Module 2: Introduction to social protection

Module 2: Introduction to social protection

ILO, 2013

Key questions• What is social security? • What is social protection?• What are the different types of social transfers?• What are ILO’s standards to realize the right to social security?• What are the two dimensions of social security extension? • What are nationally defined social protection floors?• To what extent is social protection linked with employment

and economic growth?• What are the ILO’s main technical support activities on social

security in East and South-East Asia and the Pacific?

• People face contingencies during their life-cycle, which have financial consequences

• Social security is provided to members of a society against the economic and social distress caused by such contingencies

What is social security?

Life-cycle

Work injuryMaternity UnemploymentInvalidityFamilies with

children

Sickness Medical care

Old ageDeath of thebreadwinner

To compensate for the loss of income and cover

health care expenditures

To facilitate access to social services and fulfill

basic needs

Financial support Access to services

Protection provided by society

Social transfers

What is social security?

• Some define social protection as measures addressing the most vulnerable

• Concept of social protection is broader than social security (which mostly refers to formal workers)

• Social protection can reach out to those not covered, or incapable of being covered easily by social security

• According to Recommendation No. 202, social protection and social security are part of the same social policy concept (Hagemejer and McKinnon, 2013)

What is social protection?

Types of social transfers

Social transfers

Contributory Non-contributory

Compulsory Voluntary Targeted Non-targeted

Social insurance

Social insurance to informal sector

Some microinsurance

Targeted social assistance

Universal schemes

http://www.social-protection.org/gimi/gess/ShowTheme.do?tid=11&ctx=0

Social security as a human right

• Universal declaration of human rights, 1948: social security is a human right

• Social Security (Minimum Standards) Convention, 1952 (No. 102) : flagship Convention on social security

• Recommendation on nationally defined social protection floors, 2012 (No. 202): reaffirms the universal right to social security Image by Youth for Human

Rights International

ILO’s standards• ILO sets standards that lay down obligations and guidelines

for ILO member States• Standards are of two types: Conventions and

Recommendations • They help in drafting laws and regulations, designing and

implementing social security systems

Convention No. 102 covers all 9 contingencies

ILO’s standards

C 130 C 168

C 128

C 121C 183

C 183 C 128C 128

C 130

Life-cycle

Work injuryMaternity Unemployment

InvalidityFamilies with children

Sickness Medical care

Old ageDeath of thebreadwinner

C.102 Social Security (Minimum Standards) Convention, 1952

Maternity Protection

Convention, 2000 (No.

183)

Equality of Treatment (Social Security) Convention, 1962 (No. 118)

R67 Income Security Recommendation, 1944

R69 Medical Care Recommendation, 1944

Recommendation concerning national floors of social protection, 2012(No. 202)

ILO’s standards

Employment Promotion and

Protection against

Unemployment Convention,

1988 (No. 168)

Medical Care and Sickness

Benefits Convention, 1969 (No.

130)

Invalidity, Old-Age and

Survivors' Benefits

Convention, 1967 (No.

128)

Maintenance of Social Security Rights Convention, 1982 (No. 157)

Employment Injury

Benefits Convention, 1964 (No.

121)

International Labour OrganizationPRINCIPLES

EQUALITY OF TREATMENT

• Non-national residents shall have the same rights as national residents

FLEXIBILITY

• No unique model for social security regimes: common principles

• Flexibility in the type of schemes member States establish, in order to implement the Convention

• Flexibility in legal and institutional arrangements

STATE’S RESPONSABILITY

• To provide and guarantee benefits stated by law• To ensure proper functioning of the scheme: supervise and

administrate the concerned institutions and services

FAIR BALANCE OF INTEREST

• Participation of employers and workers in supervision and administration

Principles in Convention No. 102

International Labour OrganizationPRINCIPLES (CONTINUED)

ADEQUACY AND PREDICTABILITY

• Consistent with national socio-economic development plans• In compliance with national cultural values and history• In coherence with existing institutions (e.g. medical facilities)

and the overall social security system• Benefits should adjust with cost of living and general income• Pre-determined and periodical benefits at minimum levels

RIGHT TO APPEAL• Right to appeal in case of refusal of benefits, or complaints

regarding quality or quantity of benefits

COLLECTIVE FINANCING

• Costs shall be borne collectively by workers’ and employers’ contributions, or taxes, or both, in a manner which avoids hardship to persons of small means

PROGRESSIVE • To gradually extend social security coverage

Principles in Convention No. 102

International Labour Organization

UNIVERSALITY • Universal coverage of residents by comprehensive SS

NON-DISCRIMINATION

• Based on equal treatment (and gender equality)• Responsiveness to special needs• Social inclusion, including informal economy

TRANSPARENCY • Accountable and sound financial management, admin

RIGHTS AND DIGNITY

• Respect for rights and dignity of people• Full respect for collective bargaining and freedom of

association for workers

SUSTAINABILITY• Financial, fiscal and economic sustainability with due regard

to social justice and equity

DELIVERY • High-quality public services that enhance delivery of SS

EVALUATION • Regular monitoring and periodic evaluation

Principles in Recommendation No. 202

Two dimensions of social security

Population

Level of protection

Poor Rest of informal sector Formal sector

• For a long time, social security was contributory and mainly adapted to the formal sector

• Assumption that informal sector would progressively shrink and come under social security coverage - this did not happen

???

• In countries of Asia, formal sector workers have access to social protection

• Some programmes target the poorest, leaving the rest of the informal sector uncovered

• Existing universal schemes (e.g. UCS, old-age pensions in Thailand)

Two dimensions of social security

Rest of informal sector Formal sector

Level of protection

Population

??Poor

Two dimensions of social security• Discussion on social security in ILC

2001 led to a new consensus: priority to be given to the extension of coverage, exploring strategies like adapted social insurance, microinsurance, social assistance

Poor Rest of informal sector Formal sector

Level of protection

Population

Social protection floor• All residents should enjoy at least a

minimum level of social security• Member states of the ILO should

establish SPFs as a fundamental element of their social security systems

Poor Rest of informal sector Formal sector

Level of protection

Population

Nationally defined SPF

Social protection floor• Based on this floor, extend social

security to provide progressively higher levels of SP benefits to more people

Poor Rest of informal sector Formal sector

Level of protection

Population

Nationally defined SPF

Higher levels of social security to more people

All residents have access to essential health care, including maternity care

All children enjoy basic income security, providing access to nutrition, education, care, and any other necessary goods and services

All persons in active age who cannot earn sufficient income, enjoy basic income security, particularly in cases of sickness, unemployment, maternity, disability

All older persons have basic income security

Social protection floorFour basic guarantees:

Social protection floors• SPFs are defined nationally, depending on the context• No ‘one size fits all’ approach in designing and implementing

SPFs• Each country decides on targeted vs. universal schemes,

contributory vs. non-contributory schemes

SPF endorsed globally

http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdf

• ILO’s Recommendation on Social Protection Floors, 2012 (No. 202) was endorsed by 185 member States in June 2012 with 456 ‘yes’ votes and 1 ‘not present’

• Recommendation No. 202 guides member States on establishing and maintaining nationally defined SPFs

SPF adopted in Asia• The 15th Asia Pacific Regional

Meeting, Dec 2011, prioritizes “reducing poverty and wide inequalities in income and wealth” and “building effective social protection floors in line with national circumstances”

• ASEAN member States adopted the Declaration on strengthening social protection, Sep 2013

Source: NSPS-PV of Cambodia, 2011

SPF adopted nationallyThe SPF concept was adopted in the National Social Protection Strategy for the Poor and Vulnerable in Cambodia

• The SPF de-links entitlement to social security from formal employment

• The SPF promotes employability• People become active contributors to the economy

Linkages with employment

Social protection

Household consumption

Poverty and inequality

Education and training

Health

Child well being

Livelihoods and productive

investments

Labour

Human capital

Physical capital

Labour productivity

Economic performance

Demand for goods and

servicesIncreased wages, income

Increased financing

1.

2.

2.

3.

3.

4.

4.

Source: Source: A. Mideros Mora, F. Gassmann, and P. Mohnen, 2012, Estimation of rates of return of social protection instruments in Cambodia: A case for non-contributory social transfers.

5.

Direct effects

Behavioral effects

Linkages with economic growth

The social protection floor provides a basket of minimum social security entitlements for all

The social protection floor is the first step towards higher levels of social

protection

The social protection floor can be

different across countries

The social protection floor should be guaranteed for all

THE SOCIAL PROTECTION FLOOR J’ADORE

STOP ME WHEN IT IS NOT TRUE!

The social protection floor

is only for the poorThe social protection floor should be financed by Government budget only

Social security

staircase, R202, C102

Situation analysis and recommendations: ABND exercises

Support to the development of strategies and laws

Design of social security systems and SPF components

Implementation through SWS and IT systems

Documentation, research, training, awareness raising, education

Overview of ILO’s activities in Asia