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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

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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

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

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

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

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

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

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

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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

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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

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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.

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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

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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

A 1 (V T" 1 o

rVlgCI la

Andorra

x
x

x»
x«

X
X

A nticnia-Rji'rrYiiHji

Argentina

x
x

x»

rVIlllCllia

Australia

x
x

x«
x»

X
X

Austria

Azerbaijan
Bahrain

x
x

x»

X
X

x
x

X
X

T\ a n or 1 q H p c H

x»

Barbados

JDCMI lid

Belgium

X
X

x»
x»

X
X

£>Cil£C

Benin

OCX 1 1 lUUd

Rr«1 i vi
JjvJli V la

X
X

x»

X
X

Botswana
Brazil

x»

X
X

British Virgin Islands
Bulgaria

X
X

x»

X
X

Burkina Faso
Burma (Myanmar)

x»

X
X

Burundi
Cameroon

X
X

Canada
Cape Verde

X
X

x«
x»

X
X

Central African Republic

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

•Medical Care

Work Injury
X

Unemployment

Family
Allowances
X

Chile
China
Colombia

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

Croatia

Cuba

X«

Cyprus

Czech Republic

X
X

x»
x«

X
X

Denmark
Dominica

Dominican Republic

Ecuador

Egypt

Y
yv

X
X

x»
x»

X
X

x«
x»

X«

El Salvador
Equatorial Guinea
Estonia

X
X
X

x«
x»
x»

X
X
X

X
X

Ethiopia
Fiji

X
X

Finland
France

X
X

x«
x«

X
X

Gabon
Gambia

X
X

Georgia
Germany

X
X

x«
x«

X
X

. . ■ ....

X
X

Ghana

Greece

x»

Grenada
Guatemala

X
X

x
x»

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

•Medical Care

Work Injury

Unemployment

Family
Allowances

Guernsey
Guinea

X
X

X»
X«

X
X

Guyana
Haiti

X
X

Honduras
Hong Kong

Hungary
Iceland

X
X

x»

X
X

India
Indonesia

■XT.

X»

X
X

Iran
Iraq

X
X

X«
X«

X
X

Ireland
Israel

X
X

X«
X»

X
X

Italy
Jamaica

X
X

X»

X
X

Japan
Jersey
Jordan
Kazakhstan

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

Lebanon
Liberia

X
X

x«

X
X

Libya

Liechtenstein

X
X

x»
x«

X
X

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

Luxembourg

X«

Madagascar

Malawi

Malaysia

Mali

Malta

Marshall Islands

Mauritania

Mauritius

Mexico

Micronesia, Federated States of

X
X

Moldova

Monaco

X»

\Ar\TCiCCC\

LVXKJx uwvu

Nepal

Netherlands

X»

New Zealand

X»

Nicaragua

x»

Niger

Nigeria

Norway

x»

Oman

Pakistan
Palau

X
X

x»

Panama

x»

Papua New Guinea

Paraguay
Peru

X
X

x»
x»

X
X

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

•Medical Care

Work Injury

Unemployment

Family
Allowances

Philippines

X»

Poland

X»

Portugal
Romania

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*

Sao Tome and Principe
Saudi Arabia
Senegal

Serbia and Montenegro

X
X
X
X

X
X

x«

Seychelles
Sierra Leone

Singapore

Y
A

Slovak Republic

x«

Slovenia
Solomon Islands

X
X

x»

X
X

Somalia

South Africa

Spain
Sri Lanka

X
X

x»

X
X

Sudan

X
X

Swaziland

Sweden
Switzerland

X
X

x»
x«

X
X

Syria
Taiwan

X
X

x«

X
X
X

Tanzania

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«

Y
A

Turkey
Turkmenistan

x»

Y
A

A w

Y
A

V
A

Y
A

uganod
Ukraine

X
X

x»

X
X

United Kingdom

x»

United States

Uruguay
Uzbekistan

X
X

x»
x»

X
X

Vanuatu

Venezuela

x«

Vietnam
Western Samoa

X
X

Yemen

Zambia
Zimbabwe

X
X

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

Seychelles
Somalia *

Tanzania

Uganda
Zambia
Zimbabwe

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

Central African Republic
Chad

Congo (Brazzaville)

X
X
X

Congo (Kinshasa)

Equatorial Guinea

Gabon

Sao Tome and Principe

Southern Africa

Botswana *

South Africa

Swaziland

Asia

Western Asia

Armenia

Azerbaijan

Bahrain

Cyprus

Georgia

Iraq

Israel

X
X
X

Jordan

Kuwait

Lebanon

Oman

Saudi Arabia

Syria

Turkey

Yemen

South Central Asia

Afghanistan

Bangladesh *

India

Iran

Kazakhstan

Kyrgystan

Nepal

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

Japan

Korea, South

Taiwan
Latin America and
The Caribbean
Central America

Belize

Costa Rica

El Salvador

Guatemala

X
X

X
X
X
X

Honduras

Mexico
Nicaragua
Panama
Caribbean

Antigua-Barbuda
Bahamas
Barbados
Bermuda

British Virgin Islands

X
X
X

X
X
X
X
X

X
X

i ' ■ ■■: : | ■ i ■

Cuba

Dominica

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

Grenada

Haiti
Jamaica

St. Kitts & Nevis

X
X
X

St. Lucia

St. Vincent & Grenadines

Trinidad & Tobago

South America

Argentina

Bolivia

Brazil

Chile

Colombia

Ecuador

Guyana

Paraguay

. ■ ■ . - '

Uruguay

Venezuela

Europe
Eastern Europe

Belarus

Bulgaria

Czech Republic

Hungary
Moldova
Poland

X
X
X

Romania

Russia

Slovakia

Ukraine

X
X

Southern Europe

Albania

Croatia

Greece

Italy

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

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

X
X

X
X
X
X
X

X
X
X
X
X
X

A
X

Lithuania

Norway

Sweden

United Kingdom
Western Europe

Andorra
Austria

X
X

Belgium

France

Germany

Guernsey

Jersey

Liechtenstein

Luxembourg

Monaco

Netherlands

Switzerland

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

United States of America

Oceania

Australia
Fiji

Kiribati

Marshall Islands

X
X

Micronesia, Federated States

New Zealand
Palau

Papua New Guinea

Solomon Islands

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

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

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

over

Dependencv
Ratio

Activity
Rate 4 '^

Statutory
pensionable age,
by sex

Unemploy-
ment^'

Average
annual

wage '

Men

Women

32,968 6

Australia

18,439

59 6

766.

Austria

8,054

138 6

310,776.

Belgium

10,204

390

856,606 6

Canada

29,123

1,422

33,696

Czech Republic

10,319

181

82,056

Denmark

5,269

196

Finland

5,109

430

124,987.

France

58,470

2,950

90,792 6

Germany

84,068

4,035

52,957

Greece

10,583

425

2,586,064

Hungary

9,936

417

465,564

Iceland

273

Ireland

3,556

53 6

2,584 6

13,458 A

Italy

57,534

39 6

63 8

258,544 6

Japan

125,717

60 8

59 8

2,100

3,345,600

Korea

45,949

419

13,487

Luxembourg

422

Mexico

97,563

1,677

18,949

Netherlands

15,653

523

49,733 6

New Zealand

3,587

110

30,888

Norway

4,404

107

228,446

38,700

58 6
59 6

2,233

8,390

Portugal

9,868

Spain

39,244

3,584

2,627,040

Sweden

8,946

333

222,456^

Switzerland

7,249

127

65,544 6

Turkey

63,528

1,522

49,690,680

UnitedKingdom

58,610

2,384

16,328

United States

267,955

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.

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 2

1.25

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

26. 00 5
4

12.50

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

17.34

13.37

14.43

27.80

Korea

2.00

4.00

6.00

3.52

7.20

10.72

Luxembourg

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

44.65

10.60

55 .25 3

New Zealand

0 5

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

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

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

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

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.

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

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.

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

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.

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

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.

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

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.

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

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.

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.

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

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.

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.

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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

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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.

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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.

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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.

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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.

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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.

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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."

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.

Social Security Programs Throughout the World — 1997

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.

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

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.

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

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.

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

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.

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

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.

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

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%).

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

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.)

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

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

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

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

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.

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

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.)

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

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.

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).

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

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.

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

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.

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

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.

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

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

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.

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

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).

Social Security Programs Throughout the World — 1997

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

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.

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

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).

Social Security Programs Throughout the World — 1997

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

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.

Social Security Programs Throughout the World — 1997

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.

Social Security Programs Throughout the World — 1997

CHAD

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.)

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.

Social Security Programs Throughout the World — 1997

CHAD

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.

Social Security Programs Throughout the World — 1997

CHILE

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.

Social Security Programs Throughout the World — 1997

CHILE

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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CHILE

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.

Social Security Programs Throughout the World — 1997

CHILE

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.

Social Security Programs Throughout the World — 1997

CHINA

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.

Social Security Programs Throughout the World — 1997

CHINA

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.

Social Security Programs Throughout the World — 1997

CHINA

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.

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

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

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

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.

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

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

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%).

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

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.

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.

Social Security Programs Throughout the World — 1997

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.

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.

Social Security Programs Throughout the World — 1997

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

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

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.

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

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.)

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

Social Security Programs Throughout the World — 1997

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).

Social Security Programs Throughout the World — 1997

CYPRUS

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

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

Social Security Programs Throughout the World — 1997

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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Social Security Programs Throughout the World — 1997

CZECH REPUBLIC

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.

Social Security Programs Throughout the World — 1997

101

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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Social Security Programs Throughout the World — 1997

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.

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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.

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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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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

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.

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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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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.

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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.

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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

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EL SALVADOR

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.

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

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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.

Institute operates own clinics and hospitals.; it also contracts
services from the Ministry of Health and the private sector where
required.

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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.

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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.

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119

ESTONIA

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.

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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.

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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.

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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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Social Security Programs Throughout the World — 1997

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.

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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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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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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.

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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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131

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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133

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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Social Security Programs Throughout the World — 1997

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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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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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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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.

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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GEORGIA

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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Social Security Programs Throughout the World

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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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141

GERMANY

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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Social Security Programs Throughout the World — 1997

GERMANY

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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143

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

GREECE

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

GREECE

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.

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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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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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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.

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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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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.)

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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.

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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

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.

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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.

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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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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.

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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.

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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.

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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.

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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.

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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

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.

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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.

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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.

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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.

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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

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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

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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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IRELAND

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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183

ISRAEL

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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Social Security Programs Throughout the World — 1997

ISRAEL

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.

Social Security Programs Throughout the World — 1997

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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Social Security Programs Throughout the World — 1997

ISRAEL

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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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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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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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.

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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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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

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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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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.

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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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201

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

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.

Note: Details are not yet available for "Sickness and Maternity,"
the 1995 Medical Insurance, "Unemployment Benefits," and
"Family Allowances."

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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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Social Security Programs Throughout the World — 1997

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.)

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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.

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Social Security Programs Throughout the World — 1997

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

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.

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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.

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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,

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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.

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.

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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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Social Security Programs Throughout the World — 1997

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 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.

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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