law: 1922. 

Current laws: 1951 and 1984 (National Health Service) details not 
shown). 

Type of program: Social insurance system. 
Coverage 

Employees in industry, commerce, and related occupations and 
certain urban self-employed workers. Pensioners also covered for 
medical benefits. Employees affiliated with approved occupational 
and establishment funds with equivalent benefits exempt from 
general system. Special systems for agricultural workers 
(noncontributory old-age pensioners covered for medical benefits) 
and public employees. 

Source of Funds 

Insured person: Medical care, 2.55% of earnings; cash benefits, 

0.4% of earnings. Pensioner, 4% of pension. 

Employer: Medical care, 5.1% of payroll; cash benefits, 0.8% of 

payroll. 

Government: 3.8%. 

Maximum earnings for contribution and benefit purposes: 
6,069,000 drachmas a year. No ceiling for those who start working 
after 1/1/95. 

Qualifying Conditions 

Cash sickness benefit: 100 days of contribution in calendar year 
preceding illness, or 100 days in last 15 months excluding last 
quarter. 

Cash maternity benefit: 200 days of contribution in last 2 years. 
Medical benefits: 50 days of contribution in last year (25 days if 
nonoccupational accident) or pensioner. 

Sickness and Maternity Benefits 

Cash sickness benefit: 50% of earnings, plus 10% of benefit for 
each dependent. Maximum benefit, 8,155 drachmas a day. 



Payable after 3-day waiting period for up to 720 days with 1500 
days of employment. During 1st month, employer pays difference 
between cash benefit and worker's earnings. 
Cash maternity benefit: 50% of earnings, plus 10% of benefit for 
each dependent. Minimum benefit, 1,860 drachmas a day. 
Payable for up to 56 days before and 56 days after confinement. 
Lump-sum maternity benefit: 153,960 drachmas for each child. 

Workers' Medical Benefits 

Medical benefits: Medical services ordinarily provided directly to 
patients through facilities of Social Insurance Institute. Includes 
general and specialist care; care in hospital, sanatorium, or nursing 
home; medicines; maternity care or delivery grant if care not 
available; dental care; appliances, and transportation. 
Patients charged 25 % of pharmaceutical costs and up to 25 % of 
cost of other services (protheses, eyeglasses, etc.) except 
hospitalization. Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured worker. 
Administrative Organization 

Ministry of Health, Welfare, and Social Security, general 
supervision. 

Social Insurance Institute, administration of program through 
branch offices for most covered workers. Institute operates own 
dispensaries, clinics, and hospitals, and also utilizes other public 
and private facilities. 

Numerous special occupational and establishment funds administer 
programs for workers exempt from general system. 

Work Injury 

First law: 1914. 
Current law: 1951 . 

Type of program: Social insurance system. 
Coverage 

Employees in industry, commerce, and related occupations. 
Employees affiliated with approved occupational and establishment 
funds with equivalent benefits exempt from general system. 

Source of Funds 
Insured person: None. 

Employer: 1% of payroll (2% if employer in noncompliance with 
occupational safety laws). 
Government: None. 

Qualifying Conditions 

Work-injury benefits: Payable after 1-day waiting period. 
Temporary Disability Benefits 

Temporary disability benefit: 50% of earnings, plus 1.5 times 
minimum daily wage for wife and 1 minimum daily wage (3,839 
drachmas) for each child up to 3. 



Social Security Programs Throughout the World — 1997 



147 



Payable for 720 days after 3-day waiting period (paid retroactively 
to first day if disability continues). 

Permanent Disability Benefits 

Permanent disability pension: At least 50% disabled, full old-age 

pension. 

Workers' Medical Benefits 

Medical benefits: Same as for ordinary sickness above, except no 
cost-sharing by patient. 

Survivor Benefits 

Survivor pension: Same as for survivor pensions above. 
Administrative Organization 

Ministry of Health, Welfare, and Social Security, general 
supervision. 

Social Insurance Institute, administration of program through 
branch offices for most covered workers. 

Numerous special occupational and establishment funds, administer 
programs for workers exempt from general system. 

Unemployment 

First law: 1945. 
Current law: 1994. 

Type of program: Social insurance system. 
Coverage 

Employees in industry, commerce, and related occupations. 
Special systems for seamen and printing workers. 

Source of Funds 

Insured person: 1.33% of earnings. 
Employer: 2.67% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 
6,069,000 drachmas a year. 

Qualifying Conditions 

Unemployment benefit: 125 days of contribution in last 
14 months, excluding working days in last 2 months (for lst-time 
beneficiary, also 80 days in each of last 2 years). 
Capable of earning at least 1/3 of wages of similar worker, 
available for work, and registration at employment office. 
Unemployment not due to voluntary leaving, dismissal for 
misconduct, or refusal of suitable offer or prescribed training 
(disqualification usually permanent). 

Unemployment Benefits 

Unemployment benefit: 40% of wages, or 50% of salary. 
Minimum, 66-2/3% of wage of unskilled worker. 
Dependents' supplements: 10% of earnings for each dependent. 
Payable after 6-day waiting period for maximum of 12 months. 



Administrative Organization 

Ministry of Labor, general supervision. 

Manpower Employment Organization, administration of benefits 
and employment service through local employment offices; 
managed by tripartite board. 

Social Insurance Institute, collection of contributions. 

Family Allowances 

First and current law: 1958. 

Type of program: Employment-related system. 

Coverage 

Employees in industry, commerce, and related occupations, with 

1 or more children. 

Employees receiving equivalent allowances from employer 
exempted. 

Source of Funds 

Insured person: 1% of earnings. 
Employer: 1% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 
6,069,000 drachmas a year. 

Qualifying Conditions 

Family allowances: Child must be under age 18 (no limit if 

disabled, 22 if student). 

Parent must have had 50 days of employment in preceding year for 
full allowances. 

Family Allowance Benefits 

Family allowances: Benefits vary inversely according to level of 
income: For one child, from 1,300 drachmas per month for annual 
income of 1,700,00 drachmas or less, down to 900 drachmas a 
month for annual income of 2,400,000 drachmas or above; for 

2 children, from 4,450 drachmas for income of 1,700,00 drachmas 
or less, down to 2,900 drachmas for annual incomes of 2,400,000 
drachmas and above; for three children, from 9,650 drachmas for 
incomes of 1,700,000 drachmas or less, down to 5,490 drachmas 
for annual incomes of 2,400,000 drachmas and above; for four 
children, from 11,000 drachmas for incomes of 1,700,000 
drachmas or less, down to 7,370 drachmas for annual incomes of 
2,400,000 drachmas and above. For five children from 13,500 
drachmas for incomes of 1,700,000 drachmas or less, down to 
9,870 drachmas for annual incomes of 2,400,000 drachmas and 
above; and for six or more children, from 16,000 drachmas for 
incomes of 1,700,000 drachmas or less, down to 12,370 drachmas 
for annual incomes of 2,400,000 drachmas and above. 

Administrative Organization 

Ministry of Labor, general supervision. 

Manpower Employment Organization, administration of allowances 
through local offices. 

Social Insurance Institute, collection of contributions. 



148 



Social Security Programs Throughout the World — 1997 



GRENADA 



Old Age, Disability, Death 

First law: 1969 (provident fund, defunct). 
Current law: 1983. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 2.70 East Caribbean (E.C.$) 

dollars. 

Coverage 

Employed and self-employed persons aged 16-59, including public 
employees. 

Source of Funds 

Insured person: 4% of earnings. Self-employed 6.75% of 
earnings. 

Employer: 4% of covered wage. 
Government: None. 

Maximum earnings for contribution purposes: E. C$30,000 a year. 
Qualifying Conditions 

Old-age pension: Age 60. 500 weeks of coverage, with at least 
150 weeks based on contributions actually paid. 
Old-age grant: Age 60; ineligible for pension, with at least 50 
weeks of contributions paid or credited. 
Disability pension: Under age 60. 150 weeks of contributions 
actually paid. 

Disability grant: Under age 60. Ineligible for pension, at least 
50 weeks of contributions paid or credited. 
Survivor pension: Deceased was pensioner or eligible for pension. 
Survivor grant: Deceased was eligible for old-age or disability 
grant. 

Funeral grant: Worker was pensioner or eligible for old-age or 
disability grant. 

Old-Age Benefits 

Old-age pension: 30% of average earnings, plus 1% of earnings 
for each 50 weeks of contributions over 500. 
Minimum benefit: E.C.$35 per week. 

Old-age grant: Lump sum equal to 5 times average weekly wage 
for each 50 weeks of contributions. 

Permanent Disability Benefits 

Disability pension: 30% of average earnings, plus 1% of earnings 
for each 50 weeks of contributions over 500. 
Maximum benefit: 60% of earnings. 
Disability grant: Lump sum equal to 5 times average weekly 
earnings for each 50 weeks of contributions. 

Survivor Benefits 

Survivor pension: 75% of pension of insured payable to widow 
aged 50 or disabled (1 year limit under age 50 unless disabled) and 
to dependent disabled widower. 

Orphans: 1/4 of pension of the insured for each child under age 16 
or age 18 if student; 1/2 each for full orphans or disabled children. 
Minimum benefit: E.C.$7.50 per week, E.C.$15 if full orphan or 
disabled. 



Maximum survivor pension: 100% of pension of insured. 

Survivor grant: Lump sum equal to 5 times the average weekly 

wage for each 50 weeks of contributions. 

Funeral grant: Insured, E. C$1, 600. Spouse, E. C$1, 200. Child, 

E.C.$600. 

Administrative Organization 

Ministry of Social Services and Labor, general supervision. 
National Insurance Board, administration of program. 

Sickness and Maternity 

First and current law: 1983. 

Type of program: Social insurance system. Cash benefits only. 
Coverage 

Employed persons aged 16-59, including public employees. 
Source of Funds 

Insured person: See pension contribution above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Cash sickness benefits: Employed on day before onset of illness, 
or 13 weeks of contributions, including 8 out of the 13 weeks 
preceding illness. 

Cash maternity benefits: 30 weeks of contributions, including 
20 weeks in the 30-week period ending 6 weeks before 
confinement. 

Funeral grant: Deceased was entitled to sickness or maternity 
benefits at time of death. 

Sickness and Maternity Benefits 

Sickness benefit: 60% of average earnings during 13 weeks before 
illness. Payable from first day for up to 26 weeks, 52 weeks if 75 
or more contributions paid or credited in the last 3 years. 
Maternity benefit: 60% of average earnings during 30 weeks 
before benefit begins. Payable 6 weeks before expected 
confinement and 6 weeks after for 12 weeks total. Minimum 
payable: E.C.$400. 

Survivor Benefits 

Funeral grant: Insured, E.C.$1,600. Spouse, E.C.$1,200. Child, 
E.C.$600. 

Administrative Organization 

Ministry of Housing, Social Security, and Women's Affairs, 
general supervision. 

National Insurance Board, administration of program. 



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149 



GUATEMALA 



Old Age, Disability, Death 

First and current law: 1969. 
(Program initiated in 1977 on national level.) 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 6.02 quetzales. 

Coverage 

All employees, including agricultural workers and some public 
employees. Special system for other public employees. 

Source of Funds 

Insured person: 1.5% of earnings. 
Employer: 3% of payroll. 

Government: 25% of cost of benefits paid; also contributes as 
employer. 

Maximum earnings for benefit purposes: 4,000 quetzales a month. 
Voluntary continuation of coverage: 4.5% of covered wages 
(maximum, 4,000 quetzales). 

Qualifying Conditions 

Old-age pension: Age 60. 180 months of contribution. Also 
payable to disabled at age 60 with at least 36 months of 
contributions in the 6 years before onset of disability. Retirement 
necessary from last employment. 

Pension reduced if the pensioner works and earnings plus pension 
exceed base salary. 

Disability pension: Loss of 2/3 of earning capacity (50-67% for 
partial disability). 36 months of contribution during last 6 years. 
Under age 60. 

Survivor pension: Deceased met contribution conditions for 
disability or old-age pension or was pensioner at death. 
In cases where disability or death result from an accident, 
36 contributions in the 6 years prior to the accident are required. 

Old-Age Benefits 

Old-age pension: 50% of average monthly earnings during last 
5 years of contribution, plus increment of 0.5 % of earnings for 
each 6 months of contribution beyond 120 months. 
Dependents' supplements: 10% of pension for wife or disabled 
husband and for each child under age 18 or disabled. 
Minimum and maximum pension (including dependents' 
supplements): 165 quetzales and 3,200 quetzales a month, 
respectively. Family maximum: 80% of earnings (up to 4,000 
quetzales). 

Permanent Disability Benefits 

Disability pension: 50% of average monthly earnings during last 
3 years of contribution, plus increment of 0.5% of earnings for 
each 6 months of contribution beyond 120 months. 
Dependents' supplements: 10% of pension for wife or disabled 
husband and for each child under age 18 or disabled. 
Minimum and maximum pension: 165 quetzales and 3,200 
quetzales a month, respectively. Family maximum, 80% of 
earnings (up to 4,000 quetzales). 



Constant-attendance supplement: 25% of pension; minimum and 
maximum, 41.25 and 165 quetzales a month, respectively. 
Partial disability: Half of pension for total disability. 

Survivor Benefits 

Survivor pension: 50% of disability pension paid or payable to 
insured. 

Minimum pension, 82.50 quetzales a month. Payable to widow or 
disabled widower. 

Orphans: 25% of pension of insured (minimum, 41.25 quetzales a 
month) for each orphan under age 18 (no age limit if disabled), or 
50% for each full orphan (minimum, 82.50 quetzales a month). 
Parents: 25% of pension each. Minimum, 41.25 quetzales a month. 
Maximum survivor pensions: 100% of disability pension of 
insured; sum of minimum survivor benefits cannot exceed 165 
quetzales a month. 
Funeral grant: 412.50 quetzales. 

Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
Guatemalan Social Security Institute, administration of program, 
directed by tripartite board. Oversight by Comptroller General. 

Sickness and Maternity 

First laws: 1946, 1953 (maternity). 
Current laws: 1968. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Employees of firms with 5 or more workers (3 or more workers in 
the Department of Guatemala) in 10 departments, including 
Department of Guatemala. Free medical care (for accidents, 
sickness and maternity) for those receiving pensions. 

Source of Funds 

Insured person: 2% of earnings. 
Employer: 4% of payroll 
Government: 2% of payroll. 

Qualifying Conditions 

Cash benefits: 3 months of contributions in 6 months prior to 
onset of risk. 

Benefits in kind: In covered employment. 
Sickness and Maternity Benefits 

Sickness benefit: 2/3 of average earnings (according to applicable 
formula). 

Maximum: 2,400 quetzales a month. 

Sickness benefit: Payable after 3-day waiting period for up to 
26 weeks for some illnesses (may be extended to 39 weeks). 
Benefit for multiple periods of illness cannot exceed 52 weeks in 
24 months. 



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Social Security Programs Throughout the World — 1997 



GUATEMALA 



Maternity benefit: 100% of earnings payable for 30 days before 
and 54 days after confinement. Nursing mothers are also permitted 
a half hour twice a day or one hour before or after work to nurse 
their child for up to 10 months. 

Workers' Medical Benefits 

Medical benefits: Medical services ordinarily provided directly to 
patients through medical facilities of Social Security Institute. 
Includes general and specialist care, surgery, maternity care, 
hospitalization, pharmaceuticals, laboratory services, appliances, 
transportation, rehabilitation, and retraining. Benefits provided in 
the case of any illness, as well as for accidents. 
Treatment abroad may be authorized with a limit of US$15,000. 

Dependents' Medical Benefits 

Medical benefits for dependents: Wife or companion of an 
insured man receives same maternity care as insured woman, and 
in 

10 Departments also receives sickness and accident benefits. 
Newborn infant of insured man or woman receives layette, milk or 
other dietary items, and pediatric care for up to 5 years, up to age 
15 if congenital illness or deformity. 

Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
Guatemalan Social Security Institute, administration of program. 
Institute operates 23 hospitals, 29 clinics, and 15 first-aid stations, 
5 dispensaries, and 7 contract services (4 public and 3 private). 



Workers' Medical Benefits 

Medical benefits: Medical treatment and surgery, hospitalization, 
medicines and appliances, transportation, rehabilitation services, 
and retraining. 

Survivor Benefits 

Funeral grant: 412.50 quetzales. 

Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
Guatemalan Social Security Institute, administration of 
contributions and benefits. 

Institute provides medical benefits through its own hospitals and 
clinics. 



Work Injury 



First law: 1947. 
Current law: 1949. 

Type of program: Social insurance system. 
Coverage 

All insured workers in the country. 

Source of Funds 

Insured person: 1% of earnings. 
Employer: 3% of payroll. 
Government: 1.5% of payroll. 

Qualifying Conditions 

Work-injury benefits: 3 months of contributions prior to onset of 
risk. 

Temporary Disability Benefits 

Temporary disability benefit: 2/3 of earnings; minimum benefit, 
8 quetzales daily. 

Maximum benefit: 2,400 quetzales monthly. 
Waiting period: 1 day. 

Permanent Disability Benefits 

Permanent disability benefit: Lump sum of 495-4,950 quetzales, 
according to degree of incapacity. 



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151 



GUERNSEY 



Old Age, Disability, Death 

First laws: 1925 (old-age pensions), 1935 (old-age and survivors). 
Current laws: 1971 (social assistance), 1978 (social insurance), 
1984(attendance allowances). 

Type of program: Dual social insurance and social assistance 
system. 

Exchange rate: US$1.00 equals 0.60 pound (£). 
Coverage 

Old-age pension: All persons over school leaving age; optional for 
non-employed under 20 and married women and widows who are 
covered by husband's insurance. 

Disability pension (invalidity pension): All employed and 
self-employed persons; optional for married women and widows. 
Disability attendance allowances: All residents. 
All residents covered for social assistance. 

Source of Funds 

Insured person: 4.5% of earnings up to maximum earnings of 
£444 a week. (18% for employed married women and widows 
opting out). 

Self-employed, 8.9% of earnings; non-employed, 7.3% of annual 
income: both, up to maximum annual earnings of £23,088. 
Employer: 5.4% of earnings up to maximum earnings of £444 a 
week. 

Government: Grant equal to 57% of contribution receipts. Pays all 
social assistance and other non-contributory benefits. 
Above contributions also finance sickness, maternity, work injury, 
unemployment, prescription medicines and some medical services. 

Qualifying Conditions 

Old-age pension: Age 65, men and women. Minimum of 156 
contributions paid between the later of 1952 or date of entry to 
insurance and age 65. Yearly average of 50 contributions paid or 
credited gives full rate pension. Pension reduced pro-rata for 
average of less than 50. No pension if yearly average less than 10. 
Pension payable worldwide. 

Disability pension (Invalidity benefit): Incapacity for work 
following entitlement to sickness benefit for 6 months. Minimum 
of 26 contributions paid since entry to insurance. 50 contributions 
paid or credited in relevant contribution year for full benefit. 
Benefit reduced pro-rata for less than 50. No benefit if less than 
26. 

Attendance allowance: Non-contributory. Person born in Guernsey 
or ordinarily resident in Guernsey for 5 years. Benefit paid after 
3 months of severe disability (except if terminally ill). Maximum 
allowable income, £49,000 a year. 

Invalid care allowance: Non-contributory. Paid to a person caring 
for severely disabled person for 35 hours or more a week and 
earning less than £65 a week from employment. 
Maximum allowable income, £49,000 a year. 
Survivor pension: Widows only. Deceased met qualifying 
requirements for old-age pension, or was a pensioner, at death. 
Widowed mother's allowance: Payable to widows with at least one 
dependent child. 



Widow's pension: Payable to widows over 40 without dependent 
children. 

Death grant: Minimum of 26 contributions paid or credited 
between later of 1971 and date of entry to insurance and date of 
death. Full grant if 45 contributions paid or credited in relevant 
contribution year. Grant reduced pro-rata for less than 45. No 
grant if less than 10. 

Supplementary benefit: Non-contributory, means-tested social 
assistance for persons over 60, or incapacitated, disabled, caring 
for member of family or single parent. 

Old Age Benefits 

Old-age pension: Full-rate benefit for insured person £90.25 a 
week. 

£55.00 a week supplement for dependent adult. 
£9 a week supplement for each dependent child. 

Permanent Disability Benefits 

Disability pension (Invalidity benefit): Full-rate benefit, £74.70 a 
week. £43.62 supplement for dependent adult . £4.65 a week 
supplement for each dependent child. 
Attendance allowance: £53.00 a week. 
Invalid care allowance: £42.75 a week. 

Survivors Benefits 

Widow's pension: £89.00 a week. 

Widow's allowance: £122.00 a week for 26 weeks, plus £9.00 a 
week for each dependent child . 

Widowed mother's allowance: £89.00 a week plus £9.00 a week 
for each dependent child . 

Supplementary benefit: according to need but subject to maximum 
of £168.50 a week. 

Administrative Organization 

Guernsey Social Security Authority. 

Sickness and Maternity 

First laws: 1964 (sickness), 1971 (maternity), 1972 (medicines). 
Current laws: 1971 (social assistance), 1978 (social insurance 
sickness and maternity), 1990 (medicines). 
Type of program: Social insurance for cash benefits. Social 
assistance for means tested benefits. Universal system for specialist 
medical care, medical consultations and consultation grants. 

Coverage 

Sickness benefit: Employed and self employed persons with 
earnings of £65.00 or more a week. 

Maternity allowance: Employed and self employed persons with 
earnings of £65.00 or more a week. 

Supplementary benefit: Persons incapable of work, single parents 
and pregnant women not cohabiting. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: See pension contributions, above. 



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Social Security Programs Throughout the World — 1997 



GUERNSEY 



Government: See pension contributions, above. Full cost of 
supplementary benefit. 

Qualifying Conditions 

Sickness benefit: At least 26 reckonable contributions paid 
between later of 1965 or date of entry to insurance and, for full 
benefit, 50 contributions or credits in the relevant contribution 
year. Benefit reduced pro-rata for less than 50. 
No benefit if less than 26. 

Maternity allowance: 50 reckonable contributions or credits, at 
least 26 of which are paid, in year preceding 13th week before 
expected week of birth. Benefit reduced pro-rata for less than 50. 
No benefit if less than 26. 

Maternity grant: At least 26 reckonable contributions paid between 
later of 1971 or date of entry to insurance and at least 
26 contributions or credits in relevant contribution year. 

Sickness and Maternity Benefits 

Sickness benefit: £64.98 a week plus £38.82 for dependent adult 
and £4.65 for each dependent child. 

Maternity allowance: £64.98 a week plus £38.82 for dependent 
adult and £4.65 for each dependent child. 
Maternity grant: £182.00 lump sum payment. 

Medical Benefits 

Medical benefits: Acute hospital accommodation provided by 
Government. Specialist medical services provided by specialist 
group practice contracted to Government. Medical prescriptions for 
£1.60 (no charge for over 65 and low income). 
Grant of £8.00 towards cost of primary care medical consultation 
and £4.00 grant for nurse consultation. 

Administrative Organization 



Permanent Disability Benefits 

Industrial disablement benefit: £79.30 a week if 100% disabled. 
Reduced benefit pro-rata for lesser disablement. 
No benefit under 20%. 

Constant attendance allowance: For 100% disablement only. 
Increase of industrial disablement benefit by £37.50, £56.25 or 
£75.00 a week depending on extent to which constant attendance is 
required. 

Workers' Medical Benefits 

See Sickness and Maternity, above. 

Survivors Benefits 

See Survivors Benefits, above. 

Administrative Organization 

Guernsey Social Security Authority. 

Unemployment 

First law: 1964. 
Current law: 1978. 

Type of program: Social insurance system. 
Coverage 

Employed persons whose earnings are £65.00 a week or more, but 
excluding married women and widows opting to pay reduced-rate 
contributions. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: See pension contributions, above. 
Government: See pension contributions, above. 



Guernsey Social Security Authority. 

States of Guernsey Board of Health (for hospital services). 

Work Injury 

First law: 1925. 
Current law: 1978. 

Type of program: Social insurance system. 
Coverage 

Employed and self employed persons. 
Source of Funds 

Insured person: See pension contributions, above. 
Employer: See pension contributions, above. 
Government: See pension contributions, above. 

Qualifying Conditions 

Work injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Industrial injury benefit: £64.98 a week plus £38.82 for adult 
dependent plus £4.65 a week for child dependent. 



Qualifying Conditions 

Unemployment benefit: At least 26 reckonable contributions paid 
since entry to insurance. Full benefit paid if 50 or more 
contributions or credits in relevant contribution year. If less than 
50, benefit reduced pro-rata. No benefit if less than 26. 
Weekly registration at job centre to confirm availability for work. 
Possible 10 week disqualification for leaving employment 
voluntarily, misconduct and refusing suitable work. 

Unemployment Benefits 

Unemployment benefit: £64.98 a week, plus £38.82 for adult 
dependent, plus £4.65 for dependent child. 
Cash benefit limited to 180 days. Requalification for benefit 
requires 13 weeks in employment for at least 20 hours a week. 

Administrative Organization 

Guernsey Social Security Authority. 

Family Allowances 

First law: 1943. 
Current law: 1950. 



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153 



GUERNSEY 



Type of program: Universal system. 
Coverage 

Residents with one child or more. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 



Qualifying Conditions 

Family allowances: Claimant born in Guernsey or present in 

Guernsey for at least 52 weeks in previous 2 years. 

Child must be under 16 or under 20 if still in full time education. 

Family allowances 

Family allowances: £9.00 a week for each child. 

Administrative Organization 
Guernsey Social Security Authority. 



154 



Social Security Programs Throughout the World — 1997 



GUINEA 



Old Age, Disability, Death 



First law: 1958. 

Current laws: 1985 and 1994. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 1007 francs. 

Coverage 

Employed persons. 

Source of Funds 

Insured person: 2.5% of earnings. 
Employer: 4% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 400,000 
francs a month. 

(Disability pensions financed through sickness insurance.) 
Qualifying Conditions 

Old-age pension: Age 55 (payable at age 50 if unable to work, or 
with 5%-10% reduction for each year under age 55) with 15 years 
of contributions. 

Retirement from gainful activity necessary. 

Disability pension: Loss of 2/3 of working or earning capacity. 

Enrollment in insurance and 26 days or 120 hours of employment 

in last 3 months (waived for currently employed workers if 

incapacity is due to accident or infectious disease). 

Survivor pension: Deceased was pensioner or in insured 

employment at death. 

Old-Age Benefits 

Old-age pension: About 2% of base earnings times years of 
insurance, according to point system (credit given for periods of 
incapacity). Maximum years counted, 30. Increment of 5% of 
pension for each year pension deferred after age 55. Maximum 
increment, 25%. 

Child's supplement: 1,500 francs per month for each dependent 
child up to ten. 

Permanent Disability Benefits 

Disability pension: 50% of average earnings, if totally disabled. 
Constant-attendance supplement: 20% of pension. 
Partial disability: Pension proportionate to loss of earning capacity. 
Maximum: 30% of earnings. 

Survivor Benefits 

Survivor pension: 50% of pension paid or accrued to insured, if 
age 50 or caring for child; any age if widow of old-age pensioner. 
Orphans: 20% of pension of insured for each full orphan. 
Maximum for all orphans: 100% of pension. 
Funeral grant: Lump sum of 90 days' earnings. 
Minimum: 250 francs. 

Administrative Organization 

Ministry of Social Affairs, and Women's and Children's Welfare, 
general supervision. 



National Social Security Fund, administration of program; 
managed by administrative council. 

Sickness and Maternity 

First law: 1960. 

Current laws: 1985 and 1994. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 
Employed persons. 

Source of Funds 

Insured person: 2.5% of earnings. 

Employer: 4% of payroll (includes 1% for maternity benefits). 
Government: None. 

Maximum earnings for contribution and benefit purposes: 400,000 
francs a month. 

Qualifying Conditions 

Cash sickness and medical benefits: 3 months of enrollment and 
26 days of employment during last 3 months (waived for currently 
employed workers if incapacity due to accident or infectious 
disease). 

Cash maternity benefits: Paid under Family Allowances, below. 

Sickness and Maternity Benefits 
Sickness benefit: 50% of earnings. 

Payable after 8-day waiting period for up to 13 weeks; extended to 
26 weeks if enrolled for insurance at least 1 year and 250 days of 
employment during last 12 months. (Labor code requires employer 
to pay full wages during waiting period.) Maximum duration of 
benefits: 3 years in case of permanent condition. 
Maternity benefit: Paid under Family Allowances, below. 

Workers' Medical Benefits 

Medical benefits: Service benefits provided by doctors, hospitals, 
and druggists paid directly by Fund. 

Benefits available only after 8-day waiting period during which 
employer and worker must share medical care costs equally. 
Includes general and specialist care, surgery, hospitalization, 
maternity care, drugs (reimbursed at 70%, if infectious disease 
100%), appliances, laboratory services, and transportation. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 
Administrative Organization 

Ministry of Social Affairs, and Women's and Children's Welfare, 
general supervision. 

National Social Security Fund, administration of program. 
Work Injury 



First law: 1932. 



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155 



GUINEA 



Current laws: 1946,1960 and 1994. 

Type of program: Social insurance system. 

Coverage 

Employed persons. 

Source of Funds 

Insured person: None. 
Employer: 4% of payroll. 
Government: None. 

Maximum earnings for contribution and benefit purposes: 400,000 
francs a month. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 50% of earnings for first 28 days; 
thereafter, 66-2/3%. 

Payable from day after injury until recovery or certification of 
permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: For total disability, 100% of 
average earnings. 

Partial disability: Average earnings multiplied by 1/2 the degree of 
incapacity for the portion of disability between 10% and 50%, and 
by 150% of the degree of incapacity for the portion above 50%. 
(Converted to lump sum if disability is 10% or less.) 

Workers' Medical Benefits 

Medical benefits: Medical and surgical care, hospitalization, 
drugs, appliances, rehabilitation, and transportation. 

Survivor Benefits 

Survivor pension: 30% of earnings of insured; payable to widow 
or dependent widower. Orphans: 15% of earnings each for 1st and 
2nd orphan, 10% for each other up to age 16 (20 if student); 20% 
for each full orphan. Dependent relatives: 10% of earnings each, 
up to 20%. Maximum survivor pensions: 85% of earnings. 
Funeral grant: Lump sum of 90 days' earnings. 
Minimum: 250 francs. 

Administrative Organization 

Ministry of Social Welfare, and Women's and Children's Welfare, 
general supervision. 

National Social Security Fund, administration of program. 

Family Allowances 

First law: 1956. 
Current law: 1985. 

Type of program: Employment-related system. 



Coverage 

Employed persons subject to the Labor Code who are covered 
under social insurance. 

Source of Funds 

Insured person: None. 
Employer: 6% of payroll. 
Government: None. 

Maximum earnings for contribution purposes: 300,000 francs a 
month. 

Qualifying Conditions 

Family allowances: Child must be under age 17. 
Parent must have been enrolled for insurance during past month 
and be currently working 18 days a month (unless a social 
insurance beneficiary). 

Cash maternity benefits: Woman is in insured employment. 
Family Allowance Benefits 

Family allowances: 1,500 francs a month for each child through 
the 10th. 

Maternity benefit: 100% of earnings. (Labor code requires 
employer to pay half.) 

Payable for up to 6 weeks before and 8 weeks after confinement. 
Administrative Organization 

Ministry of Social Affairs, and Women's and Children's Welfare, 
General Supervision. 

National Social Security Fund, administration of program. 
(Government pays allowances directly to its employees.) 



156 



Social Security Programs Throughout the World — 1997 



GUYANA 



Old Age, Disability, Death 

First law: 1944 (old-age assistance). 

Current laws: 1969, 1981, 1986, 1989, and 1992. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 138 Guyana dollars (G$). 

Coverage 

Employed persons aged 16-59 (public and private) and self- 
employed. Voluntary coverage for the previously insured. 
Exclusions: Employees earning below G$7.50 a week, casual and 
subsidiary employment, and family labor. 

Source of Funds 

Insured person: 4.4% of earnings. Self-employed, 9.55% of 
income up to insurable limit. Voluntary contributors, 8% of 
average weekly income in last 2 years before cessation of work. 
No contributions beyond age 60. 

Employer: 6.6% of payroll. 1.45% for insured persons under 16 
and over 60 years of age. 

Government: None, except as employer. Makes loans to cover 
deficits. 

Maximum earnings for contribution and benefit purposes: G$8,128 
a week. 

Above contributions also finance cash sickness, maternity, and 
work-injury benefits (except self-employed). 

Qualifying Conditions 

Old-age pension: Age 60 with 750 weeks of contributions paid or 
credited of which 150 must be paid contributions. 25 weeks 
credited for each year over age 35 in 1969; maximum credit, 600 
weeks. No retirement necessary. 

Disability pension: Aged 16-59 and permanently disabled; 
minimum of 250 weekly contributions credited, with at least 150 
weeks paid (25 weeks credited for each year between 
commencement of disability and age 60). 
Survivor pensions: Deceased was a pensioner or eligible for 
pension at death; or aged 16-59 with a minimum of 250 weekly 
contributions paid or credited, with at least 150 paid contributions. 

Old-Age Benefits 

Old-age pension: 40% of average weekly covered earnings during 
highest 3 years out of the last 5 years of work before age 60. 
(Increased by 1 % of average weekly covered earnings for every 
50 weeks of contributions in excess of 750, up to maximum of 
60%.) Minimum benefit: 50% of minimum wage. 
Old -age settlement: 1/12 times average annual covered earnings for 
every 50 weeks of contributions paid or credited, if ineligible for 
pension, but with at least 50 weeks of contributions before age 60. 

Permanent Disability Benefits 

Disability pension: 30% of average weekly covered earnings over 
the highest 3 years out of the last 5 years before becoming 
disabled. (Increased by 1 % of average weekly covered earnings for 
every 



50 weeks of contributions in excess of 250, up to maximum of 
60%.) Minimum benefit: 50% of minimum wage. 
Disability settlement: 1/12 times average annual covered earnings 
for every 50 weeks of contributions paid or credited, if ineligible 
for pension, but with at least 50 weeks of contributions (must be 
under age 60). 

Survivor Benefits 

Survivor pension: Widow or widower. 50% of old-age or 
disability pension paid or payable. 16-2/3% supplement for each 
child, up to three children. Lump sum if not fully insured. 
Orphans: 33-1/3% of pension paid or payable; maximum benefit 
100% of pension. 

Funeral grants: G$6,600 upon death of insured; grant also paid on 
death of spouse. 

Administrative Organization 

Minister of Finance, general supervision. 

National Insurance Board, administration of program. 

Sickness and Maternity 

First and current law: 1969. 

Type of program: Social insurance system. Cash benefits only. 
Coverage 

Employed persons (public and private) and self-employed, aged 
16-60. Exclusions: Employees earning below G$7.50 a week, 
casual and subsidiary employment, and family labor. 

Source of Funds 

Insured person: See pension contributions above. 

Employer: See pension contributions above. 

Government: None, except as employer. Makes loans to cover 

deficits. 

Qualifying Conditions 

Cash sickness benefits: 50 weeks of contribution and work in 
covered employment during 8 out of 13 weeks immediately 
preceding onset of incapacity. Under age 60. 
Cash maternity benefits: 15 weeks of contribution of which 7 are 
during 26-week period ending 6 weeks before confinement. 
Cash maternity grant: Worker or spouse meets requirement for 
maternity benefit. 

Sickness and Maternity Benefits 

Sickness benefit: 70% of average weekly covered earnings during 
the best 8 weeks of work in the 13 weeks before commencement of 
incapacity. 

Payable from 4th day of incapacity up to maximum of 26 weeks. 
Maternity benefit: 70% of average weekly covered earnings 
during the best 7 weeks of work in the 26 weeks before 
commencement of the benefit. Payable for 13 weeks, including 
week of confinement plus 6 weeks before and 6 weeks after. 
Extended up to 13 additional weeks if complications arise. 
Maternity grant: G$300. 



Social Security Programs Throughout the World — 1997 



157 



GUYANA 



Medical benefits: None under insurance. 

(Medical care available in public hospitals and health centers at 

cost scaled to income.) 



Workers' Medical Benefits 



Death benefit: Up to G$250 to insured person's creditors or estate, 
if no dependents to receive death benefit. 



Administrative Organization 



Administrative Organization 

Minister of Finance, general supervision. 

National Insurance Board, administration of program. 



Minister of Finance, general supervision. 

National Insurance Board, administration of program. 

Work Injury 

First law: 1916. 
Current law: 1969. 

Type of program: Social insurance system. 
Coverage 

Employed persons (public and private). 

Exclusions: Employees earning below G$7.50 a week, casual and 
subsidiary employment, and family labor. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: See pension contributions above. (Also pays additional 
1.45% of insurable earnings to finance employment injury for 
workers under age 16 or over age 60.) 

Government: None, except as employer. Makes loans to cover 
deficits. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 70% of average weekly covered 
earnings during the best 8 weeks of work in the 13 weeks before 
occurrence of injury. Payable after 1st day, if injury lasts more 
than 3 days, up to 26 weeks. 

Permanent Disability Benefits 

Permanent disability pension: Rates same as for temporary 
disability, if permanent disability is 100%; proportionally reduced 
when disability partial but not less than 15%. Lump-sum benefit 
equal to 260 times the weekly injury benefit times the assessed 
percentage of disability if disability is less than 15%. 

Workers' Medical Benefits 

Medical benefits: Hospitalization, general and specialist care, 
medicines, and transportation. 

Survivor Benefits 

Survivor pension: 35% of weekly earnings for widow, widower, 
or parent and 1 1-2/3% for each dependent, up to maximum of 70% 
of weekly earnings. Minimum pension for widow, widower or 
parent: 50% of old age, disability minimum pension; minimum 
pension for child: 16-2/3% of old age, disability minimum pension. 
Orphans: 23-1/3% of weekly earnings until age 18. Minimum 
pension: 33-1/3% of old age, disability minimum pension. 

158 Social Security Programs Throughout the World — 1997 



HAITI 



Ol d Age, Disability, Death 

First law: 1965. 
Current law: 1967. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 15.42 gourdes. 

Coverage 

Employees of industrial, commercial, and agricultural firms. 
Exclusions: Unpaid family labor, members of religious 
communities, and foreign diplomats. Special system for public 
employees. 

Source of Funds 

Insured person: 2% of earnings if 200 gourdes or less a month, 
3% if 201-500 gourdes, 4% if 501-1,000 gourdes, and 6% if over 
1,000 gourdes. 
Employer: Same as above. 
Government: Any deficits. 

Qualifying Conditions 

Old-age pension: Age 55 and 20 years of contribution. 
Disability pension: Total incapacity for work (not caused by work 
injury). Must have contributed for a period of 10 years up to 
20 years. 

Survivor pension: Deceased was pensioner or eligible for pension 
at death. 

Old-Age Benefits 

Old-age pension: 1/3 of average earnings during last 10 years. 
Refund of contributions (without interest) if ineligible for pension. 

Permanent Disability Benefits 

Disability pension: 1/60 of average earnings for each year of 
coverage during the 10 years preceding retirement. 

Survivor Benefits 

Survivor benefits: 50% of pension paid or payable to insured. 
Divided among widow, orphans under age 18 (no limit if student 
or disabled), or other dependents. Refund of contributions (without 
interest), if deceased ineligible for pension. 

Administrative Organization 

Ministry of Social Affairs, general supervision. 

National Office of Old Age Insurance of the Haitian Social 

Insurance Institute, administration of program. 

Institute managed by tripartite board and director-general. 

Sickness and Maternity 

First law: 1951 (not implemented). 

Current law: 1967 (not implemented). 

Type of program: Social insurance system. Cash and medical 

benefits. 



Work Injury 

First law: 1951. 
Current law: 1967. 

Type of program: Social insurance system. 
Coverage 

Employees of industrial, commercial, and agricultural firms, and 
public employees. Coverage being extended gradually to different 
districts and occupations. 

Source of Funds 
Insured person: None. 

Employer: 2% of payroll (commerce), 3% (industry, construction, 
and agriculture), or 6% (mining). 
Government: None, except as employer. 

Qualifying Conditions 

Work-injury benefits: Partial or total disablement before age 55. 
No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: 2/3 of earnings; minimum and 
maximum benefits, 100 and 1,000 gourdes a month, respectively. 
Payable after 3-day waiting period (during which employer must 
pay benefit) for duration of incapacity. 

Permanent Disability Benefits 

Permanent disability pension: 2/3 of earnings, if totally disabled; 
minimum and maximum pensions, 100 and 1,000 gourdes a month, 
respectively. Partial disability: Pension proportionate to degree of 
disability, if latter exceeds 10%; lump sum if disability below 
10%. Any pension may be converted to lump sum. 

Workers' Medical Benefits 

Medical benefits: Necessary treatment including medical and 
dental care, surgery, hospitalization, medicines, and appliances; 
available until recovery or stabilization of disability. 

Survivor Benefits 

Survivor pension: 50% of total disability pension of insured. 
Payable to widow or dependent disabled widower. Orphans: 30% 
of pension of insured for each orphan under age 21 . Parents or 
grandparents: 40% of pension of insured, if no eligible spouse or 
orphan. 

Maximum survivor pensions: 80% of pension of insured. 
Funeral grant: 1 month's earnings. 

Administrative Organization 

Ministry of Social Affairs, general supervision. 
Office of Work Accident, Sickness and Maternity Insurance of the 
Haitian Social Insurance Institute, administration of program. 
Institute operates own dispensaries and hospital at Port-au-Prince. 



Social Security Programs Throughout the World — 1997 



159 



HONDURAS 



Old Age, Disability, Death 

First and current law: 1959 (implementing regulations, 1971). 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 13.05 lempiras. 

Coverage 

Employed persons in private and public enterprise; also persons in 
liberal professions and self-employed. Exclusions: Domestic, 
casual, and agricultural workers (except those employed by 
employers with more than 10 permanent employees). 
Special system for teachers, public employees, doctors, and the 
military. Coverage being extended gradually to different areas. 

Source of Funds 

Insured person: 1% of earnings. 
Employer: 2% of payroll. 
Government: 1% of payroll. 

Minimum earnings for contribution purposes: 90 lempiras a month. 
Maximum: 600 lempiras. 

Qualifying Conditions 

Old-age pension: Age 65 (men) or 60 (women). 180 months of 
contribution. Lump-sum refund if less. Retirement from covered 
employment necessary. 

Disability pension: Loss of 2/3 of earning capacity in usual 
occupation. 36 months of contribution during last 6 years; 8 
months during last 24 months in case of nonoccupational accident. 
(Men 45 and women 40 or older at time the law was implemented 
must have contributed 50% of time since initially eligible.) 
Survivor pension: 36 months of contribution by deceased during 
last 6 years. 

Old-Age Benefits 

Old-age pension: 40% of basic monthly earnings, plus increment 
of 1 % of earnings for each 12 months of contribution beyond 
60 months. 

Increment for work beyond age 65 (men) or 60 (women): 3% of 
basic monthly earnings for each year of contribution. 
Minimum pension: 50% of earnings; maximum, 80%. 
Refund of contributions if ineligible for pension. 

Permanent Disability Benefits 

Disability pension: 40% of basic monthly earnings, plus increment 
of 1 % of earnings for each 12 months of contribution beyond 
60 months. 

Constant-attendance supplement: Allowance up to maximum of 

50% of pension of insured. 

Maximum pension: 80% of earnings. 

Refund of contributions if ineligible for pension. 

Survivor Benefits 

Survivor pension: 40% of actual or accrued pension of insured 
paid to widow; also payable to widower over age 65 or disabled. 
Orphans: 20% of pension of insured for each orphan under age 14 
(18 if student or disabled), or 40% for each full orphan. 



Dependent mother or disabled father over age 65: 20% of pension 
each. Maximum survivor pension: 100% of pension of insured. 
Funeral grant: 50% of basic monthly earnings. Minimum, 
125 lempiras. 

Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
Honduran Social Security Institute, administration of program; 
managed by a Board of Directors and Director-General. 

Sickness and Maternity 

First law: 1952. 

Current law: 1959 (implementing regulations, 1962). 

Type of program: Social insurance system. Cash and medical 

benefits. 

Coverage 

Employees of firms with 1 or more workers in industry and 
commerce, and public employees. 

Exclusions: Agricultural, domestic, family, and temporary 
workers. Coverage being extended gradually to additional regions. 

Source of Funds 

Insured person: 2.5% of earnings. 

Employer: 5% of payroll. 

Government: 2.5% of total covered earnings. 

Minimum and maximum earnings for contribution and benefit 

purposes: 90 and 600 lempiras a month, respectively. 

Above contributions also finance work-injury benefits. 

Qualifying Conditions 

Cash sickness benefits: 35 days of contribution in last 3 months. 
Cash maternity benefits: 75 days of contribution in last 10 months 
(unemployed workers ineligible). 

Medical benefits: Currently in insured employment, 35 days of 
contribution in last 3 months if unemployed or if illness occurs 
within 60 days after unemployment starts. Old-age and disability 
pensioners also covered. 

Sickness and Maternity Benefits 

Sickness benefit: 66% of earnings (50% if hospitalized and 
without dependents). Payable after 3-day waiting period for up to 
26 weeks (may be extended to 52 weeks). 
Maternity benefit: 66% of earnings, payable for 6 weeks before 
and 6 weeks after confinement. 

(Employees not eligible for benefits under social insurance may 
receive sick or maternity leave under labor code.) 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients 
through health facilities of Social Security Institute. 
Includes general and specialist care, surgery, hospitalization, 
necessary medicines, laboratory services, appliances, and dental 
and maternity care (postnatal care up to 45 days). 
Duration: No limit (26 weeks if unemployed). 



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Social Security Programs Throughout the World — 1997 



HONDURAS 



Dependents' Medical Benefits 

Medical benefits for dependents: Maternity care for wife of 
insured, including postnatal care up to 45 days. 
Pediatric care for infants of insured men or women until 30 days 
after reaching age 5 or 26 weeks after death of insured father. 



Orphans: 20% of pension for each orphan under age 14 (18 if 
student), or 40% if full orphan. 

Dependent parents (in absence of above): 20% of pension each. 
Maximum survivor pensions: 100% of pension of insured. 
Funeral grant: 125 lempiras. 



Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
Honduran Social Security Institute, administration of program; 
managed by a Board of Directors and Director-General. 
Institute operates own outpatient clinics and hospitals. 



Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
Honduran Social Security Institute, administration of contributions 
and benefits. 

Institute operates own outpatient clinics and hospitals. 



Work Injury 



Unemployment 



First law: 1952. 

Current law: 1959 (labor code still in force in regions to which 
social insurance not yet extended; provisions not shown). 
Type of program: Social insurance system. 



(1959 labor code requires employer to pay dismissed employees a 
lump sum based on length of service, not to exceed 1 1 months' 
wages.) 



Coverage 



Note: This information is more than 6 years old. 



Employees of firms with 1 or more workers in industry and 
commerce, and public employees. 

Exclusions: Agricultural, domestic, family, and temporary workers. 
Coverage being extended gradually to additional regions. 

Source of Funds 

Insured person: See sickness contributions above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Survivor benefit: 10 months in covered employment. 

Temporary Disability Benefits 

Temporary disability benefit: 66% of daily wage. 
Payable after 3-day waiting period for up to 52 weeks. 

Permanent Disability Benefits 

Permanent disability pension: 40% of basic monthly earnings, 
plus increment of 1 % of earnings for each 12 months of 
contribution beyond 60 months, if totally disabled. Minimum: 66% 
of earnings; maximum, 80%. 

Partial disability: Percent of full pension corresponding to degree 
of incapacity, if greater than 15%. Pension below 10 lempiras a 
month converted to lump sum. 

Constant-attendance supplement: Up to maximum of 50% of 
pension of insured. 

Workers' Medical Benefits 

Medical benefits: Medical, surgical, and hospital care; medicines; 
and appliances. 

Survivor Benefits 

Survivor pension: 40% of actual or accrued pension of insured. 
Payable to widow or widower over age 65 or disabled. 



Social Security Programs Throughout the World — 1997 



161 



HONG KONG 



Old Age, Disability, Death 

First and current laws: 1971 (social assistance); 1973, (universal 
old-age and disability allowance); 1978 (means-tested old-age 
supplement); 1980 (means-tested disability supplement); 1988 
(means-tested old-age allowance; universal higher-rate disability 
allowance); 1993 (public assistance re-named comprehensive social 
security). 

Type of program: Dual universal and social assistance system. 
Exchange rate: U.S. $1.00 equals 7.7 Hk dollars. 

Coverage 

Residents. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Entire cost. 

Qualifying Conditions 

Old-age allowance: Lower rate — Age 65-69; 5 years of continuous 
residence; income and savings below prescribed level. Higher 
rate — no means test. Age 70, 5 years continuous residence. 
Disability allowance: Lower rate — 1 year of continuous residence 
and 100% loss of earning capacity, or profoundly deaf. 
No means test. 

Higher rate — same criteria as for lower rate; certified to be in need 
of constant attendance, not residing in government (or government 
supported) institutions. No means test. 

Comprehensive social security: Age 60 and over, or disabled; 1 
year of continuous residence; income and savings below prescribed 
level. 

Old-Age Benefits 

Old-age allowance: Lower rate — Hk$560 a month. Higher 
rate-Hk$635 a month. 

Comprehensive social security: Ranges from Hk$l,615 to 
Hk$4,135 a month if single, and from HK$ 1,440 to Hk$3,365 a 
month for a family member, depending on category of recipient; 
plus special grants to meet specific needs of recipients on an 
individual basis. 

Permanent Disability Benefits 

Disability allowance: Lower rate — Hk$l,125 a month. Higher 
rate— Hk$2,250 a month. 

Comprehensive social security: Same as old-age benefit. 
Survivor Benefits 

Funeral grant: Hk$10,700 to recipients of comprehensive social 
security. 

Administrative Organization 

Social Welfare Department, administration of program. 



Sickness and Maternity 

First laws: 1968 (employer liability) and 1971 (social assistance). 
Current law: 1995. 

Type of program: Dual employer liability (cash benefits only) and 
social assistance system. 

Coverage 

All employees. Residents (comprehensive social security). 

Source of Funds 
Insured person: None. 

Employer: Entire cost of employer liability program. 
Government: Entire cost of comprehensive social security 
program. 

Qualifying Conditions 

Cash sickness benefit: 1 month of continuous employment. 
Cash maternity benefit: 40 weeks of continuous employment. 
Comprehensive social security: 1 year of continuous residence; 
limited working capacity; income and savings below prescribed 
level. 

Sickness and Maternity Benefits 

Sickness benefit: 4/5 of wage up to 120 days. Payable after 3-day 
waiting period. 

Maternity benefit: 4/5 of wage payable 4 weeks before and 6 
weeks after confinement for the first 3 children. 
Comprehensive social security: See rates of payment under 
old-age program, above. 

Workers' Medical Benefits 
Medical benefits: None. 

(Medical care available in public hospitals at low cost.) 
Administrative Organization 

Labor Department, administration of employer liability program. 
Social Welfare Department, administration of social assistance 
program. 

Work Injury 

First laws: 1953 (employer liability) and 1971 (social assistance). 
Current law: 1995. 

Type of program: Dual employer liability and social assistance 
system. 

Coverage 

All employees. Residents (comprehensive social security). 

Source of Funds 
Insured person: None. 

Employer: Entire cost of employer liability program. 
Government: Entire cost of comprehensive social security 
program. 



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Social Security Programs Throughout the World — 1997 



HONG KONG 



Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Comprehensive social security: Same as for Sickness and 
Maternity, above. 

Temporary Disability Benefits 

Temporary disability benefit: 4/5 of the difference between 
earnings before and after injury. 
Payable for up to 36 months. 

Comprehensive social security: See rates of payment under 
old-age program, above. 

Permanent Disability Benefits 

Permanent disability grant: Total disability, lump sum of 48-96 
months' earnings, according to age of employee. 
Maximum, Hk$l, 728,000; minimum, Hk$297,000. 
Constant-attendance supplement: Lump sum or periodic payments 
up to 2 years. Maximum, Hk$356,000. 

Partial disability: Percent of full benefit proportionate to degree of 
incapacity, according to schedule. 

Workers' Medical Benefits 

Medical benefits: Medical examination, treatment, and appliances. 
Survivor Benefits 

Survivor grant: Lump sum of 36-84 months' earnings, according 
to age of deceased. Maximum, Hk$l,512,000; minimum, 
Hk$262,000. 

Funeral grant (if no survivor): Hk$14,000. 
Administrative Organization 

Labor Department, administration of employer liability program. 
Social Welfare Department, administration of social assistance 
program. 

Unemployment 

First and current law: 1977. 

Type of program: Social assistance system. 

Coverage 

Residents of limited income aged 15-59. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Entire cost. 

Qualifying Conditions 

Unemployment benefit: 1 year of continuous residence, and 
registered for employment. Income and savings below prescribed 
level. 

Unemployment Benefits 

Unemployment allowance (means-tested): See rates of payment 
under comprehensive social security above. 



Administrative Organization 

Social Welfare Department and Labor Department, administration 
of program. 

Family Allowances 

First and current law: 1971. 

Type of program: Social assistance system. 

Coverage 

Residents. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Entire cost. 

Qualifying Conditions 

Family allowances: 1 year of continuous residence; income and 
savings below prescribed level. 

Family Allowance Benefits 

Family allowances (means-tested): See rates of payment under 
comprehensive social security above. 

Administrative Organization 

Social Welfare Department, administration of program. 



Social Security Programs Throughout the World — 1997 



163 



HUNGARY 



Old Age, Disability, Death 

First law: 1928. 
Current law: 1975. 

Type of program: Social insurance system. 
Exchange rate: U.S. 1.00 equals 154 forints. 

Coverage 

Employees, members of handicraft and agricultural cooperatives, 
artisans, self-employed, apprentices, independent farmers, artistic 
performers, and lawyers; recipients of unemployment benefits. 

Source of Funds 

Insured person: 6% of gross earnings. 
Employer: 24.5% of payroll. 

Government: Any deficit. Above contributions also finance 
long-term work-injury benefits, and family allowances. 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 56 (women), 20 years of 

employment; reduced for unhealthy work. 

Retirement age for women to be increased in stages to age 60 by 

2003. 

For partial pension: 15 years of insurance. 

Disability pension: Total disability (incapacity for any paid work) 

or partial disability (67% loss of working capacity). 2 years of 

employment if incapacitated at age 22, lengthening by steps to 

20 years of employment at age 55 or over. 

Survivor pension: Insured was pensioner or met employment 

requirement for disability pension at death. 

Old-Age Benefits 

Old-age pension: 53% of net earnings during best 4 year period in 
5 years preceding retirement, if 20 years coverage; rising 2% per 
year for the next 5 years of coverage; 1 % for each of the following 
7 years; and 0.5% for the remainder. 

75% of earnings for 42 years of coverage. If monthly average 
earnings higher than 14,000 forints, calculations for pension 
purposes take into account only 90% of the amount between 
14,001-16,000 forints, declining in steps to 30% of the amount 
between 70,001-80,000 forints and 10% of the amount of earnings 
over 80,000 forints. 

Partial pension: 33% net earnings, if 10 years coverage, rising in 
steps to 51%, if 19 years coverage. 
Increment of pension for deferral by manual workers past 
retirement age: 7% of pension for each year in special occupations 
and 3% in other occupation up to maximum of 95% of earnings. 
Minimum pension: 6,400 forints a month. 

Adjustment: Semi-annual adjustment according to estimated change 
in national average wage levels. 

Permanent Disability Benefits 

Disability pension: For total disability, 56% of average net 
earnings since January 1, 1988 if less than 2 years of coverage, 
increasing by steps to 63% for 25 years' coverage. Thereafter, 



equal to old-age pension increased by 5%. Minimum pension: 
6,696 forints a month. 

Constant-attendance supplement: 10% of earnings (minimum 
pension, 6,731 forints). 

Partial disability: Total disability pension reduced by equivalent of 
5% of earnings, minimum 6,400 forints. 
Adjustment: Automatic semi-annual adjustment according to 
estimated change in national average wage levels. 

Survivor Benefits 

Survivor pension: 50% of pension of insured, payable to widow 
who at husband's death was age 55 (60 for widower), disabled, or 
caring for 2 children. Paid to other widows or widowers for 1 year 
only. 

Orphans: 25% of pension of insured for each orphan under age 16 
(25 if student, no limit if disabled). Full orphan or half-orphan with 
disabled parent, 50% each of pension of insured. 
Maximum survivor pension: 100% of pension of deceased. 
Minimum pension: 7,260 forints a month for widow/widower and 
full orphans, 6,920 forints for orphans. 

Administrative Organization 

National Administration of Social Insurance, administration of 
benefits through its local branches. 

National Health Insurance Fund collects contributions through its 
local branches. 

Sickness and Maternity 

First law: 1891. 
Current law: 1975. 

Type of program: Social insurance system. 
Coverage 

Cash sickness and maternity benefits: Employees, members of 
cooperatives, apprentices of skilled labor, self-employed 
entrepreneurs, outdoor workers. 
Pregnancy allowance: All pregnant woman. 
Medical benefits: All insured persons entitled to cash sickness 
benefits, pensioners, unemployment beneficiaries, recipients of 
social assistance and allowances, beneficiaries of pensions provided 
by churches, regular students (if Hungarian citizens), all dependent 
family members and children (if Hungarian citizens). 

Source of Funds 

Insured person: 4% of gross earnings. 
Employer: 15% of payroll. 

Government: Cost of extended infant-care allowance. Maximum 
earnings for cash benefit purposes: 2,500 forints per day. Above 
contributions also finance short-term work injury cash benefits and 
medical care for work injuries. 

Qualifying Conditions 

Cash sickness benefit: Currently insured, or loss of earnings 
capacity due to illness within 3 days after cessation of insurance. 
If less than 1 year continuous insurance, benefit is proportional. 



164 



Social Security Programs Throughout the World — 1997 



HUNGARY 



Cash maternity benefit: Maternity and confinement allowance: 
Currently insured, or confinement within 42 days after cessation of 
insurance, if 180 days of insurance during last 2 years. 
Medical benefit: Currently insured or within 30 days after 
cessation. Provided also for beneficiaries of cash sickness and 
maternity benefits, supported family members of the insured 
persons, pensioners, beneficiaries of unemployment benefits, social 
assistance and allowances, beneficiaries of pensions provided by 
churches, regular students and dependent children. 

Sickness and Maternity Benefits 

Cash sickness benefit: 60% of daily average net earnings or 70% 

if 2 years of continuous employment. Payable from 1st day of 

incapacity for up to 1 year (or for length of continuous insurance 

immediately before illness, if less). Employer must pay for first 

15 days. Social security pays for 16th day on. 

Maternity and confinement allowance: 100% of daily average net 

earnings if 270 days of insurance within last 2 years before 

confinement, or 60%, if at least 180 days insurance. 

Payable for the period of maternity leave (4 weeks before and 

20 weeks after confinement). 

Child-care allowance, eliminated as of April 1997. 

Maternity grant: Upon birth of child, lump sum of 150% of the 

minimum pension in effect paid to mother. 

Extended infant-care grant: All families with 3 or more children or 
1 disabled child are automatically entitled. Also payable to families 
with either 1 or 2 children if the net monthly income per family 
member does not exceed the limit for eligibility for family benefits, 
19,500 forints. 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients 
through facilities of public health services in contractual 
relationship with the health insurance scheme. Includes free of 
charge: preventive care, general and specialist care, including basic 
dental care, hospitalization, maternity care, medical rehabilitation, 
sanatorium care, ambulance service. Medicines, appliances, dental 
prosthetics, orthodontic services and spa treatment are provided 
upon payment of different rates of compensation by the patient. 
Certain medicines are free of charge. Travel expenses are covered 
by the health insurance scheme. Duration: No limit. 

Dependants' Medical benefits 

Medical benefits for dependents: Same as for insured. 

Administrative Organization 

National Health Insurance Fund Administration, administration of 
cash sickness and maternity benefits and collection of contributions 
through its local branches. 

Medical care is provided by public medical services, organized and 
administered by the self-governing local municipalities (some 
central hospitals and institutes by the Ministry of Public Welfare). 

Work Injury 

First law: 1907 (agriculture, 1900). 



Current law: 1975. 

Type of program: Social insurance system. 
Coverage 

Employees, members of cooperatives, students, artisans, 
self-employed, independent farmers, artistic performers, and 
lawyers. 

Source of Funds 

Insured person: See pension contribution, above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: Total disability (incapacity for any paid 
work) or partial disability (67% loss of working capacity). No 
minimum qualifying period. 

Work injury allowance is granted for work-connected disability of 
more than 15%. 

Payable for only 2 years if loss of working capacity is less than 
25%. 

Temporary Disability Benefits 

Temporary disability benefit: 100% of average net earnings. 
Payable from 1st day of incapacity for up to one year (can be 
extended to 2 years by Medical Experts Institute). 

Permanent Disability Benefits 

Permanent disability pension: At least 67% loss of working 
capacity, unemployed or significant dicrease in earnings since onset 
of disability. 

Amount of pension depends on degree of disability and number of 
years of service, according to 3 groups: 

1 Group I - total incapacity for all work and requires care: 
12,600 forints or 70% of monthly average earnings. 

2 Group II - total incapacity for work but does not require 
care: 12,200 forints or 65% of monthly average earnings. 

3 Group III - 67% loss of working capacity but unable to 
perform same type work: 11,600 forints or 60% of 
monthly average earnings. 

Minimum, 9,700 forints. 

Constant-attendance supplement: 5% of earnings (minimum 60 
forints). 

Partial disability: 60% of earnings in preceding year for over 66% 
incapacity. 

Work injury allowance for lesser disabilities: 8% of earnings for 
16%-25% loss of working capacity (payable for 2 years), 
increasing to 30% of earnings for 50%-66% loss. 
Adjustment: Automatic annual adjustment according to change in 
national average wage levels. 

Workers' Medical Benefits 

Medical benefits: Same as for ordinary sickness above but 
medicines and appliances are free of charge. 



Social Security Programs Throughout the World — 1997 



165 



HUNGARY 



Survivor Benefits 

Survivor pension: 50% of pension of insured. Payable to widow 
who at husband's death was age 55, disabled, or caring for 
2 children. 

Paid to other widows for 1 year only. Also payable to dependent 
and incapacitated widower. 

Orphans: 25% of pension of insured for each orphan under age 16 
(25 if student). Full orphan or half-orphan with disabled parent, 
50% each of pension of insured. 

Maximum survivor pensions: 125% of pension of deceased. 
Minimum pension: Same as for ordinary survivor pensions. 

Administrative Organization 

National Health Insurance Fund Administration, administration of 
work injury benefits and collection of contributions through its 
local branches. 

National Pension Insurance Directorate, administration of cash 
benefits. 

Ministry of Health, administration of medical benefits through 
public medical services. 

Unemployment 

First law: 1957. 
Current law: 1991. 

Type of program: Unemployment assistance. 
Coverage 

Wage earners and salaried employees. 
Source of Funds 

Insured person: 1.5% of earnings. 
Employer: 5% of payroll. 
Government: None. 

Qualifying Conditions 

Unemployment benefit: 48 months of employment before loss of 
job. Unemployment not due to refusal of suitable offer. 

Unemployment Benefits 

Unemployment benefit: 70% of average net earnings for first 
year; 50% for second year. 

Minimum: National minimum wage (1993: 9,200 forints per 
month). Maximum: 2 times minimum wage. 

Administrative Organization 

Ministry of Labor, general supervision. 

Family Allowances 

First law: 1938. 

Current law: 1990. 

Type of program: Universal system. 

Coverage 

All residents with 1 or more children. 



Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 

Qualifying Conditions 

Family allowances: Family must include one or more children 
under 16 (age 20 if enrolled in primary or secondary school) or 
disabled. Means-tested for families with 1 or 2 children, no 
disabled child. 

Family Allowance Benefits 

Family allowances: Means-tested, according to monthly net 
income per family member and number of children: from less than j 
18,000 to 19,500 forints (21,600-23,400 forints for single parent), 
benefit ranges from 2,750-1,100 forints for family (3,250-1,300 
forints for single parent). 

Family allowance (no means-test): 3,750 forints per child for 
family with 3 or more children; 3,950 forints per child for single 
parent with 3 or more children. For disabled child, 5,100 forints 
per child. 

Administrative Organization 

Ministry of Public Welfare, general supervision of program. 
National Health Insurance Fund, administration of benefits. 



166 



Social Security Programs Throughout the World — 1997 



Old Age, Disability, Death 

First law: 1909. 
Current law: 1993. 

Type of program: Dual universal and social insurance systems. 
Exchange rate: U.S. $1.00 equals 66.28 Icelandic kronur (IKr). 

Coverage 

Universal pension: All residents. 

Occupational pension: All employees and self-employed persons. 
Source of Funds 

Insured person: Universal pension, none. Occupational pension, 
4% of earnings; self-employed persons, 10%. 
Employer: Universal pension, 3.88% to 6.28% of payroll; 
occupational pension, 6% of employee's wages. 
Government: Universal pension, remaining costs; occupational 
pension, none. Universal pension contributions also finance 
maternity and work injury benefits. 

Qualifying Conditions 

Old-age pension-Universal pension: age 67, with minimum 3 

years' residence in Iceland at ages 16-66. 

Occupational pension: age 67 and 40 years residency. Reduced 

pension at age 65. Retirement not necessary. 

Disability pension: Universal pension, age 16-66. Three years' 

residency in Iceland before submitting application, and 75% 

reduction in working capacity; full pension, 40 years' residency. 

Occupational pension, minimum contributions paid that equal 2 

basic points (where the amount of time required depends on level 

of wages). Contributions paid for at least 6 months during 12 

months prior to the last 3 years of onset of disability. 

Survivor pension: Universal pension, payable to orphan or parent 

with 3 years' residency in Iceland. 

Occupational pension (surviving spouse and child), contributions 
paid for at least 6 months during the last 12 months prior to death 
of spouse. 

Old-Age Benefits 

Old-age pension: Universal pension: Up to IKr 13,640 (full basic 
amount) a month. Aged couple, 90% each of single pensioner's 
rate. 

Income-tested supplementary allowance: Up to IKr 25,097 a 
month. Supplement for children: IKr 11,010 a month for each 
child under age 18. 

Other means-tested allowances provided such as for housing and 
medicine. 

Adjustment: Pensions adjusted for changes in workers' wages. 
Occupational old-age pension: Depends on paid contributions. 

Permanent Disability Benefits 

Disability pension: Universal income-regulated basic pension: Up 
to IKr 13,640 (full basic amount) a month. Income-tested 
supplementary allowance: Up to IKr 25,800. For couple, if both 
are disabled, 90% each of single rate. 



ICELAND 



Supplement for children: IKr 1 1,010 a month for each child under 
age 18; double if both parents are disabled. Other means-tested 
allowances provided such as for housing and medicine. 
Partial pension payable for 50% to 74% disability. 
Adjustment: Pensions adjusted for changes in workers' wages. 
Occupational pension: Depends on paid contributions. 
Supplement for children, IKr 5,616 if future periods are taken into 
account. 

Survivor Benefits 

Universal survivor pension for orphans: IKr 11,010 a month for 
each orphan under age 18, doubled for full orphans. 
Adjustment: Pensions adjusted quarterly for changes in wage. 
Occupational survivor pension: Payable to surviving spouse 
(pension amount depends on the amount of prior contributions) and 
to orphans, IKr 7,655. 

Administrative Organization 

Universal Pension program: Ministry of Health and Social 
Security, general supervision. 

State Social Security Institute, administration of program through 
local offices; managed by board elected by Parliament and director. 
Occupational Pension: Ministry of Health and Social Security and 
Ministry of Finance, general supervision. 
Administered through 60 pension funds. 

Sickness and Maternity 

First law: 1936. 
Current law: 1993. 

Type of program: Universal system. Cash and medical benefits. 
Coverage 

Cash sickness benefits: Employed and self-employed residents. 
Cash maternity benefit: Resident mothers. 
Medical benefits: All residents. 

Source of Funds 
Insured person: None. 

Employer: Cash sickness and medical benefits, none. 

Cash maternity benefits, see universal pension contributions, above. 

Government: Cash sickness and medical benefits, 100%. 

Cash maternity benefits, remaining costs. 

Qualifying Conditions 

Cash maternity benefits: Twelve months' residency before 
confinement. 

Cash sickness benefits: Employment in Iceland, residents aged 16 
or older and incapable of working. 

Medical benefits: Residency in Iceland for the last 6 months. 
Sickness and Maternity Benefits 

Sickness benefit: Statutory minimum of IKr 582 a day, plus 
supplement of IKr 158 for each child under age 18. 



Social Security Programs Throughout the World — 1997 



167 



ICELAND 



Full cash benefits paid to those who cease full-time employment, 
and one-half cash benefits to those engaged in half-time work prior 
to illness. Payable after 15-day waiting period, provided that the 
incapacity has lasted at least 21 days and income has lapsed. The 
benefits are paid for a maximum of 52 weeks. 
Maternity benefit: IKr 27,758 a month for 6 months, regardless 
of participation in the labor market. 

In addition, a working mother (alternatively, working father 
eligible after the first month) receives daily allowance of IKr 1,164 
if she worked a minimum of 1,032 hours in the preceding 12 
months (reduced to IKr 582 if 516 hours- 1,031 hours worked in 
preceding 12 months). 

Benefits paid for one additional month per child if multiple birth 
and/or in case of child's serious illness; for two additional months 
if warranted for mother's health and safety. 

Workers' Medical Benefits 

Medical benefits: Doctor's consultation, patient pays IKr 700 
(home call, IKr 1,600). 

Free hospitalization in ward of public hospital. 

Free medicine for some chronic diseases; for other medicine, the 

insured pays a minimum fee. 

Confinement in maternity ward is free-of-charge. 

Minimum fee for x-rays and travel costs; dental care, children to 

age 15 get a 75% refund; age 16, 50%; and pensioners, 50% to 

100% refund (subject to income test.) 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for family head. 
Administrative Organization 

Ministry of Health and Social Security, general supervision. 
State Social Security Institute, administration of program through 
local offices, managed by Board elected by Parliament and 
Director. 

Work Injury 

First law: 1925. 
Current law: 1993. 

Type of program: Social insurance system. 
Coverage 

Employed and self-employed persons. 

Source of Funds 
Insured person: None. 

Employer: See universal pension contributions, above. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: IKr 712 a day. 
Dependents' supplements: IKr 153 a day for each child. 



Maximum benefit: 75% of earnings. 

Payable after 7-day waiting period for up to 52 weeks. 

Permanent Disability Benefits 

Permanent disability pension: IKr 13,640 a month, if at least 
75% disabled. 

Child's supplement: IKr 1 1,010 a month for each child under age 
18. 

Partial disability: If 50% to 74% disabled, 50% of full pension, 
plus 2% of pension for each 1 % of disability exceeding 50%. If 
10% to 49% disabled, lump sum proportionate to disability. 
Income tested supplementary allowance: Up to IKr 25,800 a 
month. 

Other means-tested allowances provided such as for housing and 
medicine. 

Workers' Medical Benefits 

Medical benefits : Necessary care, including specialist services 
and hospitalization. 

Survivor Benefits 

Survivor pension: IKr 16,514 a month payable for 8 years. 
Orphans: IKr 11,010 a month for each orphan under age 18, 
doubled for full orphans. 

Death grant: Lump-sum of IKr 206,368 to 619,104 for other adult 
dependents (disabled children), according to previous degree of 
support from deceased. 

Administrative Organization 

Ministry of Health and Social Security, general supervision. 
State Social Security Institute, administration of benefits through 
local offices. 

Unemployment 

First law: 1956. 

Current laws: 1993 and 1997. 

Type of program: Social insurance system. 

Coverage 

Employed and self-employed persons. 

Source of Funds 

Insured person: None. 
Employer: 1.35% of payroll. 
Government: None. 

Qualifying Conditions 

Unemployment benefit: Age 16 to 69 inclusive; residence in 
Iceland; 425 hours (as of July 1, 1997: 400 hours) of insurable 
employment in previous 12 months; unemployment for 3 or more 
days. Weekly registration at an employment agency required. 

Unemployment Benefits 

Unemployment benefit: Minimum (with 425 hours (as of July 1, 

1997: 400 hours) of work in last 12 months): IKr 620.50 a day. 



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Social Security Programs Throughout the World — 1997 



ICELAND 



Maximum (with 2,080 hours of work): IKr 2,482 a day. 
Dependents' supplement: IKr 99.28 a day for each child. 
Payable for up to 52 weeks (as of July 1, 1997: 5 years). 

Administrative Organization 

Ministry of Social Affairs, general supervision. 

Unemployment Insurance Fund, administration of program through 

disbursal committees which pay the benefits. 

Family Allowances 

First law: 1946. 
Current law: 1993.* 

*Program transferred from social security to the tax system. 



Social Security Programs Throughout the World — 1997 169 



Old Age, Disability, Death 

First and current laws: 1952 (provident fund), 1972 (gratuity fund), 

1976 (insurance fund), 1995 (pension fund). 

Type of program: Provident fund system with insurance-related 

pension system and gratuity fund system. 

Exchange rate: U.S. $1.00 equals 35.63 rupees. 

Coverage 

Provident fund, pension fund, and insurance fund — Employees 
of firms established at least 3 years, with 20 or more employees. 
Exclusion (all 3 funds): Employees earning over 5,000 rupees a 
month. Employees covered by equivalent private plans may be 
contracted out. 

Special systems for miners, railway, and public employees. 
Gratuity fund — Employees of factories, mines, and firms with 
10 or more workers. 

Source of Funds 

Provident fund — Insured person: 10% of earnings. 

Employer: 10% of payroll plus 0.65% of payroll for cost of 

administration. 

Government: None. 

Pension fund — Insured person: None. 

Employer: 8.33% of above employer contributions. 

Government: 1.16% of payroll. 

Gratuity fund — Insured person: None. 

Employer: About 4% of payroll. 

Government: None. 

Insurance fund — Insured person: None. 

Employer: 0.5% of payroll, plus 0.01 % toward administration. 

Government: None. 

Qualifying Conditions 

Provident fund — Old-age benefit: Age 55 and retirement from 
covered employment. Also payable at any age if leaving country 
permanently or out of covered employment for 2 months. 
Survivor benefit (death grant): Death of insured before retirement, 
and last salary of insured less than 1,500 rupees a month. 
Pension fund — Old-age benefit: Retirement. 
Survivor pension: Deceased was member of plan with 1 month of 
contribution. 

Gratuity fund — 5 years continuous employment. 
Insurance fund (survivor benefit only) — Average balance in 
provident fund during 12 months preceding death. 

Old-Age Benefits 

Old-age benefit: Provident fund — Lump sum equal to total 

employee and employer contributions, plus interest. 

Pension fund — Monthly pension per formula. 

Gratuity fund — Lump sum equal to 15 days' wages for each year 

of continuous service. Maximum, 100,000 rupees. 

Insurance fund — Lump sum payment up to 35,000 rupees. 

Permanent Disability Benefits 
Disability benefit: Not presently provided. 



Survivor Benefits 

Provident fund — Lump sum equal to total employee and employer 
contributions, plus interest. 

Payable to nominated members of family or, if none, to other 

nominated beneficiaries. 

Death grant: Up to 2,000 rupees. 

Pension fund — According to formula. Minimum, 450 rupees a 
month; maximum, 2,500 rupees a month. Payable to member of 
family. 

Children's pension (for two children), 25% of widow's pension per 
child. 

Insurance fund — Lump sum equal to the average balance in the 
provident fund account of the insured over 12 months preceding 
death. Maximum: 35,000 rupees. 

Administrative Organization 

Ministry of Labor, general supervision. 

Employees' Provident Fund, organization and administration of 
program through regional, sub-regional, inspectorate and 
sub-accounts offices. 

Regional committees and commissioners assist in local 
administration. 

Central/state authorities, administration of gratuity fund. 

Sickness and Maternity 

First and current law: 1948. 

Type of program: Social insurance system. Cash and medical 
benefits. 

(1961 law provides maternity benefits to employees of 
factories/establishments not covered by the social insurance law of 
1948.) 

Coverage 

Employees of power-using manufacturing establishments with 
10 or more workers, and non-power establishments with 20 or 
more workers. Exclusions: Employees in seasonal, agricultural, 
and certain other sectors as well as other employees earning over 
6,500 rupees a month. Insured workers and spouses covered for 
medical benefits if permanently disabled on payment of 
contribution of 10 rupees a month. Insured workers who retire are 
covered on payment of contribution of 10 rupees a month. 
Coverage being extended gradually to different districts; now 
operative in about 624 industrial centers. 

Source of Funds 

Insured person: 1.75% of earnings (none for employees whose 
average daily wage is below 25 rupees). 
Employer: 4.75% of payroll of covered employees. 
Government: State governments pay 12.5% of cost of medical 
benefits. 

Qualifying Conditions 

Cash sickness benefits: Must be paid for half the number of days 
during a designated 6 month period. 



170 



Social Security Programs Throughout the World — 1997 



INDIA 



Cash maternity benefits: Must be paid for 80 days during two 
designated 6 month periods. 

Medical benefits: Currently in insured employment or qualified 
for cash benefit. Medical benefits for dependents same as for 
insured. 

Sickness and Maternity Benefits 

Sickness benefit: From 2.50 to 53 rupees a day, depending on 
wage class (25% more for certain specified diseases). 
Payable after 2-day waiting period for up to 91 days in any 
2 consecutive months (may be extended in certain cases for up to 
124 additional days and 309 days in chronic cases). 
Family planning: 7 or 14 days of cash sickness benefit at double 
rate, plus additional days for complications, depending on 
sterilization operation. 

Maternity benefit: 100% of average earnings, according to wage 
class; payable for up to 12 weeks (including not more than 6 weeks 
before confinement), 6 weeks in case of miscarriage. (1961 law 
requires noncovered employer to pay same benefit to woman 
employed 80 days in last year.) Benefit extended 4 weeks for 
medical reasons, if necessary. 

Workers' Medical Benefits 

Medical benefits: State governments arrange for provision of 
medical care, on behalf of social insurance, except in Delhi, and 
Nioda area of Utter Pradesh, where social insurance administers 
directly. 

Services variously provided in different States through social 
insurance dispensaries and hospitals, State government services, or 
private doctors under capitation contract. 
Includes medical treatment, surgery, specialist services, 
hospitalization, medicines, obstetric care, transportation, and 
appliances (glasses and dentures for insured persons only). Scale of 
services varies among States, according to agreement with State 
and facilities available. 

Duration: 3 months to 1 year, according to contribution record 
(extended up to 3 additional years for certain long-term diseases). 

Dependents' Medical Benefits 

Medical benefits for dependents: Currently provided in most 
States and districts. Benefits include general practitioner care, 
medicines, specialist examinations, and hospitalization in most 
States. 

Funeral grant: Lump sum equal to actual cost. Maximum, 1,500 
rupees. Payable to eldest member of family or person incurring 
funeral cost. 

Administrative Organization 

Ministry of Labor, general supervision. 
Employees' State Insurance Corporation, administration of 
program through regional and local offices; managed by tripartite 
board and director-general. 

State governments, provision of medical benefits through 
agreement with and reimbursement by Corporation. Administered 
by Corporation in some cases. 



Work Injury 

First law: 1923 (workmen's compensation). 
Current law: 1948 (social insurance). 
Type of program: Social insurance system. 

Coverage 

Employees of power-using manufacturing establishments with 
10 or more workers, and non-power establishments with 20 or 
more workers. Exclusions: Employees in seasonal, agriculture, and 
certain other sectors as well as other employees earning over 6,500 
rupees a month. 

Source of Funds 

Insured person: See Sickness and Maternity, above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: About 70% of earnings, according 
to 18 wage classes. Payable after third day of disability for 
duration of disability. 

Permanent Disability Benefits 

Permanent disability pension: 3.50 rupees to maximum 125 
rupees a day, according to 18 wage classes, if totally disabled. 
Partial disability: Percent of full pension proportionate to loss of 
earning capacity (small pensions may be commuted to lump sum). 

Workers' Medical Benefits 

Medical benefits: Same as for ordinary sickness; also, artificial 
limbs and other appliances. 

Survivor Benefits 

Survivor pension: 60% of insured's total disability pension 
payable to widow. 

Orphans: 40% of pension of insured for orphans under age 18 (no 
limit if disabled), or until daughter marries. Maximum widow's 
and orphans' pensions: 140% of pension of insured. 
Other eligible survivors (in absence of above): Parents, 
grandparents, and other dependents under age 18; maximum total 
pensions for such survivors, 50% of pension of insured. 
Funeral grant: Lump sum equal to cost, maximum 1 ,500 rupees. 
Payable to oldest member of family or person incurring funeral 
cost. 

Administrative Organization 

Ministry of Labor, general supervision. 
Employees' State Insurance Corporation, administration of 
program through regional and local offices; managed by tripartite 
board and director-general. 



Social Security Programs Throughout the World — 1997 



171 



INDIA 



State governments, provision of medical benefits through 
agreement with and reimbursement by Corporation. Administered 
by Corporation in some cases. 

Unemployment 

Labor law requires employer to pay severance indemnity of 15 
days' average pay for each year of employment. 
Eleven States have instituted temporary unemployment programs, 
funded by the government. 



172 



Social Security Programs Throughout the World — 



1997 



INDONESIA 



Old-Age, Disability, Death 

First law: 1951 (provident fund). 
Current law: 1977. 

Type of program: Provident fund system (lump-sum benefits only). 
Exchange rate: U.S. $1.00 equals Rupiah (Rp) 2,344. 

Coverage 

Establishments with 10 or more employees or a payroll of Rp 1 
million or more a month. Coverage being extended gradually to 
smaller establishments and to casual and seasonal workers. 
Special systems for civilian public employees and military 
personnel. 

Source of Funds 

Insured person: 2% of earnings. 

Employer: 3.7% of payroll (plus 0.3% of payroll for death 
benefit). 

Government: None. 
Qualifying Conditions 

Old-age benefit: Age 55, 66 months of contributions. 
Disability benefit: Total incapacity for work and under age 55. 
Survivor benefit: Deceased was insured and under age 55 at the 
time of death. 

Old-Age Benefits 

Old-age benefit: Lump sum equal to total employee and employer 
contributions paid in, plus accrued interest. 

Permanent Disability Benefits 

Disability benefit: Lump sum equal to total employee and 
employer contributions paid in, plus accrued interest. 

Survivor Benefits 

Survivor benefit: Lump sum equal to total employee and employer 
contriubutions paid in, plus accrued interest. 
Death benefit: Lump sum of Rp 1,200,000, plus amount 
accumulated in provident fund. Payable if death before age 55. 

Administrative Organization 

Minister of Manpower, general supervision. 

Public Corporation for Employees Social Security (PT ASTEK), 

administration and operation of program. 

Sickness and Maternity 

First law: 1957. 
Current law: 1992. 

Type of Program: Social insurance system (medical benefits). 
Coverage 

Coverage being extended gradually to different industries and 
districts. 

Employers with more comprehensive benefits exempted from 
coverage. 



Source of Funds 
Insured person: None. 

Employer: 6% of payroll for married employees, 3% of payroll 
for single employees. 
Government: None. 

Qualifying Conditions 

Medical benefits: Current coverage. 

Workers' Medical Benefits 

Medical benefits: Medical examination and treatment, 

hospitalization, medicines, and maternity care, dental care, eye 

care, family planning services and immunization. 

Duration: 2 months of hospitalization (may be extended in special 

cases). 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured worker. 

Administrative Organization 

Minister of Manpower, general supervision. 

Public Corporation for Employees' Social Insurance (PT ASTEK), 

administration and operation of program. 

Work Injury 

First law: 1939. 
Current law: 1992 . 
Social Insurance Program 

Coverage 

Establishments with 10 or more employees or a payroll of Rp 1 
million or more a month. Coverage being extended gradually to 
smaller establishments and seasonal workers. Voluntary coverage 
available. 

Special system for public employees. 
Source of Funds 

Individual employer liability program: Insured person: None. 
Employer: Whole cost, 0.24%- 1.74% of payroll. 
Government: None 

Maximum earnings for benefit purposes: Rp 1,000 a day. 
Social insurance program: Insured person: None. 
Employer: 0.24% to 1.74% of payroll, according to risk in 
industry. Government: None. 

Qualifying Conditions 

Work-injury benefits: Partial or total disablement before age 55. 
No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings for first 4 
months, 75% of, earnings for second 4 months, and 50% of 
earnings thereafter. 



i 



Social Security Programs Throughout the World — 1997 



173 



INDONESIA 



Permanent Disability Benefits 

Permanent disability benefit: Varies according to degree of 
disability. Minimum monthly benefit equal to the regional 
minimum wage. Maximum is 70% of previous monthly earnings 
times 60. 

Workers' Medical Benefits 

Medical benefits: Individual employer liability program: 

Medical treatment, hospital care, medicines, and necessary 
transportation. 

Social insurance program: Medical treatment, hospital care, 
medicines, and Rp 100,000 to Rp 250,000 for transportation. Cost 
of medical care covered to Rp 3 million. 

Survivor Benefits 

Survivor pension: Individual employer liability program: 

30% of earnings of insured. Payable to widow or to disabled 
widower. 

Orphans: 15% of earnings of insured for each orphan under age 
16, or 20% if full orphan. Other eligible survivors: Parent, 
grandparent, orphaned grandchild, father-in-law, mother-in-law. 
Maximum survivor pensions: 60% of 48 months of earnings 
(pensions may be converted to lump sums). 
Death benefit: Lump-sum payment up to 60% of 60 months of 
earnings at the death of the insured. 
Funeral grant: Rp 200,000. 

Administrative Organization 

Individual employer liability program: Minister of Manpower, 
general supervision. 

Individual employers must pay compensation directly to own 

employees and arrange for medical care. 

Social insurance program: Public Corporation for Employees 

Social Insurance (PT ASTEK), administration and operation of 

program. 



174 



Social Security Programs Throughout the World — 1997 



IRAN 



Old Age, Disability, Death 

First law: 1953. 
Current law: 1975. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 1752 rials. 

Coverage 

Employed persons in specific occupations and geographical areas. 
Special pension systems for public employees and armed forces. 
Self-employed may insure voluntarily within the stated minimum 
and maximum wage limits. 

Source of Funds 

Insured person: 7% of earnings. 

Employer: 20% of payroll plus 3% for unemployment insurance. 
(First 5 employees in small industrial and technical workshops 
exempted). 

Government: 3% of payroll. (Also pays employers' contribution 
for the first 5 employees in small industrial and technical 
workshops). 

Maximum earnings for contribution and benefit purposes (salaried 
employees only): 900,000 rials a month. Minimum: 207,210 rials 
(April 1997). 

Above contributions also finance medical care, cash sickness, 
maternity, and work-injury benefits. 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 55 (women); age 50 for men 
and age 45 for women with 20-25 years of work in unhealthy 
regions or occupations, or at any age with total 30 years of work. 
Minimum, 10 years of contribution. Retirement from insured 
employment. 

Disability pension: Total disability (2/3 loss of earning capacity) 
or partial disability (1/3 loss of earning capacity. 1 year of 
contribution in last 10 years, of which 90 days should be in the 
year prior to onset of disability. 

Survivor pension: Deceased was pensioner at death, or had 1 year 
of contribution in last 10 years. If caused by work-related accident, 
survivor pension will be paid without any qualifying conditions. 

Old-Age Benefits 

Old-age pension: 3.3% of average earnings during last 24 months 
times number of years of contribution. 

Minimum pension: 50% of earnings, but not less than 207,210 
rials a month (equal to the minimum wage of unskilled laborers), 
plus coupons for food. Spouse allowance: Male married pensioner 
receives 42,000 rials. 

Maximum pension, 100% of earnings up to 900,000 rials a month. 
(Note: If the average earnings during the last two years of 
employment is above 254,000 rials a month, 2/3 of the difference 
up to 423,000 rials will be added to the 254,000 rials.) 

Permanent Disability Benefits 

Disability pension: 3.3% of average earnings during last 2 years 
times number of years of contribution, if totally disabled. 



Minimum pension: 50% of earnings (60% with dependents), but 
not less than 207,210 rials a month (equal to the minimum wage of 
unskilled laborers). 

Spouse allowance: Male married pensioner receives 42,000 rials. 
Maximum pension, 100% of earnings up to 900,000 rials a month. 
Note: If the average earnings during the last two years of 
employment is above 254,000 rials a month, 2/3 of the difference 
up to 900,000 rials will be added to the 254,000 rials. 
Partial disability: Percent of full pension proportionate to degree of 
incapacity, if 33% to 66% disabled. 

Survivor Benefits 

Survivor pension: 50% of pension of insured, payable to widow 
of any age. Minimum, 20% of insured's pension. Also payable to 
dependent widower. Orphans: 25% of pension of insured, or 50% 
if full orphan, payable for each orphan under age 18 (no limit if 
student or disabled). 

Parents: 20% of pension of insured for each dependent aged parent. 
Maximum survivor pensions: 100% of pension of insured. 
Minimum: 207,210 rials a month (equal to the minimum wage of 
unskilled laborers). 

Funeral grant: Varies according to municipality. 
Administrative Organization. 

Ministry of Hygiene, Health and Medical Education, general 
supervision. 

Social Security Organization, administration of program through 
provincial branches and local agencies; managed by council and 
board of directors. 

Sickness and Maternity 

First law: 1949. 
Current law: 1975. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Starting 1990, medical services are provided directly through 
facilities owned by the Social Security Organisation — to be 
expanded from 20 hospitals and 177 clinics to 72 hospitals and 
222 clinics during the second 5-year development plan (1994-98). 

Coverage 

Employed persons in urban areas and pensioners. 

Seasonal workers covered for medical services during working 

season. 

Source of Funds 

Insured person: See pension contributions above. (Seasonal 
workers: 9% of minimum monthly wage.) 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Cash sickness and medical benefits: Currently employed. No 
minimum qualifying period, except 60 days of contribution for 
prostheses. 



Social Security Programs Throughout the World — 1997 



175 



Cash maternity benefits: 60 days of contribution in year prior to 
confinement. 

Sickness and Maternity Benefits 

Sickness benefit: 75% of average earnings in last 3 months for 

worker with dependents; 66-2/3% for single worker. 

Benefit reduced to 50% for unmarried insureds if hospitalized in 

Social Secuity Organization hospitals. 

Payable after 3-day waiting period (unless hospitalized) until 

recovery. 

No reduction for worker with dependents. 

Maternity benefit: 66-2/3% of average earnings in last 3 months, 
payable for up to 4 months before or after confinement. 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients 
through medical facilities belonging to the Social Security 
Organisation. Under a separate system, medical services are 
provided through public and private hospitals and clinics, as well 
as through university hospitals and contracted-out physicians. 
Dental grant: 1,500 rials for repair; 120,000 rials for half set, and 
200,000 rials for complete set. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 
Coverage for wife and children under age 18 (20 if student or until 
completion of education, disabled, or unmarried daughter) or 
disabled dependent husband over age 60, and aged dependent 
parents. 

Administrative Organization 

Social Security Organization, administration of program. 

Work Injury 

First law: 1936. 
Current law: 1975. 

Type of program: Social insurance system. 
Coverage 

Employed persons in urban areas. 
Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 75% of average earnings in last 
3 months for worker with dependents; 66-2/3 for single worker. 
Benefit reduced to 50% if hospitalized. 

Payable from 1st day of incapacity until recovery or certification of 
permanent disability. 



Permanent Disability Benefits 

Permanent disability pension: 3.3% of average earnings in last 
720 days times number of years of contribution if totally disabled, 
provided that it should not be less than minimum wage. Minimum 
pension, 50% of earnings for single worker, 60% for married 
worker. 

Maximum, 100% of earnings, not more than wage ceiling. 

Partial disability: Percent of full pension proportionate to degree of 

incapacity, if 33% to 66% disabled. 

Minimum pension, 207,210 rials a month; maximum varies 
according to wage, contribution record, and degree of incapacity. 
Disability grant: If 10% to 33% disabled, lump sum of 36 times 
the amount of total disability pension, times the degree of disability. 

Workers' Medical Benefits 

Medical benefits: Same as for ordinary sickness, but with no 
qualifying period for appliances. 

Survivor Benefits 

Survivor pension: 50% of pension of insured, payable to widow. 
Orphans: 25% of pension of insured, or 50% if full orphan, 
payable for each orphan under age 18 (20 if student or disabled), 
unmarried daughter until marriage or unemployment. 
Parents: 20% of pension of insured for each dependent aged parent. 
Maximum survivor pensions: 100% of pension of insured. 
Funeral grant varies according to municipality. 

Administrative Organization 

Ministry of Hygiene, Health and Medical Education, general 
supervision. 

Social Security Organization, administration of program through 
branch offices and local agencies. 

Unemployment 

First law: 1987. 
Current law: 1990. 

Type of program: Social insurance system. 
Coverage 

Persons covered under social security law. Exclusions: 
Self-employed, voluntarily insured persons, retired persons, the 
totally disabled, those covered under construction workers' 
insurance. 

Source of Funds 

Insured person: None. 
Employer: 3% of payroll. 
Government: Any deficit. 

Qualifying Conditions 

Unemployment benefit: 6 months of insurance before 
unemployment occurred. Registered at employment office, capable 
of and available for work. Unemployment not due to voluntarily 
leaving, to misconduct, or to refusal of suitable job offer. 



176 



Social Security Programs Throughout the World — 1997 



IRAN 



Unemployment Benefits 

Unemployment benefit: The maximum duration of benefits 
depends on length of coverage. If the individual has been insured 
from 6 months to 24 months, unemployment insurance is payable 
up to 12 months if married, 6 months if single; if insured from 25 
to 120 months, unemployment insurance is payable for 18 months 
if married, 12 months if single. Subsequent unemployment benefits 
are payable as follows: If insured from 121 months to 180 months, 
unemployment insurance is payable up to 26 months if married, 
18 months if single; 181 to 240 months insurance, 36 months if 
married and 24 if single; if 241 months and up, up to 50 months if 
married, 36 months if single. 

Current minimum wage, 55 % of average earnings, increased by 
10% for each of first 4 dependents; maximum wage not to exceed 
80% of average earnings. Insured age 55 or older receive 
unemployment benefit up to retirement age. 

Administrative Organization 

Ministry of Labor, general supervision. 

Family Allowances 

First law: 1953. 
Current law: 1975. 

Type of program: Employment-related system. 

Coverage 

Employed persons. 

Source of Funds 

Insured person: None. 
Employer: Whole cost. 
Government: None. 

Qualifying Conditions 

Family allowances: Child must be under age 18 (no limit if student 
or disabled). Parent must have 720 working days of contribution. 
Marriage grant: 720 days of contribution in last 5 years before 
marriage. 

Family Allowance Benefits 

Family allowances: 3 times lowest daily wage of unskilled 
laborers, according to region; payable for each of first 2 children. 
(Lowest daily wage is based on minimum wage of unskilled 
laborers, currently 116,820 rials a month.) 
Marriage grant: One month's average wage or salary. If both 
spouses are insured, paid to each separately. 

Administrative Organization 

Ministry of Labor, enforcement of law. 

Individual employers must pay allowances with wages or salaries. 



Social Security Programs Throughout the World — 1997 177 



IRAQ 



Old Age, Disability, Death 

First law: 1956 (provident fund only). 
Current law: 1971 (social insurance). 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 0.31 dinar. 

Coverage 

Employees of enterprises with 5 or more workers. 
Exclusions: Agricultural employees, temporary employees, 
domestic servants, and family labor. 
Special pension systems for public employees, employees of 
semigovernmental agencies including nationalized industries, 
lawyers, and journalists. 

Source of Funds 

Insured person: 5% of wage. 

Employer: 12% of payroll (25% in firms operating in oil fields). 
Government: None. 

Minimum wage for contribution and benefit purposes: Based on 
minimum wage in insured's employment. Above contributions also 
finance sickness, maternity, and work-injury benefits. 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 55 (women) and 20 years of 
contribution; or any age with 30 years (men) or 25 years (women). 
Retirement from regular employment. 
Payable abroad in certain cases. 

Disability pension: Permanent or long-continued loss of 35% of 
working capacity. 

Survivor pension: Deceased was pensioner or met contribution 
conditions for old-age pension at death. 

Old-Age Benefits 

Old-age pension: 2.5% of average wage during last 3 years times 
number of months of contribution divided by 12. 
Minimum pension, 54 dinars a month; maximum, 140 dinars. 
Old-age settlement: Lump sum equal to 1 month's pension for each 
year of contribution if ineligible for pension. 

Permanent Disability Benefits 

Disability pension: 2.5% of average wage during last 3 years 
times number of months of contribution divided by 12. 
Minimum pension, 54 dinars a month; maximum, 140 dinars. 
Partial disability: Percent of full pension proportionate to degree of 
incapacity, if latter over 35%. 

Survivor Benefits 

Survivor pension: 60% of pension of insured, payable to surviving 

spouse of any age. 

Orphans: 40% of pension of insured, or 60% if full orphan, 
payable for each son under age 17 (27 if student, no limit if 
disabled) and each unmarried daughter under age 17. 
Dependent mother, father, sisters, brothers: 40% of pension of 
insured each. 

Maximum survivor pensions: 100% of pension of insured. 



Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
Labor and Social Security Institute, attached to Ministry, 
administration of program under direction of tripartite board and 
director-general. 

Sickness and Maternity Benefits 

First law: 1956 (provident fund only). 

Current law: 1971 (social insurance). 

Type of program: Social insurance system. Cash and medical 

benefits. 

Coverage 

Employees of enterprises with 5 or more workers. 

Exclusions: Agricultural employees, domestic servants, temporary 

employees, and family labor. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: None. 

Qualifying Conditions 

Cash and medical benefits: No minimum qualifying period. 
Sickness and Maternity Benefits 

Sickness benefit: 75% of average wage during 3 months preceding 
illness. Payable after 8-day waiting period (during which employer 
must pay full wages) for up to 6 months (may be extended to 2 
years at 100% of wage for incurable or malignant diseases). 
Maternity benefit: 100% of wage. Payable for at least 10 weeks, 
including at least 4 weeks before confinement. (May be extended to 
9 months if complications; 75% of wage payable during extended 
leave.) Maternity leave for up to 6 months at 1/2 pay at any time 
during first 4 years of child's life (up to the 4th child). 
Maternity grants (if leaving employment): Lump sum of 1 month's 
benefit for each year of contribution. 

Workers' Medical Benefits 

Medical benefits: Health services provided through government 
health centers and hospitals financially supported by Social 
Security Institute. 

Includes general and specialist care, hospitalization, surgery, 
medicines, X-rays, appliances, laboratory services, and 
rehabilitation. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured person. 
Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
Labor and Social Security Institute, attached to Ministry, 
administration of program under direction of tripartite board and 
director-general. 



178 



Social Security Programs Throughout the World — 1997 



Work Injury 



Unemployment 



First law: 1936. 
Current law: 1971. 

Type of program: Social insurance system. 
Coverage 

Employees of enterprises with 5 or more workers (or any 
enterprise in cases involving survivor pensions). 
Exclusions: Agricultural employees, domestic servants, family 
labor, and temporary employees (some still covered under 1936 
legislation). 

Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 100% of wage on which last 
contribution was paid. 

Payable after 8-day waiting period (during which employer must 
pay full wages) until recovery or certification of permanent 
disability. 

Permanent Disabihty Benefits 

Permanent disability pension: 80% of average wage, if totally 
disabled. Minimum pension, minimum wage of profession. 
Partial disability: Percent of full pension proportionate to degree of 
incapacity, if latter over 32%. Lump sum of 4 years' partial 
pension, if less than 32% incapacity. 

Workers' Medical Benefits 

Medical benefits: General medical care, home visits, surgery, 
specialist care, hospitalization, and prescribed medicines. Provided 
by arrangements with Ministry of Health, local authorities, or 
private clinics. 

Survivor Benefits 

Survivor pension: 60% of permanent total disability pension of 
insured, or lump sum equal to 4 years' partial disability pension, 
payable to widow and to dependent disabled widower. 
Orphans: 40% of pension of insured, or 60% if full orphan, 
payable for each son under age 17 (27 if student, no limit if 
disabled) and each unmarried daughter under age 17. 
Dependent mother, father, unmarried sister, brother under age 16: 
40% of pension of insured each. 

Maximum survivor pensions: 100% of pension of insured. 
Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 

Labor and Social Security Institute, administration of contributions 

and benefits. 



(1964 law authorizes health and welfare fund to provide 
unemployment assistance.) 

Note: This information is more than 4 years old. 



Social Security Programs Throughout the World — 1997 



179 



IRELAND 



Old Age, Disability, Death 

First laws: 1908 (old-age assistance), 1911 (disability insurance), 
and 1935 (survivor insurance). 

Current law: 1993 (consolidates all previous laws relating to social 
welfare). 

Type of program: Dual social insurance and assistance 
(means-tested) system. 

Exchange rate: U.S. $1.00 equals 0.60 Irish pound (I£). 
Coverage 

Employed persons aged 16-65 with I£30 or more in weekly 
covered earnings. Self-employed (annual earnings I£2,500 or 
over), covered for only old-age and survivor benefits. Exclusions: 
Part-time employees earning less than I£30 per week, public 
employees hired before April 6, 1995, and domestic workers. 

Source of Funds 

Insured person: None, if weekly earnings I£80 or less; 5.50% of 
covered weekly earnings over I£80 per week, if weekly earnings 
IE80.01-188 (up to I£22,300 in annual earnings); additional 2.25% 
of weekly earnings (no contribution ceiling), if weekly earnings 
over I£188. Self-employed (old-age and survivor benefits only): 
5.0% of covered weekly earnings over I£20 per week (up to 
I£22,300 in annual earnings), if weekly earnings I£l 88 or less; 
additional 2.25% of earnings (no contribution ceiling), if weekly 
earnings over I£188 (minimum yearly contribution, I£2 15). 
Additional contributions at 2.25% of earnings not applicable to 
medical card holder (means-tested), or recipient of 
Widow's/Widower's Pension, Lone Parent's Allowance or 
Deserted Wife's Benefit. 

Employer: 8.5% of payroll per employee if weekly earnings I£250 
or less; 12.00% if weekly earnings in excess of I£250. Ceiling for 
contribution purposes: I£26,800 in annual payroll. 
Government: Any deficit. Also, entire cost of means-tested 
allowances. 

Above contributions also finance cash sickness, maternity, work 
injury, and unemployment benefits. 

Qualifying Conditions 

Old-age pension: Old-age contributory pension: Age 66 with 
insurance coverage began before age 56 or 57, depending on date 
of birth. 156 weeks of paid contributions, with annual average of at 
least 48 weeks of paid or credited contributions from April 5, 1979 
to end of the last tax year before reaching pensionable age, or with 
a yearly average of at least 20 weeks paid or credited contributions 
from 1953 (or the date of entry into insurable employment, if later) 
to the end of the last tax year before reaching pensionable age. No 
retirement test. 

Retirement pension: Age 65, gross earnings less than I£30 per 
week, plus contribution conditions same as under old-age 
contributory pension, (except with at least 24 weeks paid or 
credited contributions). Retirement test, earning less than I£30 per 
week or I£2,500 per year. 

Credited contribution: granted while recipient of cash benefits for 
sickness, maternity, permanent disability, unemployment, work 



injury, retirement pension, and for time spent caring child under 
age 12 or disabled of any age. 
Contributory benefits payable abroad. 

Old-age non-contributory pension (means-tested): Residents with 
limited means, aged 66 or older. 

Pre-retirement allowance (means-tested): Residents with limited 
means, aged 55-64 or -65, and unemployed for 15 or more months. 
Carer's allowance (means-tested): Residents with limited means, 
aged 18 or older, living with and caring for aged requiring constant 
attendance at home. Carer not otherwise employed and not 
receiving any other social welfare benefits. 
Disability pension: Invalidity pension: Permanent incapacity for 
work, payable after 1 year's ordinary sickness benefit (or less than 
1 year, if severe incapacity). 260 weeks of paid contributions with 
48 weeks paid or credited in last tax year. 
Blind person's pension (means-tested): Residents with low vision 
and of limited means, aged 18 or older. 

Carer's allowance (means-tested): Residents with limited means, 
aged 18 or older, living with and caring for disabled (or aged 
requiring constant attendance) at home. Carer not otherwise 
employed and not receiving any other social welfare benefits. 
Survivor pension: Survivor's contributory pension: 156 weeks of 
contributions paid by deceased or spouse, with an annual average 
of 39 weeks paid or credited in either last 3 or last 5 years prior to 
date spouse died or attained age 66. For minimum pension: yearly 
average of at least 24 weeks of paid or credited contributions since 
entry into insurance; for maximum pension: yearly average of 
48 weeks paid or credited contributions. 
Orphan's contributory allowance: Both parents deceased (or one 
parent died and the other is either unknown or refusing support) 
plus 26 weeks of contributions paid by either parent or step parent. 
Death grant: Payable on death of an insured person, of the spouse 
or surviving spouse of an insured, or of child (under age 18) of 
insured. The deceased, surviving spouse, or parent had 26 weeks 
of paid contributions since starting work or since October 1979 
(whichever is later), with 48 contribution weeks paid or credited in 
last year; or with an annual average of 48 weeks since starting 
work (grant reduced if average is 26-47 weeks). 
Widow's non-contributory pension (means-tested): Resident with 
limited means, not cohabiting. 

Orphan's non-contributory pension (means-tested): Resident with 
limited means, plus conditions same as orphan's contributory 
allowance above. 

Deserted wife's allowance (means-tested): Woman deserted by 
husband for 3 months or more without adequate support. Aged 40 
or older if no dependent children, and not cohabiting. 

Old-Age Benefits 

Old-age pension: Old-age contributory pension: I£75.00 a week. 
Reduced pension, if annual average number of contributions is less 
than 48 weeks. 

Dependents' supplements: I£49.50 a week for adult dependent 
(I£53.90 if aged 66 or older), plus K15.20 (or half-rate at I£7.60 if 
no eligible adult dependent) a week for each dependent child. 
Retirement pension: same as under old-age contributory pension. 
Old-age non-contributory pension (means-tested): Up to I£64.50 a 
week depending on means test, plus up to I£38.50 for adult 



180 



Social Security Programs Throughout the World — 1997 



dependent and IJE13.20 (or half rate at I£6.60 if no eligible adult 
dependent) for each child dependent. 

Pre-retirement allowance (means-tested): Same as under old-age 
non-contributory pension. 

Special allowances for single pensioner aged 66 and older at I£4.90 
a week, and for pensioner aged 80 and older at I£5.00 a week. 
Carer's allowance (means-tested): I£67.50 per week. 

Permanent Disability Benefits 

Disability pension: Invalidity pension: I£66.20 a week (I£75.00 a 
week, if aged 65-79). 

Dependents' supplements: I£43.60 a week for adult dependent, 
plus I£15.20 (or half rate at I£7.60 if no eligible adult dependent) a 
week for each dependent child under age 18. 
Blind person's pension (means-tested): Same as old-age 
non-contributory pension above. 

Special allowances for single pensioner aged 66 and older payable 
at I£4.90 a week, and for pensioner aged 80 and older payable at 
I£5.00 per week. 

Carer's allowance (means-tested): I£67.50 per week. 
Survivor Benefits 

Survivor pension: Survivor's contributory pension: I£68. 10 a 
week. Reduced pension if worker's average annual number of 
contributions is less than 48 but 24 or more weeks. 
Dependents' supplements: I£17.00 for each child dependent. 
Orphan's contributory allowance: I£42.60 a week. 
Death grant: Lump sum of up to I£100 for adult, or up to I£60 for 
child (I£20, if under age 5). 

Widow's non-contributory pension (means-tested): Same as old-age 
non-contributory pension above. Dependents' supplements: I£15 .20 
per week for each child dependent. 

Orphan's non-contributory pension (means-tested): Up to I£42.60 a 
week depending on means test. 

Deserted wife's allowance (means-tested) and dependents' 
supplements: Same as widow's non-contributory pension above. 
Special allowances for single pensioner aged 66 and older payable 
at I£4.90 a week, and for pensioner aged 80 and older payable at 
I£5.00 per week. 

Administrative Organization 

Department of Social Welfare, administration of program. 
Revenue Commissioners collect contributions for majority of 
insured. 

Sickness and Maternity 

First law: 1911. 

Current law: 1993 (consolidates all previous laws and expands 
maternity program). 

Type of program: Dual social insurance (cash benefits) and 
universal (medical care) systems. 

Coverage 

Cash benefits: Employees under age 66. 



Exclusions: Certain part-time employees, self-employed, public 
employees hired before April 6, 1995, and domestic workers. 
Medical services: All residents. 

Source of Funds 

Insured person: See pension contributions above. 
Employer: See pension contributions above. 
Government: Cash sickness and maternity benefits: see pension 
contributions above. Medical care: whole cost for low-income 
residents; partial costs for remainder of population. 

Qualifying Conditions 

Cash sickness benefits (Disability benefit): Under age 66, and 
39 weeks of paid contributions with 39 weeks paid or credited in 
last year (including 13 paid contribution weeks, unless recipient of 
long-term unemployment assistance or pre-retirement allowance 
immediately before claiming benefits). 260 contribution weeks 
required for benefit payment continued over 1 year. 
Cash maternity benefits (Maternity benefit): 39 weeks of paid 
contributions in the 12-month period immediately before maternity 
leave, or a total of 39 weeks of paid contributions with 39 weeks 
paid or credited in last year. Health and safety benefit: available to 
pregnant workers, workers who have recently given birth and are 
breast feeding, or who are unable too continue working due to an 
unavoidable risk to their health and safety arising at the work 
place, and who satisfy the relevant social insurance criteria. Night 
workers are also entitled to this payment for the duration of 
pregnancy and for a period following childbirth where no 
alternative (daytime) work is available. 

Medical benefits: Full eligibility for medical card holders (i.e. 
residents with low incomes), limited eligibility for those with 
moderate and high incomes. 

Sickness and Maternity Benefits 

Sickness benefit (Disability benefit): Up to I£64.50 a week, 
depending on weekly income. Payable after a 3-day waiting period 
up to 52 weeks, or longer if contribution weeks total 260 or more. 
Reduced benefit if less than 48 weeks paid or credited contributions 
in last year. 

Dependent supplements: Up to I£38.50 for adult dependent; 
I£13.20 (half-rate, I£6.60, if no eligible adult dependent) for each 
child dependent. Benefits offset by half, and with no supplement 
for dependent child, if also receiving lone parent's allowance, 
survivor's contributory pension, widow's non-contributory 
pension, deserted wife's benefit. 

Maternity benefit: Employed women, 70% of net weekly earnings 
up to I£l 1,350 (as of April 1995) in annual earnings. Minimum 
benefit, K75.70; maximum (as of April 1995), I£158.90. Payable 
for 14 weeks, including at least 4 weeks (up to 10 weeks) before 
expected date of confinement. 

Maternity grant (means-tested): I£8.00 on birth of child (as of 
April 1995). 

Health and safety benefit: Up to I£64.50 a week, depending on the 
level of earnings. An adult dependent allowance of I£38.50 payable 
where applicable. 



Social Security Programs Throughout the World — 1997 



181 



Workers' Medical Benefits 

Note: Information below as of April 1995. 
Medical benefits: Full range of services provided free in public 
clinics and hospital wards to medical card holders (means-tested), 
or with partial cost sharing for remainder of population. Services 
include outpatient and inpatient care; specialist and laboratory 
services; maternity and infant care; and optical, dental and hearing 
treatment. Free (medical card holders) or partial cost sharing 
(non-medical card holders) of prescribed drugs. Non-medical card 
holders — out-patient services: free-of-charge, I£12.00 fee applicable 
only to first visit for accident and emergency not referred by 
general practitioner;, inpatient care: I£20 per day (maximum, 
I£200 in 
12 months). 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 

Administrative Organization 

Cash benefits: Department of Social Welfare. 

Medical services: Department of Health, administration of services 

through 8 regional health boards. Latter provide services in own 

institutions, clinics, and dispensaries, or elsewhere by 

arrangement. 

Optical, dental and hearing treatment services provided with cost 
sharing by private practitioners on behalf of Department of Social 
Welfare. 

Work Injury 

First law: 1897. 

Current law: 1993 (consolidates all previous laws relating to social 
welfare). 

Type of program: Social insurance system. 
Coverage 

Employed persons. Exclusions: self-employed, domestic workers, 
members of security forces and defence forces. 

Source of Funds 

Insured person: See pension contributions above. 
EmpIoyenSee pension contributions above. 
Government: Any deficit for private sector employees; whole cost 
for public employees. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: Injury benefit: I£64.50 a week, 
payable after a 3-day waiting period up to 26 weeks starting from 
onset of accident or disease. Disability benefit for general cash 
sickness benefit (see above) payable thereafter. 
Dependents' supplements: I£38.50 a week for adult dependent; 
I£13.20 (half-rate, I£6.60, if no eligible adult dependent) a week 
for each dependent child. 



Permanent Disability Benefits 

Note: Information below as of April 1995. 
Permanent disability pension: 90%-100% disabled, I£83.50 a 
week. Pension prorated if disability is 20%-89%. If 1 %-19% 
disabled, lump sum payable up to I£5,830 (19% disabled); reduced 
amount paid depending on degree of assessed disability. 
Unemployability supplement: I£61 .00 a week paid if not eligible 
for disability pension (see general cash sickness benefits above) and 
permanently incapable of work. 

Dependent supplements: K36.60 a week for adult dependant; 
I£13.20 (half-rate, I£6.60, if no eligible adult dependent) a week 
for each dependent child. 

Constant-attendance supplement: Up to I£33.90 a week for 100% 
disability (up to I£67.80 a week in exceptional cases). 

Workers' Medical Benefits 

Note: Information below as of April 1995. 
Medical benefits: Same as under general medical care benefits, 
plus all necessary medical care and transportation not covered 
under general medical benefits above. 

Survivor Benefits 

Note: Information below as of April 1995. 

Survivor pension: I£81 .90 a week paid to widow or to dependent 
disabled widower, and I£17.00 for each dependent child. 
Lump sum of I£4,250 payable to dependent widower who is not 
permanently disabled. 

Special allowances for survivor living-alone (aged 66 or older), 

I£4.80 a week; or aged 80 or older, I£4.70 a week. 

Full orphan pension: I£42.50 a week for each child. 

Dependent parents: If insured person was single, I£81 .90 a week to 

first parent; I£36.80 a week to other parent. If insured person was 

married, I£36.80 a week to each parent. 

Funeral grant: I£290 lump sum. 

Administrative Organization 

Cash benefits: Department of Social Welfare. 

Medical services: Department of Health, administration through 

8 regional health boards. 

Unemployment 

First law: 1911. 

Current laws: 1993 (consolidates all previous laws relating to 
social welfare). 

Type of program: Dual social insurance and assistance 
(means-tested) system. 

Coverage 

Employees under age 66. Exclusions: Certain part-time employees, 
self-employed, public employees hired before April 6, 1995, and 
domestic workers. 

Source of Funds 

Insured person: See pension contributions above. 



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Employer: See pension contributions above. Additional 0.25% of 
covered payroll for apprenticeship training if employer in 
construction, printing and paper, motor and engineering 
(mechanical and electrical but not electronic) sectors. Earnings 
ceiling for contribution purposes: I£26,800. 
Government: See pension contributions above. Also, entire cost of 
means-tested assistance. 

Qualifying Conditions 

Unemployment benefit: Aged 16-65, and 39 weeks of paid 
contributions with 39 weeks paid or credited in last year. 
Unemployment assistance (means-tested): Resident with limited 
means, aged 18-65, unemployed for at least 390 days, and not 
eligible for unemployment benefit. 

For both above, applicant must be capable of and available for 
work, and registered at employment exchange. Unemployment 
must not be due to voluntary leaving, misconduct, refusal of a 
suitable job offer (disqualification for up to 9 weeks for any 
offence), or due to a trade union dispute (disqualification for 
duration of dispute). 

Unemployment Benefits 

Unemployment benefit: Unemployment benefit: I£64.50 a week. 
Dependents' supplements: I£38.50 a week for adult dependent; 
I£13.20 (half-rate at I£6.60 if no eligible adult dependent) a week 
for dependent children. 

Unemployment assistance (means-tested): Up to I£62.40 a week 
(I£64.50 per week after 15 months). 

Dependents' supplements: Same as under unemployment benefit 
above. 

Administrative Organization 

Department of Social Welfare, administration of program through 
its local offices. 

Family Allowances 

First law: 1944 (Child Benefit), 1984 (Family Income Support), 
and 1990 (Lone Parent's Allowance). 

Current law: 1993 (consolidates all previous laws relating to social 
welfare). 

Type of program: Dual universal and social assistance system. 
Coverage 

Residents with 1 or more children. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 

Qualifying Conditions 

Family allowances: Child benefit: child under age 16 (19 if 
student or disabled). 

Lone parent's allowance (means-tested): Single parent of at least 
1 dependent child (including deserted wife and spouse of prisoner) 



with limited means, not receiving child support, and not 
cohabiting. 

Family Income Supplement (income-tested): Parents of at least 

1 child under age 18 (or 21, if student), in full time employment (at 
least 19 hours a week), and with an average weekly joint income 
below I£195 for 1 child (income threshold: increment of I£25 for 
each of the 2nd through 5th child, increment of I£20 for the 6th 
child, and increment of I£17 for each of the 7th and 8th child). 
Payable for 52 weeks while in employment. Not affected by 
changes in family income or short periods of illness. 

Family Allowance Benefits 

Family allowances: Child benefit: I£29.00 a month for 1st to 2nd 
child; I£34.00 a month for 3rd and each additional child. Benefit 
doubled for each of triplets or more children. 
Multiple birth grant (as of January 1996): I£250 per child on birth 
of twins and triplets or more. 

Lone parent's allowance (means-tested) and dependents' 
supplements: Same as under widow's non-contributory pension 
above. 

Special allowances for single pensioner aged 66 and older at I£4.90 
a week, and for pensioner aged 80 and older at I£5.00 a week. 
Family income supplement (income-tested): 60% of difference 
between family income and applicable income threshold, depending 
on number of children. Payable for 52 weeks while parent(s) in 
employment. 

Domiciliary care allowance for disabled child (as of April 1995): 
Maximum, I£95.30 a month payable on behalf of child between 

2 and 16 years of age living at home. 

Administrative Organization 

Department of Social Welfare, administration of allowances. 
Payments made at post offices on behalf of the Department. 
Department of Health, administration of domicile care allowance 
through 8 regional Health Boards. 



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Old Age, Disability, Death 

First and current laws: 1953 (old age and survivor pensions), 1970 
(disability), 1980 (long-term care), and 1982 (income support). 
Type of program: Dual social insurance and social assistance 
systems. 

Exchange rate: U.S. $1.00 equals 3.25 new shekels (NS). 
Coverage 

Social insurance: All residents (including housewives) aged 18 and 
over, except persons who immigrated after age 60. 
Social assistance (income support programs, means-tested): 
Residents aged 20 or older. 

Source of Funds 

Insured person: Social insurance — Employee, 1.46% of earnings 
below one-half of national average wage for old-age and survivors, 
0.71% for disability and 0.05% for long-term care. 2.7% of 
earnings above one-half of average wage for old-age and survivors; 
1.3% for disability; 0.1% for long-term care. 
Self-employed, 2.63% of earnings below one-half of average wage 
for old-age and survivor pensions; 0.95% for disability; 0.10% for 
long-term care. Rates on earnings above one-half of average wage; 
4.55%, 1.68% and 0.16%, respectively. 
Social assistance (income support programs): No contribution. 
Employer: Social insurance — 1.85% of payroll for old-age and 
survivor pensions; 0.38% for disability; 0.06% for long-term care. 
Social assistance (income support programs): No contribution. 
Government: Social insurance — 0.87% on earnings above one-half 
of average wage for old-age and survivors, 0.27% for disability, 
and 0.04% for long-term care. Reduced contributions on earnings 
below one-half of average wage, both for employees and 
self-employed. Long-term care: Government subsidizes cost of 
benefits to new immigrants. Additional government subsidies equal 
to 15% of employee and employer contributions paid for old age 
and survivors. Social assistance (income support programs)-Entire 
cost. Government also pays entire cost of pension to uninsured 
(new immigrants) and cost of income support programs, as well as 
50% of cost of pension to those disabled before enactment of 1970 
law. Maximum earnings for contribution purposes: 4 times the 
average wage as of January 1 each year for all insured persons; 
minimum, 25% of average wage. 

Average wage as defined in National Insurance Law for purposes 
of calculation of benefits and collection of insurance contribution, 
NS5,044 in 1997. 

Qualifying Conditions 

Old-age pension: Social insurance — Age 65 for men or 60 for 
women (65 for housewives). 5 years of insurance in last 10, or 
total of 12 years' insurance. (No qualifying period for insured 
women widowed, divorced, deserted, married to uninsured 
husband, or unmarried and aged 55 or over at time of 
immigration.) Pension reduced if income from work exceeds 
57%-76% of average wage (according to number of dependents), 
until age 70 (65 for women). 

Social assistance — Income support benefit (income-tested): 24 
months continuous residence, subject to a means test (12 months 



for new immigrants); incapable of providing self with earned 
income and not eligible for payments from any other source. 
Income supplement (income-tested): Partial benefit payable to 
individuals whose combined earned and benefit income falls short 
of minimum income level for subsistence. 

Disability pension: Israeli resident aged 18-65 (18-60 for women). 
No qualifying period. Medical disability of at least 40% and 
functional loss of at least 50% (disabled housewife, medical 
disability of at least 50%). 

Attendance allowance: Dependent on the help of others, at least 
60% disabled if receiving disability pension; at least 75% disabled 
and means-tested for those not receiving disability pension. 
Long-term care benefit (means-tested): Age 65 (men) or 60 
(women), not institutionalized, dependent upon help of others for 
performance of everyday functions or in need of supervision. 
Benefit for disabled child: Residing in Israel; not institutionalized 
or with foster family; not receiving mobility allowance, unless 
parent has two disabled children and under circumstances defined 
in regulations. 

Survivor pension: Deceased had 12 months of insurance prior to 

death, or 24 months in last 5 years, 60 months in last 10 years or 

met qualifying period for old-age pension. 

Income supplement (income-tested): Same as under old-age 

pension. 

Old-Age Benefits 

Old-age pension: 16% of average wage as defined in National 
Insurance Law (see Source of Funds), 24% for couple. 
Dependents' supplements: 5% of average wage for each of first 
2 children. 

Old-age pension with income supplement (income-tested): 25% of 
average wage, 37.5% for couple, 47.5% for couple with one child, 
57.5% for couple with 2 or more children. The resulting amounts 
are increased by a further 7%. 

Increments: Pension is increased by 2% per year of coverage 
beyond 10 years, and 5% of pension for each year retirement 
postponed. Maximum increments, 50% and 25%, respectively. 
Income support benefit (income-tested): 20%-25% of average 
wage, 30%-37.5% for couple. (Varies with age and duration of 
benefit). 

Long-term care benefit: 80% of rate of long-term care benefit (see 
Permanent Disability Benefits). 

Adjustment: Automatic adjustment of benefits for changes in 
average wage. 

Permanent Disability Benefits 

Disability pension: Total disability: at least 75% disabled, pension 
equals 25% of average wage plus 7% of this amount, without 
income test. Partial disability, proportionally reduced. 
Dependents' supplements (income-tested): Up to 12.5% of average 
wage for spouse, and 10% each for first 2 children. 
Attendance allowance: 50%, 100%, or 150% of full single 
disability pension (30%, 60%, or 90% if housewife) according to 
severity of dependence. 

Benefit for disabled child: 30%-120% of full single disability 
pension. 



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Long-term care benefit: 25% of average wage if largely dependent 
on help, 37.5% if completely dependent. 

Cash benefits payable directly to organization providing long-term 
care services, and not to the entitled person (who receives the 
benefit at 80 percent of the rate indicated above, only if services 
are not available and beneficiary cared for by a family member). 
Automatic adjustment of benefits: Same as old-age pension. 

Survivor Benefits 

Survivor pension: Surviving spouse, 16% of average wage if age 
50 or over, or caring for child. 2% increment for insurance years 
of deceased beyond 10. 

Reduced pension for widow/widower aged 40-49 with no children: 
12% of average wage. Lump sum of 3 years' full pension if under 
age 40 and with no children. 

On receipt of old-age pension, survivor pension reduced by 
one-half. 

Adjustment: Automatic adjustment of benefit: same as for old-age 
pension. 

Orphans: 7.5% of average wage for each child. Full orphans, 10% 
each. 

Survivor pension with income supplement (income-tested): 
Widow/widower with no children, 25% of average wage; 
Widow/widower with 1 child, 42.5% of average wage (less NS144 
in 1997); with 2 or more children, 52.5% (less NS144 in 1997). 
Resulting amounts are increased by a further 7%. 
Orphans and abandoned children: 1 child, 25% of average wage 
(less NS144 in 1997); 2 children, 37.5% of average wage (less 
NS288 in 1997). 

Death grant (lump sum): 100% of average wage, 150% if receiving 
income support. 

Funeral grant: Cost of burial up to a fixed amount. 
Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Insurance Institute, administration of program, 
contributions, and benefits through its branch offices. 

Sickness and Maternity 

First and current law: 1953; 1976 (sickness); 1995 (medical care). 
Type of program: Social insurance system. 

Coverage 

Sickness benefits: All employees. Medical care: all residents. 
Maternity benefits: Employed and self-employed women aged 18 
or over. Also payable to parents who adopt a child under age 10. 
Maternity grant: Insured woman or wife of insured; non-residents 
including employed and self-employed women and wives of 
employed and self-employed men. The non-resident woman or 
husband must have been working in Israel at least 6 months 
immediately preceding childbirth, birth must occur in Israel. 

Source of Funds 

Insured person: Employee, 4.8% of earnings for medical care, 
0.6% for maternity (3.1% and 0.33% of earnings below one-half 



of national average wage). Self-employed, 4.8% of earnings for 
medical care; 0.75 for maternity (3.1% and 0.48% of earnings 
below one-half of average wage.) 
Employer: 0.15% of payroll for maternity. 
Government: 0.10% of earnings for maternity (reduced 
contribution for earnings below one-half of average wage). 
Maximum earnings for contribution and benefit purposes: 4 times 
average wage. 

Qualifying Conditions 

Cash maternity benefits: 10 months of insurance in last 14 
months, or 15 months in last 22 months; (if only 6 months of 
insurance in last 14 months, benefit payable for 6 weeks only). 
Multiple-birth allowance: 3 or more children, of whom at least 3 
survive past 30 days. 

Maternity and hospitalization grant: Birth for which hospitalization 
necessary. 

Sickness and Maternity Benefits 

Sickness benefit: 75% of earnings for 90 days (up to 100% 
without limit if stipulated in labor agreement). 
Maternity benefit: 100% of earnings (minus taxes and insurance). 
Payable for 12 weeks. 

Adjustment: Benefits adjusted for cost-of-living increments paid to 
employees. 

Maternity grant: NS1,009 for layette (higher for multiple births). 
Multiple birth allowance: For 3 children, 50% of average wage; 4 
children, 75%; 5 or more children, 100%. 

Fixed payment for cost of transportation to hospital in certain cases. 
Workers' Medical Benefits 

Medical benefits: Services provided by doctors and hospitals 
owned and operated by, or under contract to, the sickness fund. 
Includes general and specialist care, medicines, laboratory 
services, hospitalization, and rehabilitation. Patient pays partial 
cost of drugs and appliances. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 
If insured woman dies within one year of childbirth, spouse 
receives 30% of average wage for 24 months for each child of the 
last childbirth (12 months, if also receiving survivor or dependent's 
benefit for child). If spouse stops working to care for child, he 
receives 75% of earnings, subject to a maximum, for up to 12 
weeks. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Insurance Institute, administration of maternity program. 
Sickness insurance and medical care administered by 4 sickness 
funds under Ministry of Health. 

Work Injury 

First and current laws: 1953 (employees), 1956 (self-employed). 
Type of program: Social insurance system. 



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185 



ISRAEL 



Coverage 

Employees, self-employed persons, members of cooperatives and 
migrant workers (including residents of territories) working in 
Israel. 

Source of Funds 

Insured person: Employee, none. Self-employed, 0.53% of 
earnings (0.33% of earnings below one-half of average wage). 
Employer: 0.53% of payroll. 

Government: 0.17% of payroll and earnings (reduced rate for 
earnings below one-half of average wage). 

Maximum earnings for contribution and benefit purposes: See old- 
age pension above. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary disability benefit: Payable to person with degree of 
disability estimated at 5% or more for limited period of time. 

Temporary Disability Benefits 

Temporary disability benefit (Injury Allowance): 75% of 
earnings. Payable after 2-day waiting period (no waiting period, if 
work incapacity lasts at least 12 days) for up to 182 days. 
Adjustment: Adjusted after 91st day according to changes in 
average wage and employee cost-of-living adjustments. 

Permanent Disability Benefits 

Permanent disability pension: 75% of earnings, if totally 
disabled. Partial disability: Percent of full pension proportionate to 
degree of disability, if 20% to 99% disabled; lump sum, if 5% to 
19% disabled. 

Adjustment: Adjusted for changes in average wage and employee 
cost-of-living adjustments. 

Workers' Medical Benefits 

Medical benefits: Cost of medical attendance, hospitalization, 
medicines, appliances, transportation, and rehabilitation. 

Survivor Benefits 

Survivor pension: Payable to widow or dependent disabled 
widower; equal to 60% of total disability pension of insured if age 
50, disabled, or caring for child; 40% of pension if age 40-49; 
otherwise, lump sum of 3 years' pension. 

Orphans: 20% of pension of insured for 1st orphan, 10% each for 
2nd and 3rd. Full orphans: 60% of pension for 1st, 20% for 2nd, 
and 10% each for 3rd and 4th. 

Death grant (lump sum): 100% of average wage, 150% if receiving 
income support benefit. 

Other dependent relatives (if no spouse or orphan): 50% of pension 
of insured for 1 dependent, up to 100% for 4 or more. 
Funeral grant: Cost of burial up to fixed amount. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Insurance Institute, administration of program (including 
contributions and benefits) through its branch offices. 



Unemployment 

First and current law: 1970. 

Type of program: Social insurance system. 

Coverage 

Employees aged 18 and over, and under pensionable age; age 
15-18 if partially supporting parents, or without parents and 
undergoing vocational training. 

Source of Funds 

Insured person: Employee, 0.15% of earnings (0.08% of earnings 
below one-half of average wage). 
Employer: 0.04% of payroll. 

Government: 0.11% of payroll (0.07% of earnings below 
one-half of average wage). 

Maximum earnings for contribution and benefit purposes: See old- 
age pension above. 

Qualifying Conditions 

Unemployment benefit: Regular employee: 180 days of 
contribution out of 360 days, or 270 days out of 540; daily 
employee, 150 days of contribution out of 360 days, or 225 days 
out of 540; minors, 100 days contribution out of 360 days. 
Registered at the labor exchange and capable of work. 
Unemployment not due to voluntary leaving or refusal of suitable 
offer. 

Unemployment Benefits 

Unemployment benefit: 40%-80% of average daily wage during 
last 75 work days of qualifying period. Maximum daily benefit: 
NS360.68. 

Payable after 5-day waiting period. Maximum: 138 days per year 
(175 days for unemployed person over age 45 or with 3 
dependents). 

Adjustment: Benefits adjusted according to changes in average 
wage and employee cost-of-living adjustments. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Insurance Institute, administration of program (including 
contributions and benefits) through its branch offices. 

Family Allowances 

First law: 1959. 

Current law: 1975. 

Type of program: Universal system. 

Coverage 

Residents with 1 or more children. 
Source of Funds 

Insured person: Employee, none. Self-employed, 1.88% of 
earnings (1.18% of earnings below one-half of average wage). 
Employer: 1.88% of payroll. 



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Government: 0.60% of payroll (reduced rates on earnings below 
one-half of average wage) plus amount equal to 160% of all 
receipts from insurance contributions, including those from 
employers, the 

self-employed, and the government for both employees and the 
self-employed). 

Maximum earnings for contribution and benefit purposes: See old- 
age pension, above. 

Qualifying Conditions 

Family allowances: Child must be under age 18. 
Family Allowance Benefits 

Family allowances: NS144 a month for each of first 2 children, 
NS288 for 3rd, NS584 for 4th, NS490 for 5th child, NS541 for 
6th, and NS505 for 7th and each subsequent child in January 1997. 
Adjustment: Automatic adjustment for changes in general price 
levels 4 times a year. 

Administrative Organization 

Ministry of Labor and Social Affairs, general supervision. 
National Insurance Institute, administration of program (including 
contributions and benefits) through its branch offices. 



Social Security Programs Throughout the World — 1997 



187 



Old Age, Disability, Death 

First law: 1919. 

Current laws: 1962-1992 and 1995. 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 1,509 lire. 

Coverage 

Employed persons (including domestic employees). Special 
systems for industrial managers, liberal professions, railway 
employees, public utilities, air transport workers, journalists, civil 
servants, self-employed artisans, merchants, and self-employed 
farmers. 

Source of Funds 

Insured person: 8.89% of earnings for earnings up to 63,054,000 
lire per year; 9.9% for earnings between 63,054,000 and 
250,000,000 lire. 

Employer: 19.36% of payroll. For employees hired on or after 
January 1, 1997, rates is 23.8%. Effective January 1, 1999, rate 
will be 23.8% regardless of date of hire. 
In addition, employers in certain industries pay a special 
contribution. Employers in certain economically distressed areas 
are relieved of part of contribution. 

Government: Full cost of means-tested allowance and any overall 
deficit. 

Minimum earnings for contribution purposes: 62,729 lire a day for 
workers in industry, or, if higher, minimum wage. Minimum wage 
is established by sector and by category through collective 
bargaining. 

No maximum earnings for contribution or benefit purposes except 
for newly insured as of January 1, 1996: 250,000,000 lire. 

Qualifying Conditions 

Old-age pension: Divided into 3 categories: 

1 New entrants to the labor force as of 1996. Flexible 
retirement age: 57-65. Retirement necessary. No seniority 
pension. 

2 Individuals with less than 18 years of coverage under the 
old law. Up to December 1996, age 62 (men) or 57 
(women) and 17 years of coverage. In 1997, age 63 (men) 
or 58 (women) and 18 years. Gradually increasing to age 
65 (men) and 60 (women) with 20 years in 2001. Seniority 
pension: 40 years of contributions or age 57 and 35 years 
of contributions. 

3 Individuals with more than 18 years of coverage under the 
old law. Same as category two except that 15 years of 
contributions must have been prior to 1992. Seniority 
pension in 1996 age 52 and 36 years of contributions 
gradually rising to 40 years in 2008. 

Child-care credit: 170 days of contributions credited to mother 
caring for child under age 6. Up to 25 days of contributions if 
caring for a child over age 6, up to a maximum of 4 months per 
year. 



Disability pension: Total (more than two-thirds) and permanent 

inability to perform any work. 5 years of insurance, including at 

least 3 years in 5 years preceding application. 

Disability pensions are subject to an income test (3 times minimum 

pension). 

Disability allowance: Loss of 2/3 working capacity. Coverage 
requirements same as for disability pension. 
Survivor pension: Income-tested. Deceased was pensioner at 
death, or met disability pension requirements at death. 

Old-Age Benefits 

Old-age pension: For category 1: pension based on amount of 

accumulated contributions times coefficient that varies according to 

age, ranging from 4.72 at age 57 to 6.136 at age 65. 

For category 2: Service prior to December 1995 based on old 

coefficients from .9 to 2 times salary and years of service. Service 

after December 1995 is the same as category 1. 

For category 3: Based on the old coefficients from .9 to 2 times 

salary and years of service. 

Minimum pension: 685,400 lire a month. 

Schedule of payments: Monthly with a 13th payment each 

December. 

Means-tested old-age benefit (social pension): Up to 390,300 lire a 
month payable at age 65, if resident citizen (13 payments a year). 
Adjustment: Annual adjustment of pensions based on average 
increase in gross domestic product within the last 5 years. 

Permanent Disability Benefits 

Disability pension: Same as old-age pension plus increment based 
on number of years until normal pension age. Benefit reduced 25% 
if beneficiary earns equivalent of 4-5 times the minimum annual 
social security pension; reduced 50% for earnings that exceed 5 
times. 

Minimum pension: 685,400 lire a month. 
Constant-attendance supplement: Up to 496,000 lire a month 
(adjusted biennially). 

Disability allowance: Same as old-age pension. Payable for 3-year 
period. After 2 redeterminations of disability, the benefit becomes 
permanent. 

Schedule of payments: Monthly, with a 13th payment each 
December. 

Adjustment: Annual adjustment of pensions based on average 
increase in gross domestic product within the last 5 years. 

Survivor Benefits 

Survivor pension: 75% of pension paid or accrued to insured for 
those with earnings of 3-4 times the annual minimum social 
security pension. 60% for those earnings between 4-5 times annual 
minimum social security pension; 50% for those earnings above 5 
times annual minimum social security pension. Benefit equal to 
70% if young, dependent child, student or disabled. 
Maximum survivor pensions: 100% of pension of insured. 
Lump sum death benefit: 43,200 lire to 129,600 lire if survivor 
ineligible for pension. 



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Administrative Organization 

Ministry of Labor and Social Welfare, and Treasury, general 
supervision. 

National Social Insurance Institute, administration of program 
through its branch offices; managed by tripartite governing body. 
Separate institutes or funds administer special systems. 

Sickness and Maternity 

First laws: 1912 (maternity), 1927 (tuberculosis), and 1943 
(sickness). 

Current laws: 1950 and 1971 (maternity), 1962 (sickness), 1970 
(tuberculosis), 1974, 1978 (National Health Service), 1980 and 
1987 (maternity for self-employed women). 
Type of program: Dual social insurance (cash benefits) and 
universal (medical care) systems. 

Coverage 

Cash sickness and maternity benefits: Employed persons in 
commerce (except managers), and wage earners in industry and 
agriculture. 

Medical benefits: All residents. 
Source of Funds 

Insured person: 1 % of earnings up to 40 million lire annually, 
plus solidarity contribution of 0.8% of earnings between 40 million 
and 150 million lire. 

Self-employed pay 5% of earnings with an annual minimum plus 
4.6% solidarity contribution for earnings between 40 million and 
150 million lire. Self-employed women pay 18,000 lire a year for 
maternity coverage (artisans and merchants pay 18,936 lire). 
Employer: Sickness — 9.6% of payroll. Tuberculosis — 1.87% of 
payroll. 

Government: Various subsidies, plus portion of contributions due 
from employers. 

Minimum earnings for contribution purposes: 54,886 lire a day or 
minimum wage, if higher, for workers in industry. No maximum. 

Qualifying Conditions 

Cash sickness and maternity benefits: Currently covered. 
Tuberculosis benefits: 1 year of contributions. 
Medical benefits: No minimum qualifying period. 

Sickness and Maternity Benefits 

Sickness benefit: 50% of earnings for 1st 20 days; 66-2/3% 
thereafter. Payable after 3-day waiting period for up to 180 days 
(longer in special cases). 

Tuberculosis benefit: Payable while receiving institutional care, if 
treated for 60 days or more, and up to 2 years after treatment at the 
rate of 50% of earnings beginning with the 21st day to the 180th 
day and at the rate 66.66 thereafter. (Family allowances also paid.) 
Maternity benefit: 80% of earnings, payable for up to 2 months 
before and 3 months after confinement. Additional 6 months' leave 
for either parent at 30% of earnings. 



Workers' Medical Benefits 

Medical benefits: Services provided by doctors and druggists 

under contract with and paid directly by National Health Service, 

and by hospitals, which are mostly public. 

Includes general and specialist care, hospitalization, prescribed 

medicines, dental care, attendance of midwife or doctor at 

confinement, specified appliances, and spa treatment. 

Tuberculosis care includes curative and convalescent care in 

sanatorium, post-sanatorium care, and rehabilitation. 

Patient's copayment for certain prescribed medicines and hospital 

tests, waived for low income and the disabled. Duration: No limit. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 
Tuberculosis benefit for dependents: Reduced benefit, but payable 
under same terms as for insured. 

Administrative Organization 

Ministry of Labor and Social Welfare and Ministry of Health, 
general supervision. 

National Social Insurance Institute, administration of cash sickness 
and maternity benefits. 

National Health Service administered by 20 regional health 
authorities and locally by area health authorities. 

Work Injury 

First law: 1898. 
Current law: 1965. 

Type of program: Social insurance system. 
Coverage 

Manual workers, nonmanual employees in dangerous work, and 
self- employed in agriculture. Special system for seamen. 

Source of Funds 

Insured person: 12,250,000 lire in industry; 1,750,000 lire in 
agriculture. 

Employer: 0.5% to 16% of payroll, according to risk. 
Average basic rate for industrial workers: 3.0%. 
Government: None. 

Minimum earnings for benefit purposes: 19,401,000 lire; 
maximum, 36,031,000 lire per year. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disabiuty Benefits 

Temporary disability benefit: 60% of earnings for first 90 days of 
disability; 75% thereafter. Payable after 3-day waiting period 
(during which employer must pay benefit). 

Permanent Disability Benefits 

Permanent disability pension: 10% to 100% of earnings (between 
the minimum and maximum covered earnings) in the prior year, 
depending on degree of disability. 



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189 



ITALY 



Constant-attendance supplement: 580,000 lire a month (as of 1995). 
Dependents' supplements: 5% of pension for wife and each child 
under age 18 (26 if student, no limit if disabled). 
Partial disability: If ll%-79% disabled, pension proportionate to 
degree of incapacity. If 80%-100% disabled, full pension. 
Adjustment: Automatic adjustment of pensions annually if at least 
10% change in average daily wage in industry. 

Workers' Medical Benefits 

Medical benefits: Medical, surgical, and hospital care, appliances, 
and rehabilitation. 

Survivor Benefits 

Survivor pension: 50% of earnings of insured, payable to 
surviving spouse. Orphans: 20% of earnings for each orphan under 
age 18 or disabled, or 40% if full orphan. Parent (in absence of 
above): 20% of earnings for each parent. 
Maximum survivor pensions: 100% of earnings of insured. 
Survivor grant: Lump sum up to 2,322,000 lire, to survivors who 
paid the funeral expenses (as of 1995). 

Administrative Organization 

Ministry of Labor and Social Welfare, general supervision. 
National Accident Insurance Institute, administration of program 
through provincial offices; managed by tripartite governing body. 
National Health Service, general administration of medical benefits. 
Separate funds administer special systems. 

Unemployment 

First law: 1919. 

Current laws: 1939, 1968, 1970, 1975, 1988 and 1991. 
Type of program: Compulsory insurance system. 

Coverage 

Employees in private employment. Workers in construction also 
covered for special supplementary benefit. 

Source of Funds 
Insured person: None. 

Employer: 1.61% (industrial managers) or 1.91% (industry and 
commerce) of payroll. Industrial employers also pay 0.3% (0.8% 
in construction) of payroll for special unemployment and 2.2% of 
payroll (1.9% for firms with less than 50 workers) for wage 
supplement fund. 

Government: Administrative costs plus subsidies for agricultural 
workers, youth employment, and wage supplement fund. 
Minimum earnings for contribution purposes: 62,729 lire a day for 
workers in industry. No maximum. 

Qualifying Conditions 

Unemployment benefit: 2 years of coverage with 52 weeks of 
contribution in last 2 years. Construction workers: 43 weeks of 
contributions during 2 years of employment in sector. 
Mobility insurance: Industrial workers with at least 1 year of 
insurance and 6 months of employment. 



Registered at employment office, capable of and available for 
work. 

Unemployment not due to voluntary leaving, dismissal for 
misconduct, or refusal of suitable offer or prescribed training 
(disqualification for 30 days). 

Wage supplement: Partially unemployed under circumstances 
specified by law. 

Unemployment Benefits 

Unemployment benefit: 30% of wage, payable after 7-day waiting 
period. Maximum duration: 180 days. 
Dependents' supplements: See family allowances, below. 
Special benefit in construction: 80% of earnings (up to maximum 
covered earnings) for up to 90 days (may be extended). 
Mobility insurance for industrial workers: 80% of salary for 1 to 4 
years depending on worker's age and location of employing firm. 

Administrative Organization 

Ministry of Labor and Social Welfare, and Treasury, general 
supervision. 

National Social Insurance Institute, administration of program 
through its branch offices. Also administers wage supplement fund. 
Placement offices receive, investigate, and pay claims (except for 
mobility insurance which is paid through the National Social 
Insurance Institute). 

Family Allowances 

First law: 1937. 

Current laws: 1961, 1965, 1970, 1974, 1975, 1980, 1983 and 1988 
(Reform of Family Benefits Scheme). 
Type of program: Employment-related system. 

Coverage 

Employees and social insurance, welfare and unemployment 
beneficiaries with 1 or more children or other dependents. 
Special systems for self-employed and formerly self-employed 
pensioners. 

Source of Funds 
Insured person: None. 

Employer:4.84% of payroll. (2.48% for employees hired after 
January 1, 1997). 3.34% in 1998 and 2.48% in 1997. 
Government: Various subsidies. 

Minimum earnings for contribution purposes: 62,729 lire a day or, 
if higher, minimum wage. 

Qualifying Conditions 

Family allowances: Spouse dependent on insured; children must 
be under age 18 (no limit if disabled); brothers and sisters, nieces 
and nephews must be orphans or dependents under age 18, (no 
limit if disabled) and not eligible for survivor pension. 
Separate provisions for self-employed and formerly self-employed 
pensioners. 



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ITALY 



Family Allowance Benefits 

Family allowances: The amount varies in relation to the size and 
income of the family from 60,000 to 440,000 lire for families with 
7 or more children. 

Income ceilings increased for single-parent families and for 

families with at least one totally disabled member. 

Separate provisions for self-employed agricultural workers and 

pensioners and former self-employed. 

Adjustment: Annual adjustment of pensions based on average 

increase in gross domestic product within the last 5 years. 

Administrative Organization 

Ministry of Labor and Social Welfare, and Treasury, general 
supervision. 

National Social Insurance Institute, administration of program 
through Central Family Allowances Fund. 
Individual employers pay allowances directly to own employees 
(except in agriculture) and settle surplus or deficit of contributions 
due with local branch of Institute. 



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JAMAICA 



Old Age, Disability, Death 

First law: 1958 (for sugar workers only; now absorbed into general 

program). 

Current law: 1990. 

Type of program: Social insurance system. 

Exchange rate:U.S.$l .00 equals 35.04 Jamaican dollars (J$). 

Coverage 

Employed and self-employed persons, and voluntarily covered over 

age 18 and under retirement age. 

Exclusions: Casual workers and unpaid family labor. 

Source of Funds 

Insured person: 2.5% of earnings up to J$4,810 per week, or 
J$250,000 per year. Domestic workers and military J$10 per week. 
Voluntarily covered J$20 per week. 
Self-employed, J$20 per week plus 5% of earnings up to a 
maximum earnings of J$250,000 per year. 
Employer: 2.5% of wages up to J$250,000 per year. 
Government: Contributes as employer, plus administrative 
expenses. 

Above contributions also finance maternity and work-injury 
benefits. 

Qualifying Conditions 

Old-age pension: Age 65 (men) or 60 (women). 351 weeks of paid 
contributions, and annual average of 39 weeks paid or credited. 
Reduced pension for annual average between 13 and 38 weeks. 
Lump-sum grant if 52-155 weeks paid contributions. 
Substantial retirement necessary until age 70 (men) or 65 (women). 
Payable abroad, but subject to limitations except where reciprocal 
agreement exists. 

Disability pension: Permanent incapacity for work. 351 weeks of 
paid contributions and annual average of 39 paid or credited. 
Reduced pension for annual average between 13 and 38 weeks. 
Lump-sum grant if 52-155 weeks paid. 26-week waiting period. 
Survivor pension: 351 weeks of paid contributions, and annual 
average of 39 weeks paid or credited (13 if full orphan), or if 
either spouse was recipient of old-age or disability pension before 
his or her death. 

Reduced pension for annual average between 13 and 38 weeks. 
Lump-sum grant if 52-155 weeks of paid contributions. 

Old-Age Benefits 

Old-age pension: Basic component, J$300 a week 

(Reduced pension: J$225 if annual average contribution between 

26 and 38 weeks, J$150 if 13-25 weeks). 

Earnings-related component, 6 cents a week for every J$13 of 

employer-employee contributions paid during lifetime. 

Spouse's supplement: J$100 a week for dependent wife aged 55 or 

disabled husband aged 60. 

Old-age grant: Lump-sum payment varies. It consists of J$360 with 
52 contributions paid, plus J$7.20 for each additional 13 weeks of 
contributions paid and J$9.30 for each J$13 in contributions paid. 



Permanent Disability Benefits 

Disability pension: Basic component, J$345 a week. 

Survivor Benefits 

Survivor pension: Basic component, J$300 a week 

(Reduced pension: J$225 if annual average contribution between 26 

and 38 weeks, J$150 if 13-25 weeks). 

Earnings-related component, 6 cents a week for every J$13 of 

employer-employee contributions paid during lifetime. 

Payable to widow aged 55, or any age if disabled or caring for 

children under age 18. Also payable to needy disabled widower age 

60, or (for 52 weeks) widow not otherwise eligible. Widow may 

receive duplicate benefits if eligible based on own earnings. 

Orphans: J$500 a week for full orphans under age 18. 

Funeral grant: Lump sum of J$9,000. 

Administrative Organization 

Ministry of Labor, Social Security and Sports, administration of 
program through its National Insurance Division and local offices. 

Sickness and Maternity 

First and current law: 1979 . 

Type of program: Social insurance system. Cash maternity benefits 
only. 

Labor law requires employers to grant 12 weeks maternity leave 
with 66-2/3% of earnings. Social security reimburses 25% of cost 
to exporters with labor force 75% female. Medical care available 
free or at nominal cost in public dispensaries and hospitals. 

Coverage 

Resident workers aged 1 8 and over. 
Source of Funds 

Insured person: See pension contributions above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Cash maternity benefits: 26 weeks' paid contributions in 52 
weeks preceding confinement. 

Sickness and Maternity Benefits 

Maternity benefit: Minimum weekly wage for 8 weeks. 

Administrative Organization 

Ministry of Labor, Social Security and Sports, administration of 
program through its National Insurance Division and local offices. 

Work Injury 

First law: 1937 (voluntary insurance with private carrier). 
Current law: 1965 (implemented October 1, 1970). 
Type of program: Social insurance system. 



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Coverage 

Employed persons aged 18 to 70 (men) and 18 to 65 (women). 
Exclusions: Domestic workers, unpaid family labor, the self- 
employed, and members of Armed Forces. 

Source of Funds 

Insured person: None. 

Employer: See pension contribution above. 

Government: None, except as employer. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 75% of insurable wages up to 
J$4,810 a week. Minimum and maximum benefits: J$36.25 and 
J$345 a week. Payable after 3-day waiting period for up to 52 
weeks. 

Permanent Disability Benefits 

Permanent disability pension: If 95%-100% disabled, 75% of 

average insurable wage up to J$290 a week. 

Partial disability: Percent of full pension proportionate to loss of 

earning capacity if 10% to 94% disabled. 

Minimum and maximum benefits: J$36.25 and J$217.50 a week. 

Workers' Medical Benefits 

Medical benefits: Necessary medical, surgical, and rehabilitative 
treatment, including appliances, hospitalization, and drugs. 

Survivor Benefits 

Survivor pension: 75% of average earnings of deceased up to 
J$290 a week. 

Minimum and maximum benefits: JS36.25 and J$217.50 a week. 
Payable for 52 weeks after death of insured to widow of any age; 
if none, to child or children; and dependent mother aged 55. 
Funeral grant: Lump sum of J$3,000. 

Administrative Organization 

Ministry of Labor, Social Security and Sports, administration of 
program through its National Insurance Division and local offices. 



Social Security Programs Throughout the World — 1997 



193 



JAPAN 



Old Age, Disability, Death 

First law: 1941 (employees' pension insurance). 

Current laws: 1944 (employees' pension insurance), 1959 (national 

pension program), and 1985. Two-tiered system: first 

tier — national pension program (flat-rate) for all residents; second 

tier — employees' pension insurance or other employment-related 

programs (earnings related). 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 111.64 yen. 

Coverage 

National pension program: Residents aged 20-59. Voluntary 
coverage for residents aged 60-64 (aged 65-69 in special cases) and 
for citizens residing abroad (aged 20-64). 
Employees' pension insurance: Employees of firms in industry 
and commerce, including seamen. (Contracting-out from employee 
pension insurance allowed if corporate plan provides equivalent or 
higher benefits.) 

Other employment-related programs include special systems for 
public employees, private school teachers and employees, and 
employees of agricultural, forestry, and fishery cooperative 
associations. 

Source of Funds 

National pension program — Insured person: Employed persons 
and their dependent spouses, included in employee contribution to 
employment-related programs. 

Other insured persons: 12,800 yen a month (from April 1, 1997), 
plus optional 400 yen per month for supplemental benefits. 
Employer: Included in employer contribution to 
employment-related programs. 

Government: 33-1/3% of benefit costs, plus administrative costs. 
Employees' pension insurance — Insured person: 8.675% of 
earnings according to 30 wage classes. Miners and seamen, 
9.575%. Added special premium: 0.5% of bonuses. If contracted 
out, 8.145%-8.175% of earnings. 
Employer: Same as for insured persons. 
Government: Cost of administration. 

Maximum earnings for contribution and benefit purposes: 590,000 
yen a month; minimum, 92,000 yen. 

Qualifying Conditions 

National pension program — Old-age basic pension: Age 65, and 

25 years' contribution (including for dependent spouse of 
employee, years of own coverage plus years married to an 
employee who is covered by any employment-related programs). 
Pension payable at age 60-64 with actuarial reduction. Pension 
increased if first paid at age 66 or later. 
Disability basic pension: For Class I, total disability requiring 
constant attendance; for Class II, disability severely restricting 
ability in daily living. 

Contributions paid or credited during 2/3 of period between age 20 
and disability onset. 

Survivor basic pension: Deceased was pensioner at death, or was 
covered at time of death and had contributions paid or credited 
during 2/3 of period between age 20 and death. 



Employees' pension insurance — Old-age employees pension: 

Age 60 (men) 59 (women), or 56 (seamen, and miners); 25 years 
of coverage, including years covered by National Pension program. 
Disability employees pension: For Class I and II, same as under 
national pension program; For an additional Class III, incapacity 
less severe than Class II. 

Survivor employees pension: Deceased was insured worker or 
pensioner (old-age or disability) at time of death. 

Old-Age Benefits 

Note: Rates for old-age, survivor and disability benefits as of 
April 1, 1997. 

National pension program — Old-age basic pension: If fully 
insured (480 months of contributions), 785,500 yen a year, plus 
200 yen for each contribution month if voluntary member. 
Benefit actuarially reduced for initial entitlement at ages 60-64 or 
increased for age 66 or older. 

Employees' pension insurance — Old-age employees pension: 

0.75% of indexed monthly wages multiplied by the number of 
months of coverage. Age 60-64: insured receives an added 1,625 
yen a month of for each month of coverage. 
Age 60-64 pension reduced for continued employment (pension 
reduced 20% if combined total of monthly wage and 80% of 
pension is under 220,000 yen; if combined total is 
220,000-340,000 yen, pension reduced by 1 yen for every 2 yen 
earned; if combined total exceeds 340,000 a month, pension is 
reduced by 100% of wages over 340,000 yen). 
Dependents' supplements: 226,000 yen a year for spouse, 226,000 
yen a year each for 1st and 2nd child, 75,300 yen for each 
additional child (up to the end of the fiscal year the child reaches 
age 18 or 20 if disabled). 

Adjustment: Automatic annual cost-of-living adjustment for both 
pension programs. 

Permanent Disability Benefits 

National pension program — Disability basic pension: According 
to degree of disability: Class I, 981, 900 yen a year; and Class II, 
785,500 yen. 

Dependents' supplements: 226,000 yen a year each for 1st and 2nd 
child; 75,300 yen for each subsequent child (up to the end of the 
fiscal year in which the child reaches age 18, or 20 if disabled). 
Employees' pension insurance — Disability employees pension: 
Class I, 125% of old-age pension plus additional benefits for 
dependents; Class II, 100% plus additional benefits for dependents; 
and Class III, 100%, with a minimum benefit of 589,100 yen a 
year. 

Lump-sum grant: 200% of old-age pension payable. 
Minimum grant: 1,170,000 yen. 

Dependents' supplements: Same as under old-age pension, payable 
to Class I and Class II disability only. 

Adjustment: Automatic annual cost-of-living adjustment for both 
pension programs. 

■ 

Survivor Benefits 

National pension program — Survivor basic pension: For widow, 
785,500 yen a year. For orphans, see dependents' supplements 
under old-age pension above. 



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Social Security Programs Throughout the World — 1997 



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Full orphans, same as for widow plus dependents' supplements, 
divided among the eligible orphans. 

Lump-sum grant: 120,000-320,00 yen, according to periods of paid 
contributions. 

Employees' pension insurance — Survivor employees pension: 

75% of pension payable to insured worker. 

Eligible survivors (in descending order of priority): Spouse (age 35 
or over), orphans (up to the end of the fiscal year the child reaches 
age 18 or 20 if disabled), parents (aged 55 or over), grandchildren 
(up to the end of the fiscal year the child reaches age 18 or 20 if 
disabled), or grandparents (aged 55 or over). 
Dependents' supplements: Same as dependents' supplements under 
old-age pension. If no children, 589, 100 yen supplement a year for 
widow between ages 40-65, if aged 35 or over at time of death of 
insured. 

Adjustment: Automatic annual cost-of-living adjustment for both 
pension programs. 

Administrative Organization 

Pension Bureau of the Ministry of Health and Welfare, general 
supervision of both programs. Social Insurance Agency, national 
administration; insurance divisions of prefectural welfare 
departments and social insurance branch offices, local 
administration of contributions and benefits for both programs. 

Sickness and Maternity 

First laws: 1922 (health insurance; implementation delayed until 
1927) and 1938 (national health insurance). 
Current laws: 1958 and 1995 (national health insurance) and 1984 
and 1994 (health insurance). 

Type of program: Dual social insurance systems. National Health 
Insurance provides medical benefits, Employees Health Insurance 
provides cash and medical benefits. 

Coverage 

National health insurance: All residents not under 
employment-related health insurance or special schemes are 
covered under local government (i.e., municipality, township, or 
village) programs. 

Employee health insurance: Employees of firms in industry and 
commerce with five or more employees (government-managed 
programs, unless member of health insurance society). Voluntary 
coverage for other employees. 

Special systems for persons aged 70 and over, seamen, private 
school teachers, and public employees. 

Source of Funds 

National health insurance — Insured person: National health tax 
or premium fixed by individual carrier according to individual and 
household income and assets, not to exceed 530,000 yen a year per 
household. 1996 average annual contribution: 74,202 yen per 
insured person, and 158,580 yen per household. Insurers of 
municipality-run programs may reduce premiums by 40%-60% for 
qualifying low-income residents or households; other insurers may 
allow a 20% premium reduction. 
Employer: None. 



Government: 50% of medical care costs, cost of administration, 
and some local subsidies. 

Employee health insurance — Insured person: 4.3% of basic 
wage (average 3.631% in 1995, if insurance society), according to 
40 wage classes. Special premium: 0.3% of bonuses. 
Employer: 4.3% of basic wage (average 4.70% in 1995, if 
managed by health insurance society). Special premium: 0.5% of 
bonuses of insured. 

Government: 13.0% of benefit costs, 16.4% of costs for health 
and care for the aged, and cost of administration (none, if managed 
by health insurance society), totaling about 2/5 of employee 
contributions. 

Maximum basic wage for contribution and benefit purposes: 
980,000 yen a month; minimum, 92,000 yen a month. 

Qualifying Conditions 

National health insurance — Medical benefits: Residence in 
municipality, township, or village. 

Employee health insurance — Cash sickness, maternity and 
medical benefits: Covered employment. 

Sickness and maternity benefits continued for normal duration if 
beneficiary leaving employment was covered during last 12 
months; medical care for same beneficiary provided up to five 
years from the initial date of treatment. 

Sickness and Maternity Benefits 

National health insurance — No cash benefits provided by law, but 
provided by some carriers. 

Employee health insurance — Sickness benefit: 60% of average 
daily basic wage, according to wage class. 
Payable after 3-day waiting period for up to 6 months or 
determination of disability. Health Insurance societies may provide 
more liberal benefits. 

Maternity benefit: 60% of average daily basic wage for 42 days 
before (70 days in case of multiple birth) and 56 days after 
confinement. Payment discontinued or reduced partially if 
receiving wage or cash sickness benefit. Also, lump-sum birth 
grant of 300,000 yen. 

Workers' Medical Benefits 

Medical benefits (national health insurance and employee health 
insurance): Service benefits, usually provided by clinics, hospitals, 
and druggists under contract with and paid by carrier. (Some 
carriers provide services directly through own clinics and 
hospitals.) 

Includes medical treatment, surgery, hospitalization, nursing, 
dental care, maternity care (difficult childbirth only), and 
medicines. 

National health insurance: Insured pays 30% of cost of all care; 
maximum, 63,600 yen a month for the same illness (35,400 yen if 
low-income family). Duration: No limit. Inpatient also pays 760 
yen per day (if low-income family, 650 yen a day up to 90 days 
and 500 yen thereafter) for part of food expenses. 
Special provisions for aged 70 and over, or aged 65-70 if 
bedridden. Inpatient pays for part cost of food expenses at 760 yen 
a day; 650 yen a day for qualified low-income aged and 500 yen a 
day when hospitalization exceeds 90 days; 300 yen per day and no 



Social Security Programs Throughout the World — 1997 



195 



co-payment for hospitalization beyond 2 months for old-age 
welfare pension recipients. 

Employee health insurance: Insured pays 10% of cost of all care. 
Maximum, 63,600 yen a month for the same illness (35,400 yen if 
low-income family; 37,200 yen after paying monthly maximum for 
3 times in last 12 months; 24,600 yen if low-income family). 
Duration: No limit. Inpatient also pays for part of food expenses at 
760 yen per day (if low-income family, 600 yen per day up to 90 
days and 500 yen per day thereafter) . 

Dependents' Medical Benefits 

National health insurance — Medical benefits for dependents: 

Same as for insured. 

Employee health insurance — Medical benefits for dependents: 

Same as for insured, but with patient paying 30% of cost (20% if 
inpatient) up to 63,600 yen a month. 

Funeral grant: 1 month's basic wage; minimum, 100,000 yen. 
Administrative Organization 

Health Insurance Bureau of the Ministry of Health and Welfare, 
supervision of both programs. 

National health insurance: Local administration mainly by 
municipal health funds set up by each town. National health 
insurance association, program administration for the 
self-employed. 

Employee health insurance: For Government-managed programs, 
Social Insurance Agency, national administration. Insurance 
divisions of prefectural departments and social insurance offices, 
local administration. For society-managed program, Insurance 
divisions of prefectural departments and 1,815 health insurance 
societies, local administration for affiliated workers; if limited to 1 
enterprise, society fixes and administers own contributions and 
benefits. 

Work Injury 

First law: 1911. 

Current law: 1947, 1980 and 1986. 

Type of program: Compulsory social insurance . 

Coverage 

Employees of all firms in industry and commerce not included 
under voluntary coverage or special system below. 
Voluntary coverage for employees in agricultural, forestry, and 
fishery establishments with less than 5 workers. 
Special systems for seamen and public employees. 

Source of Funds 
Insured person: None. 

Employer: 0.6% to 14.4% of payroll, according to 3-year accident 
rate. 

Government: Subsidies within limit of national budget. 
Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 



Temporary Disability Benefits 

Temporary disability benefit: After 3-day waiting period, 60% of 
average daily wage, plus special supplement of 20% of average 
daily wage. (Employer pays 60% of average daily wage for first 3 
days.) Minimum benefit, 4,240 yen a day. Beginning with 19th 
month, the more severely disabled have above benefit replaced 
with a long-term benefit equal to average daily wage multiplied by 
245-313 days annually, varying with the degree of disability; they 
also receive special supplement based on the worker's annual 
bonus. 

Adjustment: Automatic annual adjustment for wage changes. 
Permanent Disability Benefits 

Permanent disability pension: Average daily wage multiplied by 
131-313 days annually, varying with degree of disability, for the 
seriously (grades 1-7) disabled. 

Permanent disability supplement: 1,590,000-3,420,000 yen, plus 
special supplement based on the worker's annual bonus. The less 
seriously disabled (grades 8-14) receive a lump-sum benefit of 
56-503 days' wages plus 80,000-650,000 yen, varying with the 
degree of disability. 

Constant-attendance allowance (grades 1-2): 105,080 yen per 
month if requiring full-time care; 52,540 yen per month if 
part-time care (57,050 yen or 28,530 yen, respectively, if care 
provided by family members). 

Workers' Medical Benefits 

Medical benefits: Medical treatment, surgery, hospitalization, 
nursing, dental care, medicines, appliances, and transportation. 

Survivor Benefits 

Survivor pension: Equal to average daily wage multiplied by 
153-245 days annually, according to number of dependents in 
family, plus special lump-sum supplement of 3,000,000 yen and an 
additional supplement based on bonuses. 
Eligible survivors: Widowed spouse, children, parents, 
grandparents, grandchildren, and dependent brothers and sisters 
(except for widow, all must meet specified age or disability 
requirements). 

Lump sum (if no survivors qualify for pension): Up to 1,000 days' 
earnings of deceased, plus 3,000,000 yen, payable to 
non-dependent survivors. 

Funeral grant: 295,000 yen plus 30 day's wages, or 60 days' 
wages, whichever is greater. 

Administrative Organization 

Ministry of Labor, general supervision and administration. The 
Division of Worker's Compensation within the Ministry's Bureau 
of Labor Standards, administration of the program through its local 
labor standards inspection offices. 

Unemployment 

First law: 1947. 

Current law: 1975 and 1994. 

Type of program: Social insurance system. 



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JAPAN 



Coverage 

Employees of all enterprises not included under voluntary coverage 
or special systems below. Voluntary coverage for employees in 
agriculture, forestry and fisheries with less than 5 regular 
employees. 

Exclusions: Older workers employed at age 65 or over, and 
seasonal workers whose term of employment is 4 months or less. 
Special systems for day laborers, seamen, and public employees. 

Source of Funds 

Insured person: 0.4% of earnings (same for seasonal or 
construction workers). 

Employer: 0.75% of payroll (0.95%-10.5% for seasonal and 
construction workers, respectively). 

Government: 25% of benefit costs, and cost of administration. 
Qualifying Conditions 

Unemployment benefit: 6 months of insurance during last 
12 months (extended up to 48 months for sickness, injury, 
maternity, and hard to employ cases). 

Must be registered with public employment security office, capable 
of and willing to work, and reporting every 4 weeks. 
Unemployment not due to voluntary leaving, serious misconduct, 
refusal of suitable offer, or nonattendance at recommended training 
(disqualification for 1-3 months). 

Unemployment Benefits 

Unemployment benefit: 60% to 80% of wages (higher percentage 
to lower earners). Minimum, 3,390 yen (2,550 yen for short-term 
workers) a day; maximum, 10,660 yen. 
Additional allowances for depressed industries, injury, skill 
acquisition, boarding, equipment, and moving expenses. 
Payable after 7-day waiting period for 90 to 300 days (90-210 days 
for short-term workers) in 1 year, according to length of insurance, 
age group, and employment prospects (under age 45 and 
hard-to-employ, 240 days; age 45-65, 300 days; 180 days and 
210 days, respectively, for short-term workers). 

Administrative Organization 

Ministry of Labor, general supervision. 

Employment Security Bureau in Ministry, national administration 
of program. 

Employment insurance sections of prefectural labor departments 
and public employment security offices, local administration and 
collection of contributions. 

Family Allowances 



Source of Funds 
Insured person: None. 

Employer: 70% of cost (about 0.1 1 % of wages). 

Government: With respect to employees — national treasury, 20% 

of cost; prefecture, 5%; city or town, 5%. 

With respect to self-employed and unemployed — national treasury, 

66.6%; prefecture, about 16.7%; city or town, about 16.7%. 

Qualifying Conditions 

Family allowances: Resident's income must be less than 
3,772,000 yen in previous year for family of four. Special 
allowances for employees and public employees with income less 
than 6,000,000 yen for a family of four. 

Family Allowance Benefits 

Family allowances: 5,000 yen a month for first and second child, 
and 10,000 yen a month for each subsequent child. 

Administrative Organization 

Ministry of Health and Welfare, supervision through Children and 
Families Bureau. 

Insurance division of prefectural welfare department and social 
insurance offices, collection of contributions. 
City or town, granting of allowances. 



First law: 1971 (children's allowance). 

Current laws: 1981, 1985, 1991 and 1994. 

Type of program: Dual employer liability and assistance systems. 

Coverage 

Residents with 1 or more children: child under age 3. 



Social Security Programs Throughout the World — 1997 



197 



JERSEY 



Old Age, Disability, Death 

First law: 1951. 

Current laws: 1972 (attendance allowance), 1974 (social security), 

1978 (invalid care and disability benefits). 

Type of program: Dual social insurance (social security benefits) 

and assistance (disability benefits) system. 

Exchange rate: US$1.00 equals 0.60 pound (£). 

Coverage 

Old-age and survivors' benefits: Employed persons, 
self-employed. Voluntary insurance for non-employed persons. 
Disability benefits: All residents. 

Source of Funds 

Insured person: 3.5% of earnings. Self-employed, 8% of 
earnings. Contribution ceiling: £1,700 per month. 
Employer: 4.5% of earnings. 
Government: Whole cost of disability benefits. 

Qualifying Conditions 

Old-age pension: Age 65 for men and women except for women 
registered with the scheme prior to 1975 who can receive a pension 
at age 60. Full pension payable when a person has achieved 94% 
of contributions throughout their working life; pension reduced 
proportionately for people with short working lives. 
No pension payable if proportion of full pension is less than 10%. 
Disability pension: Permanent incapacity for work; payable after 
1 year's ordinary sickness benefit. 

Attendance allowance: Payable to severely disabled who need extra 
care and attention because of their disability. Paid after six months 
of disability. 

Invalid care allowance: Paid to a person who cares for a 
beneficiary of attendance allowance. 

Attendance allowance and invalid care allowance are subject to an 

income bar which stands at £33,785 per year. 

Adult disablement allowance: Payable to persons who are 

congenitally disabled and have no contribution record. 

Survivor pension: Deceased met coverage requirements for old-age 

pension or was pensioner at death. 

Death grant: Deceased must have paid 1 year contribution. 

Old-Age Benefits 

Old-age pension: Full pension, £94.99 per week for single person; 
£157.71 for married couple. 

Adjustment: Pensions adjusted annually according to changes in the 
cost-of-living index and the earnings index. 

Disability Benefits 

Disability pension: £94.99 per week. Additional £62.72 per week 

where there is an adult dependent. 

Attendance allowance: £270.76 per month. 

Invalid care allowance: £185.38 per month. 

Adult disablement allowance: £222.45 per month. 

Adjustment: Benefits adjusted annually according to changes in the 

cost-of-living index and the earnings index. 



Survivors Benefits 

Widows allowance: £1 14.03 per month for first year of 
widowhood. 

Widows pension: Full pension, £94.99 per week for period after 
widows allowance is payable. 

Widowed fathers allowance: Amount of benefit based on 
deceased's contributions, maximum: £94.99. Paid to husband with 
dependent children. 

Death grant: Adult person, £379.92; child, £189.96. 

Adjustment: Benefits adjusted annually according to changes in the 

cost-of-living index and the earnings index. 

Administrative Organization 

Employment and Social Security Department, administration of 
program. 

Sickness and Maternity 

First law: 1951. 
Current law: 1974. 

Type of program: Dual social insurance (cash benefits) and 
universal (medical care) systems. 

Coverage 

Cash benefits: Employed persons, self-employed. 
Medical care: All residents. 

Source of Funds 

Insured person: Cash benefits, see pension contributions above. 
Employer: Cash benefits, see pension contributions above. 
Government: Medical care, whole cost. 

Qualifying Conditions 

Sickness benefit: 3 months worth of contributions prior to the 
claim for benefit and paid contributions in the calendar quarter six 
months prior to the claim. 

Maternity allowance: Woman must have 13 weeks contributions 
and have contributions in the relevant quarter which is one year 
prior to the expected date of confinement. 

Maternity grant: Wife or husband's contribution record must show 
contributions for a period of 1 year. 

Medical benefits: General practitioner care, 6 months residence. 

Sickness and Maternity Benefits 

Sickness benefit: £94.99 per week for 1 year. 

Maternity allowance: £94.99 for up to 18 weeks, starting at 

anytime from the 11th week before confinement. 

Maternity grant: Lump sum payment based on wife or husband's 

contribution record. 

Workers' Medical Benefits 

Workers' medical benefits: Medical care through the hospital, 
free of charge. General practitioner care, cost various between 
practices, but the government subsidises each consultation by 
£10.00 and each prescription of pharmaceutical items only costs 
£1.54 per item. Exemptions exist for low income families. 



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Dependents' Medical Benefits 

Dependents' medical benefits: Same as for head of family. 
Administrative Organization 

Social Security and Health Insurance: Employment and Social 
Security Department. 

Hospital treatment: Department of Health and Social Services. 

Work injury 

First law: 1930. 
Current law: 1974. 

Type of program: Social insurance system. 
Coverage 

Employed persons, self-employed. 
Source of Funds 

Insured person: See pension contributions, above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: Injury benefit, £94.99 per week, 
plus dependent supplement of £62.72; payable for 1 year. 

Permanent Disability Benefits 

Permanent disability pension: Disablement benefit, same as 
ordinary disability pension. 

Attendance allowance: Same as general attendance allowance. 
Disablement gratuity: Lump sum payment if disability resulting 
from accident is assessed at less than 15%. 

Workers' Medical Benefits 

Workers' medical benefits: Same as for ordinary sickness. 
Survivors Benefits 

Survivors benefits for dependents: Same as general survivors 
benefits, but special rules for widow's benefit. 

Administrative Organization 

Social insurance benefits: Employment and Social Security 
Department. 

Hospital treatment: Department of Health and Social Services. 
Unemployment 

First and current law: 1930. 

Type of program: Social assistance. 

Coverage 

Five years' residence in Jersey. 



Source of Funds 

Insured person: None. 
Employer: None. 

Government: Local taxes and general revenue. 
Qualifying Conditions 

Person must be actively seeking employment and be unemployed 
for reasons not of their own making. 

Unemployment Benefit 

Unemployment benefit: Means tested. Dependent on individual 
circumstances including level of rent paid. Assessed at local 
(parish) level. 

Administrative Organization 

12 individual Parish authorities, administration of program, 
co-ordinated by Committee of Constables. 

Family Allowances 

First and current law: 1972. 

Type of program: Universal system. 

Coverage 

Residents with 1 or more children. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Whole cost. 

Qualifying Conditions 

Family allowances: Child under age 16. 

Family Allowances 

Family allowances: Assessed on previous year's income tax 
return, with maximum rate being paid for children in a family 
whose income is less than £6,500 in previous year. 
Maximum rates: £2,212 per year for 1st child, £1,889 for 2nd 
child, £1,697 for subsequent children. 

Administrative Organization 

Employment and Social Security Department, administration of 
program. 



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JORDAN 



Old Age, Disability, Death 

First and current law: 1978. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 0.71 dinar. 

Coverage 

Employees over age 16 in private establishments with 5 or more 
workers, government and public sector employees not covered 
under civil or military pension laws, employees of universities, 
municipalities and village councils, and Jordanians working at 
diplomatic missions and international organizations. 
Exclusions: Public employees covered under civil or military 
pension laws, foreign employees serving in international 
organizations or foreign political or military missions, and laborers 
whose work relationship with their employers is irregular. 
(The following employee categories are currently suspended from 
coverage, until the Council of Ministers, upon the recommendation 
of the Board of Directors of the Social Security Corporation, 
decides their coverage : Agricultural workers, seamen, fishermen, 
domestic servants, self-employed, and family labor.) 

Source of Funds 

Insured person: 5% of wage. 
Employer: 8% of payroll. 
Government: Any deficit. 

(Insured worker can contribute additional amounts to receive credit 
for previous work not covered.) 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 55 (women), 120 months' 
coverage (36 continuous months within last 5 years), or 15 years 
total coverage. Early retirement at age 46 (with pension reduction) 
if 15 years coverage. Insured person with at least 5 years' 
contributions before reaching statutory retirement age may continue 
to contribute up to age 65 in order to meet minimum qualifying 
conditions. 

Disability pension: Total or partial incapacity for work, and 
12 months' continuous coverage or 24 months' total coverage. 
Survivor pension: Deceased had 12 months of continuous 
coverage or 24 months' total coverage. 

Old-Age Benefits 

Old-age pension: 2% of average monthly wages in last 2 years 
times years of contribution. Maximum: 75% of average monthly 
wage in last 2 years. Pension increased 10% for 1st dependent and 
5% each for 2nd and 3rd. Early retirement pension: 10% reduction 
if age 46-50, and 5% if age 51-54. Lump sum payment made if 
services terminated before statutory age: 10% of average annual 
wage if less than 60 months' contributions; 12% if 60-1 19 months; 
and 15% if 120 months or more. 

Permanent Disability Benefits 

Disability pension: 50% of average monthly wage in last year of 
contribution. Constant-attendance allowance: Pension increased by 
25%. 



Survivor Benefits 

Survivor pension: 50% of average monthly wage in last year of 
contribution or, if deceased was pensioner, 100% of insured's 
pension. 

Payable to widow, son under 18 (no age limit if disabled), 
unmarried or divorced dependent daughters, dependent parents, 
brothers, sisters, and widower. 

Pension reduced in direct proportion to survivor's income. 
Widow's, daughter's, or sister's pension ceases upon marriage. 
Funeral grant: 150 dinars. 

Administrative Organization 

Social Security Corporation, administration of program. 
Work Injury 



First and current law: 1978. 

Type of program: Social insurance system. 

Coverage 

Employees over age 16 in private establishments with 5 or more 
workers, government and public sector employees not covered 
under civil or military pension laws, employees of universities, 
municipalities and village councils, and Jordanians working at 
diplomatic missions and international organizations. 
Exclusions: Public employees covered under civil or military 
pension law, foreign employees of international organizations or 
foreign political or military missions, and casual workers. 
(The following employee categories are currently suspended from 
coverage, until the Council of Ministers, upon the recommendation 
of the Board of Directors of the Social Security Corporation, 
decides their coverage: Agricultural workers, seamen, fishermen, 
domestic servants, self-employed, and family labor.) 

Source of Funds 
Insured person: None. 

Employer: 2% of payroll (may be reduced to 1 % if employer 
assumes full cost of medical treatment and disbursement of daily 
allowances for temporary disability). No contribution required on 
wages paid to apprentices. 
Government: Any deficit. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 75% of daily wage (65% if 
receiving treatment in specified medical institutions) for duration of 
disability, until permanent disability is proved, or upon death. 

Permanent Disability Benefits 

Permanent disability pension: Total disability: 75% of covered 
monthly wage; constant-attendance allowance, pension increased 
by 25%. 



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Partial disability: If 30% or more disabled, percentage of full 
disability pension according to degree of disability. If less than 
30%, lump sum equal to 36 months' partial disability pension. 

Workers' Medical Benefits 

Medical benefits: Medical treatment, hospitalization, 
transportation, and rehabilitation services (including artificial 
limbs). 

Survivor Benefits 

Survivor pension: 60% of covered monthly wage, paid to widow, 
dependent widower, son under age 18 (no limit if disabled); 
dependent daughters if unmarried or divorced; and dependent 
parents, sisters, and brothers. 
Funeral grant: 150 dinars. 

Administrative Organization 

The Social Security Corporation, administration of program. 



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KAZAKHSTAN 



Old Age, Disability, Death 

First law: 1956. 

Current law: 1991, 1996. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 71.80 tenge. 

Local authorities and employers may provide supplementary 

benefits out of their own budgets. 

Coverage 

All employed persons residing in Kazakhstan (including residents 
who are foreign citizens and those without citizenship). 
Special provisions for government employees, teachers, 
professional athletes and specific categories of performing artists, 
truck drivers, machine operators, railway employees, and test 
pilots. 

Special social pension for disadvantaged aged, disabled, and 
survivors not eligible for social insurance (i.e., employment-related 
pension) benefits. 

Source of Funds 

Insured person: 1% of earnings. 
Employer: 30% of payroll. 

Government: Subsidies as needed. Full cost of social pensions. 
Above contributions also finance benefits for cash sickness, 
maternity, work-injury, and for family allowances. 

Qualifying Conditions 

Old-age pension: Age 60 and 6 months with 25 years of covered 
employment (men) or age 55 and 6 months with 20 years of work 
(women); requirements reduced for hazardous or arduous work, 
for work in ecologically damaged regions, for mothers of 5 or 
more children or of disabled children, and for the blind. 
Social pension: nonworking citizens not eligible for old-age 
pension and aged 63 and 6 months for men and 58 and 6 months 
for women (60 and 6 months for men and 55 and 6 months for 
women in ecologically damaged regions). 
Disability pension: Total disability (incapacity for any work): 
Group I disability, requiring constant attendance; Group II 
disability, not requiring constant attendance. Partial disability 
(incapacity for usual work): Group III disability. Insured has a 
minimum of 

2 to 15 years of covered employment, depending on age of onset of 
disability. Social pensions: disabled citizens not eligible for 
disability pension or disabled children under age 16. 
Survivor pension: Insured has 2 to 15 years of work (depending 
on age of insured at death), payable to surviving children whether 
or not dependents of the insured; and to nonworking dependents 
(including spouse; either parent, if disabled and not yet of 
pensionable age; grandparents, if no other support available; and 
other relatives — regardless of their age or ability to work — if 
employed by the deceased to care for grandchildren, children, or 
siblings under age 8). 

Social pension: payable to qualified surviving dependents who are 
ineligible for survivor pension due to insufficient length of covered 
employment of insured. 



Old-Age Benefits 

Old-age pension: 60% of earnings, plus 1% of earnings for each 
year in excess of 25 (men) or 20 (women) years of work. 
Payable monthly. Minimum: 100% of social minimum established 
yearly in the Republic budget (550 tenge as of January 1997). 
Social pension: 80% of minimum old-age pension. 
Partial pension (if insufficient years of covered employment): 
Monthly benefit reduced in proportion to number of years below 
required years of coverage. 

Adjustment: Periodic benefit adjustments according to cost of 
living changes. 

Permanent Disability Benefits 

Disability pension: Group I disability pension, 65% of earnings; 
Group II disability, 60% of earnings; Group III disability, 40% of 
earnings. Minimum: Group I and II disability, 100% of minimum 
old-age pension; Group III disability, 50% of minimum old-age 
pension. 

Partial pension (if insufficient years of covered employment): 
Monthly benefit reduced in proportion to number of years below 
required years of coverage. 

Social pension for Group I disability, Group II disability if 
disability began in childhood, and disabled children under age 16: 
100% of minimum old-age pension per month. Group II disability 
for adults, 80% of minimum old-age pension per month. Group III 
disability, 50% of minimum old-age pension per month. 
Adjustment: Periodic benefit adjustment according to cost of living 
changes. 

Survivor Benefits 

Survivor pension: Payable monthly at 40% of earnings for each 
dependent. Minimum for each surviving, disabled child under age 
16, 100% of minimum old-age pension per month. 
Partial pension (if insufficient years of covered employment): 
Monthly benefit reduced in proportion to number of years below 
required years of coverage. 

Social pension: for each dependent child, 60% of minimum old-age 
pension. 

Adjustment: Periodic benefit adjustment according to cost of living 
changes. 

Administrative Organization 

Republic Ministry of Labor and Social Protection of the 
Population, general coordination and supervision. 
Regional departments of labor and social protection, administration 
of program. 

Work Injury 

First and current laws: 1955 (short-term benefits), 1991 (pensions), 

1993 (death grant), and 1995 (medical insurance). 

Local authorities and employers can provide supplementary 

pension benefits out of their own budgets. 

Type of program: Dual social insurance (cash benefits) and 

universal (medical care) system. 



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Coverage 

Cash benefits: Employed persons. Medical care: Employed 
persons. 

Source of Funds 

Insured person: Contributions to medical insurance fund; none for 
cash benefits. 

Employer: Whole cost for cash benefits; contributions to medical 
insurance fund for medical care. 
Government: None to medical insurance fund. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings. 

Payable from first day of incapacity, until recovery or award of 

disability pension. 

Permanent Disability Benefits 

Permanent disability pension: Same as general disability 
pensions, above. 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients by 
governmental health providers, including general and specialist 
care, hospitalization, laboratory services, transportation, plus full 
cost of appliances and medicines. 

Survivor Benefits 

Survivor pension: Same as general survivor pensions, above. 
Death grant: Based on average earnings, funded by the employer. 

Administrative Organization 

Temporary disability benefits: Enterprises and employers pay 
benefits to own employees. 

Pensions: Same as under old-age, disability and survivor pensions 
above. 

Medical care: Republic Ministry of Health, and health departments 
of local governments, general supervision and coordination; 
provision of medical services through clinics, hospitals, and other 
facilities administered by the Health Ministry and local health 
departments. Medical Insurance Fund, funding for approved 
medical treatments. 



Note: Details are not yet available for "Sickness and Maternity," 
the 1995 Medical Insurance, "Unemployment Benefits," and 
"Family Allowances." 



Social Security Programs Throughout the World — 1997 



203 



KENYA 



Old Age, Disability, Death 

First and current law: 1965. 

Type of program: Provident fund system. Lump-sum benefits only. 
Exchange rate: U.S. $1.00 equals 55.48 shillings. 

Coverage 

Employed persons. Exclusion: Casual workers. 
Special pension system for public employees. 

Source of Funds 

Insured person: 5% of earnings. 
Employer: 5% of payroll. 
Government: None. 

Maximum earnings for contribution purposes: 1,600 shillings a 
month. 

Qualifying Conditions 

Old-age benefit: Age 55, and substantial retirement from regular 
employment. 

Payable at age 50 if out of insured employment, or at any age if 
emigrating permanently. 

Old-Age Benefits 

Old-age benefit: Lump sum equal to total employee and employer 
contributions, plus interest. 

Permanent Disability Benefits 

Disability benefit: Lump sum equal to total employee and 
employer contributions, plus interest. 

Survivor Benefits 

Survivor benefit: Lump sum equal to total employee and employer 
contributions, plus interest. 

Payable to spouse and children or, if none, to other dependent 
relatives. 

Administrative Organization 

Ministry of Labor, general supervision through Board of Trustees. 
National Social Security Fund, administration of program. 

Sickness and Maternity 

First and current law: 1966. 

Type of program: Social insurance system. Hospital benefits only. 
(1976 Employment Act requires employer to pay 100% of earnings 
for up to 2 months; however, some employers negotiate with trade 
unions to pay 100% for either 1,3 or 6 months, then 50% for an 
equal period. Also, 100% of earnings for up to 2 months' 
maternity leave. Some medical services also provided by 
employer.) 

Coverage 

Employed persons, including public employees, and self-employed, 
earning 1,000 shillings or more a month. 



Voluntary affiliation for persons earning less than 1,000 shillings a 
month. 

Source of Funds 

Insured person: Graduated contribution between minimum of 30 
shillings and maximum of 320 shillings a month. Voluntary 
contributors pay a fixed rate of 60 shillings a month. 
Employer: None. 
Government: None. 

Qualifying Conditions 

Hospital benefits: No qualifying period. There are 290 approved 
hospitals where contributors and their families can seek medical 
attention. Voluntary contributors qualify for benefits after 60 days, 
and in case of maternity, after 6 months. 

Sickness and Maternity Benefits 

Cash sickness benefit: None under insurance. 

Workers' Medical Benefits 

Hospital benefits: Refund of expenses for hospital and medical 
treatment, as prescribed by regulation, for insured persons. 
Maximum reimbursement ranges between 80-600 shillings a day 
depending on type and grade of medical facility attended. 
Services rendered outside country reimbursed at 750 shillings per 
day. 

Maximum duration: 180 days in 1 year; Maybe extended in case of 
exceptional hardship. 

Government employees subsidized at government facilities. 
Free inpatient treatment in government hospitals provided to 
employed persons not under health insurance but contributing to 
the National Social Security Fund. 

Free care provided for certain illnesses, e.g.: tuberculosis, sexually 
transmitted diseases, AIDS. 

Dependents' Medical Benefits 

Hospital benefits for dependents: Dependent children 10 days to 
18 years of age (22 if still dependent). 

Administrative Organization 

Ministry of Health, general supervision. 

National Hospital Insurance Fund, administration of program. 

Work Injury 

First law: 1946. 
Current law: 1974. 

Employer liability/compulsory insurance with private carrier. 

Coverage 

Employed persons. 

Exclusions: Nonmanual employees earning over 4,000 shillings a 
month, casual workers, and family labor. 

Source of Funds 
Insured person: None. 



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Employer: Whole cost, through direct provision of benefits or 
insurance premiums. 

Government: For Government employees who get injured while 
on duty, the cost is met by the Government. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 50% of earnings; maximum, 
540 shillings. Maximum for temporary incapacity: 240,000 
shillings. Payable after 3-day waiting period (waived if disability 
exceeds 3 days). 

Permanent Disability Benefits 

Permanent disability benefit: Lump sum equal to 60 months' 
earnings of employee in case of permanent partial disability 
(maximum 240,000 shillings). 

Survivor Benefits 

Survivor benefit: Lump sum of 60 months' earnings; minimum, 

35,000 shillings; maximum, 240,000 shillings. 

Payable to dependent survivors or, if none, in reduced amount to 

survivors only partially dependent on insured. 

Funeral grant: Lump sum covering cost of funeral. (Employer pays 

2,000 shillings if no dependents.) 

Administrative Organization 

Ministry of Labor, enforcement of law, approval of settlements, 
and payment of benefits deposited with it by employers. 
Employers must insure liability with private insurance companies. 



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205 



KIRIBATI 



Old Age, Disability, Death 

First and current law: 1976. 

Type of program: Provident fund system (lump-sum benefits only). 
Exchange rate: U.S. $1.00 equals 1.22 Australian dollars (A$). 

Coverage 

Employed persons aged 14 and older earning at least A$10 a 
month. 

Exclusion: Domestic servants. 

Source of Funds 

Insured person: 5% of earnings. 
Employer: 5% of payroll. 
Government: None. 

A$5 per person deducted annually from each provident fund 
account for death benefit program (except for persons who have 
left covered employment). 

Qualifying Conditions 

Old-age benefit: Age 50. (Payable at age 45 if actually retired 
from employment, with evidence of intention to retire permanently; 
at any age if emigrating permanently). 
Disability grant: Physical or mental incapacity for work. 
Survivor grant: Deceased was insured and had not withdrawn any 
part of the amount credited. 

Old-Age Benefits 

Old-age benefit: Lump sum equal to total employee and employer 
contributions, plus 9% accumulated interest. 

Permanent Disability Benefits 

Disability grant: Lump sum equal to total employee and employer 
contributions, plus 9% accumulated interest. 

Survivor Benefits 

Survivor grant: Lump sum equal to total employee and employer 
contributions, plus 9% accumulated interest. Payable to deceased's 
nominee. 

Death benefit: A$ 1,000 maximum. 
Administrative Organization 

National Provident Fund Board, administration of program. Board 
membership consists of two representatives each from government, 
employers, and employees. 

Work Injury 

First and current law: 1949. 

Type of program: Employer liability/compulsory insurance with 
private carrier. 

Coverage 

Employed persons earning A$4,000 a year or less. 
Exclusion: Casual employees. 



Source of Funds 

Insured person: None. 
Employer: Whole cost. 
Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Occupational disease: Incapacity or death occurred during 
employment or within 12 months after the employment ended. 

Temporary Disability Benefits 

Temporary disability benefit: 50%-100% of earnings, inversely 
proportionate to level of earnings. Maximum, A$160 a month. 
Total payment not to exceed lump sum payable for permanent 
(total or partial) disability (see below). 
Payable after 3-day waiting period. 

Permanent Disability Benefits 

Permanent disability grant: Lump sum of 48 months' earnings or 
A$6,000, whichever is less. Minimum, A$500. 
Constant-attendance supplement: 25% of grant. 
Partial disability: Lump sum in proportion to degree of incapacity, 
according to schedule. Total payment not to exceed full benefit 
under permanent total disability. 

Workers' Medical Benefits 

Medical benefit: Medical and surgical care. 

Survivor Benefits 

Survivor grant: Lump sum of 36 months' earnings or A$6,000, 

whichever is less. Minimum, A$400. 

Funeral grant (if no survivors): Burial expenses up to A$30. 

Administrative Organization 

Department of Labor, enforcement of law. 

Employers may insure liability with approved insurance companies. 
Please note: This information is more than 8 years old. 



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KOREA, SOUTH 



Old Age, Disability, Death 

First law: 1973. 

Current law: 1986, as amended 1989, 1993, 1995. 
Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 828 won. 

Coverage 

Employed persons in firms with 5 or more workers, farmers, 
fishermen and rural self-employed aged 18-59 . Voluntary 
coverage for employees of firms with less than 5 workers, 
employees aged under 18 in covered employment, and for the 
self-employed (including farmers and fishermen aged 60-64). 
Separate systems for public employees, military personnel, and 
private school teachers. 

Source of Funds 

Insured person: 2% of earnings, rising to 3% in 1998. (Effective 
July 1, 1995: farmers, fishermen and the rural self-employed: 3% 
of earnings — increased by 3% every 5 years up to 9% of 
earnings). Voluntarily insured persons, 6% of earnings (rising to 
9% in 1998). 

Employer: 4% of payroll, rising to 6% in 1998. 
Government: Partial cost of administration and of programs for 
insured farmers and fishermen - a subsidy of 2,200 won per capita 
(1/3 of the contributions of those of the lowest rank) until 
December 31, 2004. 

Qualifying Conditions 

Old-age pension: Aged 60, insured 20 or more years. 
Reduced if aged 60-64 and still engaged in remunerative activity. 
Reduced pension if aged 60 or more and insured for 15-19 years; 
aged 55-59 and insured for 20 or more years; or aged 45-59 on 
January 1, 1988 and insured for 5 years after that date. 
Disability pension: Insured at least 1 year, no longer engaged in 
remunerative activity, disabled as result of disease or injury 
occurred during the insured period. 

Survivor pension: Spouse or child (under age 18 or 2nd degree of 
disability at any age) or parent (including parent of spouse) of 
insured person (insured at least 1 year) or of pensioner. 
Lump-sum death benefit: dependent survivor not otherwise eligible 
for survivor benefit or lump-sum refund. 
Lump sum refund: Generally payable if insured has less than 
15 years coverage and fails to get reinsured within a year after 
disqualification or reaching age 60, or insured dies before 
acquiring 1 year of coverage; or former insured dies before 
acquiring 15 years of coverage. Must be requested. 

Old-Age Benefits 

Old-age pension: 2.4 times the sum of average monthly earnings 
of all insured persons in the preceding year and the average 
monthly earnings of retiree over entire contribution period. 
For each insured year in excess of 20, the monthly benefit amount 
is increased by 5 percent. 

Additional annuity for dependents (child, parent or spouse). 



Lump sum refund: Employee and employer contributions plus 
interest. 

Adjustment: Benefits adjusted for price changes. 
All pensions non-taxable. 

Permanent Disability Benefits 

Disability pension: Total disability, calculated in the same manner 
as the old-age pension. For partial disability, benefits reduced by 
up to 40%. 

Survivor Benefits 

Survivor pension: If insured had 20 or more contribution years, 
60% of insured's pension; if 10 to 19 contribution years, 50%; 
if 9 or fewer contribution years, 40%. 

Lump-sum refund: Employer and employee contributions plus 
interest. 

Lump-sum death benefit: Equal to the amount of deceased insured 
person's lump-sum refund. Maximum: 4 times the insured person's 
covered monthly earnings. 

Funeral grant: See medical benefits for dependents under Sickness 
and Maternity, below. 

Administrative Organization 

National Pension Corporation under supervision of Ministry of 
Health and Welfare. 

Sickness and Maternity 

First law: 1963. 
Current law: 1995. 

Type of program: Social insurance system. Medical benefits only. 
Coverage 

All permanent residents (including non-citizens residing 
permanently in Korea), except for government and private school 
employees and those covered by Medical Aid program. 
Separate system for public employees and private school teachers 
and employees. 

Source of Funds 

Insured person: 1% to 4% of standard monthly wages (average: 
1.52%). Self-employed: Gradual Contribution (based on income 
and assets of insured) plus Basic Contribution (fixed amount set by 
individual carriers) — average annual contribution per household in 
1996 was 185,976 won. 

Employer: 1% to 4% of standard monthly wages (average: 
1.52%). 

Government: A portion of the benefits plus total administrative 

costs. 

Minimum earnings for contribution purposes: 75,000 won a month. 
(No minimum for self-employed, small-business employees, and 
temporary workers.) 
No maximum for both programs. 

Qualifying Conditions 

Medical benefits: Current coverage. No qualifying period. 



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207 



KOREA, SOUTH 



Workers' Medical Benefits 

Medical benefits: Include medical treatment, surgery, 
hospitalization, and medicines. Services provided by designated 
doctors, clinics, hospitals, and pharmacists. Maternity services are 
provided to insured or dependent with no limit on the number of 
children. 

Insured pays up to 20% of inpatient care and up to 55% of 
outpatient care provided by the General Hospital, 40% if by 
regular hospital, and 30% if by a clinic. Maximum: None. 
Duration: 270 days a year per insured person (No limit for the 
aged, the disabled, or the pulmonary tubercular patient.) 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured. 
Dependents include spouse, direct lineal ascendents of employee 
and spouse, direct lineal descendants and their spouses, and 
brothers and sisters supported chiefly by the insured person. 
Funeral grant: Lump-sum payment of 300,000 won for an insured 
person and 200,000 won for any dependent, 300,000 to 200,000 
won for a self-employed, small-business employee or temporary 
worker. 

Administrative Organization 

Ministry of Health and Welfare, general supervision. 

National Federation of Medical Insurance, general guidance and 

support to individual societies, review and payment of claims 

submitted by medical care institutions, and designation and 

cancellation of medical care institutions. 

Medical insurance societies (373 in total): examination of the 

insured's qualifications, collection of contributions, and payment of 

benefits. 

Work Injury 

First law: 1953 (employer liability law still applies to workers in 
industry and commerce not under 1963 law; benefit provisions of 
two laws similar). 

Current law: 1963 as amended through 1994. 

Type of program: Compulsory insurance with public carrier. 

Coverage 

Employees of industrial firms with 5 or more workers. 
Separate system for public employees. 



Minimum benefit: 1 1,200 won per day. Beginning with the 25th 
month, the more severely disabled have the above benefit replaced 
by 257-329 days average earnings, depending on the degree of 
disability. 

Adjustment: Annual adjustment for wage changes. 
Permanent Disability Benefits 

Permanent disability benefit: Annual pension equal to 
138-329 days average earnings, if totally disabled, or lump sum 
equal to 55-1,474 days' earnings, according to degree of disability. 

Workers' Medical Benefits 

Medical benefits: Free medical treatment, surgery, hospitalization, 
medicines, nursing, dental care, appliances, transportation, and 
rehabilitation. 

Survivor Benefits 

Survivor benefit: Lump sum equal to 1,300 days' average 
earnings payable to surviving family, or pension of 52% of annual 
earnings for 1 person, 57% for two, 62% for three, and 67% for 
four or more persons. 
Funeral grant: 120 days' average earnings. 

Administrative Organization 

Ministry of Labor Affairs, general supervision. 

Korea Labor Welfare Corporation pays benefits and collects 

payroll taxes. 



Source of Funds 
Insured person: None. 

Employer: 0.6% to 29.9% of payroll, according to risk in 
industry. (Average contribution: 1.68%.) 
Government: Cost of administration. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 70% of average earnings. 
Payable after 3-day waiting period for up to 24 months. 



208 



Social Security Programs Throughout the World — 1997 



KUWAIT 



Old Age, Disability, Death 

First and current law: 1976. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 0.30 dinar. 

Coverage 

Employed persons, including Kuwaiti nationals working abroad. 
Special systems for self-employed persons and for military 
personnel. 

Note: Prior to 1986, coverage for the self-employed was voluntary. 
The program has since become compulsory, with a buy-in option 
to cover prior periods. 

Source of Funds 

Insured person: 5% of earnings. 
Employer: 10% of payroll. 

Government: Annual subsidy equal to 10% of payroll. 
Maximum earnings for contribution and benefit purposes: 
1,250 dinars a month. Minimum, 230 dinars a month. (Not 
applicable to civil servants). 

Qualifying Conditions 

Old-age pension: Age 50 and 15 years of contributions; 20 years 
of contributions needed if age is less with a minimum of 45 for 
men and 40 for women for 1996 retirement. Minimum age is to 
increase gradually until 55 for men and 50 for women in the year 
2020. However, women with children can retire provided they 
have a contributions record of at least 15 years irrespective of age. 
Retirement necessary, except full pension may be paid in some 
employment situations if age 50 or above. 
If under age 50, pension reduced by 1/4 of excess of salary plus 
pension above 1,250 dinars a month. 
Disability pension: Total incapacity for work. 
Survivor pension: Deceased met insurance requirements or was 
pensioner at death. 

Old-Age Benefits 

Old-age pension: 65% of last monthly earnings plus 2% of last 
monthly earnings for each year of contribution beyond 15 years. 
Maximum benefit: 95% of last monthly earnings. Part of pension 
may be paid as a lump sum at pensioner's request before age 65. 
Transitional benefit paid to persons with less than 15 years' 
coverage. 

Permanent Disability Benefits 

Disability pension: 65% of last monthly earnings plus 2% of last 
monthly earnings for each year of contribution beyond 15 years. 
Maximum benefit: 95% of earnings. 

Survivor Benefits 

Survivor pension: From 33-1/3% to 100% of deceased's earnings 
according to number of widows, children, parents, brothers, 
sisters, and sons' children. Pension divided according to schedule. 
Also payable to dependent widowers. 



Children must be under age 26 (28 if student, no limit for 
unmarried females and disabled males). 

Minimum monthly benefit: widow or widower, 150 dinars; parent, 
120 dinars; other beneficiaries, 77 dinars a month. 
Funeral grant: 2 months' earnings or 2 months' pension of insured. 
Minimum, 100 dinars. 

Administrative Organization 

Ministry of Finance, general supervision. 

Public Institution for Social Security, administration of program. 

Managed by board of directors. 

Sickness and Maternity 

Free medical services available to all residents. 
Work Injury 

First and current law: 1976. 

Type of program: Social insurance system 

(Program not yet implemented.) 



Social Security Programs Throughout the World — 1997 



209 



KYRGYZSTAN 



Old Age, Disability, Death 

First law: 1922. 

Current law: 1990, as amended 1992 and 1994. 

Type of program: Social insurance system. 

Provisions shown as of January 1995, unless otherwise specified. 

Exchange rate: U.S. $1.00 equals 16.90 Soms. 

Coverage 

All employed persons, and members of cooperatives and state and 
collective farms. Special provisions for workers in aviation, and in 
performing arts. Special social pension for disadvantaged aged, 
disabled, and survivors not eligible for employment-related social 
insurance benefits. 

Source of Funds 
(As of January 1997) 

Insured person: 2.5% of earnings (0.5% of which is for 
unemployment insurance). 

Employer: 34% of payroll (23% for state and collective farms). 
Government: Subsidies as needed. Full cost of constant attendance 
supplements for disabled, and social pensions. 
Above contributions also finance benefits for work-injury disability 
and survivor pensions, and for family allowances. 

Qualifying Conditions 

Old-age pension: Age 60 and 25 years of covered employment 
(men) or age 55 and 20 years of covered employment (women); 
requirements reduced for hazardous or dangerous work, to mothers 
of 5 or more children or of disabled children. 
Disability pension: Group I: total disability, requiring constant 
attendance. Group II: total disability, loss of 80% mobility. 
Group III: partial disability, limited ability to work, plus a 
minimum of 1 to 15 years of covered employment, depending on 
age of onset of disability. 

Survivor pension: Insured had up to 15 years of covered 
employment, payable to surviving children whether or not 
dependents of the insured; and to nonworking dependents 
(including spouse, either parent, if disabled or not yet of 
pensionable age; grandparents, if no other support available). 
Social pension: Citizens not eligible for old-age or disability 
pension who are not working or disabled and age 65 (60, women) 
or orphans under age 18 (23 if students), or disabled children under 
age 16. 

Covered employment includes periods of study, maternity leave, 
caring for disabled, unemployment, and other approved leaves by 
special decrees. 

Old-Age Benefits 

Old-age pension: 55% of average monthly wage (any 60 
consecutive months in last 15 years) if 25 (men) or 20 (women) 
years of work, plus 1 % of wage for each year in excess of 25 (or 
20). Payable monthly. 

Maximum: 80% of average monthly wage; minimum: 100% of 
minimum wage (75 soms as of January 1, 1997). Maximum 
average earnings: 10 times the minimum wage. 



Partial pension (if insufficient, but at least 5 years of covered 
employment): Monthly benefit reduced in proportion to number of 
years below required years of coverage. Minimum: 50% of 
minimum wage. 

Social pension; 2/3 of minimum pension per month. 
Adjustment: Periodic benefit adjustments according to cost of 
living changes. 

Permanent Disability Benefits 

Disability pension: Total disability pension: Group I disability 

pension, same as old-age pension plus constant-attendance 

supplement. Group II disability pension, as old-age pension, plus 

supplement for single disabled requiring constant attendance. 

Minimum: Same as minimum old-age pension. 

Partial pension for total disability (if insufficient years of covered 

employment): Same as under old-age pension. 

Constant attendance supplement: 50% of minimum pension (100% 

if blind) per month. 

Partial (Group III) disability, 30% of wage; minimum, 50% of 
minimum old-age pension. Payable monthly. 
Social pension for total disability (if disability began in childhood, 
no requirement of covered employment): 50% of minimum old-age 
pension per month (2/3 if constant attendance disability or disabled 
children under age 16). 

Adjustment: Periodic benefit adjustments according to cost of 
living changes. 

Survivor Benefits 

Survivor pension: Payable monthly at 30% of wage for each 
dependent under age 16 (23 if full-time student), or 50% of 
minimum wage per month, whichever is greater. 
Full orphans: 30% of wages of both parents; minimum, 100% of 
minimum wage. 

Adjustment: Periodic benefit adjustments according to cost of 
living changes. 

Administrative Organization 

Republic Ministry of Labor and Social Protection, general 
coordination and oversight. 

Provincial and county offices of labor and social protection, 
administration of program. 

Sickness and Maternity 

First law: 1922. 

Current law: 1955, as amended in 1993. (Details of 1996 State 
Social Insurance and 1997 Medical Insurance not available). 
Type of program: Dual social insurance (cash benefits) and 
universal (medical care) system. 

Coverage 

Cash benefits: Employed persons, students, and members of 
cooperatives. Medical care: All residents. 

Source of Funds 
Insured person: None. 



210 



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KYRGYZSTAN 



Employer: Cash benefits: 6% of payroll. 

Government: Cash benefits: none; medical care: whole cost. 

Qualifying Conditions 

Cash and medical benefits: No minimum qualifying period. 

Sickness and Maternity Benefits 

Sickness benefit: 60% of earnings, if less than 5 years' 
uninterrupted work; 80% if 5-8 years; 100%, if over 8 years (or if 
3 or more dependent children, or a disabled veteran, or disabled as 
result of Chernobyl disaster). Benefits payable after a 5-day 
waiting period. 

Maternity benefit: 100% of earnings payable for a total of 

126 calendar days before and after confinement (may be extended 

to 

140 days if complications during childbirth). 
Workers' Medical Benefits 

Medical benefits: Medical services available directly to patients 
through government or enterprise-administered health providers. 
General and specialist care, hospitalization, laboratory services, 
dental care, maternity care, and transportation. Providers may 
charge fees for service. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for head of household. 
Administrative Organization 

Cash benefits: Republic Social Fund, general oversight and 
administration of the program; employers, payments of cash 
benefits. 

Medical care: Republic Ministry of Health and health departments 
of local governments, general supervision and coordination; 
provision of medical services through clinics, hospitals, maternity 
homes, and other facilities administered by the Health Ministry and 
local health departments. 

Work Injury 

First law: 1922. 

Current laws: 1955 (short-term benefits) and 1990 (pensions), as 
amended 1992 and 1994. 

Type of program: Dual social insurance (short-term benefits and 
pensions) and universal (medical care) system. 

Coverage 

Employed persons, students, and members of cooperatives. 
Medical care available to all residents. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: Disability and survivor benefits: see pensions 
contributions, above; Cash benefits for sickness: see sickness 
benefits contributions, above. 



Government: Disability and survivor benefits: see pensions 
contributions, above; Cash benefits for sickness: none; whole cost 
of medical care. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 

Temporary Disability Benefits 

Temporary disability benefit: 100% of earnings. 

Payable from first day of incapacity, until recovery or award of 

disability pension. 

Permanent Disability Benefits 

Permanent disability pension: Same as general disability pensions 
above. 

Workers' Medical Benefits 

Medical benefits: Same as under general medical care, plus full 
cost of appliances and medicines. 

Survivor Benefits 

Survivor pension: Same as general survivor pensions above. 
Administrative Organization 

Temporary disability benefits: Republic Social Fund, general 
supervision; enterprises and employers pay benefits to own 
employees. 

Pensions: Same as under old-age, disability, and survivor pensions 
above. 

Medical care: Same as under general medical care above. 
Unemployment 

First law: 1921. 

Current law: 1991 as amended 1994. 
Type of program: Social insurance system. 

Coverage 

Citizens aged 16-59 (men) or 16-54 (women). 

Source of Funds 

Employee: 0.5% of wages. 
Employer: 1.5% of payroll. 

Government: Subsidies as needed from Republic and local 
governments. 

Qualifying Conditions 

Unemployment benefit: Registered at employment office; ability 
and willingness to work. Benefits may be reduced, suspended or 
terminated if worker is discharged for: violating work discipline; 
leaving employment without good cause; violating conditions for 
job placement or vocational training; or filing fraudulent claims. 

Unemployment Benefits 

Unemployment benefit: Benefits payable monthly not to exceed 
26 calendar weeks. Minimum: 100% of minimum wage. 



Social Security Programs Throughout the World — 1997 



211 



KYRGYZSTAN 



150%of minimum wage, if covered employment more than 1/2 of 
required for old-age pensions (i.e., 12.5 years for men, and 10 
years for women); 100% of minimum wage, if students unemployed 
within 12 months of graduation; 100% of minimum wage, all other 
categories of unemployed. 

Dependent supplement: 10% of unemployment benefit for each 
dependent. 

Administrative Organization 

Republic Employment Service and local employment centers, 
administration of program. 

Family Allowances 

First law: 1944. 
Current law: 1994. 

Type of program: Social assistance (income-tested) system. 
Coverage 

Orphans, children of single-parent families, and of unwed mothers; 
and students of disabled or unemployed parents. 

Source of Funds 

Insured person: None. 
Employer: None. 

Government: Whole cost from general revenues. 
Qualifying Conditions 

Family allowances: Family per-capita income below 100% of 
minimum wage in preceding 3 months. 

Family Allowance Benefits 

Family allowances: 60% of minimum wage per month payable per 
family member, if family monthly per-capita income under 25% of 
minimum wage; 50% of minimum wage payable, if per-capita 
income 25%-50%; 40% of minimum wage payable, if per-capita 
income 50%-75%; 30% of minimum wage payable, if per-capita 
income 75%-100%. 

Adjustment: Periodical benefit adjustments according to cost of 
living changes. 

Administrative Organization 

Republic Ministry of Labor and Social Protection and local offices, 
administration of program. 



212 



Social Security Programs Throughout the World — 



1997 



LATVIA 



Old Age, Disability, Death 

First law: 1922. 
Current law: 1995. 

Type of program: Social insurance system. 
Exchange rate: U.S.$1.00 equals 0.54 Lais. 

Coverage 

Wage and salary earners, entrepreneurs, and rural workers. 

Source of Funds 

Insured person: 9% of earnings. 
Employer: 28% of payroll. 

Government: Portion of State budget resources for employed 
persons in agriculture. 

Above contributions also finance sickness and maternity, work 
injury and unemployment benefits. 

Qualifying Conditions 

Old-age pension: Age 60 (men) or 56 (women), and 10 years of 
insurance. The age requirement for women will increase by 
6 months each year until age 60 is reached. 
Disability pension: No minimum qualifying period. 
Survivor pension: Insured person met conditions for old-age 
pension or was a pensioner at time of death. 

Old-Age Benefits 

Old-age pension: The amount of insured's contributions plus 
annual capital growth which is adjusted according to changes in the 
earnings index. Minimum pension is equal to the State social 
maintenance benefit. 

Permanent Disability Benefits 

Disability pension: 30% of average earnings in the last year prior 
to onset of disability, plus an increment of 4% for each year of 
insurance. Supplement for group I disability pensions, 12% of 
average earnings in last year prior to onset of disability; for group 
II disability pensions, 6%. 

Survivor Benefits 

Survivor pension: 50% of old-age pension of insured for one 
survivor; 75% for 2 survivors; 90% for 3 or more. Payable to 
children, dependent brothers, sisters and grandchildren. Full 
orphans, pension amounts based on old-age pensions of both 
parents. Minimum survivors pension is equal to State social 
maintenance benefit. 

Administrative Organization 

Ministry of Welfare and Department of Social Insurance, general 
supervision. The system is managed by local (district) offices of 
social insurance. 

Sickness and Maternity 

First law: 1924. 

Current law: 1995 (in effect January 1, 1997). 



Type of program: Social insurance system (cash benefits) and 
universal system (medical care). 

Coverage 

Sickness benefit: All wage-earners and self-employed persons who 
pay social security contributions. 
Medical benefit: All permanent residents. 

Source of Funds 

Insured person: See pension contributions. 
Employer: As above. 

Government: As above, plus financing of medical care. 
Qualifying conditions 

Sickness benefits and medical care: No minimum qualifying 
period for receipt of minimum benefits. 

Sickness and Maternity Benefits 

Sickness benefit: 80% of average earnings. Payable from the 15th 
day of incapacity for work until recovery or if declared 
permanently disabled up to 52 weeks from day of incapacity for 
work or 78 weeks within a 3 year period if the incapacity for work 
repeats. Benefit payable from the 1st day to the 21st day if caring 
for child younger than 14 years. 

Maternity benefit: 100% of average earnings. Payable for 112 
calendar days: 56 before and 56 after confinement. Payable for 14 
additional calendar days due to complications during pregnancy, 
delivery or post-delivery period as well as in cases when 2 or more 
children are born and in cases when medical care associated with 
pregnancy at a medical institution has been started and continued 
before the 12th week of pregnancy. 

Administrative Organization 

Ministry of Welfare and Department of Social Insurance, general 
supervision. 

Local (district) offices, granting and payment of cash benefits. 
Department of Health, management of medical care. 

Work Injury 

First law: 1927. 

Current laws: 1995 and 1996. 

Type of program: Dual social insurance and employer liability 
systems. 

Coverage 

Wage earners, students engaged in practical work, artisans, liberal 
professions. 

Source of Funds 

Insured person: None. 

Employer: See pension contributions, above. 

Government: Financing of state-guaranteed health care services. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 



Social Security Programs Throughout the World — 1997 



213 



Temporary Disability Benefits 

Temporary disability benefit: Same as for ordinary illness. If at 
fault, the employer must make an additional payment which, 
combined with the temporary disabilty benefit, will equal the 
claimant's average monthly earnings. 

Permanent Disability Benefits 

Permanent disability pension: See disability pensions, above. 
Where the employer is at fault and the disability is 100%, 
additional payments are made by the employer up to the claimant's 
average monthly earnings calculated on the basis of the 2 months 
preceding the injury or the determination of an occupational 
disease. For partial loss of working capacity an additional payment 
depends on degree of disability. 

Workers' Medical Benefits 

Medical benefits: Same as for ordinary illness. 

Survivor Benefits 

Survivor pension: See Survivor pension above. Where the 
employer is at fault, dependents of the deceased are entitled to an 
additional payment up to the deceased's average monthly earnings. 

Administrative Organization 

Ministry of Welfare, general supervision. 
Local (district) social social insurance offices, administration, 
organization and payment of insurance based and related benefits. 
Employer, payments arising from civil liability. 

Unemployment 

First law: 1991. 

Current laws: 1993, 1994, 1995. 

Type of program: Social insurance system. 

Coverage 

Unemployed, persons leaving state care or active state service, 
prison inmates, mothers or other persons after taking care of a 
child of prescribed age, apprentices, if insurance contributions have 
been paid for not less than 9 months, or persons who have regained 
the ability to work after disability or taking care of a disabled child. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: Same. 

Government: For special categories such as persons in state care 
or active state service, prison inmates, mothers caring for a child 
of prescribed age and apprentices. 

Qualifying Conditions 

Unemployment benefit: Registration at state employment office 



50% of the average salary of the last 6 months; 5-15 years, 55%; 
15-25 years, 60%; over 25 years, 65%. Full amount paid for the 
first 3 months, 80% for 3-6 months, 60% for 6-9 months. 
Minimum benefit: 90% of minimum wage. 
If the state has paid contributions for the prescribed categories or 
the persons have regained the ability to work after disability or 
after taking care of a disabled child, 70% of minimum wage. 

Administrative Organization 

Ministry of Welfare, general supervision. 
State employment offices, placement, training and retraining. 
Local (district) insurance offices, payment, granting of benefits, of 
unemployed persons. 

Family Allowances 

First law: 1990. 
Current law: 1995. 

Type of program: Universal coverage. 
Coverage 

Permanent residents with a child of prescribed age. 

Source of Funds 

Insured person: None. 
Employer: None. 
Government: Total cost. 

Qualifying Conditions 

Family allowances: Child under 15 years (20 years if at secondary 
school). 

Family Allowance Benefits 

Family allowances: 4.25 Lats monthly for the first child, for the 
second and fifth, 1.2 times the amount for first child, for the third 
and fourth, 1.6 times. For the sixth and subsequent children, same 
as for the first child. 

Administrative Organization 

Ministry of Welfare and Department of Social Insurance, general 
supervision. 

Local (district) offices, granting and payment. 



and income lower than the minimum wage. 
Unemployment benefits 

Unemployment benefits: Determined according to the length of 
service and the length of unemployment. 1-5 years of service, 



214 



Social Security Programs Throughout the World — 1997 



LEBANON 



Old Age, Disability, Death 

First and current law: 1963. 

Type of program: Social insurance system (lump-sum benefits 
only). 

Exchange rate: U.S. $1.00 equals 1,550 pounds. 
Coverage 

Employees in industry, commerce, and agriculture. 
Exclusions: Temporary agricultural employees; employees who 
elected in 1965 to continue coverage for special benefits under 
labor code; and aliens from countries not providing reciprocity. 
Special system for public employees and teachers. 

Source of Funds 

Insured person: None. 
Employer: 8.5% of payroll. 
Government: None. 

Qualifying Conditions 

Old-age benefit: Age 64; at any age after 20 years of employment; 
or if woman marries and leaves employment during the first year 
of marriage. Reduced benefit at any age if 5-19 years of 
employment and leaving employment permanently before 
qualifying. 

Retirement necessary. 

Disability benefit: Loss of at least 50% of normal working 
capacity. 

Survivor benefit: Deceased had some periods of insurance under 
program. 

Old-Age Benefits 

Old-age benefit: Lump sum equal to final month's earnings (or 
average monthly earnings during last 12 months, if higher) times 
years of service up to 20 years, plus 1-1/2 months' earnings per 
year of service beyond 20 years or 64 years of age. (For 
calculation of benefit, worker credited with up to 20 years for 
service before 1963.) Benefit reduced by 50% for 1-5 years' 
contributions, 35% for 5-10 years, 25% for 10-15 years, 15% for 
15-20 years. 

Permanent Disability Benefits 

Disability benefit: Lump sum equal to final month's earnings 
times years of service. Minimum benefit: 20 months' earnings. 

Survivor Benefits 

Survivor benefit: Lump sum equal to final month's earnings times 
years of service. 

Minimum benefit: 6 months' earnings. 

Widow (or widower aged 60 or over, or disabled) receives 50% of 
the benefit; the remainder is divided equally between children 
under age 16 (25 if student, any age if disabled), or parents aged 
60 or over, or disabled; or, if none of the above survive, the 
benefit is paid to dependent brothers and sisters under age 16. 
Funeral grant: 150% of minimum wage. 



Administrative Organization 

Ministry of Labor, general supervision. 

National Social Security Fund, administration of program through 
its district offices; managed by tripartite board and 
director-general. 

Sickness and Maternity 

First and current law: 1963. 

Type of program: Social insurance system. Cash and medical 
benefits. 

Coverage 

Employees in industry, commerce, and agriculture, and teachers. 
Public employees and university students also covered for medical 
benefits. Taxi drivers and weekly and daily newspaper sellers also 
covered for medical benefits. Exclusions: Temporary agricultural 
employees and aliens from countries not providing reciprocity. 

Source of Funds 

Insured person: 3% of earnings. 

Employer: 12% of payroll. 

Government: About 25% of cost of benefits. 

Maximum earnings for contribution purposes: 3 times minimum 

wage (118,000 pounds). 

Qualifying Conditions 

Cash sickness benefits: 3 months of insurance during last 6 
months. 

Cash maternity benefits: 10 months of insurance immediately 

prior to confinement. 

Medical benefits: Currently covered. 

Sickness and Maternity Benefits 

Sickness benefit: Employer pays 100% of earnings from 1st 

through 15th day of illness; 50% of earnings for an additional 15 

days if worker has from 3 months' to 2 years' service. 

If 2 to 4 years' service, employer pays 100% of earnings during 

first 30 days, 50% of earnings for an additional 30 days. 

If 4 to 10 years' service, employer pays, according to a graduated 

scale, up to 100% of earnings for up to 2-1/2 months, 50% of 

earnings up to an additional 2-1/2 months. 

Maternity benefit: Employer pays 100% of earnings during first 

40 days. 

Workers' Medical Benefits 

Medical benefits: Cash refund of part of doctor bills (full refund 
for maternity care); service benefits provided by hospitals under 
contract with and paid directly by National Social Security Fund. 
Includes general and specialist care, hospitalization, maternity 
care, medicines, and laboratory services. Patient normally pays 
doctor's bill, and is then reimbursed by Fund for 80% (90% of 
hospital care, and 100% for maternity care and kidney dialysis) of 
amount listed for the service in official fee schedule. 
Duration: 26 weeks (or up to 52 weeks in special cases). 



Social Security Programs Throughout the World — 1997 



215 



Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured worker. 
Funeral grant: 150% of minimum wage. 

Administrative Organization 

Ministry of Labor, general supervision. 

National Social Security Fund, administration of program. 

Work Injury 

First and current law: 1943 (amended in 1983). 
Type of program: Employer liability system. 

Coverage 

All wage earners covered by an employment contract. 

Source of Funds 

Insured person: None. 
Employer: Whole cost. 
Government: None. 

Earnings for contribution and benefit purposes subject to a ceiling. 
Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 75% of worker's daily wage. 
Payable from day after accident for up to 9 months. 

Permanent Disability Benefits 

Permanent disability benefit: If totally disabled, lump sum equal 
to wages paid during previous 800 days if under age 35; 700 days' 
pay if aged 35-49; and 600 days' pay if aged 50 or over. 
Partial disability: Compensation proportionate to loss of earning 
capacity. 

Constant-attendance supplement, as fixed by regulation. 
Workers' Medical Benefits 

Medical benefits: Same as for ordinary illness, plus appliances. 
Patient not required to share in cost of doctor's services. 

Survivor Benefits 

Survivor pension: Up to 500 days' pay of deceased (however, 
including only 1/4 of amount exceeding the minimum wage, and 
1/8 of amount exceeding twice the minimum wage). Payable to 
widow, aged or disabled widower, children under age 16 (25 if 
student or disabled), aged or disabled parents, and dependent 
brothers and sisters. 

Funeral grant: 150% of minimum wage. 

Administrative Organization 

Ministry of Labor, general supervision. 

National Social Security Fund, administration of contributions and 
benefits. 



Family Allowances 

First law: 1943. 
Current law: 1963. 

Type of program: Employment- related system. 
Coverage 

Employees and social insurance beneficiaries with non-working 
wife or with 1 to 5 children. 

Source of Funds 
Insured person: None. 

Employer: 15% of payroll up to a ceiling of 3 times minimum 
wage, or 7% of payroll in case of small employers. 
Government: None. 

Maximum earnings for contribution purposes: 3 times minimum 
wage (300,000 pounds). 

Qualifying Conditions 

Family allowances: Up to 5 children covered. Child must be under 
age 16 (25 if student or unmarried unemployed daughter, no limit 
if disabled). Wife must not be gainfully employed. 

Family Allowance Benefits 

Family allowances: Maximum monthly allowance: 75% of 
minimum wage, (300,000 pounds) payable to wife (20%) and 
children (1 1 % each for up to 5 children). 

Administrative Organization 

Ministry of Labor, general supervision. 

National Social Security Fund, administration of allowances. 



216 



Social Security Programs Throughout the World — 1997 



LIBERIA 



Old Age, Disability, Death 

First law: 1972. 
Current law: 1988. 

Type of program: Social insurance system. 
Exchange rate: U.S. $1.00 equals 1 Liberian dollar. 

Coverage 

Employees of firms with 5 or more workers and public employees. 
Exclusions: Casual workers, family labor, and domestic employees. 
Voluntary coverage for self-employed persons and others not 
compulsorily covered. 

Source of Funds 

Insured person: 3% of earnings. 
Employer: 3% of payroll. 
Government: None. 

Qualifying Conditions 

Old-age pension: Age 60. 100 months of contribution 
(transitional ly, 40-90 months of contribution from 4th to 10th year 
of program's operation). Retirement from employment necessary 
until age 65. 

Disability pension: Permanent incapacity for work. Contributions 
in 2/3 of months since first entry into coverage, with minimum of 
50 contributions in last 60 months. 

Survivor pension: Insured met disability pension requirements or 
was pensioner at death. 

Old-Age Benefits 

Old-age pension: 25% of average monthly earnings, plus 1% for 
every 10 monthly contributions in excess of 100. 
Refund of contributions: Employee contributions, plus accrued 
interest, if ineligible for pension at retirement age but at least 
12 monthly contributions. 

Assistance is provided under a non-contributory scheme for needy 
aged and unemployed workers who are ineligible for regular 
benefits; maximum benefit, $350 a year. 

Permanent Disability Benefits 

Disability pension: 25% of average monthly earnings, plus 1% for 

every 10 monthly contributions in excess of 50. 

Refund of contributions: Employee contributions, plus accrued 

interest, if ineligible for pension but at least 12 monthly 

contributions. 

Assistance is provided under a non-contributory scheme for needy 
disabled workers who are ineligible for regular benefits; maximum 
benefit, $350 a year. 

Survivor Benefits 

Survivor pension: 50% of pension of insured. Payable to widow 
and dependent disabled widower. 

Orphans: 10% of pension of insured (20% if full orphan) for each 
child under age 18 (21 if student, no limit if disabled). 
Maximum survivor pensions: 100% of old-age or disability 
pension, whichever is higher. 



Administrative Organization 

National Social Security and Welfare Corporation, administration 
of program; managed by tripartite board of directors. 

Work Injury 

First law: 1943. 
Current law: 1980. 

Type of program: Social insurance system. 
Coverage 

Employed and self-employed persons. Exclusions: Casual workers, 
family labor, and domestic servants. 

Source of Funds 

Insured person: None. 

Employer: Average, 1.75% of payroll. 

Government: None. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 65% of average earnings. 
Payable after 14-day waiting period (first 14 days compensated 
retroactively if disability lasts longer than 14 days) until recovery 
or certification of permanent disability. 

Permanent Disability Benefits 

Permanent disability pension: 65% of average earnings if totally 
disabled. 

Constant-attendance supplement: 25% of pension. 

Partial disability: Percent of full pension proportionate to degree of 

disability, according to schedule in law. 

Workers' Medical Benefits 

Medical benefits: Reasonable expenses for medical and surgical 
care, hospitalization, drugs, and appliances. 

Survivor Benefits 

Survivor pension: 20% of insured's average earnings. Payable to 
widow and dependent disabled widower. 

Orphans: 10% of insured's average earnings (20% if full orphan) 
for each child under age 18 (21 if student, no limit if disabled); 
maximum, 30% of earnings. 

Maximum survivor pensions: 100% of temporary disability benefit. 
Dependent parent or grandparent (if no widow or orphans survive): 
same as widow's pension; divided equally if more than 1. 
Funeral grant: Cost of burial, up to $500. 

Administrative Organization 

National Social Security and Welfare Corporation, administration 
of program; managed by tripartite board of directors. 

Please note: This information is more than 4 years old. 



I 



Social Security Programs Throughout the World — 1997 



217 



LIBYA 



Old Age, Disability, Death 

First law: 1957. 
Current law: 1980. 

Type of program: Social insurance system. 
Exchange rate: No exchange rate available. 

Coverage 

All residents. Special system for members of Armed Forces. 
Source of Funds 

Insured person: 2.625% of earnings. Self-employed, 9.975%. 
Employer: 7.35% of payroll. 

Government: 0.525% of covered earnings; annual subsidies; also 
cost of income-tested benefits. 

Above contributions also finance sickness, lump-sum grants for 
pregnancy and childbirth, and work-injury benefits. 

Qualifying Conditions 

Old-age pension: Age 65 (60 if in hazardous or unhealthy 
occupations) and 20 years of contribution for full pension. 
Retirement from covered employment necessary. Not payable 
abroad. 

Disability pension: 80% loss of earning capacity in last job or 
other suitable work. 

Survivor pension: Insured was pensioner or eligible for pension at 
death. 

Old-Age Benefits 

Old-age pension: Full pension, 2.5% of average earnings during 
last 3 years for each of first 20 years of contribution, plus 2% for 
each year of contribution in excess of 20. 

Minimum pension, 96 dinars a month; maximum, 80% of average 
earnings. 

Dependents' supplements: 4 dinars a month for wife, 2 dinars for 
each child under age 18 (any age for unmarried daughter). 

Permanent Disability Benefits 

Disability pension: 50% of full old-age pension, plus 0.5% per 
year of contribution for each of first 20 years of contribution, and 
2% for each year exceeding 20. 

Minimum pension, 60 dinars a month plus 50% of earnings; 
maximum, 80% of earnings. 

Dependents' supplements: 4 dinars a month for wife, 2 dinars for 
each child under age 18 (any age for unmarried daughter). 
Constant-attendance supplement: Up to 25% of pension. 

Survivor Benefits 

Survivor pension: Distribution based on number and relationship 
of family members of the deceased. 

Widows: 30% to 75% of pension of insured paid at any age, 
depending on number and relationship of other recipients. 
Sons: 40% to 75% of pension of insured if one son; up to 100% if 
more than one. Parents: 15% to 60% of pension. 
Brothers and sisters: 15% to 60% of pension of insured. 
Funeral grant: Lump sum of 50 dinars. 



Administrative Organization 

Social Security Fund, administration of program through district 
and local offices; managed by tripartite board and director-general. 
General supervision by national social security committee. 
Local supervision by municipal committees. 

Sickness and Maternity 

First law: 1957. 
Current law: 1980. 

Type of program: Dual employer liability/social insurance system. 
Coverage 

Individual employer liability program — Short-term cash benefits 
for all employees. 

Social insurance program — Short-term cash benefits for self- 
employed; long-term cash benefits and specific medical benefits for 
employed and self-employed. 

Source of Funds 

Insured person: Cash benefits, none. Medical benefits, 1.5% of 
earnings. Self-employed, 5.0% (medical benefits, 3.5%; cash 
benefits, 1.5%). 

Employer: Cash benefits, entire cost for employees; medical 
benefits, 2.45% of payroll. 

Government: Cash benefits, 0.75% of earnings (self-employed 
only); medical benefits, 1.75% of earnings. 

Qualifying Conditions 

Cash sickness benefits: 6 weeks of contribution during last 3 
months. 

Cash maternity benefits: Entry into insurance 6 months before 
confinement; 4 months' contribution during last 6 months. 
Medical benefits: Same contribution conditions as for cash 
benefits or receiving a pension. 

Sickness and Maternity Benefits 

Sickness benefit: 60% of earnings, payable for up to 1 year. 
Maternity benefit: 100% of earnings payable for a total of 3 
months. 

Maternity grant: 3 dinars per month from 4th month until 
confinement; maximum: 6 months. 
Birth grant: 25 dinars for each birth. 

Workers' Medical Benefits 

Medical benefits: Medical services provided directly to patients by 
facilities of Ministry for Social Security. 

Includes general and specialist care, hospitalization, maternity and 
nursing care, essential medical supplies, and rehabilitation. 
Patients may be required to pay part of cost of benefits. 
Duration: Up to 6 months beyond duration of cash benefits. 

Dependents' Medical Benefits 

Medical benefits for dependents: Same as for insured person. 
Wife of insured man receives same medical maternity benefits as 
insured woman. 



218 



Social Security Programs Throughout the World — 1997 



LIBYA 



Administrative Organization 

National and local administration, see above. 

Work Injury 

First law: 1957. 
Current law: 1980. 

Type of program: Dual employer liability/social insurance system. 
Coverage 

Individual employer liability program — Short-term cash benefits 
for all employees. 

Social insurance program — Short-term cash benefits for self- 
employed; long-term cash benefits for employed and self-employed. 

Source of Funds 

Insured person: See sickness and maternity contributions above. 
Employer: Same. 
Government: Same. 

Qualifying Conditions 

Work-injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 70% of earnings, payable for up to 
1 year. 

Permanent Disability Benefits 

Permanent disability pension: Full pension, if 60% or more 
disabled, same as old-age pension. 

Minimum pension, 60 dinars a month plus 50% of earnings; 
maximum, 100% of earnings. 

Constant-attendance supplement: Up to 25% of pension. 
Partial disability: Pension proportionate to degree of incapacity, 
if 30% to 60%; lump sum payable if 5% to 29% disability. 

Workers' Medical Benefits 

Medical benefits: Medical treatment and surgery, hospitalization, 
medicine and appliances, dental care, glasses, and rehabilitation. 

Survivor Benefits 

Same as under Old Age, Disability, Death, above. 

Administrative Organization 

National and local administration, see above. 

Unemployment 

First law: 1973 (no longer in force). 

(1980 labor code requires employer to pay dismissal indemnity of 
100% of earnings for up to 6 months.) 



Social Security Programs Throughout the World — 1997 219 



LIECHTENSTEIN 



Old Age, Disability, Death 

Note: The risk protection system comprises 2 schemes: The basic 
scheme and the occupational scheme. The latter is obligatory for all 
paid employees and is administered by private insurance companies 
according to the relevant law and under government supervision. 
The following summary describes the basic scheme. 
First and current laws: 1954 (old age and survivors), 1960 
(disability). 

Type of program: Universal system. 

Exchange rate: US$1.00 equals 1.28 Swiss francs. 

Coverage 

All residents and employed non-residents. 
Soui it of Funds 

Insured person Employees, 3.8% of earnings (old age and 
survivors), plus 0.6% (disability). Self-employed, 7.6% of income 
(old age and survivor), plus 1.2% (disability). Inactive persons, 
variable contributions depending on their assets and income. 
Self-employed and inactive persons pay an additional 3% of their 
contribution amount for administrative costs. 
Employer: 3.8% of payroll (old age and survivor), plus 0.6% 
(disability). 

Government: 18% of annual expenditure (old age and survivor), 
plus any deficit up to 50% of annual expenditure (disability). 

Qualifying Conditions 

Old-age pension: Age 65 (men) or 62 (women). 

Standard pension, 1 year of contributions. 

Single pension, no claim to a couple pension exists. 

Couple pension, husband has reached age 65 and wife has reached 

62 or is at least 40% disabled. Pension supplement (to single 

pension), husband has reached age 65 and wife has reached age of 

55. 

Special pension (income-tested), residence in Liechtenstein; no 
right to standard pension. 

Child supplement, for children up to age 18 (25 if student). 

Disability pension: Permanent loss of capacity to work of 66 

2/3%. Standard pension, 1 year of contributions. 

Partial disability pension, degree of disability is between 40 and 

66.7%. 

Single pension, no claim to a couple pension exists. 

Couple pension, husband is disabled and wife has reached 62 or is 

at least 40% disabled. 

Pension supplement, husband is disabled and wife has reached age 
of 55. 

Special pension (income tested), residence in Liechtenstein; no 
right to standard pension. 

Child supplement, for children up to age 18 (25 if student). 
Survivor pension: Standard pension, deceased met requirements 
for pension or was pensioner for at least 12 months. 
Payable to all widows caring for dependent children; if no 
children, requirements concerning age and duration of marriage. 
Payable to divorced women receiving maintenance from deceased 
whose duration of marriage was at least 10 years. Widows' 
settlement for women with no right to widow pension. 



Special pension (income tested), residence in Liechtenstein; no 
right to standard pension. 

Orphan pension: Children under 18 (25 if student). 
Old-Age Benefits 

Old-age pension: Full standard pension (complete insurance period 

for age class). 

Single pension, between 970 and 1,940 francs a month. 

Couple pension, 150% of the single pension. 

Pension supplement, 35% of spouse's single pension. 

Child supplement for children, 40% of relevant pension. 

Partial pension if incomplete insurance period. 

Deferred pension: Increase ranging from 8.4% for 1 year to 50% 

for the maximum 5 years. 

Adjustment: Periodic adjustment of pensions for changes in 
consumer price index and wage index (in principle, every 2 years). 
If price index increases by more than 4% in one year, adjustment is 
bought forward. 

Special pension: Maximum amount equals minimum full standard 
pension. 

Christmas bonus: 50% of December pension. 
Permanent Disability Benefits 

Disability pension: Full standard pension (complete insurance 
period for age class), depending on degree of disability. If level of 
disability exceeds 66 2/3% (total disability), single pension 
between 970 and 1,940 francs a month. 
Couple pension, 150% of single pension. 

Partial disability: Invalidity between 50 and 66 2/3%, 50% of full 
pension, if between 40 and 49%, 25% of full pension. 
Pension supplement, 35% of husband's pension. 
Child supplement, 40% of standard single pension. 
Partial pension if incomplete contribution period. 
Adjustment: Periodic adjustment of pensions for changes in 
consumer price index and wage index (in principle, every 2 years). 
If consumer price index increases by more than 4% in one year, 
adjustment is bought forward. 

Special pension: Maximum amount equal to minimum full standard 
pension. 

Christmas bonus: 50% of December pension. 
Survivors Benefits 

Survivor pension: Full standard pension (complete insurance 
period for age class), 80% of deceased's hypothetical pension. 
Partial pension if incomplete contribution period. 
Widows' settlement: Between 2 and 5 times the annual amount of 
widow's pension, according to the duration of the marriage. 
Additional allowance: Maximum amount equals to minimum full 
standard pension. 

Orphan pension: Single standard pension (loss of one parent), 40% 
of pension of standard single old age pension, double orphan, 60%. 
Partial pension if incomplete contribution period. 
Adjustment: Periodic adjustment of pensions for changes in 
consumer price index and wage index (in principle, every 2 years). 
Christmas bonus: 50% of December pension. 
Funeral grant: Paid by sickness funds for persons insured with 
them. 



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LIECHTENSTEIN 



Administrative Organization 

Old Age, Survivor and Disability Insurance Institute, general 
supervision. 

Sickness and Maternity 



First law: 1910. 
Current law: 1971. 

Type of program: Social insurance system (cash benefits) and 
universal scheme (medical benefits). 

Coverage 

Cash sickness benefits: Employed persons. Voluntary insurance 
for others. 

Medical care: All residents and persons employed in Liechtenstein. 
Source of Funds 

Insured person: Average percentage of earnings or fixed sum: 
1.5% to 2%. 

Employer: Average percentage of earnings: 1.5% to 2%. 
Government: Contributions from budget. Set amount per insured 
depending on sex and age of insured. 

Maximum earnings for contribution and benefit purposes: 97,200 
francs a year. 

Qualifying Conditions 

Cash sickness benefits: Membership in health insurance fund. 
Cash maternity benefits: 270 days of membership in health 
insurance fund without interruptions longer than 3 months. 
Medical benefits: No qualifying period. 

Sickness and Maternity Benefits 

Cash sickness benefit: 80% of income. Maximum: 267 francs a 
day for total disability. Payable after 2 day waiting period for 720 
days in course of 900 consecutive days. Additional insurance can 
be taken to cover hospital treatment. 

Maternity benefit: Same as for sickness benefits. Payable for 12 
weeks, of which at least 8 are after confinement. 
Nursing allowance up to 100 francs a day. 

Workers Medical Benefits 

Medical benefits: Provided by approved doctors, public hospitals, 
private hospitals and clinics (approved by insurance fund) and 
recognized sanitariums. 

Includes primary and specialist treatment, hospitalization, 
pharmaceuticals, maternity care, and cures. 
Cost-sharing by patients includes a set fee of 30 francs for 90 days 
for each illness (15 francs for persons under age 15). No cost- 
sharing for hospitalization or maternity care. 
For thermal cures, funds pay a daily contribution of at least 
50 francs. 

Duration: Unlimited for out-patient services. 

For hospitalization or cures, 720 days in course of 900 consecutive 

days. 



Dependents' Medical Benefits 

Medical benefits for dependents: Same benefits in own right if 
have separate insurance coverage. 

Administrative Organization 

Registered Compulsory Health Insurance Funds, administration of 
contributions and benefits. 

Work Injury 

First law: 1910. 
Current law: 1991. 

Type of program: Social insurance system. 
Coverage 

Employed persons. Voluntary coverage for self-employed persons. 

Source of Funds 

Insured person: None. 

Employer: Premiums according to risk. 

Government: None. 

Qualifying Conditions 

Work injury benefits: No minimum qualifying period. 
Temporary Disability Benefits 

Temporary disability benefit: 80% of covered earnings up to 
maximum of 267 francs a year. Payable after two days of illness. 

Permanent Disability Benefits 

Permanent disability benefits: 80% of covered earnings up to 
maximum of 97,200 francs a year for total disability. 
Constant-care allowance: Depending on level of dependency. 
No supplement for dependents. 

Partial disability: Percentage of full pension depending on degree 
of disability. No minimum limit of disability (in practice 10%). 

Workers' Medical benefits 

Workers'Medical Benefits: Expenses covered in full by medical 
insurance funds. Duration: No limit. 

Survivors Benefits 

Survivor pension: 40% of covered earnings. Payable to surviving 
spouse (widow and widower) or to divorced spouse (if deceased 
required to pay maintenance), if he or she has dependent children, 
or is at least 2/3 disabled, or is aged 45 or more. 
Survivor allowance: Payable to surviving spouse or divorced 
spouse who has no right to a pension. Variable lump sum 
depending on the duration of marriage (from 1 to 5 times the 
annual pension). 

Orphan pension: 15% of earnings (25% for full orphan) for each 
child aged under 18 (20 if student; 70 if disabled). 
Maximum survivor pensions: 70% of deceased's earnings (90% if 
divorced spouse also receiving survivor pension; 100% if survivors 
are eligible for pensions under the old age, survivor and disability 
insurance scheme). 



Social Security Programs Throughout the World — 1997 



221 



LIECHTENSTEIN 



Beneficiaries receive cost-of-living allowances which are 
incorporated into the pension. 

Adjustment: As a general rule, pensions are adjusted every 2 years. 
Administrative Organization 

Registered Compulsory Accident Insurance Funds, administration 
of contributions and benefits. 

Unemployment 

First and current law: 1969. 

Type of program: Social insurance system. 

Coverage 

Compulsory coverage of employed persons, with exception of 
married women, paid domestic workers and agricultural workers. 
Voluntary insurance for all insurable persons. 

Source of Funds 

Insured person: 0.25% of earnings. 
Employer: 0.25% of payroll. 

Maximum earnings for contribution and benefit calculations: 
97,200 francs a year. 
Government: Guaranteed funds. 

Qualifying Conditions 

Unemployment benefit: 6 months of insurance. Available for 
work, and fulfills supervisory requirements. 

Cash benefits for insured workers 

Unemployment benefit: 80% of daily earnings. Payable for 150 
working days per year. 

Dependent supplements: 10 francs a day for 1 dependent; 5 francs 
a day for each additional dependent. Maximum: 85% of daily 
earnings. 

Administrative Organization 

National Unemployment Insurance Fund, administration of 
contributions and benefits. 

Family Allowances 



Family Allowances 

Family allowance: 210 francs per child for the first two children; 
260 francs per child for the third and any additional children. 
260 francs for all children aged over 10. 

Birth grant: 1,700 francs per child; 2,200 francs per child for twins. 
Administrative Organization 

National Family Allowances Fund, administration of contributions 
and benefits. 



First law: 1957. 

Current law: 1986. 

Type of program: Universal system. 

Coverage 

All residents and all non-resident employees and self-employed. 

Source of Funds 

Insured person: None. 
Employer: 2.5% of payroll. 
Government: Any eventual deficit. 

Qualifying Conditions 

Family allowance: Children aged under 18. 



222 



Social Security Programs Throughout the World — 1997 



LITHUANIA 



Old Age, Disability, Death 

First law: 1925. 

Current laws: 1956, 1990. 

Type of program: Social insurance system. 

Exchange rate: U.S. $1.00 equals 4.0 Litas (Lt). 

Coverage 

Insured workers and permanent residents. 

Source of Funds 

Insured person: 1% of wage. 

Employer: 23% of payroll. 

Government: Any deficit. In addition to pensions, the state social 
insurance budget finances the other social insurance programs. 

Qualifying Conditions 

Old-age pension: 62 years (men) and 60 years (women); plus 
30 years of contributions. 

Disability pension: Disability involving either permanent or 
prolonged incapacity for work, from 1 to 30 years of contributions 
(men) or from 1 to 28 years (women), depending on age. 
Survivor pension: The deceased must have been a pensioner, or at 
the time of death, must have had the length of coverage necessary 
for award of a disability pension. 

Old-Age Benefits 

Old-age pension: Basic pension no less than 110% of poverty level 
(75 Lt on January 1, 1995) and a supplemental pension based on 
years of coverage and ratio of individual earnings to national 
average. 

Permanent Disability Benefits 

Disability pension: Varies according to degree of disability. 
Total disability: 100% of old-age pension. 
Constant attendance supplement: 50% of basic old age pension. 
Partial disability: 50% of old age pension. 

Survivor Benefits 

Survivor pension: Eligible survivors include: children, up to the 
age of 18, (24 if student); spouse who has reached old age or is 
disabled; non-working spouse (some de facto relationships quality) 
caring for deceased's children under 8. 

Amount of benefits: Spouse, 50% of deceased wage earner's total 
benefit. Children, 25% of deceased's pension for each. Total not to 
exceed 100% of deceased worker's pension. 

Administrative Organization 

Ministry of Social Security and Labor; State Social Insurance Fund 
Council (composition determined by the Government); State Social 
Insurance Administration; Territorial State Social Insurance Fund 
Offices (cities and regions). 

Sickness and Maternity 

First law: 1925. 



Current law: 1991 as amended. 

Type of program: Social insurance and social assistance systems. 
Universal system for medical care. 

Coverage 

Sickness benefits: Persons insured under compulsory or voluntary 

social insurance. 

Medical benefits: All residents. 

Source of Funds 

Insured person: See pension contributions, above. 
Employer: See pension contributions, above. 
Government: Any deficit. 

Qualifying Conditions 

Sickness and medical benefits: No minimum qualifying period. 
Sickness and Maternity Benefits 

Sickness benefit: Employer pays at least 50% of wages for first 
3 days, subsequently social insurance pays. 80% of wages (average 
of preceding 3 months) up to 27 calendar days; 100% f