International Labour Office A 902569 Interregional Trade Union Training on Social Security ILO’s Social Security Standards and related Action (1) Turin, 13 July 2010 Ursula Kulke, Coordinator for Standards and Legal Services, Social Security Department, International Labour Office, Geneva The ILO Global Campaign to extend Social Security to all
Structure of the Presentation International Labour Office Ø Social security - a necessity and a human right Ø ILO’s mandate in the field of social security Ø ILO’s social security Conventions in general Ø Social Security (Minimum Standards) Convention, 1952 (No. 102) Ø Ø Overview of Ø Its legal and statistical requirements, Ø Its basic social security principles, Ø Its flexibility Group work on the application by national legislation and practice of the provisions of Convention No. 102 related to old-age, invalidity and survivors’ pensions of Convention No. 102 The ILO Global Campaign to extend Social Security to all 2
International Labour Office The ILO definition of social security Ø Social security is the adoption of public measures to ensure – basic income security to all in need of protection, in order to relieve want and prevent destitution by restoring up to a certain level income which is lost or reduced by reason of inability to work or to obtain remunerative work due to the occurrence of various contingencies: sickness, unemployment, old age, employment injury, family responsibilities, maternity, invalidity or death of the breadwinner; and – access to medical care* The ILO Global Campaign to extend Social Security to all 3
The need for social security Ø Ø Ø Ø International Labour Office Social security benefits/transfers are a powerful tool to combat poverty and insecurity Nobody is an island. Every person and every family needs protection from social risks and resulting insecurities. Risks have to be shared on a group or national basis to ensure effective protection. Some groups are more vulnerable than others, e. g. the chronically poor, agricultural workers, children, the elderly and have special needs It is clear that guaranteeing income security and access to health would allow all people to deal with most significant risks Social security systems are an economic necessity to unblock the full economic potential of a country, Social security systems are economic stabilisers in times of crisis Basic systems are affordable nearly everywhere. . . Ø And yet, still 75 -80% percent of the global population does not enjoy a set of social guarantees that allow them to deal with life’s risks… The ILO Global Campaign to extend Social Security to all 4
Social Security – A human right l Universal Declaration of Human Rights (1948): – l Article 22: Everyone, as a member of society, has the right to social security International Covenant on Economic, Social and Cultural Rights (1966): – Ø International Labour Office Article 9: The States Parties to the present Covenant recognize the right of everyone to social security, including social insurance Through the ratification, accession or succession of the International Covenant on Economic Social and Cultural Rights, 160 UN Member States have committed themselves to work towards social security for everyone. 5
International Labour Office Responsiblity for realization of the right to social security at international level Ø Even if the basic human right to social security was adopted by the United Nations, the ILO has been given a primary responsibility since its creation in 1919 in assisting its member States in the realization of the right to social security 6
The ILO Mandate in the field of social security (1) International Labour Office Ø The Preamble to the ILO Constitution mandated the ILO: …to improve conditions of labour, inter alia, through the «prevention of unemployment, …the protection of the worker against sickness, disease, and injury arising out of his employment, the protection of children, young persons and women, provision for old-age and injury » Ø The ILO’s Declaration of Philadelphia (1944) charged the ILO with “to further among the nations of the world programmes which will achieve the objectives…. the extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care” Ø With the adoption of the Declaration of Philadelphia, the world community committed itself for the first time to universal social security coverage 7
The ILO Mandate in the field of social security (2) Ø Conclusions of the General Discussion (adopted by the ILC 2001): Ø Ø Ø International Labour Office Reaffirmed social security as basic human right and ILO’s Mandate in social security, Requested the ILO to launch a global campaign for the extension of social security for all, which was launched at the ILC 2003 ILO Declaration on Social Justice for a Fair Globalization (adopted by the ILC 2008): «recognizes that the ILO has the solemn obligation to further among the nations of the world programmes which will achieve the objectives of … the extension of social security measures to provide a basic income to all in need along with all the other objectives set out in the Declaration of Philadelphia » Ø Global Jobs Pact (adopted by the ILC 2009): Ø Requests countries that do not yet have extensive social security to build “adequate social protection for all, drawing on a basic social protection floor, including: Ø Access to health care , Ø Income security for the elderly and persons with disabilities, Ø Child benefits, and Ø Income security combined with public employment guarantee schemes for the unemployed and the working poor” 8
International Labour Office ILO’s main tools for pursuing its mandate International Labour Standards Ø The ILO is the only international organization which is charged by its constituents with the setting of international labour standards Ø International labour standards are international treaties that aim to lay down common minimum standards in the field of work applicable for all ILO member States so as to guarantee decent work world wide Ø International labour standards take the form of either Conventions or Recommendations Ø Conventions and Recommendations are adopted by the International Labour Conference of the ILO by 2/3 majority of ILO constituents Ø • Conventions (188): Are open to ratification and when ratified, they become legal obligations, if not ratified, they represent goals for national policy making Recommendations (200): Are not open to ratification, they provide technical guidelines for the implementation of Conventions at national level 9
ILO’s up-to-date social security standards International Labour Office Ø Conventions Ø Ø Social Security (Minimum Standards) Convention, 1952 (No. 102) Employment Injury Benefits Convention, 1964 (No. 121) Invalidity, Old-Age and Survivors’ Benefits Convention, 1967 (No. 128) Medical Care and Sickness Benefits Convention, 1969 (No. 130) Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168) Maternity Protection. Convention, 2000 (No. 183) Equality of Treatment (Social Security) Convention, 1962 (No. 118) Maintenance of Social Security Rights Convention, 1982 (No. 157) Ø Major Recommendations Ø Income Security Recommeendation, 1944 (No. 67) Medical Care Recommendation, 1944 (No. 69) Ø Ø Ø Ø 10
Social Security (Minimum Standards) Convention, 1952 (No. 102) International Labour Office Flagship Convention No. 102 § Defines 9 branches of social security Ø Medical care benefit, sickness benefit, unemployment benefit, old-age benefit, employment injury benefits, maternity benefit, family benefit, invalidity benefit, survivors’ benefit § Sets minimum standards for these nine branches § Is based on commonly agreed social security principles § Is built upon the basis that there is no right model for social security and it reflects countries’ social and cultural values, their history, their institutions and their level of economic development Ø It thus includes several flexibility clauses to allow as many countries as possible to fulfill its provisions (e. g. ratification of 3 out of the 9 branches, coverage of a certain percentage of worker or the population, etc. ) 11
International Labour Office Social Security (Minimum Standards) Convention, 1952 (No. 102) Flagship Convention Ø Sets minimum standards for the nine branches Ø Minimum percentage of personal coverage Ø Minimum level of benefits Ø Maximum qualifying period for the entitlement to benefits Ø Minimum duration of benefits 12
Social Security (Minimum Standards) Convention, 1952 (No. 102) Minimum C. No. 102 Standards Benefit Conditions Duration of Branches Benefit Sickness Benefit 45 % To preclude abuse 26 weeks (each case sickness) Unemployment Benefit 45 % To preclude abuse 13 weeks in period of 12 months Old-Age Benefit 40 % 30 years Throughout the contingency Employment Injury Benefits Short term disability 50 % No qualifying Throughout the contingenc Permanent disability Death of the breadwinner 50 % period allowe 40% Family Benefit 3% or 1, 5% To preclude abuse Throughout the contingency International Labour Office C. No. 102 Coverage of persons 50% of all employees or 20% of all residents, or all residents whose means do not exceed certain limits 50% of all employees, or all residents whose means do not exceed certain limits 50% of all employees or 20% of all residents, or all residents whose means do not exceed certain limits 50% of all employees, and their widows and children in case of death of the breadwinner through an employment injury 50% of all employees or 20% of all residents, or all residents whose means do not exceed certain limits Maternity Benefit 45 % To preclude abuse Minimum of 12 weeks Women of classes of employees constituting not less than Invalidity Benefit 40 % 15 years Throughout the Survivors’ Benefit contingency or until old – age pension is paid 40 % 15 years Throughout the 50% of all employees or 20% of all residents, or all residents whose means do not exceed certain limits Wives and children of 50% of all employees, or 20% of all 13 residents, or all resident wives and children whose
Basic social security principles of Convention No. 102 International Labour Office Ø Benefits to be provided shall be defined and guaranteed and their entitlement shall be based on rights (Articles 7, 13, 19, 25, 31, 39, 46, 53, and 59 of C. 102) Ø Through the establishment of social security by law, and not through programmes, charities, etc. Ø Participation of protected persons in administration of the social security schemes (Art. 72 (1) of C. 102) Ø General responsibility of the Governments for Ø the due provision of benefits (Art. 71 (3) of C. 102), and Ø the proper functioning of the social security system (Art. 72 (2) of C. 102), which includes Ø Ø Ø provision of an appropriate legal framework of the social security system and rule of law guarantee of the sustainability of the social security system (e. g. through regular actuarial valuations), and adequacy of contributions and benefits Ø Collective financing (Art. 71 (1) of C. 102) Ø Adjustment of pensions (long-term benefits) (Articles 65 and 66 of C. 102) Ø Right of appeal (Art. 70 of C. 102) Ø Access to social security without discrimination, and equality of treatment (Art. 68 of C. 102) 14
International Labour Office Flexibility of Convention No. 102 to facilitate its ratification/application for member States Ø Offers flexibility, as it takes into account socioeconomic levels within different countries by providing for specific temporary exception by covering at least 50% of all employees working at industrial establishments of 20 persons or more Ø Offers possibility of ratifying initially 3 social security branches and offers possibility of ratifying at a later stage, according to the socio-economic situation in the country, further social security branches 15
Social security schemes to comply with Convention No. 102 Ø Social insurance schemes Ø Ø Ø International Labour Office with earnings-related components, or flat rate components, or Combination of both Universal schemes Social assistance schemes Social security administrations to comply with Convention No. 102 Ø Ø Public social security schemes Private social security schemes, if in compliance with minimum standards and basic principles 16
Ratification chart of Convention No. 102 (46 ratifications) Albania (2006) Austria (1969) Barbados (1972) Belgium (1959) Bolivia (1977) Bosnia and Herzegovina (1993) Brazil (2009) Bulgaria (2008) Democratic Rep. of the Congo (1987) Costa Rica (1972) Croatia (1991) Cyprus (1991) Czech Rep. (1993) Denmark (1955) Ecuador (1974) France (1974) Germany (1958) Greece (1955) Iceland (1961) Ireland (1968) Israel (1955) Italy (1956) Japan (1976) Libya (1975) Luxembourg (1964) Macedonia (1991) Mauritania (1968) Mexico (1961) Montenegro (2006) Netherlands (1962) International Labour Office Niger (1966) Norway (1954) Peru (1961) Poland (2003) Portugal (1994) Romania (2009) Senegal (1962) Serbia (2000) Slovakia (1993) Slovenia (1992) Spain (1988) Sweden (1953) Switzerland (1977) Turkey (1975) United Kingdom (1954) Venezuela (1982) 17
Ratification map of Convention No. 102 (46 ratifications as of July 2010) International Labour Office 18
International Labour Office Control of the application of Convention No. 102 Ø The effectiveness of the international labour standards is guaranteed by the ILO supervisory bodies which monitor the application of the standards by national law and practice ØILO's regular supervisory system responsible for ensuring application of Conventions ØUnique at the international level ØHelp to ensure that countries implement Conventions ØAn examination of the country cases where the Committee of Experts on the Application of Conventions and Recommendations (CEACR) has observed non-compliance with ratified Convention No. 102 shows that, since 1964, in no fewer than in 40 cases ratifying States have brought their national law and practice into conformity with the requirements of the Convention following the recommendations of the CEACR 19
International Labour Office Benefits when ratifying/applying Convention No. 102 Ø When Convention No. 102 is ratified, State parties will benefit on a priority basis from ILO experience in the field of social protection and from technical assistance, including policy advice and actuarial studies, collection of data, drafting of legislation, etc. Ø Commitment to apply Convention No. 102 will guarantee a sustainable and well established social security system and it will also guarantee the provision of regular and sustainable benefits, Ø Thus ratification and application of Convention No. 102 will enhance the confidence of insured persons in the scheme and in the national social security administration in general 20
International Labour Office The relevance of Convention No. 102 at the international, regional and national level § Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights Ø § Convention No. 102 serves as main reference for interpretation and definition of the right to social security and implementation guidance Regional human rights and social security instruments Ø Ø European Code of Social Security: modelled after Convention No. 102, Ø § In the European Social Charter: reference for establishing the minimum level of social security in line with Convention No. 102 (Art. 12 of EC) CARICOM Agreement on Social Security and SADC Code on Social Security make reference to Convention No. 102 National social security system Ø Important impact on social security legislation all over the world Ø An examination of the country cases where the CEACR has observed non- compliance with ratified social security Conventions shows that, in most cases (in 75 cases since 1964), the national law and practice has been brought in conformity with the requirements of the Convention by ratifying States following the recommendations of the CEACR 21
International Labour Office Thank you 22
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