Social Security Programs Throughout the World: The Americas, 2019
Social Security Administration Office of Retirement and Disability Policy Office of Research, Evaluation, and Statistics 250 E Street, SW, 8th Floor Washington, DC 20254
SSA Publication No. 13-11804 Released: March 2020
Preface
This fourth issue in the four-volume series of Social Security Programs Throughout the World reports on the countries of the Americas. The combined findings of this series, which also includes volumes on Europe, Asia and the Pacific, and Africa, are published at six-month inter- vals over a two-year period. Each volume highlights features of social security programs in the particular region. The information contained in these volumes 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 evolving needs of individuals, households, and families. These efforts are particularly important as each nation faces major demographic changes, especially the increasing number of aged persons, as well as economic and fiscal issues. This volume is the last edition of Social Security Programs Throughout the World produced as a cooperative effort between the Social Security Administration (SSA) and the International Social Security Association (ISSA). The ISSA, which will continue to provide country profiles on its website, is the principal international institution bringing together social security agencies and organizations around the world. Founded in 1927, the ISSA is located at the International Labour Office in Geneva. Previous editions of this report, which date back to 1937, were issued as one volume and were prepared by SSA staff. The ISSA has researched and written the publication since the intro- duction of the four-volume format in 2002, and beginning with the volume on the Americas 2015, the publication is co-financed by both institutions. The ISSA has conducted the research largely through its numerous country-based correspondents, as well as its social security databases and other types of data that are drawn together to update this report. Social Security Programs Throughout the World is based on legislation in effect in July 2019, or the last date for which information has been received by SSA or the ISSA. We added a new country, Aruba, to this volume. Harald Braumann, Luisa Carmona, and Megan Gerecke managed the data collection and analysis for the ISSA, and John Jankowski and Ben Danforth performed a technical review of the report for SSA. Staff of the Office of Dissemination at SSA edited the report and prepared it for publication. Your suggestions and comments on this report are welcome. Any suggestions, comments, or questions about the report should be e-mailed to [email protected]. Corrections, updated informa- tion, and copies of relevant documentation and legislation are also welcome and may be sent to: International Social Security Association Case postale 1 4 route des Morillons CH-1211 Geneva 22 Switzerland https://www.issa.int E-mail: [email protected] Fax: +41-22-799-8509 This report and other publications are available at https://www.ssa.gov/policy. The informa- tion reported in the country summaries is also available on the ISSA website at https://www.issa .int/country-profiles.
Katherine N. Bent Acting Associate Commissioner for Research, Evaluation, and Statistics March 2020 Errata Policy If there are any additions or corrections to the data published herein, they will be posted as errata on the web at https://www.ssa.gov/policy/docs/progdesc/ssptw/2018-2019 /americas/index.html. Contents
Guide to Reading the Country Summaries
Information Sources...... 1
Types of Programs Employment-Related...... 2 Universal...... 2 Means-Tested...... 3 Other Types of Programs...... 3
Format of Country Summaries Old Age, Disability, and Survivors...... 4 Sickness and Maternity...... 8 Work Injury...... 11 Unemployment...... 13 Family Allowances...... 15
Tables 1. Social security programs, by country and type...... 17 2. Mandatory old-age income security programs, by country and type...... 19 3. Demographic and other social security-related statistics, by country, 2017–2019...... 21 4. Insured and employer contribution rates, by country and program type, 2019...... 23
Country Summaries Antigua and Barbuda...... 31 Grenada...... 169 Argentina...... 36 Guatemala...... 174 Aruba...... 47 Guyana...... 179 Bahamas...... 52 Haiti...... 185 Barbados...... 58 Honduras...... 188 Belize...... 65 Jamaica...... 195 Bermuda...... 70 Mexico...... 200 Bolivia...... 76 Nicaragua...... 209 Brazil...... 85 Panama...... 215 British Virgin Islands...... 94 Paraguay...... 222 Canada...... 98 Peru...... 228 Chile...... 108 Saint Kitts and Nevis...... 236 Colombia...... 123 Saint Lucia...... 241 Costa Rica...... 134 Saint Vincent and the Grenadines...... 246 Cuba...... 141 Suriname...... 252 Dominica...... 146 Trinidad and Tobago...... 256 Dominican Republic...... 151 United States of America...... 262 Ecuador...... 157 Uruguay...... 271 El Salvador...... 163 Venezuela...... 283
Guide to Reading the Country Summaries
This fourth issue in the four-volume series of Social Information Sources Security Programs Throughout the World reports on Most of the information in this report was collated the countries of the Americas.1 The combined find- from the Social Security Programs Throughout the ings of this series, which also includes volumes on the World survey conducted by the International Social Europe, Asia and the Pacific, and Africa, are published Security Association (ISSA) in partnership with the at six-month intervals over a two-year period. Each U.S. Social Security Administration (SSA). This volume highlights features of social security programs information was supplemented by data collected by in the particular region. the ISSA. Empirical data were provided by numerous This guide serves as an overview of programs in social security institutions throughout the world. (For all regions. A few political jurisdictions have been a listing of countries and jurisdictions that responded excluded because they have no social security system to the survey, see page 2.) During the compilation pro- or insufficient information was available regarding cess, international analysts at both SSA and the ISSA their social security legislation. In the absence of examined the material for factual errors, ambiguous recent information, national programs reported in statements, and contradictions in material from differ- previous volumes may also be excluded. ent sources. In this volume on the Americas, the data reported are based on laws and regulations in force in July 2019 or on the last date for which information has been Types of Programs received. Information for each country on types of The term social security in this report refers to pro- social security programs, types of mandatory systems grams established by statute that insure individuals for retirement income, contribution rates, and demo- against interruption or loss of earning power and for graphic and other statistics related to social security is certain special expenditures arising from marriage, shown in Tables 1–4 beginning on page 17. birth, or death. This definition also includes allow- The country summaries show each system’s major ances to families for the support of children. features, including mandatory occupational pensions Protection of the insured person and dependents and in some cases, private insurance. Separate pro- usually is extended through cash payments to replace grams in the public sector and specialized funds for at least a portion of the income lost as the result of such groups as agricultural workers, collective farm- old age, disability, or death; sickness and maternity; ers, or the self-employed have not been described in work injury; unemployment; or through services, any detail. primarily hospitalization, medical care, and rehabilita- The country summaries also do not refer to tion. Measures providing cash benefits to replace lost international social security agreements that may be income are usually referred to as income-maintenance in force between two or more countries. Those agree- programs; measures that finance or provide direct ments may modify coverage, contributions, and benefit services are referred to as benefits in kind. provisions of national laws summarized in the country Three broad approaches to coverage provide cash write-ups. Since the summary format requires brevity, benefits under income-maintenance programs; namely, technical terms have been developed that are concise employment-related, universal, and means-tested as well as comparable and are applied to all programs systems. Under both the employment-related and the wherever possible. The terminology may therefore dif- universal approaches, the insured, dependents, and fer from national concepts or usage. survivors can claim benefits as a matter of right. Under means-tested approaches, benefits are based on a comparison of a person’s income or resources against 1 The names of the countries in this report are those a standard measure. Some countries also provide other used by the U.S. Department of State. The names of the countries, as reproduced on the ISSA website, reflect those types of coverage. used by the United Nations. The term country has been used throughout the volume even though in some instances the term jurisdiction may be more appropriate.
SSPTW: The Americas, 2019 ♦ 1 Employment-Related Some social insurance systems permit voluntary Employment-related systems, commonly referred to affiliation of workers, especially the self-employed. as social insurance systems, generally base eligibility In some instances, the government subsidizes such for pensions and other periodic payments on length programs to encourage voluntary participation. of employment or self-employment or, in the case of The government is, pro forma, the ultimate guar- family allowances and work injuries, on the existence antor of many benefits. In many countries, the national of the employment relationship itself. The amount government participates in the financing of employ- of pensions (long-term payments, primarily) and of ment-related as well as other social security programs. other periodic (short-term) payments in the event of The government may contribute through an appropria- unemployment, sickness, maternity, or work injury is tion from general revenues based on a percentage of usually related to the level of earnings before any of total wages paid to insured workers, finance part or these contingencies caused earnings to cease. Such all of the cost of a program, or pay a subsidy to make programs are financed entirely or largely from con- up any deficit of an insurance fund. In some cases, the tributions (usually a percentage of earnings) made by government pays the contributions for low-paid work- employers, workers, or both, and are in most instances ers. These arrangements are separate from obligations compulsory for defined categories of workers and the government may have as an employer under sys- their employers. tems that cover government employees. Social security The creation of notional defined contributions contributions and other earmarked income are kept in (NDC) is a relatively new method of calculating ben- a dedicated fund and are shown as a separate item in efits. NDC schemes are a variant of contributory social government accounts. (For further details on the gov- insurance that seek to tie benefit entitlements more ernment’s role in financing social security, see source closely to contributions. A hypothetical account is cre- of funds under Old Age, Disability, and Survivors.) ated for each insured person that is made up of all con- Universal tributions during his or her working life and, in some cases, credit for unpaid activity such as caregiving. Universal programs provide flat-rate cash benefits to A pension is calculated by dividing that amount by the residents or citizens, without consideration of income, average life expectancy at the time of retirement and employment, or means. Typically financed from indexing it to various economic factors. When benefits general revenues, these benefits may apply to all per- are due, the individual’s notional account balance is sons with the required length of residency. Universal converted into a periodic pension payment.
Countries in the Americas that Responded to the Social Security Programs Throughout the World Survey Antigua and Barbuda Costa Rica Nicaragua Argentina Cuba Panama Aruba Dominica Paraguay Bahamas Dominican Republic Peru Barbados Ecuador Saint Kitts and Nevis Belize El Salvador Saint Lucia Bermuda Grenada Saint Vincent and the Grenadines Bolivia Guatemala Suriname Brazil Guyana Trinidad and Tobago British Virgin Islands Haiti United States Canada Honduras Uruguay Chile Jamaica Venezuela Colombia Mexico
2 ♦ SSPTW: The Americas, 2019 programs may include old-age pensions for persons fund manager. Participation may be mandatory or over a certain age; pensions for workers with disabili- voluntary. The responsibility to establish membership ties, widow(er)s, and orphans; and family allowances. in a scheme and the option to choose a fund manager Most social security systems incorporating a univer- lie with the individual. The accumulated capital in the sal program also have a second-tier earnings-related individual account is normally intended as a source of program. Some universal programs, although receiv- income replacement for the contingencies of retire- ing substantial support from income taxes, are also ment, disability, ill health, or unemployment. It may financed in part by contributions from workers and also be possible for eligible survivors to access the employers. accumulated capital in the case of the insured’s death. Contributions are assigned to an employee’s Means-Tested individual account. The employee, and sometimes Means-tested programs establish eligibility for benefits the employer, must pay administrative fees for the by measuring individual or family resources against management of the individual account and usually a calculated standard usually based on subsistence purchase a separate policy for disability and survivors needs. Benefits are limited to applicants who satisfy a insurance. means test. The size and type of benefits awarded are Mandatory occupational pension. Applies to a pro- determined in each case by administrative decision gram where employers are mandated by law to provide within the framework of the law. occupational pension schemes financed by employer, The specific character of means, needs, or income and, in some cases, employee contributions. Benefits tests, as well as the weight given to family resources, may be paid as a lump sum, annuity, or pension. differ considerably from country to country. Such programs, commonly referred to as social pensions Mandatory private insurance. Applies to a program or equalization payments, are typically financed from where individuals are mandated by law to purchase general revenues. insurance directly from a private insurance company. Means-tested systems constitute the sole or Provident Funds. These funds, which exist primarily principal form of social security in only a few jurisdic- in developing countries, are essentially compulsory tions. In other jurisdictions, contributory programs savings programs in which regular contributions with- operate in tandem with income-related benefits. In held from employees’ wages are enhanced, and often such instances, means- or income-tested programs matched, by employers’ contributions. The contribu- may be administered by social insurance agencies. tions are set aside and invested for each employee in a Means-tested programs apply to persons who are single, publicly managed fund for later repayment to not in covered employment or whose benefits under the worker when defined contingencies occur. Typi- employment-related programs, together with other cally, benefits are paid in a lump sum with accrued individual or family resources, are inadequate to meet interest, although in certain circumstances drawdown subsistence or special needs. Although means-tested provisions enable partial access to savings prior to programs can be administered at the national level, retirement or other defined contingencies. On retire- they are often administered locally. ment, some provident funds also permit beneficiaries to purchase an annuity or opt for a pension. Some Other Types of Programs provident funds provide pensions for survivors. Three other types of programs are those delivered Under these systems, mainly through financial services providers (indi- Employer-Liability Systems. workers are usually protected through labor codes vidual accounts, mandatory occupational pensions, that require employers, when liable, to provide speci- and mandatory private insurance), publicly operated fied payments or services directly to their employees. provident funds, and employer-liability systems. Specified payments or services can include the pay- Programs Delivered by Financial Services ment of lump-sum gratuities to the aged or disabled; Providers the provision of medical care, paid sick leave, or both; Individual account. Applies to a program where cov- the payment of maternity benefits or family allow- ered persons and/or employers contribute a certain ances; the provision of temporary or long-term cash percentage of earnings to the covered person’s individ- benefits and medical care in the case of a work injury; ual account managed by a contracted public or private or the payment of severance indemnities in the case of dismissal. Employer-liability systems do not involve
SSPTW: The Americas, 2019 ♦ 3 any direct pooling of risk, since the liability for pay- Coverage. The extent of social security coverage ment is placed directly on each employer. Employers in any given country is determined by a number may insure themselves against liability, and in some of diverse factors, including the kind of system, jurisdictions such insurance is compulsory. sometimes the age of the system, and the degree of economic development. A program may provide Format of Country Summaries coverage for the entire country or some portion of the Each country summary presents information available workforce. on five branches of social security: In principle, universal systems cover the entire population for the contingencies of old age, disability, • Old age, disability, and survivors; and survivorship. A person may have to meet certain • Sickness and maternity; conditions, such as long-term residence or citizenship. • Work injury; Many countries exclude noncitizens from benefits unless there is a reciprocal agreement with the country • Unemployment; and of which they are nationals. • Family allowances. The extent of employment-related benefits is usually determined by the age of the system. Histori- Old Age, Disability, and Survivors cally, social security coverage was provided first to Benefits under old age, disability, and survivor pro- government employees and military personnel, then grams usually cover long-term risks, as distinct from to workers in industry and commerce, and eventu- short-term risks such as temporary incapacity result- ally extended to the vast majority of wage earners and ing from sickness and maternity, work injury, or salaried employees through a general system. As a unemployment. The benefits are normally pensions result, public employees (including military person- payable for life or for a considerable number of years. nel and civil servants), teachers, and employees of Such benefits are usually provided as part of a single public utilities, corporations, or monopolies are still system with common financing and administration as covered by occupation-specific separate systems in well as interrelated qualifying conditions and benefit many countries. formulas. In many countries, special occupational systems The laws summarized under Old Age, Disability, have been set up for certain private-sector employees, and Survivors focus first on benefits providing pen- such as miners, railway workers, and seamen. Quali- sions or lump-sum payments to compensate for loss of fying conditions and benefits are often more liberal work-related income resulting from old age or perma- than under the general system. The risk involved in nent retirement. Such benefits are usually payable after an occupation, its strategic importance for economic attaining a specified statutory age. Some countries growth, and the economic and political strength of require complete or substantial retirement to become trade unions may have had a role in shaping the type eligible for a pension; other countries pay a retirement and size of benefits offered by the particular program. pension at a certain age regardless of whether workers Groups that might be considered difficult to retire or not. administer—family workers, household workers, The second type of long-term risk for which pen- day workers, agricultural workers, and the self- sions are provided is disability (referred to in some employed—were often initially excluded from cover- countries as invalidity). Disability may be generally age. The trend has been to extend coverage to these defined as long-term and more or less total work groups under separate programs or to bring them impairment resulting from a nonoccupational injury gradually under the general system. In some countries, or disease. (Disability caused by a work injury or noncovered workers become eligible for the right to occupational disease is usually compensated under a an eventual pension if they make voluntary contribu- separate program; see Work Injury.) tions at a specified level. Some systems also provide The third type of pension is payable to dependents voluntary coverage for women who leave the labor of insured workers or pensioners who die. (Pen- force temporarily to have children or to raise a family, sions for survivors of workers injured while working or for self-employed persons not covered by a manda- are usually provided under a separate Work Injury tory program. Some developed countries with younger program.) programs have constructed a unified national program, thus largely bypassing the need for developing sepa- rate industrial or agricultural funds.
4 ♦ SSPTW: The Americas, 2019 Most developing countries have extended cover- on wage class. Where universal and earnings-related age gradually. Their first steps toward creating a social systems exist side by side, and the universal benefit is security system have commonly been to cover wage not financed entirely by the government, separate rates and salary workers against loss of income due to work may exist for each program. In other instances, flat- injury, and then old age and, increasingly, disability. rate weekly contributions may finance basic pension In a number of developing countries, particularly programs. These amounts are uniform for all workers in those that were once British colonies, this initial of the same age and sex, regardless of earnings level. step has come via provident funds. Most provident However, the self-employed may have to contribute at funds provide coverage for wage and salary work- a higher rate than wage and salary workers, thereby ers in the public and private sector. A few funds have making up for the employer’s share. exclusions based on the worker’s earnings or the size For administrative purposes, a number of coun- of the firm. Funds that exclude employees with earn- tries assess a single overall social security contribution ings above a certain level from compulsory coverage covering several contingencies. Benefits for sickness, may in some cases give them the option to affiliate or work injury, unemployment, and family allowances as continue to participate voluntarily. well as pensions may be financed from this single con- tribution. General revenue financing is the sole source Source of Funds. The financing of benefits for old- of income in some universal systems. The contribu- age, disability, and survivor programs can come from tion of the resident or citizen may be a percentage of three possible sources: taxable income under a national tax program. Gen- • A percentage of covered wages or salaries paid by eral revenues finance all or part of the means-tested the worker, supplementary benefits in many countries. • A percentage of covered payroll paid by the Contribution rates, as a rule, are applied to wages employer, and or salaries only up to a statutory ceiling. A portion of • A government contribution. the wage of highly paid workers will escape taxation Almost all pension programs under social insur- but will also not count in determining the benefit. In a ance (as distinct from provident funds or universal few cases, an earnings ceiling applies for the determi- systems) are financed at least in part by employer nation of benefits but not for contribution purposes. In and employee contributions. Many derive their funds some countries, contribution rates are applied not to from all three sources. Contributions are determined actual earnings but to a fixed amount that is set for all by applying a percentage to salaries or wages up to a earnings falling within a specified range or wage class. certain maximum. In many cases the employer pays a Qualifying Conditions. Qualifying to receive an old- larger share. age benefit is usually conditional on two requirements: The government’s contribution may be derived attainment of a specified pensionable age and comple- from general revenues or, less commonly, from spe- tion of a specified period of contributions or covered cial earmarked or excise taxes (for example, a tax on employment. Another common requirement is total or tobacco, gasoline, or alcoholic beverages). Govern- substantial withdrawal from the labor force. In some ment contributions may be used in different ways to instances, eligibility is determined by resident status defray a portion of all expenditures (such as the cost or citizenship. of administration), to make up deficits, or even to Old-age benefits generally become payable finance the total cost of a program. Subsidies may be between ages 60 and 65. In some countries, length-of- provided as a lump sum or an amount to make up the service benefits are payable at any age after a certain difference between employer/employee contributions period of employment, most commonly between 30 and the total cost of the system. A number of countries and 40 years. In recent years, several countries have reduce or, in some cases, eliminate contributions for increased the age limit for entitlement, in part because the lowest-paid wage earners, financing their benefits of budgetary constraints arising as a consequence of entirely from general revenues or by the employer’s population aging. contribution. Many programs require the same pensionable age The contribution rate apportioned between the for women as for men. Others permit women to draw sources of financing may be identical or progressive, a full pension at an earlier age, even though women increasing with the size of the wage or changing based generally have a longer life expectancy. Although
SSPTW: The Americas, 2019 ♦ 5 the norm has been for the differential to be about for pensioners with long working careers in covered five years, there is now an emerging international employment. Occupations with manpower shortages trend toward equalizing the statutory retirement age. may also be exempted from the retirement test. Many programs offer optional retirement before The principal requirements for receiving a disabil- the statutory retirement age is reached. A reduced ity benefit are loss of productive capacity after com- pension, in some instances, may be claimed up to pleting a minimum period of work or having met the five years before the statutory retirement age. Some minimum contribution requirements. Many programs countries pay a full pension before the regular retire- grant the full disability benefit for a two-thirds loss of ment age if the applicant meets one or more of the working capacity in the worker’s customary occupa- following conditions: work in an especially arduous, tion, but this requirement may vary from one-third to unhealthy, or hazardous occupation (for example, 100 percent. underground mining); involuntary unemployment for a The qualifying period for a disability benefit is period near retirement age; physical or mental exhaus- usually shorter than for an old-age benefit. Periods of tion (as distinct from disability) near retirement age; three to five years of contributions or covered employ- or, occasionally, an especially long period of coverage. ment are most common. A few countries provide dis- Some programs award old-age pensions to workers ability benefits in the form of an unlimited extension who are older than the statutory retirement age but of ordinary cash sickness benefits. who cannot satisfy the regular length-of-coverage Entitlement to disability benefits may have age requirement. Other programs provide increments to limitations. The lower limit in most systems is in the workers who have continued in employment beyond teens, but it may be related to the lowest age for social the normal retirement age. insurance or employment or to the maximum age for Universal old-age pension systems usually do not a family allowance benefit. The upper age limit is fre- require a minimum period of covered employment or quently the statutory retirement age, when disability contributions. However, most prescribe a minimum benefits may be converted to old-age benefits. period of prior residence. For survivors to be eligible for benefits, most Some old-age pension systems credit periods dur- programs require that the deceased worker was a ing which persons, for reasons beyond their control, pensioner, completed a minimum period of covered were not in covered employment. Credits can be employment, or satisfied the minimum contribution awarded for reasons such as disability, involuntary conditions. The qualifying contribution period is often unemployment, military service, education, child the same as that for the disability benefit. The surviv- raising, or training. Other systems disregard these ing spouse and orphans may also have to meet certain periods and may proportionately reduce benefits for conditions, such as age requirements. each year below the required minimum. Persons with Old-Age Benefits. The old-age benefit in most coun- only a few years of coverage may receive a refund of tries is a wage-related, periodic payment. However, contributions or a settlement in which a proportion some countries pay a universal fixed amount that bears of the full benefit or earnings is paid for each year of no relationship to any prior earnings; others supple- contribution. ment their universal pension with an earnings-related The majority of old-age pensions financed through pension. social insurance systems require total or substantial Provident fund systems make a lump-sum pay- withdrawal from covered employment. Under a retire- ment, usually a refund of employer and employee con- ment test, the benefit may be withheld or reduced for tributions plus accrued interest. In programs that have those who continue working, depending on the amount individual accounts, options for retirement include of earnings or, less often, the number of hours worked. purchasing an annuity, making withdrawals from an Universal systems usually do not require retirement account regulated to guarantee income for an expected from work for receipt of a pension. Provident funds lifespan (programmed withdrawals), or a combination pay the benefit only when the worker leaves covered of the two (deferred annuity). employment or emigrates. Benefits that are related to income are almost Some countries provide a number of exemptions always based on average earnings. Some countries that act to eliminate the retirement condition for speci- compute the average from gross earnings, including fied categories of pensioners. For instance, the retire- various fringe benefits; other countries compute the ment test may be eliminated for workers who reached average from net earnings. Alternatively, some coun- a specified age above the minimum pensionable age or
6 ♦ SSPTW: The Americas, 2019 tries have opted to use wage classes rather than actual reduces the effect large families have on benefits is earnings. The wage classes may be based on occupa- commonly used to limit total benefits, including those tions or, for administrative convenience, on earnings of survivors, in the interest of the financial stability of arranged by size using the midpoint in each step to the program. compute the benefit. In some countries, benefits are automatically Several methods are used to compensate for adjusted to reflect price or wage changes. In other averages that may be reduced by low earnings early countries, the process is semiautomatic—the adequacy in a worker’s career or by periods without any cred- of pensions is reviewed periodically by an advisory ited earnings due, for example, to unemployment or board or other administrative body that recommends a military service, and for the effects of price and wage benefit adjustment to the government, usually requir- increases due to inflation. One method is to exclude ing legislative approval. from consideration a number of periods with the low- Disability Benefits. Under most programs, provisions est (including zero) earnings. In many systems the for disability benefits for persons who are permanently period over which earnings are averaged may be short- disabled as the result of nonoccupational causes are ened to the last few years of coverage, or the average very similar to those for the aged. The same basic may be based on years when the worker had his or her formula usually applies for total disability as for old highest earnings. Other systems revalue past earnings age—a cash amount usually expressed as a percent- by applying an index that usually reflects changes in age of average earnings. Increments and dependents’ national average wages or the cost of living. Some supplements are generally identical under the total assign hypothetical wages before a certain date. disability and old-age programs. For persons with Alternatively, others have developed mechanisms for total disabilities, a constant-attendance supplement, automatic adjustment of workers’ wage records based for instance, 50 percent of the benefit, may be paid to on wage or price changes. those who need help on a daily basis. Partial disability A variety of formulas are used in determining benefits, if payable, are usually reduced, based on a the benefit amount. Instead of a statutory minimum, fixed scale. The system may also provide rehabilitation some systems pay a percentage of average earn- and training. Some countries provide higher benefits ings—for instance, 35 percent or 50 percent—that is for workers in arduous or dangerous employment. unchanged by length of coverage once the qualifying period is met. A more common practice is to provide a Survivor Benefits. Most systems provide periodic basic rate—for example, 30 percent of average earn- benefits for survivors of covered persons or pension- ings—plus an increment of 1 percent or 2 percent of ers, although some pay only lump-sum benefits. earnings either for each year of coverage or for each Survivor benefits are generally a percentage of either year in excess of a minimum number of years. Several the benefit paid to the deceased at death or the benefit countries have a weighted benefit formula that returns to which the insured would have been entitled if he or a larger percentage of earnings to lower-paid workers she had attained pensionable age or become disabled than to higher-paid workers. at that time. Most systems limit the size of the benefit. Many Survivor benefits are paid to some categories of do so by establishing a ceiling on the earnings taken widows under nearly all programs. The amount of into account in the computation. Others establish a a widow’s benefit usually ranges from 50 percent to maximum cash amount or a maximum percentage of 75 percent of the deceased worker’s benefit or, in some average earnings set, for example, at 80 percent. Some cases, 100 percent. In some countries, lifetime benefits systems combine these and other, similar methods. are payable to every widow whose husband fulfills Most systems supplement the benefit for a wife the necessary qualifying period. More commonly, the or child. The wife’s supplement may be 50 percent or provision of widows’ benefits is confined to widows more of the basic benefit, although in some countries who are caring for young children, are above a speci- the supplement is payable only for a wife who has fied age, or have a disability. reached a specified age, has children in her care, or Lifetime benefits are ordinarily payable to aged has a disability. It may also be payable for a dependent and disabled widows. Those awarded to younger husband. mothers, however, are usually terminated when all Minimum benefits are intended to maintain a min- children have passed a certain age, unless the widow imum standard of living in many countries, although has reached a specified age or has a disability. Most that objective is not always achieved. A maximum that widows’ benefits also terminate on remarriage,
SSPTW: The Americas, 2019 ♦ 7 although a final lump-sum grant may be payable under which are paid to working mothers before and after this circumstance. Special provisions govern the rights childbirth. In most countries, however, maternity of the divorced. Age limits for orphan’s benefits are benefits are administered as part of the cash sickness in many cases the same as for children’s allowances. program. (Benefits provided as a result of work injury Many countries fix a somewhat higher age limit for or occupational disease are provided either under work orphans attending school or undergoing an apprentice- injury or sickness programs. Details of the benefits are ship or for those who are disabled. The age limit is discussed under Work Injury.) usually removed for orphans with disabilities as long Historically, cash sickness and maternity benefits as their incapacity continues. Most survivor programs as well as health care were often administered under distinguish between half orphans (who have lost one the same branch of social security. For this reason, parent) and full orphans (who have lost both parents), these programs are grouped together in the country with the latter receiving benefits that are 50 percent to summaries. 100 percent larger than those for half orphans. Special Another important reason for grouping these payments are also made to orphans under the family numerous benefits together is that each deals with the allowance programs of some countries. risk of temporary incapacity. Sometimes, such benefits Benefits are payable under a number of programs are furnished as part of a single system with common to widowers of insured workers or pensioners. In financing and administration. Many countries provide many instances, a widower must have been finan- medical care services for sickness and maternity as an cially dependent on his wife and either disabled or old integral part of the health insurance system and some enough to receive an old-age benefit at her death. A link those services directly with the provision of cash widower’s benefit is usually computed in the same way benefits. In other instances, however, maternity cash as a widow’s benefit. grants are covered under family allowance programs. Many systems also pay benefits to other surviving In many cases, medical care services are provided close relatives, such as parents and grandparents, but under a public health program, independent of the only in the absence of qualifying widows, widowers, social insurance system. Where this dual approach is or children. The maximum total benefit to be split followed, it has been indicated in the summaries. among survivors is usually between 80 percent and Where health care is dispensed directly by the 100 percent of the benefit of the deceased. government or its agencies and the principal source of funds is general revenue, the cash benefit program Administrative Organization. Responsibility for usually continues to be administered on an insurance administration often rests with semiautonomous insti- basis, funded by payroll contributions, and merged in tutions or funds. These agencies are usually subject some instances with other aspects of the social insur- to general supervision by a ministry or government ance system such as old age and disability. However, department but otherwise are largely self-governing, countries that deliver health care primarily through headed by a tripartite board that includes representa- private facilities and private funding are also likely to tives of workers, employers, and the government. have developed separate programs. Where the social Some boards are bipartite with representatives of security program operates its own medical facilities, workers and employers only or of workers and the gov- both types of benefits are usually administered jointly. ernment. Where coverage is organized separately for Benefits designed to assist in the provision of long- different occupations, or for wage earners and salaried term care, often at home, are generally supported by a employees or self-employed workers, each program special tax. Benefit levels are normally set to the level usually has a separate institution or fund. In other of care required. These benefits may be payable in cases, the administration of benefits is placed directly cash, as care services, or as a combination of the two. in the hands of a government ministry or department. Coverage. The proportion of the population cov- Sickness and Maternity ered by sickness programs varies considerably from Sickness benefit programs are generally of two types: country to country, in part because of the degree of cash sickness benefits, which are paid when short- economic development. Coverage for medical care and term illnesses prevent work, and health care benefits, cash benefits is generally identical in countries where which are provided in the form of medical, hospital, both types of benefits are provided through the same and pharmaceutical benefits. Some countries main- branch of social insurance. In a number of systems, tain a separate program for cash maternity benefits, particularly in developing countries, health care insur-
8 ♦ SSPTW: The Americas, 2019 ance extends only to employees in certain geographic to six months or more and is ordinarily somewhat areas. A common procedure is to start the program longer for cash maternity benefits. Usually the period in major urban centers, then extend coverage gradu- must be fairly recent, such as during the last six or ally to other areas. Both cash sickness and health care 12 months. In the case of medical benefits, a qualify- programs may exclude agricultural workers, who, in ing period is usually not required. In instances where some countries, account for a major proportion of the such a requirement does exist, it is generally of a short working population. Where a health insurance sys- duration. Most programs providing medical services tem (as distinguished from a national health service to dependents of workers, as well as to the workers program) exists, most workers earning below a certain themselves, do not distinguish in their qualifying ceiling participate on a compulsory basis. Others, such conditions between the two types of beneficiaries. as the self-employed, may be permitted to affiliate on A few programs require a longer period of covered a voluntary basis. In several countries, higher-paid employment before medical services are provided to employees are specifically excluded from one or both dependents. forms of sickness insurance, although some voluntary Cash Benefits. The cash sickness benefit is usually participation is usually permitted. 50 percent to 75 percent of current average earnings, Many countries include pensioners as well as other frequently with supplements for dependents. Most social security beneficiaries under the medical care programs, however, fix a maximum benefit amount or programs, in some cases without cost to the pensioner. do so implicitly through a general earnings ceiling for Elsewhere, pensioners pay a percentage of their pen- contributions and benefits. Benefits may be reduced sion or a fixed premium for all or part of the medical when beneficiaries are hospitalized at the expense of care coverage. Special sickness insurance systems may the social insurance system. be maintained for certain workers, such as railway A waiting period of two to seven days is imposed employees, seamen, and public employees. under most cash sickness programs. As a result, ben- Where medical care coverage is provided through efits may not be payable if an illness or injury lasts for a national health service rather than social insurance, only a few days. Similarly, in the case of a prolonged the program is usually open in principle to virtually all inability to work, benefits may not be payable for the residents. However, restrictions on services to aliens first few days. Under some programs, however, ben- may apply. efits are retroactively paid for the waiting period when Source of Funds. Many countries have merged the the disability continues beyond a specified time, com- financing of sickness programs with that of other monly two to three weeks. A waiting period reduces social insurance benefits and collect only a single administrative and benefit costs by excluding many contribution from employees and employers. More claims for short illnesses or injuries during which commonly, however, employees and employers con- relatively little income is lost and can also help reduce tribute directly to a separate program that includes the potential for the inappropriate use of the system by both health care and cash benefits for sickness and workers. In other programs, employers are required to maternity. Some countries also provide a govern- pay benefits for a certain number of days before social ment contribution. Where medical care is available insurance payments begin. to residents, generally through some type of national The period during which a worker may receive health service, the government usually bears at least benefits for a single illness or injury, or in a given the major part of the cost from general revenues. 12-month period, is ordinarily limited to 26 weeks. In some instances, however, benefits may be drawn Qualifying Conditions. Generally, a person becom- for considerably longer and even for an unlimited ing ill must be gainfully employed, incapacitated for duration. A number of countries permit the agency work, and not receiving regular wages or sick-leave to extend the maximum entitlement period to 39 or payments from the employer to be eligible for cash 52 weeks in specific cases. In most countries, when sickness benefits. Most programs require claimants cash sickness benefits are exhausted, the recipient is to meet a minimum period of contribution or to have paid a disability benefit if the incapacity continues. some history of work attachment prior to the onset Cash maternity benefits are usually payable for of illness to qualify. Some countries, however, have a specified period, both before and after childbirth. eliminated the qualifying period. A woman is almost always required to stop working The length of the qualifying period for cash sick- while receiving maternity benefits, and usually she ness benefits may range from less than one month
SSPTW: The Americas, 2019 ♦ 9 must use the prenatal and postnatal medical services all necessary services to a given group of persons, or provided by the system. In some countries, cash a salary. maternity benefits are also payable to working men Under the reimbursement method, the patient who stay home to care for a newborn child while the makes the initial payment and is reimbursed by social mother returns to work. Cash payments may also security for at least part of the cost. A maximum is be available for a parent, usually the mother, who is sometimes placed on the refund, expressed as a per- absent from work to care for a sick child under a speci- centage of the bill or a flat amount that can vary with fied age. the nature of the service as stipulated in a schedule The proportion of earnings payable as a cash of fees. The ceiling on medical bills can be placed on maternity benefit differs considerably from country the provider when presenting the bill or on the patient to country but, like cash sickness benefits, is usually when applying for reimbursement. In the latter case, between 50 percent and 75 percent of current earn- the patient may be reimbursed for only a small portion ings. However, in a number of countries, maternity of the bill. benefits are set at 100 percent of wages. Benefit pay- Under the direct-provision method, the social ments usually start approximately six weeks before the security system or the government owns and operates expected date of childbirth and end six to eight weeks its own medical facilities, largely manned by salaried afterward. staff. Countries using this method may contract for A nursing allowance—usually 20 percent or services of public or private providers. The patient 25 percent of the regular maternity benefit and payable normally pays no fee for most of these services, except for up to six months or longer—may be provided in insofar as part of the social security contribution may addition to the basic cash maternity benefit. A grant be allotted toward health care funding. for the purchase of a layette—clothes and other essen- Regardless of the funding method used, all tials for the newborn baby—or the provision of a lay- national health care programs provide for at least a ette itself is furnished under some programs. Finally, a small degree of cost-sharing by patients, usually on lump-sum maternity grant may be paid on the birth of the assumption that such charges discourage overuse. each child. The wives of insured men may be eligible Thus, the patient either pays part of the cost to the for this grant. Similar benefits may be provided under provider or social security agency or receives less than the family allowance program. full reimbursement. Even under the direct-provision method, with its emphasis on basically free medical Medical Benefits. Medical services usually include at services to the whole population, patients are generally least general practitioner care, some hospitalization, required to pay a small fixed fee per medical treatment and essential drugs. Services of specialists, surgery, or prescription or for each day of hospitalization. maternity care, some dental care, a wider range of Some health care systems have no limit on how medicine, and certain appliances are commonly long medical care may be provided. Other systems fix added. Transportation of patients and home-nursing a maximum, such as 26 weeks, for services provided services may be included. for any given illness. Some set limits only on the There are three principal methods of meeting the duration of hospitalization paid for by social security. cost of health care: direct payment to providers by the Where time limits are imposed, they may be extended. public system or its agents, reimbursement of patients, and direct provision of medical care. These methods Maternity Care. Prenatal, obstetric, and postnatal may be used in different combinations and may be care for working women is provided in most countries varied for different kinds of services. under the medical services program. Obstetric care Under direct payment, the social security or public is sometimes limited to the services of a midwife, medical care system pays providers directly for ser- although a doctor is usually available in case of com- vices. Patients usually have little or no direct financial plications. Care in a maternity home or hospital, as dealings with the care provider. Payments for care are well as essential drugs, are ordinarily furnished where commonly made based on contracts with service pro- necessary. viders or the professional groups representing them, Medical Care for Dependents. When medical ben- such as practitioner or hospital associations. Remu- efits for insured workers are provided through social neration may take the form of a specified fee for each insurance, similar services are typically furnished service, a capitation payment in return for providing to their spouses and young children (and, in some cases, other adults or young relatives living with and
10 ♦ SSPTW: The Americas, 2019 dependent on the insured). Maternity care is generally injuries and occupational illnesses. Such programs provided to the wife of an insured man. usually furnish short- and long-term benefits, depend- In some countries, however, medical services ing on both the duration of the incapacity and the available to dependents are more limited than those age of survivors. Work injury benefits nearly always provided to insured workers or heads of families. include cash benefits and medical services. Most Dependents may be subject to a shorter maximum countries attempt to maintain separate work injury duration for hospital stays, for example, and may have programs that are not linked directly with other social to pay a larger percentage of the cost of certain ser- security measures. In some countries, however, work vices such as medicine. injury benefits are paid under special provisions of the general social security programs. Both types of Administrative Organization. The administrative programs are dealt with under Work Injury. organization for the sickness and maternity program is similar to that of the old-age, disability, and survivor Types of Systems. There are two basic types of work program in many countries. Most commonly, such injury systems: social insurance systems that use a programs are administered by some form of national public fund, and various forms of private or semipri- social security institution. Under some systems, social vate arrangements required by law. In most countries, security agencies own and operate their own medical work injury programs operate through a central public facilities, furnishing at least part of the services avail- fund, which may or may not be part of the general able under their programs. social insurance system. All employers subject to the In most countries with a national health insurance program must pay contributions to the public carrier, program, responsibility for detailed administration lies which in turn pays the benefits. with semiautonomous, nongovernment health funds or Countries that rely primarily on private arrange- associations. All workers covered by the program must ments require employers to insure their employees join one of these funds. against the risk of employment injury. However, in Each health fund usually requires government some of these countries, only private insurance is approval and must satisfy certain requirements. Work- available. In the remainder, a public fund does exist, ers and, in some countries, employers participate in but employers are allowed the option of insuring with the election of governing bodies. The funds normally either a private carrier or the public fund. collect contributions within minimum and maximum The premiums charged by private or mutual insur- limits. Funds may also receive government subsidies ance companies for work injury protection usually related to their expenditures or to the number of affili- vary depending on the experience of work accidents ated members. in different undertakings or industries, and the cost of National law usually prescribes the minimum protection may vary widely. In some countries, how- (and, in some cases, the maximum) cash benefits and ever, experience rating has been eliminated, and all medical services the health funds may provide. In a employers contribute to the program at one rate. few countries, individual funds may determine what In other instances, workers’ compensation laws specific health care benefits and services to provide simply impose on employers a liability to pay direct and arrange to furnish medical care to their members. compensation to injured workers or their survivors. This arrangement can involve delivery through con- Employers covered under such laws may simply pay tracts with care and service providers in the region. benefits from their own funds as injuries occur or may Less commonly, government departments are voluntarily purchase a private or mutual insurance responsible for the actual provision of medical ser- contract to protect themselves against risk. vices, usually through a national health service pro- Coverage. Work injury programs commonly cover gram. The administrative responsibility for delivering wage and salary workers and exclude the self- medical services in some countries is often separated employed. The programs of some of the more highly from the administration of cash benefit programs, industrialized nations cover practically all employees. which tend to be linked with other types of social However, many countries either exclude all agri- security benefits. cultural employees or cover only those who operate power-driven machinery. Some programs also exclude Work Injury employees of small enterprises. The oldest type of social security—the work injury program—provides compensation for work-connected
SSPTW: The Americas, 2019 ♦ 11 Source of Funds. Work injury benefits are financed The permanent total disability benefit usually primarily by employer contributions, reflecting the amounts to two-thirds to three-fourths of the worker’s traditional assumption that employers should be liable average earnings before injury, somewhat higher than when their employees suffer work injuries. Where cer- for ordinary disability benefits. In addition, unlike tain elements of the work injury program are meshed ordinary disability benefits, the rate usually does not with one or more of the other branches of the social vary based on the length of employment before the insurance system, however, financing usually involves injury. Supplements may be added for dependents contributions from employees, employers, and the gov- and for pensioners requiring the constant attendance ernment. Another exception occurs in countries that of another person, in which case benefits may exceed provide medical treatment for work-connected illnesses former earnings. In some countries, the benefits of under their ordinary public medical care programs. apprentices or new labor force entrants who become permanently disabled as a result of work-connected Work Injury Benefits. Work injury programs pro- injury or disease are based on hypothetical lifetime vide cash benefits and medical benefits. Cash benefits wages or on the wage of an average worker in the under work injury programs may be subdivided into particular industry. This mechanism overcomes the three types: benefits for temporary disability, those for problem of establishing a lifetime benefit based on a permanent total disability, and those for permanent very low starting wage. partial disability. No qualifying period of coverage or The third type of cash work injury benefit is employment is ordinarily required for entitlement to provided when permanent partial disability results in a work injury benefits. The concept of work-connected worker’s loss of partial working or earning capacity. It injury has gradually been liberalized in a number of is usually a portion of the full benefit corresponding to countries to cover injuries occurring while commuting the percentage loss of capacity. Alternatively, per- to and from work. manent partial disability benefits may be paid in the Temporary disability benefits are usually pay- form of a lump-sum grant. Partial disability payments able from the start of an incapacity caused by a work are generally smaller and are usually stipulated in a injury, though some programs require a waiting period schedule of payments for particular types of injuries. of one to three days. Benefits normally continue for a Some systems pay the benefit as a lump sum when the limited period, such as 26 to 52 weeks, depending on extent of disability is below a stated percentage, such the duration of incapacity. If incapacity lasts longer, as 20 percent. the temporary disability benefit may be replaced by a Medical and hospital care and rehabilitation permanent disability benefit. In some systems, tem- services are also provided to injured workers. Nearly porary benefits may continue for an extended period, always free, they may include a somewhat wider range particularly if the temporary and permanent benefit of services than the general sickness program. Ordi- amounts are identical. narily, they are available until the worker recovers or The temporary benefit is nearly always a frac- the condition stabilizes. In some countries, however, tion of the worker’s average earnings during a period free care is limited, the amount depending on the immediately before injury, usually at least one-third duration of services or their total cost. to one-half. A ceiling may be placed on the earnings considered in computing a benefit. Temporary ben- Survivor Benefits. Most work injury programs also efits under work injury programs may be significantly provide benefits to survivors. These benefits are higher than in the case of ordinary sickness. Benefits customarily payable to a widow, regardless of her age, are reduced under some programs when a worker is until her death or remarriage; to a widower with a dis- hospitalized. ability; and to orphans below specified age limits. If The second type of cash work injury benefit is pro- the benefit is not exhausted by the immediate survi- vided in cases of permanent total disability. Generally, vors’ claims, dependent parents or other relatives may it becomes payable immediately after the temporary be eligible for small benefits. No minimum period of disability benefit ceases, based on a medical evalua- coverage is required. tion that the worker’s incapacity is both permanent and Survivor benefits are computed as a percentage total. The permanent total disability benefit is usually of either the worker’s average earnings immediately payable for life, unless the worker’s condition changes. before death or the benefit payable (or potentially pay- A minority of programs, however, pay only a single able) at death. These percentages are typically larger lump-sum grant of several years of wages. than those for survivor benefits under the general
12 ♦ SSPTW: The Americas, 2019 program and do not normally vary with the length of employees earning more than a specified amount. covered employment. They are usually about one- Some have special provisions covering temporary and third to one-half of the worker’s average earnings for seasonal employees. Several countries have special a widow, about half as much for each half orphan, and occupational unemployment programs, most typically about two-thirds as much for each full orphan. A limit for workers in the building trades, dockworkers, rail- is commonly placed on the combined total of survivor way employees, and seafarers. benefits. Voluntary insurance systems are limited to indus- Not all countries, however, provide work injury tries in which labor unions have established unem- benefits to survivors, and some do not differentiate ployment funds. Membership in these funds is usually between survivors in this category and survivors enti- compulsory for union members in a covered industry tled to benefits under other social insurance programs. and may be open on a voluntary basis to nonunion Some schemes pay only a lump sum equal to the employees. Uninsured workers, such as recent school worker’s earnings over a specified number of years. graduates or the self-employed, for example, may be Most systems also pay a funeral grant equivalent to a eligible for a government-subsidized assistance benefit fixed sum or a percentage of the worker’s earnings. when they become unemployed. Administrative Organization. The functions involved Source of Funds. The methods used to finance in administering work injury programs differ widely unemployment insurance are usually based on the between countries in which employers are not required same contributory principles as for other branches of to insure or can insure with private carriers and those social insurance—contributions amounting to a fixed in which a public agency or fund has sole responsibility percentage of covered wages are paid on a scheduled for both collecting contributions and paying benefits. basis. In many cases, the government also grants a subsidy, particularly for extended benefits. Unemployment Unemployment insurance contributions are Benefits in this category provide compensation for shared equally between employees and employers in the loss of income resulting from involuntary unem- many countries. Alternatively, the entire contribution ployment. In some countries, these programs are may be made by the employer. However, govern- independent of other social security measures and ment subsidies may be quite large, amounting to as may be closely linked with employment services. much as two-thirds of the program’s expenditures. In other countries, the unemployment programs are Means-tested unemployment assistance programs are included with social security measures covering financed entirely by governments, with no employer or other short-term risks, although employment services employee contribution. may continue to verify unemployment and assist in a Qualifying Conditions. To be entitled to unem- job search. ployment benefits, a worker must be involuntarily Unemployment programs, which exist mainly in unemployed and have completed a minimum period industrialized countries, are compulsory and fairly of contributions or covered employment. The most broad in scope in many countries. Some countries common qualifying period is six months of cover- restrict benefits to those who satisfy a means or age within the year before employment ceased. In a income test. In addition to the programs offering number of industrialized countries, however, students scheduled payments, a number of countries provide recently out of school who are unable to find jobs may lump-sum grants, payable by either a government be eligible for unemployment benefits, even without agency or the employer; other countries provide a work record. This benefit provides a transition from individual severance accounts, providing total ben- school to work, particularly in periods of recession. efits equal to the value of accumulated capital in the Nearly all unemployment insurance programs, individual account. In addition, employers in many as well as those providing unemployment assistance, instances are required to pay lump-sum severance require that applicants be capable of, and available for, indemnities to discharged workers. work. An unemployed worker, therefore, is usually Coverage. About half of the compulsory unem- ineligible for unemployment benefits when incapaci- ployment programs cover the majority of employed tated or otherwise unable to accept a job offer. Usu- persons, regardless of the type of industry. Coverage ally, the unemployed worker must register for work at under the remaining programs is limited to workers an employment office and report regularly for as long in industry and commerce. A few exclude salaried as payments continue. This close linkage between
SSPTW: The Americas, 2019 ♦ 13 unemployment benefits and placement services Most countries have a waiting period of several ensures that benefits will be paid only after the person days before unemployment benefits become payable has been informed of any current job opportunities to reduce the administrative burden of dealing with a and been found unsuitable. very large number of small claims. Most waiting peri- An unemployed worker who refuses an offer of ods are between three and seven days. Some programs a suitable job without good cause usually will have have a waiting period for each incident of unem- benefits temporarily or permanently suspended. Most ployment, and others limit eligibility to once a year. programs stipulate that the job offered must have Longer waiting periods may be prescribed for certain been suitable for the worker. The definitions of suit- workers, such as the seasonally employed. able employment vary considerably. Generally, the Most countries place a limit on the period dur- criteria include the rate of pay for the job being offered ing which unemployment benefits may be continu- in relation to previous earnings; distance from the ously drawn. Typically, this limit varies from eight to worker’s home; relationship to the worker’s previous 36 weeks but may be longer in certain cases. occupation, capabilities, and training; and the extent Duration of benefits may also depend on the to which the job may involve dangerous or unhealthy length of the preceding period of contribution or cov- work. In some countries, long-term unemployed work- erage under the program. That criterion may reduce ers may also be obliged to undertake employment the maximum duration of unemployment benefits for retraining programs. Some countries also provide the workers with brief work histories. However, workers unemployed with access to educational placements. with a long history of coverage may, under some pro- If an unemployed worker refuses a place on a retrain- grams, have their benefit period extended well beyond ing program or fails, without good cause, to attend an the ordinary maximum. educational placement, benefits can be temporarily or Many unemployed workers who exhaust the right permanently suspended. to ordinary benefits continue to receive some assis- An unemployed worker may satisfy all of the qual- tance, provided their means or incomes are below ifying conditions for a benefit but still be temporarily specified levels. Recipients are usually required to or permanently disqualified. Nearly all unemployment continue registering and reporting at an employment systems disqualify a worker who left voluntarily with- exchange. Some countries that have unemployment out good cause, was dismissed because of misconduct, assistance but no insurance program do not place any or participated in a labor dispute leading to a work limit on the duration of payments. A number of coun- stoppage that caused the unemployment. The period of tries require that insured workers approaching retire- disqualification varies considerably, from a few weeks ment age who have been out of work for a specified to permanent disqualification. period be removed from the unemployment rolls and granted a regular old-age benefit. Unemployment Benefits. Weekly benefits are usually a percentage of average wages during a recent period. Administrative Organization. Unemployment insur- A system of wage classes rather than a single fixed ance systems may be administered by government percentage is used in some countries. The basic rate departments or self-governing institutions that are of unemployment benefits is usually between 40 per- usually managed by representatives of insured per- cent and 75 percent of average earnings. However, a sons, employers, and the government. ceiling on the wages used for benefit computations or Unemployment insurance and placement service maximum benefit provisions may considerably nar- programs usually maintain a close administrative row the range within which the basic percentage of relationship that ensures that benefits are paid only wages applies. to workers who are registered for employment. At Flat-rate amounts are sometimes payable instead the same time, this liaison increases the effectiveness of graduated benefits that vary with past wages and of the placement services by providing an incentive, customarily differ only based on the family status or, through payment of benefits, for unemployed persons occasionally, the age of the worker. Supplements for to register and report regularly. a spouse and children are usually added to the basic Some countries have merged the administration benefit of unemployed workers who are heads of fami- of unemployment insurance and employment service lies. These supplements are either flat-rate amounts or programs, especially at the lower administrative levels an additional percentage of average earnings. where claims are received and benefits are paid by the local employment office. Other countries require per-
14 ♦ SSPTW: The Americas, 2019 sons to register with a local employment office, but the category, in principle, provides allowances to all resi- receipt of claims and payment of benefits are handled dent families with a specified number of children. The by a separate insurance office. second category provides allowances to all wage and In addition to providing an income for the unem- salary workers and, in some cases, to self-employed ployed, many governments have elaborate measures and nonemployed persons. Most employment-related to prevent or counteract unemployment. The typical programs continue to pay family allowances to insured procedure is for government employment services persons with dependent children in their care when to work with industry to promote occupational and they retire or are temporarily off the job and receiving geographic mobility of labor and to minimize unem- sickness, unemployment, work injury, disability, or ployment caused by economic or technological devel- other benefits. Employment-related family programs opments; they do that by subsidizing the retraining also pay allowances to widows of social security and relocation of workers in industries that are declin- beneficiaries. The third category provides allowances ing or being restructured. Governments may grant to persons or households whose resources fall below tax and other incentives to industry to locate in areas a calculated standard, usually based on subsistence of high unemployment, or they may allocate funds needs. to create jobs in anticipation of periods of seasonal Source of Funds. The differences in family allow- unemployment. ance programs are reflected in the methods used for financing. In universal and social assistance systems, Family Allowances the entire cost is usually covered by general revenue, The general purpose of family allowance programs is although some programs may be financed with ear- to provide additional income for families with young marked taxes or solidarity transfers from contributory children to meet at least part of the added costs of their programs. By contrast, countries linking eligibility support. These programs may either be integrated with employment meet the cost of allowances entirely with other social security measures or kept entirely or in considerable part from employer contributions, separate. In this report, family allowances primar- usually at a uniform percentage-of-payroll rate. If ily include regular cash payments to families with employer contributions do not cover the entire cost, children. In some countries, they also include school the remainder is usually met from a government grants, birth grants, maternal and child health ser- subsidy. Few countries require an employee contribu- vices, minimum income guarantees, and allowances tion toward family allowances, although some require for adult dependents. self-employed persons to contribute. Most industrialized countries have family allow- ance programs that originated in Europe in the 19th Eligibility. Eligibility is commonly related to the size century when some large companies began paying of the family and, in some cases, to family income. premiums to workers with large families. The idea Many countries pay allowances beginning with the spread gradually, and several European countries first child. In addition, some countries pay an allow- enacted programs during the 1920s and 1930s. Most ance for a nonemployed wife or other adult dependent, programs in operation today, however, have been in even if there are no children. place since 1945. In some countries, families with only one child are A relatively new trend in many developing coun- ineligible. Age requirements vary but are usually tied tries has been the emergence of cash transfers as an to the last year of school or the minimum working age, instrument to alleviate poverty and invest in human which are often the same and fall somewhere between capital. In this report, these benefits are classified as ages 14 and 18. Under most programs, the continuation family allowances since they are generally paid to of schooling, apprenticeship, or vocational training families with children. Usually financed from taxa- qualifies a child for an extension of the age limit. In tion, cash transfers are almost always means tested, the case of children with disabilities, many countries and the receipt of benefits may be tied to a given set extend the age limit beyond that for continued educa- of behavioral conditions, such as school attendance or tion or pay allowances indefinitely. meeting basic health and nutritional requirements. Benefits. Whether a program pays a uniform rate for Types of Systems and Coverage. Family allow- all children or an increasing or decreasing amount for ance programs are generally of three types: universal, each additional child may reflect the history or the employment-related, and social assistance. The first intent of the program. The allowance structure may
SSPTW: The Americas, 2019 ♦ 15 vary, for example, depending on whether the primary autonomous agency. Where allowances are payable intent is to provide assistance, stimulate population mainly to families of employed persons and financed growth, or promote human capital. The allowance is primarily from employer contributions, the admin- often a uniform amount for every child, regardless of istration may be by a semiautonomous agency under the number of children in a family. In other countries, public supervision. Equalization funds may handle the the allowance in most of the other countries increases program’s financial operations. Each employer pays for each additional child; the payment for a fifth child, family allowances to its employees with their wages. for example, may be considerably larger than that The firm then settles with the local fund only the for the first or second child. In a few countries, the surplus or deficit of contributions due, after deduct- allowance for each child diminishes or ceases with the ing allowances the firm has paid. A similar procedure addition of children beyond a certain number. In some of settling only surpluses or deficits is followed by countries, family allowances (and tax exemptions for the local funds in relation to the regional equaliza- dependent family members) have been replaced or tion funds under whose supervision they operate. The supplemented by credits or other forms of a negative equalization process makes it possible to fix a uniform income tax. contribution rate for all employers, regardless of the number of children in their employees’ families. It also Administrative Organization. In countries where eliminates any effect allowances might have on induc- family allowances are universal or targeted to the ing employers to discriminate in hiring workers with poorest households, the program is usually adminis- children. tered by a government ministry, department, or semi-
16 ♦ SSPTW: The Americas, 2019 Table 1. Social security programs, by country and type
Sickness and maternity Old age, disability, Cash Cash and sickness maternity Medical Work Unemploy- Family Country survivors benefits benefits benefits injury ment allowances
Antigua and X X X X a X Barbuda Argentina X a X X X a X X X Aruba b X X X X X a X X Bahamas X X X X X X Barbados X X X X X X X Belize X X X X Bermuda X a X a X X a X X Bolivia X X X X X X
Brazil X X X X X X X
British Virgin X X X X X Islands Canada X X X X X X X Chile X X X X X X X Colombia X X X X X X X Costa Rica X X X X a X X X Cuba X X X X X Dominica X X X X Dominican X X X X X X Republic Ecuador X X X X X X X El Salvador X X X X X X Grenada X X X X X Guatemala X X X X X Guyana X X X X X X Haiti X X X X Honduras X X X X a X X X Jamaica X a X X X X X Mexico X X X X X X Nicaragua X X X X X X (Continued)
SSPTW: The Americas, 2019 ♦ 17 Table 1. Social security programs, by country and type—Continued
Sickness and maternity Old age, disability, Cash Cash and sickness maternity Medical Work Unemploy- Family Country survivors benefits benefits benefits injury ment allowances
Panama X X X X a X X X Paraguay X X X X X a X Peru X X X X X X a X Saint Kitts and X X X X X Nevis Saint Lucia X X X X X Saint Vincent and the X X X X X Grenadines Suriname X a X X a X X Trinidad and X X X X X X Tobago United States X X a X X X Uruguay X X X X a X X X Venezuela X X X X X X a X
SOURCE: The country summaries in this volume. a. Employer-liability system only. b. Old-age and survivors benefits only.
18 ♦ SSPTW: The Americas, 2019 Table 2. Mandatory old-age income security programs, by country and type
Contributory Non-contributory
Flat- Earnings- Means- Provident Occupational Individual Country rate related tested Universal funds a pensions accounts
Antigua and X X Barbuda Argentina b X b X X Aruba X X Bahamas X X Barbados X X Belize X X Bermuda X X X Bolivia X c X Brazil X X British Virgin X Islands Canada X X d X Chile e X X c X Colombia X X c X Costa Rica X X X Cuba X X Dominica X Dominican Republic c X Ecuador X X El Salvador e X X c X Grenada X Guatemala X X Guyana X X Haiti X X Honduras X X Jamaica b X b X X Mexico e X X c X Nicaragua X Panama X X X Paraguay X X Peru X X c X (Continued)
SSPTW: The Americas, 2019 ♦ 19 Table 2. Mandatory old-age income security programs, by country and type—Continued
Contributory Non-contributory
Flat- Earnings- Means- Provident Occupational Individual Country rate related tested Universal funds a pensions accounts
Saint Kitts and X X Nevis Saint Lucia X Saint Vincent and X X the Grenadines Suriname X X Trinidad and X X Tobago United States X X Uruguay X X X Venezuela X X
SOURCE: The country summaries in this volume. NOTES: The types of mandatory old-age income programs are defined as follows: Contributory flat-rate pension: A pension amount that is independent of earnings, but can vary depending on length of service, residency, or other factors. It is financed by payroll tax contributions from employees, employers, or both. Contributory earnings-related pension: A pension that is based on earnings. It is financed by payroll tax contributions from employees, employers, or both. Non-contributory means-tested pension: A pension paid to eligible persons whose own or family income, assets, or both fall below certain limits. It is generally financed through government contributions, with no contributions from employers or employees. Non-contributory universal pension: A pension paid to eligible persons based primarily on residency and not earnings or financial means. It is generally financed through government contributions, with no contributions from employers or employees. Provident funds: Employee and employer contributions are set aside for each employee in publicly managed special funds. Benefits are generally paid as a lump sum with accrued interest. Occupational pensions: Employers are required by law to provide private occupational retirement programs financed by employer and, in some cases, employee contributions. Benefits are paid as a lump sum, annuity, or pension. Individual accounts: Employees and, in some cases, employers must contribute a certain percentage of earnings to an individual account managed by a public or private fund manager chosen by the employee. The accumulated capital in the individual account is used to purchase an annuity, make programmed withdrawals, or a combination of the two and may be paid as a lump sum. a. No country in the Americas has a provident fund. The column in this table is to facilitate comparisons with countries in other regions. b. The benefit formula contains a flat-rate component as well as an element based on earnings or years of coverage. c. The government provides a guaranteed minimum pension. d. The universal pension is increased by an income-tested supplement. e. The earnings-related social insurance system is closed to new entrants and is being phased out.
20 ♦ SSPTW: The Americas, 2019 Table 3. Demographic and other social security-related statistics, by country, 2017–2019
Life Statutory Early Per- Dependency expectancy pensionable pensionable GDP Total centage ratio at birth (years) age age b per population 65 or (percent- capita Country (millions) older age) a Men Women Men Women Men Women (PPP)
Antigua and 0.096 8.8 44.7 75.6 77.9 62 62 60 60 26,868 Barbuda Argentina 44.49 11.1 56.0 72.9 79.7 65 60 c c 20,611 Aruba 0.106 13.6 45.7 73.5 78.4 62.5 62.5 c c 39,455 Bahamas 0.386 7.3 42.3 71.3 75.7 65 65 60 60 32,088 Barbados 0.287 15.8 49.6 77.6 80.3 67 67 60 60 18,554 Belize 0.383 4.7 53.9 71.5 77.5 65 65 60 60 8,648 Bermuda 0.064 d 19.7 d 57.3 77.7 85.4 65 65 c c e 52,547 Bolivia 11.35 7.2 62.0 68.2 73.9 60 60 c c 7,873 Brazil 209.47 8.9 43.4 71.8 79.2 f 65 f 60 c c 16,096 British Virgin 0.030 d 10.1 d 36.4 d 77.7 d 80.8 65 65 c c 34,200 Islands Canada 37.06 17.2 49.5 80.3 84.3 65 65 60 60 48,130 Chile 18.73 11.5 45.5 77.3 82.3 65 60 c c 25,223 Colombia 49.65 8.5 46.1 74.1 79.7 62 57 c c 15,013 Costa Rica 5.00 9.5 44.7 77.4 82.6 65 65 62 60 17,671 Cuba 11.34 15.2 45.8 76.7 80.6 65 60 c c g 12,300 Dominica 0.072 d 12.1 d 50.4 d 74.7 d 80.9 64 64 60 60 11,130 Dominican 10.63 7.1 54.0 70.6 77.0 60 60 55 55 17,748 Republic Ecuador 17.08 7.2 54.3 73.8 79.4 60 60 c c 11,734 El Salvador 6.42 8.3 54.8 68.0 77.4 60 55 c c 8,332 Grenada 0.111 9.6 49.7 70.1 74.9 60 60 c c 15,558 Guatemala 17.25 4.8 64.6 70.8 76.7 60 60 c c 8,462 Guyana 0.779 6.5 53.1 66.6 72.8 65 65 c c 8,641 Haiti 11.12 4.9 61.8 61.1 65.5 55 55 c c 1,867 Honduras 9.59 4.7 57.3 72.6 77.2 65 60 c c 5,139 Jamaica 2.93 8.8 48.3 72.7 75.9 65 65 c c 9,327 Mexico 126.19 7.2 51.0 72.0 77.8 68 68 c c 19,845 Nicaragua 6.47 5.2 54.9 70.6 77.5 60 60 c c 5,534 (Continued)
SSPTW: The Americas, 2019 ♦ 21 Table 3. Demographic and other social security-related statistics, by country, 2017–2019—Continued
Life Statutory Early Per- Dependency expectancy pensionable pensionable GDP Total centage ratio at birth (years) age age b per population 65 or (percent- capita Country (millions) older age) a Men Women Men Women Men Women (PPP)
Panama 4.18 8.1 54.2 75.1 81.4 62 57 60 55 25,554 Paraguay 6.96 6.4 55.9 72.0 76.1 60 60 55 55 13,600 Peru 31.99 8.1 51.2 73.6 79.0 65 65 55 50 14,418 Saint Kitts 0.052 d 10.0 d 42.6 d 74.1 d 79.1 62 62 c c 30,208 and Nevis Saint Lucia 0.182 9.8 39.5 74.6 77.3 65 65 60 60 13,881 Saint Vincent and the 0.110 9.6 47.3 70.1 74.9 62 62 60 60 12,288 Grenadines Suriname 0.576 6.9 51.7 68.3 74.8 60 60 c c 15,510 Trinidad and 1.39 10.7 45.3 70.6 76.0 h h h h 32,015 Tobago United States 327.17 15.8 52.7 76.1 81.1 66 66 62 62 62,795 Uruguay 3.45 14.8 54.9 73.8 81.2 60 60 c c 23,572 Venezuela 28.87 7.3 53.7 68.5 76.2 60 55 c c i 18,102
SOURCES: Information on statutory and early pensionable ages is based on information in the country summaries in this volume. Other indicators are sourced from the World Bank, World Development Indicators, available at http://data.worldbank .org/data-catalog/worlddevelopment-indicators; and where information was not available, the U.S. Central Intelligence Agency. The World Factbook (Washington D.C.: Central Intelligence Agency), available at https://www.cia.gov/library /publications/resources/the-world-factbook/index.html. The figures in the table reflect the latest data available from each source as of the publication of this volume. NOTES: GDP = gross domestic product; PPP = purchasing power parity. GDP estimates are converted into international dollars using PPP rates. The statutory and early pensionable age shown in the table is the general pensionable age or the age that applies to the largest covered population. a. Population aged 14 or younger plus population aged 65 or older, divided by population aged 15 to 64. b. General early pensionable age only; excludes early pensionable ages for specific groups of employees. c. The country has no early pensionable age, has one only for specific groups, information is not available, or the pension is awarded at any age if certain qualifying conditions are met. d. 2020 population estimate. e. 2013 GDP. f. Urban workers. g. 2016 GDP. h. The retirement age is flexible. i. 2014 GDP.
22 ♦ SSPTW: The Americas, 2019 Table 4. Insured and employer contribution rates, by country and program type, 2019 (in percent)
Old-age, Sickness Country and disability, and Work Family Total, all contributor and survivors maternity injury Unemployment allowances programs
Antigua and Barbuda Insured person 5.5 a 0 ...... 5.5 Employer 7.5 a b ...... b 7.5 Total 13.0 a b 0 ...... b 13.0 Argentina Insured person 11.00 0 0 0 0 11.00 Employer 10.74 a, b b 0.92 4.57 b 16.23 Total 21.74 a, b 0 b 0 0.92 4.57 b 27.23 Aruba Insured person 8.5 0 0 0 0 8.50 Employer 14.0 2.7 0.25 b, c 0 b 16.95 Total 22.5 2.7 0.25 b, c 0 b 25.45 Bahamas Insured person 3.9 a a a . . . 3.9 Employer 5.9 a a a . . . 5.9 Total 9.8 a a a . . . 9.8 Barbados Insured person 8.85 a 0 1.25 0 10.10 Employer 8.75 a 0.75 2.25 0 11.75 Total 17.60 a 0.75 3.50 0 21.85 Belize Insured person c a a ...... c Employer c a a ...... c Total c a a ...... c Bermuda Insured person c 5 0 0 . . . 0 c 5 Employer c 5 b b . . . 0 b, c 5 Total c 10 b 0 b 0 . . . 0 b, c 10 Bolivia Insured person 12.21 0 a 0 . . . 0 12.21 Employer 3.00 b 10 a 1.71 . . . 13 b 27.71 Total 15.21 b 10 a 1.71 . . . 13 b 39.92 (Continued)
SSPTW: The Americas, 2019 ♦ 23 Table 4. Insured and employer contribution rates, by country and program type, 2019 (in percent)—Continued
Old-age, Sickness Country and disability, and Work Family Total, all contributor and survivors maternity injury Unemployment allowances programs
Brazil Insured person 8 a 0 0 a 8 Employer 20 a 1 0 a 21 Total 28 a 1 0 a 29 British Virgin Islands Insured person 4.0 a 0 ...... 4.0 Employer 4.5 a a ...... 4.5 Total 8.5 a a 0 ...... 8.5 Canada Insured person 5.1 a 0 1.620 0 6.720 Employer 5.1 a c 2.268 0 c 7.368 Total 10.2 a c 3.888 0 c 14.088 Chile Insured person 10.00 7 0 0.6 0 17.60 Employer 1.53 a, b 0.93 2.4 0 b 4.86 Total 10.53 a, b 7 0.93 3.0 0 b 22.46 Colombia Insured person 4 4.0 0 0 0 8.000 Employer 12 8.5 0.348 a, c 4 c 24.848 Total 16 12.5 0.348 a, c 4 c 32.848 Costa Rica Insured person a 4.84 5.5 0 0 0 10.34 Employer 8.33 b 9.25 b 1.5 5 b 24.08 Total 13.17 b 14.75 b 0 1.5 5 b 34.42 Cuba Insured person 2.5 a a ...... 2.5 Employer 14.5 a a ...... 14.5 Total 17.0 a a ...... 17.0 Dominica Insured person 6.00 a 0 ...... 6.00 Employer 6.75 a a ...... 6.75 Total 12.75 a a 0 ...... 12.75 (Continued)
24 ♦ SSPTW: The Americas, 2019 Table 4. Insured and employer contribution rates, by country and program type, 2019 (in percent)—Continued
Old-age, Sickness Country and disability, and Work Family Total, all contributor and survivors maternity injury Unemployment allowances programs
Dominican Republic Insured person 2.87 3.04 0 . . . 0 5.91 Employer 7.10 7.09 1.2 . . . 0 15.39 Total 9.97 10.13 1.2 . . . 0 21.30 Ecuador Insured person 6.74 0 0 2 0 8.74 Employer 2.22 b 9 0.2 1 0 b 12.42 Total 8.96 b 9 0.2 3 0 b 21.16 El Salvador Insured person 7.25 3.0 a . . . 0 10.25 Employer 7.75 7.5 a . . . 0 15.25 Total 15.00 10.5 a . . . 0 25.50 Grenada Insured person 4 a 0 0 ...... 4 Employer 4 a, b 1 ...... b 5 Total 8 a, b 0 1 ...... b 9 Guatemala Insured person 1.83 2 1 ...... 4.83 Employer 3.67 4 3 ...... 10.67 Total 5.50 6 4 ...... 15.50 Guyana Insured person 5.6 a a . . . 0 5.6 Employer 8.4 a a . . . 0 8.4 Total 14.0 a a . . . 0 14.0 Haiti Insured person 6 3 0 ...... 9 Employer 6 3 2 ...... 11 Total 12 6 2 ...... 20 Honduras Insured person 2.5 2.5 0 0 0 5.00 Employer 3.5 b 5.0 b b 1.98 0 b 10.48 Total 6.0 b 7.5 b 0 b 1.98 0 b 15.48 (Continued)
SSPTW: The Americas, 2019 ♦ 25 Table 4. Insured and employer contribution rates, by country and program type, 2019 (in percent)—Continued
Old-age, Sickness Country and disability, and Work Family Total, all contributor and survivors maternity injury Unemployment allowances programs
Jamaica Insured person 2.75 a 0 0 . . . 0 2.75 Employer 2.75 a, b a . . . 0 b 2.75 Total 5.50 a, b 0 a 0 . . . 0 b 5.50 Mexico Insured person 1.75 0.25 0 . . . a 0 2.0 Employer 6.90 0.70 0.5 . . . a 1 9.1 Total 8.65 0.95 0.5 . . . a 1 11.1 Nicaragua Insured person 4.75 2.25 0 . . . a 7.0 Employer 12.50 6.00 3 . . . a 21.5 Total 17.25 8.25 3 . . . a 28.5 Panama Insured person 9.25 0.5 0 0 0 9.75 Employer 4.25 0.5 b c 0 b, c 4.25 Total 13.50 0.5 b 0 c 0 b, c 14.00 Paraguay Insured person 9 a a . . . 0 9.0 Employer 14 a 2.5 a . . . b b 16.5 Total 23 a 2.5 a . . . b 0 b 25.5 Peru Insured person 13 0 0 0 0 13.00 Employer 0 9 0.63 b, c b b, c 9.63 Total 13 9 0.63 b, c b 0 b, c 22.63 Saint Kitts and Nevis Insured person 5 a 0 . . . 0 5 Employer 5 a 1 . . . 0 6 Total 10 a 1 . . . 0 11 Saint Lucia Insured person 5 a a ...... 5 Employer 5 a a ...... 5 Total 10 a a ...... 10 (Continued)
26 ♦ SSPTW: The Americas, 2019 Table 4. Insured and employer contribution rates, by country and program type, 2019 (in percent)—Continued
Old-age, Sickness Country and disability, and Work Family Total, all contributor and survivors maternity injury Unemployment allowances programs
Saint Vincent and the Grenadines Insured person 4.5 a 0 ...... 4.5 Employer 5.5 a a ...... 5.5 Total 10.0 a a 0 ...... 10.0 Suriname Insured person 2.5 0 0 . . . 0 2.5 Employer 6.5 b b . . . 0 b 6.5 Total 9.0 b 0 b 0 . . . 0 b 9.0 Tobago Insured person 4.4 a 0 a 0 . . . 0 4.4 Employer 8.8 a, b a, b . . . 0 b 8.8 Total 13.2 a, b 0 a, b 0 . . . 0 b 13.2 United States Insured person 6.2 . . . 0 0 . . . 6.2 Employer 6.2 . . . b 1.3 0.6 . . . b 8.1 Total 12.4 . . . b 1.3 0.6 . . . b 14.3 Uruguay Insured person 15.0 a 0 0 a a 15.0 Employer 7.5 a, b b a a b 7.5 Total 22.5 a, b 0 b 0 a a b 22.5 Venezuela Insured person 4 a 0 0.5 0 4.50 Employer 9 a 0.75 2.0 b b 11.75 Total 13 a 0.75 2.5 b 0 b 16.25 (Continued)
SSPTW: The Americas, 2019 ♦ 27 Table 4. Insured and employer contribution rates, by country and program type, 2019 (in percent)—Continued
SOURCE: The country summaries in this volume. NOTES: This table provides an overview. Contribution rates are not directly comparable across programs and countries. The definition of earnings used to calculate contributions can vary and some rates are subject to contribution floors and ceilings. Contribution rates for self-employed persons and government funding are not represented. In some countries, only certain groups of employed persons, such as wage earners, are represented. When the contribution rate varies, either the average or the lowest rate in the range is used. In most cases, contribution rates for individual accounts do not include administrative fees. In most cases, contributions for medical benefits have been excluded. They are only included in Sickness and Maternity in countries where cash benefits and medical benefits are financed from the same contributions. Where two programs are financed in different ways or with different rates, either the aggregate rate is used or one rate for one program and a footnote for the other, if relevant. If an individual can choose whether to participate in two (or more) programs, the social insurance rate is shown. . . . = not applicable. a. All or certain benefits are financed under another program. b. Employers pay the total cost or provide benefits directly to the insured. c. Nontandard financing. See country profile for specific information.
28 ♦ SSPTW: The Americas, 2019 Country Summaries
Antigua and Barbuda
Self-employed person Antigua and Barbuda Social insurance: 10% of monthly covered earnings. The minimum monthly earnings used to calculate contribu- Exchange rate: US$1.00 = tions vary by self-employment category, with the lowest 2.70 East Caribbean dollars (EC$). minimum being the legal monthly minimum wage. The legal monthly minimum wage is EC$1,420. Old Age, Disability, and Survivors The maximum monthly earnings used to calculate contribu- tions are EC$6,500. Regulatory Framework The self-employed person’s contributions also finance cash sickness and maternity benefits. First and current laws: 1972 (social insurance), 1973 (old age), 1973 (survivors), 1977 (disability), 1993 (social assis- Social assistance: None. tance), 2001 (self-employed persons), and 2013 (collection Employer of contributions). Social insurance: 7.5% (gradually rising by 0.25% a year Type of program: Social insurance and social assistance until reaching 9% by 2025) of gross monthly covered system. payroll. Coverage Gross earnings include basic earnings, overtime pay, vaca- tion and holiday pay, bonuses, commissions, housing allow- Social insurance: Employed and self-employed persons. ances, and other incentives. Exclusions: A married woman working for her husband, The minimum monthly earnings used to calculate contribu- certain family members working for a family business, tions are the legal monthly minimum wage. certain casual workers, foreign diplomats, international The legal monthly minimum wage is EC$1,420. organization employees, and foreign military personnel residing in Antigua and Barbuda. The maximum earnings used to calculate contributions are EC$1,500 a week; EC$3,000 every two weeks; or EC$6,500 Social assistance: Needy residents of Antigua and a month. Barbuda. The employer’s contributions also finance sickness (private Source of Funds sector only) and maternity benefits. Insured person Social assistance: None. Social insurance: 5.5% (gradually rising by 0.25% a year Government until reaching 7% by 2025) (private sector) or 4.5% (gradu- Social insurance: None; contributes as an employer. ally rising by 0.25% a year until reaching 6% by 2025) (public sector) of gross monthly covered earnings. Social assistance: The total cost. Gross earnings include basic earnings, overtime pay, vaca- Qualifying Conditions tion and holiday pay, bonuses, commissions, housing allow- ances, and other incentives. Old-age pension (Age Pension, social insurance): Age 62 (gradually rising by one year every two years until The minimum monthly earnings used to calculate contribu- reaching age 65 in 2025) with at least 600 weeks (gradu- tions are the legal monthly minimum wage. ally rising by 50 weeks every two years until reaching The legal monthly minimum wage is EC$1,420. 750 weeks in 2025) of contributions. The maximum earnings used to calculate contributions are Early pension: Age 60 and meets the contribution require- EC$1,500 a week; EC$3,000 every two weeks; or EC$6,500 ments for an old-age pension. a month. The old-age pension is payable abroad. The insured person’s contributions also finance cash sick- ness (private sector only) and maternity benefits. Old-age settlement (Age Grant, social insurance): Age 62 with at least 52 weeks but less than 600 weeks of Social assistance: None. contributions. The old-age settlement is payable abroad.
SSPTW: The Americas, 2019 ♦ 31 Antigua and Barbuda
Old-age assistance (social assistance, income tested): Old-Age Benefits Age 86 (age 60 if blind or disabled) and a resident of Antigua and Barbuda for at least 15 years (20 years if not a Old-age pension (Age Pension, social insurance): 25% citizen). of the insured’s average annual earnings plus 1% for every 50 weeks of contributions exceeding 600 weeks (gradually Income test: Annual income from all sources must be rising until reaching 750 weeks in 2025) of contributions is below EC$5,000. paid. Disability pension (Invalidity Pension, social insur- Average annual earnings are based on the insured’s best ance): Must be younger than age 60, be assessed with a five years of covered earnings in the last 10 years of work; disability, and have at least 156 weeks of contributions if the insured has worked less than five years, the average is immediately before the disability began. based on the insured’s total earnings. The insured’s doctor assesses the degree of disability. The The maximum monthly earnings used to calculate benefits Social Security Board’s doctor makes a second assessment. are EC$6,500. If opinions differ, the Chief Medical Officer decides. The minimum monthly old-age pension is EC$350. The disability pension is payable abroad. The maximum monthly old-age pension is 50% of the Disability settlement (Invalidity Grant, social insur- maximum earnings used to calculate benefits. Must be younger than age 60, be assessed with a dis- ance): Early pension: The pension is reduced by 0.5% for each ability, and have at least 52 weeks but less than 156 weeks month it is claimed before the normal retirement age. of contributions. Benefit adjustment: Benefits are adjusted based on actuarial The insured’s doctor assesses the degree of disability. The recommendations. Social Security Board’s doctor makes a second assessment. If opinions differ, the Chief Medical Officer decides. Old-age settlement (Age Grant, social insurance): The disability settlement is payable abroad. A lump sum of EC$1,200 or 75% of total employee and employer contributions, whichever is greater, is paid. Survivor pension (Survivor’s Pension, social insur- ance): The deceased received or was entitled to receive an Old-age assistance (social assistance, income tested): old-age or disability pension at the time of death. EC$255 a month is paid. Eligible survivors include a widow who was married to or Permanent Disability Benefits living with the deceased for at least three years at the time of death, a disabled widower who was married to or living Disability pension (Invalidity Pension, social insur- with the deceased for at least three years and was finan- ance): 25% of the insured’s average annual earnings cially dependent on the deceased at the time of death, and plus 1% for every 50 weeks of contributions exceeding unmarried orphans younger than age 16 (age 18 if a student, 500 weeks of contributions is paid. no limit if disabled). Average annual earnings are based on the insured’s best The widow(er)’s pension ceases upon remarriage. five years of covered earnings in the last 10 years of work; if the insured has worked less than five years, the average is The survivor pension is payable abroad. based on the insured’s total earnings. Survivor settlement (Survivor’s Grant, social insur- The maximum monthly earnings used to calculate benefits ance): The deceased was entitled to receive an old-age or are EC$6,500. disability settlement at the time of death. The minimum monthly disability pension is EC$350. Eligible survivors include a widow who was married to or living with the deceased for at least three years at the time The maximum monthly old-age pension is 50% of the of death, a disabled widower who was married to or living maximum earnings used to calculate benefits. with the deceased for at least three years and was finan- Benefit adjustment: Benefits are adjusted based on actuarial cially dependent on the deceased at the time of death, and recommendations. unmarried orphans younger than age 16 (age 18 if a student, Disability settlement (Invalidity Grant, social insur- no limit if disabled). ance): A lump sum of EC$1,200 or 75% of total employee The survivor settlement is payable abroad. and employer contributions, whichever is greater, is paid. Funeral grant (social insurance): The deceased had at least 26 weeks of contributions in the last 12 months or Survivor Benefits received or was entitled to receive cash sickness or mater- Survivor pension (Survivor’s Pension, social insurance) nity benefits, or an old-age or disability pension at the time Spouse’s pension: 50% of the old-age or disability pension of death. the deceased received or was entitled to receive is paid for The funeral grant is payable abroad. life to a widow aged 50 or older; for 12 months to a widow
32 ♦ SSPTW: The Americas, 2019 Antigua and Barbuda younger than age 50; for the duration of the disability to a Medical benefits: 3.5% of gross monthly covered earnings; disabled widow(er). 2.5% if aged 60 to 69; none if aged 70 or older. The minimum monthly spouse’s pension is EC$350. The minimum earnings used to calculate contributions are EC$100 a week or EC$400 a month. Orphan’s pension: 25% of the old-age or disability pension the deceased received or was entitled to receive is paid to There are no maximum earnings used to calculate an eligible orphan (reduced proportionately if the deceased contributions. had three or more children); 50% for a full orphan. Self-employed person The minimum monthly orphan’s pension is EC$87.50. Cash benefits: See source of funds under Old Age, Disabil- The maximum combined survivor pension is 100% of the ity, and Survivors. old-age or disability pension the deceased received or was Medical benefits: 5% of monthly declared earnings based on entitled to receive. three salaried classes set by the Medical Benefits Scheme; Benefit adjustment: Benefits are adjusted based on actuarial 2.5% if aged 60 to 69; none if aged 70 or older. recommendations. Employer Survivor settlement (Survivor’s Grant, social insur- ance): A lump sum of EC$1,200 or 75% of total employee Cash benefits: See source of funds under Old Age, Disabil- and employer contributions, whichever is greater, is paid. ity, and Survivors.
Funeral grant (social insurance): A lump sum of Medical benefits: 3.5% of gross monthly payroll; 7% for EC$2,500 is paid to the person(s) who paid for the funeral. employees with earnings below EC$100 a week or EC$400 a month; none for employees aged 60 or older. Administrative Organization There are no maximum earnings used to calculate Ministry of Finance provides general supervision. contributions. Antigua and Barbuda Social Security Board (http://www Government .socialsecurity.gov.ag/) administers the programs and col- Cash benefits: None. lects contributions for the social insurance program. Medical benefits: None; contributes as an employer.
Sickness and Maternity Qualifying Conditions Regulatory Framework Cash sickness benefit: Must be aged 16 to 61, have at least 26 weeks of contributions, and have worked at least First law: 1978 (medical benefits). eight weeks in the three calendar months before the inca- Current laws: 1972 (social insurance), 1973 (sickness), pacity began, and have been employed the day before the 1973 (maternity), and 2010 (medical benefits). incapacity began. The incapacity must not be the result of a work-related injury. Type of program: Social insurance system. Cash maternity benefit: Must be aged 16 to 61 with at Coverage least 26 weeks of contributions in the year before the last six weeks prior to the expected date of childbirth or before Cash benefits: Private-sector employees, self-employed the claim is made. persons, and public-sector employees (cash maternity ben- efits only). Maternity grant: Paid to an insured woman or the wife of an insured man with at least 26 weeks of contributions in Exclusions: A married woman working for her husband; the year before the expected date of childbirth. certain family members working for a family business; certain casual workers; foreign diplomats; international Medical benefits (Medical Benefits Scheme): Must have organization employees; and foreign military personnel at least 26 weeks of contributions in any calendar year residing in Antigua and Barbuda. or in any 12-month period, be younger than age 16, or be elderly and permanently incapable of work. Must be receiv- Medical benefits: Residents of Antigua and Barbuda. ing treatment for asthma, cancer, cardiovascular diseases, certified mental incapacity, diabetes, epilepsy, glaucoma, Source of Funds hypertension, leprosy, Parkinson’s, or sickle cell anaemia. Insured person Cash benefits: See source of funds under Old Age, Disabil- Sickness and Maternity Benefits ity, and Survivors. Sickness benefit: 60% of the insured’s average weekly earnings is paid after a three-day waiting period for up to
SSPTW: The Americas, 2019 ♦ 33 Antigua and Barbuda
26 weeks; may be extended for up to an additional 13 weeks Employer: The total cost (pays insurance premiums). with a doctor’s certificate. Government: None; contributes as an employer. Average weekly earnings are based on the insured’s covered earnings in the three calendar months before the Qualifying Conditions incapacity began. Must be assessed with a work injury or occupational dis- Maternity benefit: 60% of the insured’s average weekly ease. The incapacity must last more than three days. earnings is paid for up to 13 weeks beginning no earlier than six weeks before the expected date of childbirth. Temporary Disability Benefits Average weekly earnings are based on the insured’s cov- 75% of the employee’s average weekly or monthly earnings ered earnings in the 52 weeks before the last six weeks (80% if younger than age 18) is paid until full recovery or prior to the expected date of childbirth. for up to five years, whichever occurs earlier. Maternity grant: A lump sum of EC$560 is paid for each Average weekly or monthly earnings are based on the child. employee’s covered earnings in the 12 months before the disability began. If the employee has been employed for Workers’ Medical Benefits less than 12 months, the average earnings may be based on the earnings of a worker in the same type of employment Medical benefits (Medical Benefits Scheme): Public with the same employer, or the employee’s earnings when health facilities provide medical services for the treatment the disability began, whichever is greater. of the targeted health conditions. Constant-attendance allowance: Up to 50% of the tempo- Necessary medical treatment is permitted abroad. rary disability benefit is paid if the employee requires the constant attendance of others to perform daily functions. Dependents’ Medical Benefits The nature and duration of the attendance must be assessed Dependents must qualify for benefits in their own right. by a doctor.
Administrative Organization Permanent Disability Benefits Ministry of Finance provides general supervision for the For a total (100%) disability, a lump sum of 54 months cash benefits. (108 months if younger than age 18) of the employee’s aver- Antigua and Barbuda Social Security Board (http://www age weekly or monthly earnings is paid. .socialsecurity.gov.ag/) administers the cash benefits. Average weekly or monthly earnings are calculated on the Ministry of Health, Wellness and the Environment provides employee’s covered earnings in the 12 months before the general supervision for the medical benefits. disability began. If the employee has been employed for less than 12 months, the average earnings may be based on Medical Benefits Scheme (http://www.mbs.gov.ag/), super- the earnings of a worker in the same type of employment vised by the Ministry of Health and a Board of Directors, with the same employer, or the employee’s earnings when administers the medical benefits and collects contributions. the disability began, whichever is the greater. The maximum permanent disability benefit is EC$250,000. Work Injury Partial disability: For an assessed degree of disability of at Regulatory Framework least 2% but less than 100%, a percentage of the full perma- nent disability benefit is paid based on the assessed loss of First and current law: 1956 (workmen’s compensation). earnings capacity and the type of disability. Type of program: Employer-liability system through public and private carriers. Workers’ Medical Benefits Benefits include reimbursement of expenses for medi- Coverage cal, surgical, dental, and hospital treatment; nursing Private-sector and certain public-sector employees. care; medicine; appliances including artificial limbs; and transportation. Exclusions: Certain public-sector employees, police and military personnel, home workers, family labor, certain Survivor Benefits casual workers, and self-employed persons. Survivor benefit: A lump sum of 42 months of the employ- Source of Funds ee’s average weekly or monthly covered earnings may be split among dependent survivors. Insured person: None. Average weekly or monthly earnings are calculated on Self-employed person: Not applicable. the deceased’s covered earnings in the 12 months before
34 ♦ SSPTW: The Americas, 2019 Antigua and Barbuda the death. If the deceased had been employed for less than Unemployment 12 months, the average earnings may be based on the earn- ings of a worker in the same type of employment with the Regulatory Framework same employer, or the deceased’s earnings at the time of Under the 1975 Labour Code, employers must provide death, whichever is the greater. severance pay to employees who are laid off and have been Funeral grant: The cost of the funeral is paid. employed for at least one year. The minimum payment amount is one day of the employee’s basic wages, excluding Administrative Organization overtime pay, for each month of employment. Labour Department in the Ministry of Justice, Legal Affairs, Public Safety and Labour provides general supervision. Courts supervise the agreement between an employer and an employee. Employers insure work injury liability through public or private carriers.
SSPTW: The Americas, 2019 ♦ 35 Argentina
Contributions based on the 13th monthly salary in each year are paid in two halves (one in June and the other in Argentina December). Exchange rate: US$1.00 = 42.69 pesos. Social assistance: None. Self-employed person Social insurance: 27% of monthly reference earnings for Old Age, Disability, and Survivors most categories of self-employed persons based on five income categories (from 6,683.15 pesos to 29,405.82 pesos Regulatory Framework a month). First laws: 1904 to 1954 (various laws on special Self-employed persons enrolled in a simplified program categories). for small contributors pay 493.31 pesos to 1,279.52 pesos a month (Monotributo), depending on their declared 1971 (old-age and disability pensions); 1993 Current laws: earnings; small contributors with annual earnings below (private-sector workers and self-employed persons); 1998 138,127.99 pesos are exempt from contributions (Mono- (simplified contributions for small earners); 2004 (early tributo Social). retirement), implemented in 2005; 2008 (pensions adjust- ment), implemented in 2009; and 2016 (universal old-age Small contributors include persons who sell movable goods, pension). provide services, or are members of workers’ cooperatives or certain enterprises specified by law with fewer than three Type of program: Social insurance and social assistance workers. system. Social assistance: None. Note: From 1994 until the end of 2008, there was a mixed system consisting of a first-pillar public pay-as-you-go Employer (PAYG) program and a second pillar of individual accounts. Social insurance: 10.47% or 12.53% of gross monthly A 2008 law closed the second-pillar individual accounts covered payroll, depending on the activity of the enterprise; and transferred all workers and their account balances to a 16% for public-sector employers. new first-pillar PAYG system (Integrated Argentinian Pen- sion System [SIPA]). The gross monthly earnings used to calculate contributions are reduced by 7,003.68 for most categories of private- Coverage sector employers; by 17,509.20 for certain public-sector employers, employers in the textile industry, health sector, Social insurance: Employed and self-employed persons. in agriculture, and certain other employers. Voluntary coverage for clergy, corporate directors and The minimum monthly earnings (after adjustments) used to shareholders without mandatory coverage, honorary calculate contributions are 4,009.94 pesos (June 2019). cooperative board members, housewives, and certain other There are no maximum earnings used to calculate persons. contributions. Exclusions: Certain professional workers hired abroad, Contributions based on the 13th monthly salary in each including researchers, scientists, and technicians, who work year are paid in two halves (one in June and the other in in Argentina for up to two years and are insured in another December). country. Special systems for military, security, and police personnel; Social assistance: None. university professors; teachers; foreign ministry diplomats; Government scientific researchers; judicial authorities; household work- ers; and energy sector workers. Social insurance: Contributes with general revenue and certain earmarked taxes. Social assistance: Needy residents of Argentina. Social assistance: The total cost. Source of Funds Qualifying Conditions Insured person Old-age pension (Jubilación Ordinaria Contributiva, Social insurance: 11% of gross monthly covered earnings. social insurance): Age 65 (men) or aged 60 (women) with The minimum monthly earnings used to calculate contribu- at least 30 years of contributions. (The insured may substi- tions are 4,009.94 pesos (June 2019). tute two years of age over the normal retirement age for one year of missing contributions.) The maximum monthly earnings used to calculate contribu- tions are 130,321 pesos (June 2019).
36 ♦ SSPTW: The Americas, 2019 Argentina
The retirement age and contribution requirements are for the social insurance old-age pension and have at least reduced up to 10 years if the insured has worked in hazard- 12 months of contributions in the 60 months before the dis- ous, arduous, or unhealthy occupations. ability began. The old-age pension is payable abroad under bilateral or A medical commission assesses the loss of work capacity. multilateral agreement. The disability pension is payable abroad under bilateral or Advanced old-age pension (Prestación por Edad Avan- multilateral agreement. zada, social insurance): Age 70 with at least 10 years of Advanced-age disability pension (Prestación por Edad contributions, including at least five years of contributions Avanzada por Invalidez, social insurance): Must be in the last eight years immediately before retirement, and aged 65 or older, assessed with at least a 66% loss of work not receiving any other pension. A self-employed person capacity, be a regular or qualifying irregular contributor, must have been insured for at least five years. and not be receiving any other pension. The advanced old-age pension is payable abroad under Regular contributors must meet the contribution require- bilateral or multilateral agreement. ment for the social insurance old-age pension or have at Old-age social pension (Pensión Universal para el least 30 months of contributions in the 36 months before the Adulto Mayor [PUAM], social assistance, means disability began. tested): Age 65 and not receiving any other pension. Natu- Qualifying irregular contributors must have at least ralized citizens must have at least ten years of residence in 18 months of contributions in the 36 months before the Argentina immediately before the claim is made; resident disability began, or meet 50% of the contribution require- foreign citizens must have at least 20 years of residence, ment for the social insurance old-age pension and have at including at least 10 years immediately before the claim is least 12 months of contributions in the 60 months before the made. disability began. Means test: The beneficiary’s total gross income in the last The advanced-age disability pension is payable abroad 12 months must not exceed 645,948 pesos; the value of under bilateral or multilateral agreement. his or her assets must not exceed four times this threshold (2,583,792 pesos); and his or her total expenditures in the Noncontributory disability pension (Pensión No Con- last 12 months must not exceed this threshold by more than tributiva por Invalidez [PNC-Invalidez], social assis- 30% (839,732.40 pesos). tance, means tested): Must be younger than the normal retirement age, have at least a 76% assessed loss of work The old-age social pension is not payable abroad. capacity, not be receiving any other pension, and not have Noncontributory old-age pension (Pensión No Contrib- any family members able to provide financial or nutritional utiva por Vejez [PNC-Vejez], social assistance, means support. Naturalized citizens must have at least five years tested): Age 70, not receiving any other pension, and not of residence in Argentina immediately before the claim is have family members able to provide financial or nutritional made; resident foreign citizens must have at least 20 years support. Naturalized citizens must have at least five years of residence. of residence in Argentina immediately before the claim is Means test: The beneficiary’s income and assets must be made; resident foreign citizens must have at least 40 years below a subsistence level. The beneficiary’s spouse must of residence. not be receiving a social insurance or social assistance old- Means test: The beneficiary’s income and assets must be age or disability pension. below a subsistence level. The beneficiary’s spouse must Doctors at public healthcare facilities assess the loss of not be receiving a social insurance or social assistance old- work capacity. age or disability pension. The noncontributory disability pension ceases at the normal The noncontributory old-age pension is not payable abroad. retirement age and is replaced by an old-age social pension. Disability pension (Retiro por Invalidez, social insur- The noncontributory disability pension is not payable ance): Must be younger than the normal retirement age, abroad. have at least a 66% assessed loss of work capacity, be a regular or qualifying irregular contributor, not be gainfully Survivor pension (Pensión por Fallecimiento Contribu- employed, and not be receiving other benefits. tiva, social insurance): The deceased received or was entitled to receive a social insurance old-age or disability Regular contributors must meet the contribution require- pension at the time of death. ment for the social insurance old-age pension or have at least 30 months of contributions in the 36 months before the Eligible survivors include a widow(er) or partner who lived disability began. with the deceased for at least five years (two years if they had children), unmarried orphans younger than age 18 who Qualifying irregular contributors must have at least are not receiving any other benefits, a widowed daughter 18 months of contributions in the 36 months before the dis- younger than age 18 who is not receiving any other benefit, ability began, or meet 50% of the contribution requirement
SSPTW: The Americas, 2019 ♦ 37 Argentina and a child with a disability (no age limit) who was depen- The maximum monthly old-age pension (basic pen- dent on the deceased. sion, compensatory pension, and additional pension) is The survivor pension is payable abroad under bilateral or 84,459.47 pesos (June 2019). multilateral agreement. Schedule of payments: The old-age pension is paid monthly, with a 13th payment equal to the regular monthly payment Noncontributory survivor pension (Pensión por paid in two halves (one in June and the other in December). Fallecimiento No Contributiva, social assistance): The deceased was receiving a noncontributory old-age pension Benefit adjustment: Benefits are adjusted in March, June, or a noncontributory mother’s pension at the time of death. September, and December based on changes in the con- If the deceased was receiving a noncontributory old-age sumer price index (weighted at 70%) and changes in the pension, eligible survivors include a dependent widow(er) average national wage of formal-sector workers (weighted or partner aged 70 or older (regardless of age if disabled) at 30%). who lived with the deceased for at least five years. If Advanced old-age pension (Prestación por Edad the deceased was receiving a noncontributory mother’s Avanzada, social insurance): The pension is the sum of pension, eligible survivors include a dependent, disabled three components: a flat-rate basic pension, a compensatory widower or male partner, and children younger than age 18 pension based on years of contributions and service before (no age limit if disabled). July 1, 1994, and an additional pension based on years of The noncontributory survivor pension cannot be combined contributions since July 1, 1994. with an old-age social pension, a child benefit, a universal A year of contributions is any year in which the insured had family allowance, a universal child allowance, or a univer- at least six months of contributions. sal pregnancy allowance. Basic pension: 70% of 3,619.07 pesos a month is paid Funeral grant (Subsidio de Contención Familiar, social (March 2018). insurance): Paid to the person who paid for the funeral of an insured person who was receiving a social insurance Compensatory pension: The monthly pension is 1.5% of old-age or disability pension or was entitled to receive and the insured’s average adjusted monthly covered earnings in had applied for but was not yet receiving an old-age or dis- the last 10 years (weighted average adjusted amounts for all ability pension. periods for self-employed persons) multiplied by the num- ber of years of contributions (up to 35 years) paid before July 1, 1994. Old-Age Benefits Old-age pension (Jubilación Ordinaria Contributiva, Additional pension: The monthly pension is 1.5% of the social insurance): The pension is the sum of three com- insured’s average adjusted monthly covered earnings in ponents: a flat-rate basic pension, a compensatory pension the last 10 years (weighted average adjusted amounts for based on years of contributions before July 1, 1994, and an all periods for self-employed persons) multiplied by the additional pension based on years of contributions since number of years of contributions (up to 35 years) paid since July 1, 1994. July 1, 1994. A year of contributions is any year in which the insured had Schedule of payments: The advanced old-age pension is at least six months of contributions. paid monthly, with a 13th payment equal to the regular monthly payment paid in two halves (one in June and the Basic pension: 3,619.07 pesos a month is paid (March 2018). other in December). Compensatory pension: The monthly pension is 1.5% of Benefit adjustment: Benefits are adjusted in March, June, the insured’s average adjusted monthly covered earnings in September, and December based on changes in the con- the last 10 years (weighted average adjusted amounts for all sumer price index (weighted at 70%) and changes in the periods for self-employed persons) multiplied by the num- average national wage of formal-sector workers (weighted ber of years of contributions (up to 35 years) paid before at 30%). July 1, 1994. Old-age social pension (Pensión Universal para el Additional pension: The monthly pension is 1.5% of the Adulto Mayor [PUAM], social assistance, means insured’s average adjusted monthly covered earnings in tested): 80% of the minimum monthly old-age pension is the last 10 years (weighted average adjusted amounts for paid. all periods for self-employed persons) multiplied by the The minimum monthly old-age pension is 11,528.44 pesos number of years of contributions (up to 35 years) paid since (June 2019). July 1, 1994. Benefit adjustment: Benefits are adjusted when the mini The minimum monthly old-age pension (basic pen- mum monthly old-age pension is adjusted. sion, compensatory pension, and additional pension) is 11,528.44 pesos (June 2019).
38 ♦ SSPTW: The Americas, 2019 Argentina
Noncontributory old-age pension (Pensión No Contrib- monthly payment paid in two halves (one in June and the utiva por Vejez [PNC-Vejez], social assistance, means other in December). 70% of the minimum monthly old-age pension is tested): Benefit adjustment: Benefits are adjusted in March, June, paid. September, and December based on changes in the con- The minimum monthly old-age pension is 11,528.44 pesos sumer price index (weighted at 70%) and changes in the (June 2019). average national wage of formal-sector workers (weighted Benefit adjustment: Benefits are adjusted when the mini- at 30%). mum monthly old-age pension is adjusted. Noncontributory disability pension (Pensión No Con- tributiva por Invalidez [PNC-Invalidez], social assis- Permanent Disability Benefits tance, means tested): 70% of the minimum monthly Disability pension (Retiro por Invalidez, social insur- disability pension is paid. ance): The monthly pension is 70% of the insured’s average The minimum monthly disability pension is earnings (regular contributor) or 50% of the insured’s aver- 11,528.44 pesos (June 2019). age earnings (qualifying irregular contributor) in the five Additional benefits may be paid for dependents under Fam- years before the claim is made. ily Allowances. The minimum monthly disability pension is Benefit adjustment: Benefits are adjusted when the mini- 11,528.44 pesos (June 2019). mum monthly old-age pension is adjusted. The maximum monthly disability pension is 84,459.47 pesos (June 2019). Survivor Benefits Schedule of payments: The disability pension is paid Survivor pension (Pensión por Fallecimiento Contribu- monthly, with a 13th payment equal to the regular monthly tiva, social insurance) payment paid in two halves (one in June and the other in Spouse’s pension (Pensión de Cónyuge): 70% of the refer- December). ence payment (if the deceased was employed at the time of Benefit adjustment: Benefits are adjusted in March, June, death) or of the social insurance old-age or disability pen- September, and December based on changes in the con- sion the deceased received (if the deceased was a pensioner) sumer price index (weighted at 70%) and changes in the is paid to a widow(er) or partner with no or one dependent average national wage of formal-sector workers (weighted child; 90% with two dependent or disabled children; 100% at 30%). for three or more dependent or disabled children. Advanced-age disability pension (Prestación por Edad The reference payment is 70% of the deceased’s average Avanzada por Invalidez, social insurance): The pension monthly earnings in the five years before death for regu- is the sum of three components: a flat-rate basic pension, a lar contributors; 50% if there are eligible orphans and for compensatory pension based on years of contributions and qualifying irregular contributors. service before July 1, 1994, and an additional pension based on years of contributions since July 1, 1994. Orphan’s pension (Pensión por Hijo): 20% of the refer- ence payment (if the deceased was employed at the time of A year of contributions is any year in which the insured had death) or the social insurance old-age or disability pension at least six months of contributions. the deceased received (if the deceased was a pensioner) Basic pension: 70% of 3,619.07 pesos a month is paid is paid to each eligible orphan. If there is no eligible (March 2018). widow(er) or partner, the spouse’s pension is split equally among all eligible orphans. Compensatory pension: The monthly pension is 1.5% of the insured’s average adjusted monthly covered earnings The spouse’s and orphan’s pensions may be recalculated if in the last 10 years (weighted average adjusted amounts the number of eligible survivors changes. for all periods for self-employed persons), multiplied by The minimum monthly survivor pension is 8,069.91 pesos the number of years of contributions (up to 35 years) paid (June 2019). before July 1, 1994. The maximum combined monthly survivor pension is Additional pension: The monthly pension is 1.5% of the 84,459.47 pesos (June 2019). insured’s average adjusted monthly covered earnings in Schedule of payments: Survivor pensions are paid monthly, the last 10 years (weighted average adjusted amounts for with a 13th payment equal to the regular monthly payment all periods for self-employed persons), multiplied by the paid in two halves (one in June and the other in December). number of years of contributions (up to 35 years) paid since Benefit adjustment: Benefits are adjusted in March, June, July 1, 1994. September, and December based on changes in the con- Schedule of payments: The advanced-age disability pension sumer price index (weighted at 70%) and changes in the is paid monthly, with a 13th payment equal to the regular
SSPTW: The Americas, 2019 ♦ 39 Argentina average national wage of formal-sector workers (weighted Social insurance (medical benefits): Employed persons, at 30%). self-employed persons (small contributors enrolled in the Monotributo or Monotributo Social program), trainees, Noncontributory survivor pension (Pensión por Falleci- persons receiving unemployment benefits and their depen- miento No Contributiva, social assistance): A monthly pension is split between eligible survivors. dents, pensioners, and household workers. Small contributors include persons who sell movable goods, Funeral grant (Subsidio de Contención Familiar, social provide services, or are members of workers’ cooperatives insurance): A lump sum of 6,000 pesos is paid. or certain enterprises specified by law with fewer than three workers. Administrative Organization Exclusions: Self-employed persons who are not enrolled in Ministry of Health and Social Development (https:// the Monotributo or Monotributo Social program. www.argentina.gob.ar/desarrollosocial/) provides general supervision. Special systems for military, police, and security personnel; certain provincial and municipal public-sector employees; Secretary of Social Security (https://www.argentina.gob university professors; employees of the Ministry of Foreign .ar/desarrollosocial/seguridadsocial), under the Ministry of Relations; researchers; and judicial authorities. Health and Social Development, is responsible for policy development, implementation, and evaluation. Employer liability (cash sickness benefit): Public- and National Social Security Administration (http://www.anses private-sector employees. .gob.ar/) administers the social insurance and social assis- Exclusions: Self-employed persons. tance programs. National Agency for Disability (https://www.argentina.gob Source of Funds .ar/andis) is responsible for disability policies and adminis- Insured person ters the disability pensions. Universal (medical benefits): None. Federal Administration of Public Revenue (http://www.afip .gob.ar/) collects contributions and administers the social Social insurance (cash maternity benefit): None. insurance program for small contributors. Social insurance (medical benefits): 3% of gross monthly covered earnings plus 3% of gross monthly covered Sickness and Maternity earnings (allocated to the program covering retirees and pensioners [Instituto Nacional de Servicios Sociales para Regulatory Framework Jubilados y Pensionados, INSSJyP]). Pensioners contribute 3% of the old-age pension up to the minimum monthly First laws: 1934 (maternity), 1944 (health services), and old-age pension (basic pension, compensatory pension, 1974 (sickness). and additional pension); 6% for the amount exceeding the Current laws: 1971 (social services for retirees); 1974 minimum monthly old-age pension. (labor contracts); 1988 (health institutions), implemented The minimum monthly earnings used to calculate contribu- in 1989; 1988 (health insurance), implemented in 1989; tions are 4,009.94 pesos (June 2019). 1996 (family allowances); 1999 (household workers); 2000 (health institutions deregulation), implemented in 2001; The maximum monthly earnings used to calculate contribu- 2011 (prepaid medicine), and 2016 (universal health care). tions are 130,321 pesos (June 2019). The minimum monthly old-age pension (basic pen- Type of program: Universal (medical benefits), social sion, compensatory pension, and additional pension) is insurance (cash maternity and medical benefits) and 11,528.44 pesos (June 2019). employer-liability (cash sickness benefits) system. Note: Additional maternity benefits are paid under Family Employer liability (cash sickness benefit): None. Allowances. Self-employed person
Coverage Universal (medical benefits): None. Social insurance (cash maternity benefit): Not applicable. Universal (medical benefits): Residents of Argentina. Social insurance (medical benefits): 5% of reference earn- Social insurance (cash maternity benefit): Private-sector and federal public-sector employees, temporary or seasonal ings based on five income categories for most categories of workers, and work injury beneficiaries. self-employed persons (allocated to the program covering pensioners and retirees [Instituto Nacional de Servicios Exclusions: Self-employed persons. Sociales para Jubilados y Pensionados, INSSJyP]). Small Special system for household workers. contributors enrolled in the Monotributo program pay a flat-rate contribution of 689 pesos a month plus 689 pesos
40 ♦ SSPTW: The Americas, 2019 Argentina a month for each additional family member. Small con- of the spouse or cohabiting partner younger than age 21 tributors with annual earnings below 138,127.99 who are (age 25 if a student; no limit if disabled). enrolled in the Monotributo Social program pay a flat-rate If the insured is no longer employed, coverage is extended contribution of 344.50 pesos a month plus 344.50 pesos a for three months if the insured has more than three months month for each additional family member. of continuous service. Employer liability (cash sickness benefit): Not applicable. Sickness and Maternity Benefits Employer Sickness benefit (Prestación por Enfermedad, Universal (medical benefits): None. employer liability): 100% of the employee’s last salary is Social insurance (cash maternity benefit): See source of paid for up to three months to an employee with less than funds under Family Allowances. five years of service; up to six months with at least five years of service. The maximum duration of the sickness Social insurance (medical benefits): 6% of gross monthly benefit is doubled for employees with dependents. covered earnings. Private-sector employers pay an addi- tional 1.58% or 1.59% of gross monthly covered earnings, Maternity benefit (Asignación Familiar por Maternidad, depending on the economic sector, and the government social insurance): 100% of the insured’s average gross pays an additional 2% of gross monthly covered earnings earnings in the last three months before the maternity for federal public-sector employees (allocated to the pro- leave period is paid for 45 days before and 45 days after the gram covering pensioners and retirees [Instituto Nacio- expected date of childbirth; extended for six months if the nal de Servicios Sociales para Jubilados y Pensionados, child is diagnosed with Down syndrome. INSSJyP] The benefit is also paid if the pregnancy ends after at least The minimum monthly earnings used to calculate contribu- 180 days of pregnancy or if the child is stillborn. tions are 4,009.94 pesos (June 2019). Workers’ Medical Benefits There are no maximum earnings used to calculate contributions. Medical benefits (Cobertura Universal de Salud [CUS], universal): Medical care is provided free of charge in pub- Employer liability (cash sickness benefit): The total cost. lic hospitals and primary health care institutions. Government Medical benefits (social insurance): Benefits include Universal (medical benefits): The total cost. medical, hospital, dental, and palliative care; rehabilitation; prostheses; and transportation. A basic basket of benefits Social insurance (cash maternity benefit): See source of is defined by a schedule in law issued by the Ministry of funds under Family Allowances. Health and Social Development. Insurers may offer more Social insurance (medical benefits): Pays 344.50 pesos a generous plans with additional copayments. month for each small contributor enrolled in the Mono- There is no limit to duration, except in the event of hospi- tributo Social program; contributes as an employer. talization for psychiatric treatment. Employer liability (cash sickness benefit): None; contributes Pharmaceutical products are free during pregnancy, child- as an employer. birth, and postnatal care; for children younger than age 1; during hospitalization; and for chronic diseases. Qualifying Conditions Cost sharing: A copayment is required for medicines (30% Cash sickness benefit (Prestación por Enfermedad, for oral antibiotics; 60% for other medicine) and in certain employer liability): Must be currently employed. facilities. Cash maternity benefit (Asignación Familiar por Mater- There is no cost sharing for pregnancy, childbirth, or post- nidad, social insurance): Must have at least three months natal care; for children younger than age 1; during hospital- of continuous employment before the maternity leave ization; or for the treatment of tumors. begins or be receiving a work injury or unemployment benefit. Dependents’ Medical Benefits Medical benefits (Cobertura Universal de Salud [CUS]), Medical benefits (Cobertura Universal de Salud [CUS], universal): There is no minimum qualifying period. universal): Dependents are covered in their own right. Medical benefits (social insurance): There is no mini- Medical benefits (social insurance): Benefits for depen- mum qualifying period. dents are the same as those for the insured. Eligible dependents include a spouse or cohabiting partner, and unmarried children and other recognized dependents
SSPTW: The Americas, 2019 ♦ 41 Argentina
Administrative Organization Qualifying Conditions Ministry of Health and Social Development (https://www Cash benefits: Must be assessed with a work injury or .argentina.gob.ar/desarrollosocial/) supervises medical occupational disease. Accidents that occur while commut- benefits. ing to and from work are covered.
Superintendent of Health Services (http://www.sssalud.gob Medical benefits: There is no minimum qualifying period. .ar/) supervises health insurance institutions. Authorized health insurance institutions provide medical Temporary Disability Benefits services. Insured persons are free to choose among health Temporary disability benefit (Prestación por Incapaci- insurance institutions. dad Temporal): 100% of the employee’s last monthly earn- National Institute of Social Services for Retirees and ings before the disability began is paid, plus any additional Pensioners (Instituto Nacional de Servicios Sociales para pay increases provided to workers in an equivalent position Jubilados y Pensionados, INSSJP) (http://www.pami.org while the employee is not working. If employee’s earnings .ar/) administers the medical benefits program for elderly were variable, the benefit is 100% of the employee’s average people and their dependents. monthly earnings in the six months before the disability National Social Security Administration (http://www.anses began and must be at least equal to the employee’s expected .gob.ar/) administers the cash maternity benefit. earnings had the disability not occurred. The benefit is paid from the 11th day until recovery or certification of perma- Employers pay cash sickness benefits directly to their nent disability. (The employer pays the first 10 days.) employees. The disability is presumed to be permanent if it continues Federal Administration of Public Revenue (http://www.afip beyond two years. .gob.ar/) collects contributions and administers the social insurance program for small contributors. A medical commission assesses the degree of disability.
Work Injury Permanent Disability Benefits Permanent disability benefits (Prestación por Incapa- Regulatory Framework cidad Permanente Total): For a total disability (at least a 66% assessed loss of work capacity), a lump sum of 1915 (work injury and occupational diseases). First law: 53 times the employee’s monthly base earnings multiplied Current laws: 1995 (work injury), implemented in 1996; by the quotient of 65 divided by the employee’s age when 2009 (work injury); 2012 (work injury); and 2013 (house- the disability began is paid. hold workers). The monthly base earnings are the employee’s average Type of program: Employer-liability system through pri- monthly earnings in the 12 months before the disability vate carriers. began. Note: Public- and private-sector employers can self-insure The minimum permanent disability benefit for a total dis- if they meet certain solvency requirements and can guaran- ability is 2,482,061 pesos (September 2019). tee medical care services. Additional lump-sum cash benefit (Compensación adicional de pago único): The benefit consists of the basic benefit plus Coverage 20% of the permanent disability benefit and the basic ben- Public- and private-sector employees, trainees, and house- efit. If the disability is due to an accident while commuting hold workers. to or from work, only the basic benefit is paid. Exclusions: Self-employed persons. The basic benefit is 1,378,923 pesos (September 2019). Constant-attendance allowance (Gran Invalidez): If the Source of Funds employee has a severe, permanent, total disability and requires the constant attendance of others to perform daily Insured person: None. functions, a monthly allowance of 34,011.88 pesos is paid Self-employed person: Not applicable. (December 2019). Employer: The total cost (pays insurance premiums or Partial disability benefit: For an assessed loss of work provides benefits directly to employees). capacity of less than 66%, a lump sum of 53 times the employee’s monthly base earnings multiplied by the Government: None; contributes as an employer. assessed loss of work capacity and the quotient of 65 divided by the employee’s age when the disability began is paid.
42 ♦ SSPTW: The Americas, 2019 Argentina
The monthly base earnings are the employee’s average Superintendent of Work Injury (http://www.srt.gob.ar/) monthly earnings in the 12 months before the disability provides general supervision. began. Work injury insurers (ART) are responsible for work injury The minimum partial disability benefit is 2,482,061 pesos prevention and administer benefits. (September 2019) multiplied by the assessed loss of work capacity. Unemployment Additional lump-sum cash benefit (Compensación adicional de pago único): For an assessed loss of work capacity of Regulatory Framework at least 50% but less than 66%, the benefit consists of the First law: 1967 (unemployment fund). basic benefit plus 20% of the permanent disability benefit and the basic benefit. If the disability is due to an accident Current laws: 1991 (unemployment insurance), imple- while commuting to or from work, only the basic benefit is mented in 1992; 1999 (rural workers), implemented in 2004; paid. 2000 (construction workers), implemented in 2001; and 2013 (employment promotion). The basic benefit is 1,103,138 pesos (September 2019). For an assessed loss of work capacity of less than 50%, 20% Type of program: Social insurance system of the permanent disability benefit is paid. The additional lump-sum cash benefit is not paid in the case of an accident Coverage while commuting to or from work. Private-sector employees, including temporary and casual A medical commission assesses the loss of work capacity. workers, and rural workers. A disability pensioner may also receive family allowances. Exclusions: Self-employed persons, household workers, Benefit adjustment: Benefits are adjusted in March, June, public-sector employees, private-school teachers, and lec- September, and December based on changes in the con- turers at private universities. sumer price index (weighted at 70%) and changes in the average national wage of formal-sector workers (weighted Source of Funds at 30%). Insured person: None. Workers’ Medical Benefits Self-employed person: Not applicable. Benefits include medical, pharmaceutical, and orthopedic Employer: 0.92% or 1.09% of gross payroll, depending on care; prostheses; rehabilitation; and job retraining. the type of enterprise; 1.35% monthly earnings for rural workers. Survivor Benefits The minimum monthly earnings used to calculate contribu- Spouse and orphan’s benefit: A lump sum of at least tions are 4,009.94 pesos (June 2019). 2,482,061 pesos plus an additional lump-sum benefit of There are no maximum earnings used to calculate 1,654,707 is paid (September 2019). contributions.
The total lump sum is split equally among eligible survi- Government: None. vors, including the spouse and orphans younger than age 21 (age 25 if a student; no age limit if disabled). Qualifying Conditions Other eligible survivor’s benefit: If there is no eligible Must have at least six months of contributions in the three widow(er) or orphan, the benefit is paid to parents or rela- years before unemployment began; at least 90 days in the tives who were dependent on the deceased at the time of 12 months before unemployment began for temporary death. workers; or at least 240 days in the last 24 months before The survivor benefits are payable abroad under bilateral or unemployment began for construction workers. Must be multilateral agreement. registered and available for suitable employment and not be receiving any social assistance benefit. Benefit adjustment: Benefits are adjusted in March, June, September, and December based on changes in the con- Unemployment Benefits sumer price index (weighted at 70%) and changes in the average national wage of formal-sector workers (weighted 50% of the insured’s best wage in the six months before at 30%). unemployment began or 100% of the rural worker’s previ- ous wage is paid for two months (with six to 11 months of Administrative Organization contributions) or for four months (with 12 to 23 months of contributions); 42.5% of the insured’s best wage in the six Ministry of Production and Labor (https://www.argentina months before unemployment began or 85% of the rural .gob.ar/trabajo/) is responsible for policy development. worker’s previous wage is paid for months five to eight with
SSPTW: The Americas, 2019 ♦ 43 Argentina
24 to 35 months of contributions; and 37.5% of the insured’s Coverage best wage in the six months before unemployment began or 70% of the rural worker’s previous wage is paid for Social insurance: Private-sector and federal public-sector months nine to 12 (for months nine to 18 in the case of an employees; temporary workers; work injury or unemploy- unemployed person aged 45 or older with children who are ment program beneficiaries; social insurance old-age, eligible for family allowances) with at least 36 months of disability, or survivor pension recipients; social assistance contributions. old-age or disability pension recipients (including child benefit, disabled child benefit, prenatal allowance, and The minimum monthly unemployment benefit for salaried school allowances only); and self-employed small contribu- employees and construction workers is 2,907.53 pesos; tors enrolled in the Monotributo or Monotributo Social 3,728 pesos for rural workers (June 2019). program (child benefit, disabled child benefit, prenatal The maximum monthly unemployment benefit for salaried allowance, and school allowances only). employees and construction workers is 4,652.06 pesos; Exclusions: Self-employed persons who are not enrolled in 7,456.00 pesos for rural workers (June 2019). the Monotributo or Monotributo Social program. An unemployed person who intends to set up a business Special system for household workers. and successfully presents a business plan to the Ministry of Production and Labor may opt for lump-sum payment. Social assistance: Needy residents of Argentina and pris- oners under certain conditions. Unemployment beneficiaries and their dependents receive social assistance medical benefits and family allowances Source of Funds and may continue their health insurance plan during the period of unemployment. Insured person Social insurance: None. Administrative Organization Social assistance: None. Ministry of Production and Labor (https://www.argentina .gob.ar/trabajo/) provides general supervision. Self-employed person National Social Security Administration (http://www Social insurance: Not applicable; for self-employed enrolled .anses.gob.ar/) administers the social insurance program for in the simplified system for small contributors, see source private-sector employees. of funds under Old Age, Disability, and Survivors. National Registry of Agricultural Workers and Employers Social assistance: None. (http://www.renatre.org.ar/) administers unemployment insurance for rural workers. Employer Statistics and Registry Institute for the Construction Indus- Social insurance: 4.57% or 5.48% of gross payroll, depend- try (http://www.ieric.org.ar/) administers unemployment ing on the type of enterprise. insurance for construction workers. The minimum monthly earnings used to calculate contribu- Federal Administration of Public Revenue (http://www.afip tions are 4,009.94 pesos (June 2019). .gob.ar/) collects contributions. There are no maximum earnings used to calculate contributions. Family Allowances The employer’s contributions also finance cash maternity benefits (see Sickness and Maternity). Regulatory Framework Social assistance: None. First law: 1957 (family benefits for employees in commerce). Government Social insurance: None; makes an annual transfer to the Current law: 1996 (family allowances), implemented in 1996. National Social Security Administration (ANSES) to cover the cost of family benefits for federal public-sector Type of program: Social insurance and social assistance employees. system. Social assistance: The total cost. Note: A portion of the social insurance contributions paid to the National Social Security Administration (ANSES) Qualifying Conditions finances the social assistance family benefits. However, there is no direct link between the contributions and entitle- Child benefit (Asignación por Hijo, social insurance, ment to these benefits. income tested): Paid for unmarried children younger than age 18. The child benefit is paid to a parent or guardian.
44 ♦ SSPTW: The Americas, 2019 Argentina
Income test: The monthly income of each family member Spouse’s or partner’s grant (Asignación por Cónyuge must not exceed 53,829 pesos; the total monthly family o Conviviente, social insurance, income tested): Paid to income must not exceed 107,658 pesos. the spouse or partner of a social insurance old-age or dis- ability pensioner. Disabled child benefit (Asignación por Hijo con Dis- capacidad, social insurance): Paid for children with Income tested: The monthly income of each family mem- disabilities of any age. Unemployed temporary workers or ber must not exceed 53,829 pesos; the total monthly family temporary workers without any income must have at least income must not exceed 107,658 pesos. three months of contributions in the last 12 months, or at Universal child allowance (Asignación Universal por least the equivalent of 90 effective working days. Hijo [AUH], social assistance, income tested): Paid to The disabled child benefit is paid to a parent or guardian. informal workers with monthly incomes below the legal monthly minimum wage, unemployed persons who are not Prenatal allowance (Asignación por Prenatal, social receiving unemployment benefits, seasonal workers, house- insurance, income tested): Paid to a pregnant, employed hold workers, and small contributors with annual earnings woman or for the pregnant wife or cohabiting partner of below 138,127.99 pesos who are enrolled in the Mono- an employed man with at least three months of continuous tributo Social program. The allowance is paid to either a employment or a man who is a work injury or unemploy- parent, tutor, curator, or relative up to the third degree for ment beneficiary. children younger than age 18 (no limit if disabled), up to Income test: The monthly income of each family member five children. The beneficiaries must fulfill certain health must not exceed 53,829 pesos; the total monthly family and education requirements and must not receive any other income must not exceed 107,658 pesos. benefit. Resident foreign citizens must have at least three School allowance (Ayuda Escolar Anual, social insur- years of residence in Argentina immediately before the ance, income tested): Paid to persons who qualify for a claim is made. child benefit or a disabled child benefit. Certification of the The legal monthly minimum wage is 12,500 pesos. child’s regular school attendance or rehabilitation must be provided at the beginning of the year. Universal pregnancy allowance (Asignación Univer- sal por Embarazo [AUE], social assistance, income Income test: The monthly income of each family member tested): Paid for each pregnancy to informal workers with must not exceed 53,829 pesos; the total monthly family monthly incomes below the legal monthly minimum wage; income must not exceed 107,658 pesos. unemployed persons without health insurance coverage and Birth grant (Asignación por Nacimiento, social insur- whose spouse or cohabiting partner is also unemployed; ance, income tested): Must be employed and have at least seasonal workers; incarcerated women; household work- six months of continuous employment, or be a work injury ers; and certain categories of self-employed workers. The or unemployment beneficiary. The grant is paid to a parent woman must enroll in the prenatal and early childhood or guardian for the birth of a child. health program Plan NACER or SUMAR, meet the certain medical requirements, and carry a card that documents the Income test: The monthly income of each family member monitoring of the pregnancy. Resident foreign citizens must must not exceed 53,829 pesos; the total monthly family have at least three years of residence in Argentina immedi- income must not exceed 107,658 pesos. ately before the claim is made. Adoption grant (Asignación por Adopción, social insur- The legal monthly minimum wage is 12,500 pesos. ance, income tested): Must be employed and have at least six months of continuous employment, or be a work injury Noncontributory mother’s pension (Pensión No or unemployment beneficiary. The grant is paid to an adopt- Contributiva para Madre de 7 Hijos, social assistance, ing parent. means tested): Paid to a mother of seven or more children (natural or adopted) with income and assets below a sub- Income test: The monthly income of each family member sistence level and who does not receive any social security must not exceed 53,829 pesos; the total monthly family benefits or support from family members. Naturalized citi- income must not exceed 107,658 pesos. zens must have at least one year of residence in Argentina Marriage grant (Asignación por Matrimonio, social immediately before claiming the pension; resident foreign insurance, income tested): Must be employed and have citizens must have at least 15 years of residence. at least six months of continuous employment, or be a work injury or unemployment beneficiary. The grant is paid Family Allowance Benefits upon marriage to each spouse who meets the qualifying Child benefit (Asignación por Hijo, social insurance, conditions. income tested): 469 pesos to 4,853 pesos a month is paid, Income test: The monthly income of each family member depending on insured’s income (including cash benefits in must not exceed 53,829 pesos; the total monthly family some cases) and region. income must not exceed 107,658 pesos.
SSPTW: The Americas, 2019 ♦ 45 Argentina
Disabled child benefit (Asignación por Hijo con Dis- insured’s income (including cash benefits in some cases) capacidad, social insurance): 3,271 pesos to 14,648 pesos and region. (increasing to 3,671 pesos to 16,438 in September 2019) a Universal child allowance (Asignación Universal por month is paid, depending on the insured’s income (includ- Hijo [AUH], social assistance, income tested): 2,652 or ing cash benefits in some cases) and region. 3,448 pesos a month, depending on the region, is paid for Prenatal allowance (Asignación por Prenatal, social each eligible child; 4,064 or 5,284 pesos a month for a child insurance, income tested): 469 pesos to 4,853 pesos with a disability. (increasing to 3,671 pesos to 16,438 in September 2019) a Universal pregnancy allowance (Asignación Universal month is paid, depending on the insured’s income (includ- por Embarazo [AUE], social assistance, income tested): ing cash benefits in some cases) and region. The benefit is 2,652 or 3,448 pesos a month, depending on the region, is paid from the time of conception to the expected date of paid from the third month of pregnancy until childbirth. childbirth or the end of the pregnancy. Noncontributory mother’s pension (Pensión No School allowance (Ayuda Escolar Anual, social insur- Contributiva para Madre de 7 Hijos, social assis- ance, income tested): 1,884 pesos to 3,761 pesos (increas- tance, means tested): 11,528.44 pesos (increasing to ing to 2,115 pesos to 4,221 pesos in September 2019) a year 12,937.22 pesos in September 2019) a month is paid. is paid, depending on the insured’s income (including cash benefits in some cases) and region. Administrative Organization Birth grant (Asignación por Nacimiento, social insur- Ministry of Health and Social Development (http://www ance, income tested): A lump sum of 2,622 pesos .trabajo.gob.ar/) provides general supervision. (increasing to 2,943 pesos in September 2019) is paid. Secretary of Social Security (https://www.argentina.gob Adoption grant (Asignación por Adopción, social .ar/desarrollosocial/seguridadsocial), under the Ministry of insurance, income tested): A lump sum of 15,696 pesos Health and Social Development, is responsible for policy (increasing to 17,615 in September 2019) is paid. development, implementation, and evaluation. Marriage grant (Asignación por Matrimonio, social National Social Security Administration (http://www.anses insurance, income tested): A lump sum of 3,927 pesos .gob.ar/) administers the social insurance and social assis- (increasing to 4,407 pesos in September 2019) is paid. tance programs. Spouse’s or partner’s grant (Asignación por Cón- Federal Administration of Public Revenue (http://www.afip yuge o Conviviente, social insurance, income tested): .gob.ar/) collects contributions and administers the social 543 pesos or 1,080 pesos (increasing to 610 or 1,212 pesos insurance program for small contributors. in September 2019) a month is paid, depending on the
46 ♦ SSPTW: The Americas, 2019 Aruba
Mandatory occupational pension: At least 6% of monthly declared earnings. Aruba Employer Exchange rate: US$1.00 = 1.79 florin. Social insurance: 10.5% of gross monthly covered payroll (old-age) plus 0.5% of gross monthly covered earnings (survivors); none for persons who have reached the normal Old Age, Disability, and Survivors retirement age (old-age and survivor pensions). The minimum annual earnings used to calculate contribu- Regulatory Framework tions are 6,400 florin. First laws: 1960 (old-age pension) and 1965 (survivors The maximum annual earnings used to calculate contribu- pension). tions are 85,000 florin.
Current laws: 1990 (old-age insurance), 1996 (widows and Mandatory occupational pension: At least 3% of gross orphans insurance), and 2012 (mandatory occupational monthly earnings. Additional voluntary contributions are pensions). possible.
Type of program: Social insurance and mandatory occupa- Government tional pension system. Social insurance: Finances any deficit; contributes as an employer. Coverage Mandatory occupational pension: None. Social insurance: Residents of Aruba. Mandatory occupational pension: Private-sector employ- Qualifying Conditions ees who have completed an employment probation period. Old-age pension (Algemene Ouderdomsverzekering Voluntary coverage for self-employed persons. [AOV], social insurance): Age 62 and six months (gradu- ally rising to age 65 by 2024) and a resident of Aruba from Special system for public-sector employees. age 15 to age 62 and six months (gradually rising to age 65 by 2024). Source of Funds Partial pension: A reduced pension is paid if the insured Insured person does not meet the residency requirements for a full pension. Social insurance: 5% of gross monthly covered earnings Deferred pension: The pension may be deferred for up to (old-age) plus 0.5% of gross monthly covered earnings five years after the normal retirement age. (survivors); none for persons who have reached the normal Christmas bonus (Kerstbonus): Paid to old-age pensioners. retirement age (old-age and survivor pensions); low-income persons with annual incomes up to 13,400 florins pay a The old-age pension is payable abroad. reduced rate. Old-age benefit (mandatory occupational pension): The minimum annual earnings used to calculate contribu- Age 62 and six months (gradually rising to age 65 by 2025). tions are 6,400 florin. Early benefit: Age 60. The maximum annual earnings used to calculate contribu- Deferred benefit: The benefit may be deferred until age 70. tions are 85,000 florin. Employment may continue. Mandatory occupational pension: At least 3% of gross monthly earnings. Additional voluntary contributions are Survivor pension (Algemene Wezen- en Weduwen- possible. verzekering [AWW], social insurance): The deceased was insured or receiving an old-age pension at the time of death. Self-employed person Eligible survivors include a widow(er) younger than the Social insurance: 14.5% of gross monthly covered earn- normal retirement age and orphans up to age 14 (age 25 if a ings (old-age) plus 1% of gross monthly covered earnings full-time student, no limit if disabled).Holiday allowance: (survivors); low-income persons with annual incomes up to Paid to a person receiving a survivor pension. 13,400 florins pay a reduced rate. Funeral grant (Algemene Ouderdomsverzekering The minimum annual earnings used to calculate contribu- [AOV], social insurance): Paid when an old-age pensioner tions are 6,400 florin. dies. The maximum annual earnings used to calculate contribu- Eligible survivors include a widow(er), an orphan, or the tions are 85,000 florin. person who paid for the funeral.
SSPTW: The Americas, 2019 ♦ 47 Aruba
Funeral grant (Algemene Wezen- en Weduwen-verze- Funeral grant (Algemene Wezen- en Weduwen-verze- kering [AWW], social insurance): Paid to the person who kering [AWW], social insurance): A lump sum of three paid for the funeral when a survivor pensioner dies. The times the deceased’s monthly survivor pension is paid. grant must be claimed within 30 days of the death. Administrative Organization Old-Age Benefits Ministry of Tourism, Public Health and Sports provides Old-age pension (Algemene Ouderdomsverzekering general supervision. [AOV], social insurance): The full pension is paid with Social Insurance Bank (https://www.svbaruba.org/) admin- 47 years and six months of residency in Aruba. 1,132 florin isters the social insurance program. (if not living with anyone other than a child or parent) or 953 florin (if living with another adult other than a child or Tax Department (http://www.impuesto.aw/) collects contri- parent) a month is paid. butions for the social insurance program. Partial pension: The pension is reduced by 2.14% for each Registered pension funds, under government supervision, year of residency less than 47 years and six months. administer and collect contributions for the mandatory occupational pension program. Deferred pension: The pension is increased by 7% for each year of deferral after the normal retirement age. Sickness and Maternity Christmas bonus (Kerstbonus): 75% of one month of the pension is paid once a year in December. Regulatory Framework Benefit adjustment: Benefits are adjusted on an ad hoc basis First law: 1966 (sickness insurance). depending on available resources. Current laws: 1992 (general health insurance), imple- Old-age benefit (mandatory occupational pension): The mented in 2001; and 1993 (sickness insurance). account balance can be paid as a lump sum or an annuity. Type of program: Social insurance system. Early benefit: A reduced benefit is paid. Deferred benefit: Calculated in the same way as the old-age Coverage benefit. Social insurance (cash benefits): Private-sector employ- Permanent Disability Benefits ees with monthly earnings up to 5,850 florin. No statutory benefits are provided. Exclusions: Self-employed persons, directors and share- holders of corporations with monthly earnings above Survivor Benefits 5,850 florin, household workers, family labor, and seamen employed on Aruba ships. Survivor pension (Algemene Wezen- en Weduwen-ver- zekering [AWW], social insurance) Special system for public-sector employees. Spouse’s pension: The benefit amount varies depending Social insurance (medical benefits): Residents of Aruba. on the survivor’s age when widowed: 512 florin a month is paid if younger than age 40; 687 florin a month if aged 40 Source of Funds to 48; 868 florin a month if aged 49 to 60 and six months; Insured person or 1,132 florin a month if older than age 60 and six months, disabled, or raising a child. Social insurance (medical benefits): 1.6% of gross monthly covered earnings; 6.5% to 10.5% of the pension for The spouse’s pension ceases upon remarriage. pensioners. The spouse’s pension ceases at the normal retirement age The maximum annual earnings used to calculate contribu- and is replaced by an old-age pension. tions for employed persons are 85,000 florin; 30,000 florin Orphan’s pension: 377 florin a month is paid to an orphan for pensioners. younger than age 10 (404 florin a month for a full orphan); Social insurance (cash benefits): None. 404 florin a month if aged 10 to 14 (443 florins a month for a full orphan); or 443 florin a month if aged 15 to 24 Self-employed person (512 florin a month for a full orphan). Social insurance (medical benefits): 10.5% of gross monthly Benefit adjustment: Benefits are adjusted on an ad hoc basis declared earnings. depending on available resources. Social insurance (cash benefits): Not applicable. Funeral grant (Algemene Ouderdomsverzekering [AOV], social insurance): A lump sum of 3,396 florin is paid.
48 ♦ SSPTW: The Americas, 2019 Aruba
Employer General Health Insurance (http://www.azv.aw/) administers the medical benefits. Social insurance (medical benefits): 8.9% of gross monthly covered earnings. Tax Department (http://www.impuesto.aw/) collects contri- butions for the social insurance programs. The maximum annual earnings used to calculate contribu- tions are 85,000 florin. Medical services are provided through hospitals, private clinics, and other medical facilities under contract by the Social insurance (cash benefits): 2.65% of gross monthly General Health Insurance. covered earnings. The maximum annual earnings used to calculate contribu- Work Injury tions are 70,200 florin. Government Regulatory Framework Social insurance (medical benefits): Provides subsidies as First and current laws: 1996 (accident insurance) and 1996 needed; additional financing from a 3% earmarked tax on (occupational diseases). general goods and services; contributes as an employer. Type of program: Social insurance system. Social insurance (cash benefits): None. Coverage Qualifying Conditions Private-sector employees. Cash sickness benefit (Ziekengeld, Ziektefonds [ZV]): Exclusions: Self-employed persons, household workers, Must provide a medical certificate. family labor, and seamen employed on Aruban ships. Cash maternity benefit (Zwangerschapsverlof, Ziekte- Special system for public-sector employees. fonds [ZV]): Must give at least three months written notice of intention to take leave on a specific date and to return to Source of Funds work thereafter. A medical certificate may also be required. Insured person: None. Medical benefits (Algemene Ziektekosten Verzekering Self-employed person: Not applicable. [AZV]): There is no minimum qualifying period. Employer: 0.25% to 2.5% of gross monthly covered pay- Sickness and Maternity Benefits roll, depending on the assessed degree of risk. Sickness benefit (Ziekengeld, Ziektefonds [ZV]): 80% of The maximum annual earnings used to calculate contribu- the insured’s daily earnings is paid after a three-day wait- tions are 70,200 florin. ing period for up to two years. Government: None. Maternity benefit (Zwangerschapsverlof, Ziektefonds [ZV]): 100% of the insured’s daily earnings is paid for Qualifying Conditions 12 weeks, including at least four weeks before childbirth. Must be assessed with a work injury or occupational dis- ease. Accidents that occur while commuting to and from Workers’ Medical Benefits work may be covered under certain conditions. Occupa- Medical benefits (Algemene Ziektekosten Verzekering tional diseases are specified by law. The claim must be [AZV]): Benefits include inpatient and outpatient services, made within the 12 months after the disability began. emergency care, maternity care, dental care, medicines, and rehabilitation services. Temporary Disability Benefits Temporary disability benefit (Ongevallenfonds [OV]): Dependents’ Medical Benefits 100% of the insured’s average daily earnings in the Medical benefits (Algemene Ziektekosten Verzekering 12 months before the disability began is paid for the first [AZV]): Benefits for dependents are the same as those for 12 months of incapacity; 80% thereafter. The benefit is paid the insured. from the day after the incapacity began until recovery or certification of permanent disability. Administrative Organization Ministry of Tourism, Public Health and Sports provides Permanent Disability Benefits general supervision. Permanent disability pension (Ongevallenfonds [OV]): Social Insurance Bank (https://www.svbaruba.org/) collects For a total (100%) disability, the monthly pension is 80% of administers the cash benefits. the insured’s average daily earnings in the 12 months before the disability began.
SSPTW: The Americas, 2019 ♦ 49 Aruba
Partial disability: For an assessed degree of disability of Type of program: Employer-liability system. at least 30% but less than 100%, a percentage of the full permanent disability pension is paid based on the assessed Coverage degree of disability; for an assessed degree of disability of Private-sector employees. less than 30%, a lump sum of six times the annual perma- nent disability pension is paid. Exclusions: Public-sector employees and certain teachers. A medical board of the Social Insurance Bank assesses the Source of Funds degree of disability. Insured person: None. Workers’ Medical Benefits Self-employed person: Not applicable. Medical and rehabilitation services are provided. Employer: The total cost; pays an annual flat-rate contribu- tion of 40 florin to the Social Insurance Bank to finance the Survivor Benefits severance pay if the employer becomes bankrupt. Survivor pension Government: None. Spouse’s pension: 30% of the deceased’s average daily earnings in the 12 months before death is paid to a Qualifying Conditions widow(er) or to a divorced spouse who was dependent on Must have at least one year of covered employment and be the deceased. involuntarily unemployed. The claim must be made within The spouse’s pension ceases upon remarriage and a lump one year of ceasing employment. sum of two year of the pension is paid. Income test: An income test is applied to pensioners. Orphan’s pension: 15% of the deceased’s average daily earnings in the 12 months before death is paid to each Unemployment Benefits orphan up to age 14 (age 25 if a full-time student, no limit if One time the employee’s last weekly salary is paid for each disabled); 20% for a full orphan. year of service from one to 10 years, plus 1.25 times the Dependent parent’s pension: If there is no eligible weekly salary for each year of service from 11 to 20 years, widow(er) or orphan, up to 30% of the deceased’s aver- plus two times the weekly salary for each year of service age daily earnings in the 12 months before death is paid to exceeding 20 years. dependent parents. The maximum weekly earnings used to calculate benefits The maximum combined daily survivor pension is 60% of are 2,025 florins (2018). the deceased’s average daily earnings. A reduced benefit is paid by the Social Insurance Bank if If the survivor receives benefits under the old-age, disabil- the employer becomes bankrupt or upon a court ruling. ity, and survivors program, the total work injury survivor benefit may be reduced based on the survivor’s average Administrative Organization monthly income. Ministry of Tourism, Public Health and Sports provides general supervision. Funeral grant (social insurance): A lump sum of 1,000 florin is paid to an eligible survivor or the person who Employers pay benefits directly to employees. paid for the funeral. Social Insurance Bank (https://www.svbaruba.org/) collects Benefit adjustment: The funeral grant is adjusted periodi- contributions. cally based on changes in the consumer price index. Family Allowances Administrative Organization Ministry of Tourism, Public Health and Sports provides Regulatory Framework general supervision. First and current laws: 1988 (social assistance) and 1989 Social Insurance Bank (https://www.svbaruba.org/) collects (social welfare ordinance). contributions and administers the program. Type of program: Social assistance system.
Unemployment Coverage Regulatory Framework Needy citizens of the Netherlands who were born in Aruba and certain foreign nationals residing in Aruba. First laws: 1973 (civil code) and 1983 (cesantia ordinance). Current law: 1998 (Cesantia Ordinance).
50 ♦ SSPTW: The Americas, 2019 Aruba
Source of Funds Funeral grant: Paid to help with the cost of the funeral when a needy resident of Aruba dies. The benefit must be Insured person: None. claimed within two months of the death. Self-employed person: None. Family Allowance Benefits Employer: None. Cash assistance (means tested): 450 florin (if unem- The total cost. Government: ployed or assessed as vulnerable) or 947 florin (if disabled) a month is paid. Qualifying Conditions Dependent’s allowance: 200 florin a month is paid for each Cash assistance (means tested): Paid to persons aged 17 eligible dependent. or older who are registered as unemployed with the Depart- ment of Employment Promotion, persons with disabilities Christmas bonus: 450 florin (if unemployed or assessed as aged 17 to the normal retirement age who are unable to vulnerable) or 120 florin (if disabled) plus 200 florin for work, and certain other vulnerable persons. Must have each eligible dependent is paid once a year in December. been born in Aruba or be a citizen of the Netherlands and Education allowance: 250 florin a month is paid for each have continuously resided in Aruba for at least three years eligible child. before the claim is made (the residency requirement may be waived if the beneficiary is younger than age 18). School supplies allowance: 220 florin a year is paid for each eligible child. Dependent’s allowance: Paid for a dependent spouse and dependent children up to age 18. The maximum annual school supplies allowance for a fam- ily is 800 florin. Christmas bonus: Paid to a main beneficiary of cash assis- tance and his or her eligible dependents. Dietary grant: Up to 120 florin a month is paid to the head of a household. Education allowance: Paid to families with children aged 3 to 24 to assist with education costs. Funeral grant: Up to 4,000 florin is paid. The benefit is normally paid directly to the funeral service provider. School supplies allowance: Paid to cover the cost of school supplies. Administrative Organization Dietary grant: Paid to families receiving cash assistance to Department of Social Affairs (https://www.asuntosocial help with the cost of certain foodstuffs. .aw/) administers the program. Means test: Family income and assets must not exceed certain limits.
SSPTW: The Americas, 2019 ♦ 51 Bahamas
There are no minimum earnings used to calculate contributions. Bahamas The maximum annual earnings used to calculate contribu- Exchange rate: US$1.00 = tions are B$34,840. 1.00 Bahamian dollar (B$). The employer’s contributions also finance cash sickness, maternity, and unemployment benefits, and cash and in- kind work injury benefits. Old Age, Disability, and Survivors Government Regulatory Framework Social insurance and social assistance: None; contributes as an employer. First laws: 1957 (old-age noncontributory pensions) and 1967 (public assistance for disability). Qualifying Conditions Current law: 1972 (national insurance). Old-age pension (social insurance, earnings tested): Type of program: Social insurance and social assistance Age 65 with at least 500 weeks of paid contributions. system. Early pension: Aged 60 with at least 500 weeks of paid contributions. Coverage Deferred pension: The pension may be deferred up to Social insurance: Employed and self-employed persons. age 69. Voluntary coverage is available. The old-age pension is paid locally for insured persons who live abroad. Social assistance: Needy residents of the Bahamas. Old-age grant (social insurance): Age 65 with at least Source of Funds 150 weeks but less than 500 weeks of paid contributions. Insured person The old-age grant is payable abroad. Social insurance and social assistance: 3.9% of weekly Noncontributory old-age pension (social assistance, covered earnings; 5% of average weekly wages or income, income tested): Age 65 and does not qualify for the social based on the insured’s wages or income in the year before insurance old-age pension. registration, for the voluntarily insured. Employment must cease.
There are no minimum earnings used to calculate Disability pension (social insurance): Must be younger contributions. than the normal retirement age, be assessed with a perma- The maximum annual earnings used to calculate contribu- nent incapacity for any work, and have at least 150 weeks of tions are B$34,840. paid contributions. The insured person’s mandatory contributions also finance The disability pension is payable abroad. cash sickness, maternity, and unemployment benefits, and Disability assistance (social assistance, income cash and in-kind work injury benefits. The voluntarily tested): Must be younger than the normal retirement age, insured person’s contributions also finance the maternity be assessed with a disability and not be receiving or entitled grant. to receive the social insurance disability pension. Self-employed person Survivor pension (social insurance): The deceased Social insurance and social assistance: 8.8% of weekly or received or was entitled to receive a social insurance old- monthly covered earnings. age or disability pension at the time of death. There are no minimum earnings used to calculate Eligible survivors include a dependent widow(er) who contributions. was married to the deceased and is disabled or aged 40 or older and incapable of gainful employment; a dependent The maximum annual earnings used to calculate contribu- widow(er) who was caring for an orphan younger than tions are B$34,840. age 16 (age 21 if a student, no limit if disabled) at the time The self-employed person’s contributions also finance cash of death; a dependent widow who was pregnant with the sickness and maternity benefits, and cash and in-kind work deceased’s orphan at the time of death; dependent orphans injury benefits. younger than age 16 (age 21 if a student, no limit if dis- Employer abled); and dependent parents who are disabled or aged 40 or older and incapable of gainful employment. Social insurance and social assistance: 5.9% of weekly or monthly covered payroll. The survivor pension is payable abroad.
52 ♦ SSPTW: The Americas, 2019 Bahamas
Survivor grant (social insurance): The deceased had at Permanent Disability Benefits least 150 weeks of paid contributions at the time of death. Disability pension (social insurance): 16% of the Eligible survivors include a widow(er) who was married to insured’s covered wage plus 2% for every 50 weeks of paid the deceased for at least a year and does not qualify for a or credited contributions exceeding 150 weeks, up to 500, survivor pension. and 1% for every 50 weeks of contributions exceeding 500. The survivor grant is payable abroad. Contributions may be credited for each complete contribu- Survivor assistance (social assistance, income tested): tory week the insured received the cash sickness or mater- The deceased did not qualify for a social insurance old-age nity benefits, unemployment benefits, or temporary work or disability pension. injury benefits. In addition, contributions may be credited for each complete contributory week the insured received Eligible survivors include a dependent widow(er); depen- permanent work injury benefits under certain conditions. dent orphans younger than age 16 (age 21 if a student, no limit if disabled); and dependent parents. The covered wage is based on the insured’s average weekly earnings in the best three years of contributions in which at Funeral benefit (social insurance): Paid when the insured least 26 contributions were made. or the insured’s spouse dies if the insured has at least 50 weeks of paid contributions. The maximum annual wage used to calculate benefits is B$34,840. The funeral benefit is not payable abroad. The minimum weekly disability pension is B$74.16. Old-Age Benefits The maximum disability pension is 60% of the insured’s covered wage. Old-age pension (social insurance, earnings tested): 30% of the insured’s covered wage is paid with at least Disability assistance (social assistance, income 500 weeks of paid contributions. The pension is increased tested): B$63.17 a week is paid. by 1% of the covered wage for every 50 weeks of paid or credited contributions exceeding 500 weeks. Survivor Benefits Contributions may be credited for each complete contribu- Survivor pension (social insurance) tory week the insured received the cash sickness or mater- Spouse’s pension: 50% of the social insurance old-age or nity benefits, unemployment benefits, or temporary work disability pension the deceased received or was entitled to injury benefits. In addition, contributions may be credited receive is paid to an eligible widow(er). for each complete contributory week the insured received permanent work injury benefits under certain conditions. The minimum weekly spouse’s pension is B$74.16. The covered wage is based on the insured’s average weekly There is no maximum spouse’s pension. earnings in the best five years of contributions in which at Orphan’s pension: 10% of the social insurance old-age or least 26 contributions were made. disability pension the deceased received or was entitled to Earnings test: The old-age pension is suspended if the receive is paid for each eligible orphan, up to five orphans insured’s weekly income is B$335 or above. (if the widow(er) receives a spouse’s pension) or 10 orphans (if the widow(er) does not receive a spouse’s pension); Early pension: The old-age pension is reduced by 0.58% for B$34.33 a week is paid for each full orphan. each month the insured is younger than age 65 at the time of the claim. The minimum weekly orphan’s pension is B$30.21. Deferred pension: The benefit is increased by 0.58% for There is no maximum orphan’s pension. each month the insured is older than age 65 at the time of Other eligible survivor’s pension: If there is no eligible the claim, up to 35%. widow(er) or orphan, 50% of the social insurance old-age or The minimum weekly old-age pension is B$68.66. disability pension the deceased received or was entitled to The maximum old-age pension is 60% of the insured’s receive is paid to an eligible parent. covered wage. The minimum weekly survivor pension is B$74.16. Old-age grant (social insurance): A lump sum of six There is no maximum survivor pension. times the number of 50-week periods of paid contributions The maximum combined survivor pension is 100% of the multiplied by the insured’s covered wage is paid. social insurance old-age or disability pension the deceased The covered wage is based on the insured’s average weekly received or was entitled to receive. earnings in the best five years of contributions in which at Survivor grant (social insurance): A lump sum of one least 26 contributions were made. year of the social insurance old-age or disability pension the Noncontributory old-age pension (social assistance, deceased received or was entitled to receive is paid. income tested): B$63.17 a week is paid.
SSPTW: The Americas, 2019 ♦ 53 Bahamas
Survivor assistance (social assistance, income tested): Employer B$63.17 a week is paid to persons aged 18 or older; B$25.26 Universal and social assistance (medical benefits): None. a week to orphans younger than age 18 (B$28.84 for a full orphan). Social insurance: See source of funds under Old Age, Dis- ability, and Survivors. Funeral benefit (social insurance): A lump sum of up to B$1,810 is paid to the person who pays for the funeral. Government Universal and social assistance (medical benefits): The total Administrative Organization cost. Ministry of Labour and National Insurance (http://www Social insurance: None; contributes as an employer. .bahamas.gov.bs/labour/) provides general supervision. National Insurance Board (http://www.nib-bahamas.com/) Qualifying Conditions administers the programs and collects contributions. Cash sickness benefit (social insurance): Must have been employed on the day of or on the day before the Sickness and Maternity incapacity began, have at least a total of 40 weeks of paid contributions, and have at least 26 weeks of paid or credited Regulatory Framework contributions in the year immediately before the incapacity First and current laws: 1972 (national insurance), 1998 began or in the last contribution year or at least 13 weeks of (hospitals and health care), 2009 (chronic diseases drug paid or credited contributions in the 26 weeks immediately fund), and 2016 (national health insurance). before the incapacity began.
Type of program: Universal (medical benefits), social Contributions may be credited for each complete contribu- insurance (cash benefits), and social assistance (medical tory week the insured received the cash sickness or mater- benefits) system. nity benefits, unemployment benefits, or temporary work injury benefits. In addition, contributions may be credited Note: The National Health Insurance Act creating a social for each complete contributory week the insured received insurance health system was passed in 2016 but has not yet permanent work injury benefits under certain conditions. been fully implemented. It will provide free primary health care services for enrolled legal residents of the Bahamas. Sickness allowance (social insurance, means tested): Must be temporarily unable to work due to illness, have at Coverage least one week of paid contributions, and not qualify for the social insurance cash sickness benefits. Universal (National Prescription Drug Plan, medical benefits): Old-age pensioners, total disability pension- Cash maternity benefit (social insurance): Must have at ers, survivor pensioners aged 60 or older, citizens of the least a total of 50 weeks of paid contributions, and 26 weeks Bahamas aged 65 or older, children up to age 18 (age 25 if a of paid or credited contributions in the preceding year of full-time student), needy persons, public-sector employees, contributions or in the 40 weeks before the benefit is paid. and women receiving prenatal or postnatal care. Contributions may be credited for each complete contribu- Social insurance (cash benefits): Employed and self- tory week the insured received the cash sickness or mater- employed persons. Voluntarily insured persons are covered nity benefits, unemployment benefits, or temporary work for the maternity grant and funeral benefit only. injury benefits. In addition, contributions may be credited for each complete contributory week the insured received Social assistance (medical benefits): Residents of the permanent work injury benefits under certain conditions. Bahamas. Maternity grant (social insurance): Must have at least Source of Funds 50 weeks of paid contributions. The benefit is paid to an insured woman or the wife of an insured man. Insured person Medical benefits (National Prescription Drug Plan, Universal and social assistance (medical benefits): None. universal): Must be certified by a registered medical prac- Social insurance: See source of funds under Old Age, Dis- titioner as suffering from at least one of 14 listed chronic ability, and Survivors. diseases. Self-employed person Medical benefits (social assistance): There is no mini- mum qualifying period. Universal and social assistance (medical benefits): None. Social insurance: See source of funds under Old Age, Dis- ability, and Survivors.
54 ♦ SSPTW: The Americas, 2019 Bahamas
Sickness and Maternity Benefits Ministry of Health (http://www.bahamas.gov.bs/health/) provides general supervision of and administers primary Sickness benefit (social insurance): 60% of the insured’s health care benefits. average weekly covered earnings is paid after a three-day waiting period for up to 26 weeks; may be extended for up National Insurance Board (http://www.nib-bahamas.com/) to 14 weeks under certain conditions. administers the universal National Prescription Drug Plan. Average weekly earnings are based on the insured’s cov- National Health Insurance Authority (https://www ered earnings in the contribution period used to qualify for .nhibahamas.gov.bs/) is overseeing the implementation of the sickness benefit. the social insurance health care benefits. The minimum weekly sickness benefit is B$74.16. Princess Margaret Hospital’s Department of Social Services (http://www.pmh.phabahamas.org/patients-support There is no maximum sickness benefit. -services) administers the social assistance medical Sickness allowance (social insurance, means tested): benefits. B$63.17 a week is paid.
Maternity benefit (social insurance): 66.6% of the Work Injury insured’s average weekly covered earnings is paid for 13 weeks beginning no earlier than six weeks before the Regulatory Framework expected date of childbirth; may be extended for six weeks First law: 1943 (workmen’s compensation). under certain conditions. Current law: 1972 (national insurance). Average weekly earnings are based on the insured’s cov- ered earnings in the contribution period used to qualify for Type of program: Social insurance system. the maternity benefit. Coverage The minimum weekly maternity benefit is B$74.16. Employed and self-employed persons. There is no maximum maternity benefit. Exclusions: Family labor. Maternity grant (social insurance): A lump sum of B$490 is paid for each live birth. Source of Funds Workers’ Medical Benefits Insured person: See source of funds under Old Age, Dis- ability, and Survivors. Medical benefits (National Prescription Drug Plan, uni- versal): Free medicine and wellness programs are provided. Self-employed person: See source of funds under Old Age, Disability, and Survivors. Medical benefits (social assistance): Medical care is available at public hospitals and clinics. The government Employer: See source of funds under Old Age, Disability, subsidizes the cost of primary care for civil servants, and Survivors. children, pregnant women, persons older than age 60, and Government: None; contributes as an employer. needy persons. Qualifying Conditions Dependents’ Medical Benefits Must be assessed with a work injury or occupational Medical benefits (National Prescription Drug Plan, disease that results in an incapacity to work. There is no universal): Benefits for dependents are the same as those minimum qualifying period. for the insured.
Medical benefits (social assistance): Benefits for depen- Temporary Disability Benefits dents are the same as those for the insured. 66.6% of the insured’s average weekly covered earnings in the last 26 weeks before the disability began is paid after a Administrative Organization three-day waiting period for up to 40 weeks. Ministry of Labour and National Insurance (http://www The minimum weekly temporary disability benefit is .bahamas.gov.bs/labour/) provides general supervision of B$74.16. cash benefits. The maximum weekly temporary disability benefit is National Insurance Board (http://www.nib-bahamas B$446.67. .com/) administers the cash benefits program and collects contributions.
SSPTW: The Americas, 2019 ♦ 55 Bahamas
Permanent Disability Benefits Industrial funeral benefit: A lump sum of B$1,810 is paid to the person who paid for the funeral. Permanent disability pension: For a total (100%) disabil- ity, 66.6% of the insured’s average weekly covered earnings The industrial funeral benefit is not payable abroad. is paid. A lump sum of B$1,000 is also paid. Administrative Organization The minimum weekly permanent disability pension for a Ministry of Labour and National Insurance (http://www total disability is B$74.16. .bahamas.gov.bs/labour/) provides general supervision. The maximum weekly permanent disability pension for a National Insurance Board (http://www.nib-bahamas.com/) total disability is B$446.67. administers the program and collects contributions. The permanent disability pension is payable abroad. Constant-attendance supplement: 20% of the permanent Unemployment disability pension is paid if the insured is assessed with a total (100%) disability and requires the constant attendance Regulatory Framework of others to perform daily functions. First and current law: 2009 (national insurance), imple- Partial disability: For an assessed degree of disability of mented in 2009 and 2010. at least 25% but less than 100%, a reduced permanent Type of program: Social insurance system. disability pension is paid based on the assessed degree of disability. A lump sum of B$500 is also paid for an assessed degree of disability of 25% to 66%; B$1,000 for an assessed Coverage degree of disability of 67% to 100%. Employed persons. The minimum weekly permanent disability pension for a Exclusions: Self-employed persons. partial disability is B$63.17. There is no maximum permanent disability pension for a Source of Funds partial disability. Insured person: See source of funds under Old Age, Dis- Lump-sum grant: For an assessed degree of disability of 1% ability, and Survivors. to 24%, a lump sum of B$100 to B$2,400 is paid based on Self-employed person: Not applicable. the assessed degree of disability. Employer: See source of funds under Old Age, Disability, Workers’ Medical Benefits and Survivors. Benefits (including hospitalization, general and special- Government: Covers any deficit; contributes as an ist care, medicine, and transportation) are paid for up to employer. 40 weeks (for an assessed degree of disability of up to 25%) or two years (for an assessed degree of disability exceeding Qualifying Conditions 25%). Must be younger than the normal retirement age, have at least 52 weeks of paid contribution, at least 13 weeks Survivor Benefits of paid or credited contributions in the 26 weeks before Survivor pension unemployment began, and at least seven weeks of paid or credited contributions in the 13 weeks before unemploy- Spouse’s pension: 50% of the temporary disability pension ment began. the deceased received or was entitled to receive is paid. Contributions may be credited for each complete contribu- The minimum weekly spouse’s pension is B$74.16. tory week the insured received the cash sickness or mater- Orphan’s pension: 10% of the temporary disability pen- nity benefits, unemployment benefits, or temporary work sion the deceased received or was entitled to receive is paid injury benefits. In addition, contributions may be credited for each dependent orphan younger than age 16 (age 21 if for each complete contributory week the insured received a full-time student), up to five orphans (if the widow(er) permanent work injury benefits under certain conditions. receives a survivor pension) or 10 orphans (if the widow(er) To remain eligible, the insured must register with the labor does not receive a survivor pension). exchange every four weeks, be available and looking for The minimum weekly orphan’s pension is B$30.21. work, and accept suitable employment. Survivor pensions are payable abroad. The unemployment benefit is not payable abroad.
Industrial death benefit: A lump sum of one month of the Unemployment Benefits spouse’s or orphan’s pension is paid. 50% of the insured’s average weekly covered earnings is The industrial death benefit is payable abroad. paid after a three-day waiting period for up to 13 weeks
56 ♦ SSPTW: The Americas, 2019 Bahamas
(may be extended in certain circumstances) in any 52-week National Insurance Board (http://www.nib-bahamas.com/) period. administers the program and collects contributions. Average weekly earnings are based on the insured’s cov- ered earnings in the contribution period used to qualify for Family Allowances the unemployment benefit. After receiving benefits for 13 weeks in any 52-week Regulatory Framework period, the insured must wait at least 52 weeks to make No known statutory benefits are provided. another claim. The Ministry of Social Services and Urban Development The minimum weekly unemployment benefit is B$74.16. provides ad hoc support and assistance to needy families, including cash transfers to cover the cost of food, rent, utili- The maximum weekly unemployment benefit is B$335. ties, medical services, and travel. Schedule of payments: The unemployment benefit is paid every two weeks.
Administrative Organization Ministry of Labour and National Insurance (http://www .bahamas.gov.bs/labour/) provides general supervision.
SSPTW: The Americas, 2019 ♦ 57 Barbados
The minimum annual earnings used to calculate contribu- tions are B$1,092. Barbados The maximum annual earnings used to calculate contribu- Exchange rate: US$1.00 = tions are B$57,840. 2.02 Barbadian dollars (B$). The self-employed person’s contributions also finance cash sickness and maternity benefits. The catastrophe fund provides financial aid to low-income Old Age, Disability, and Survivors earners whose houses are damaged or destroyed by a catastrophe. Regulatory Framework Social assistance: 2% of monthly covered earnings. First law: 1969 (social assistance). The minimum annual earnings used to calculate contribu- Current laws: 1966 (social insurance), 1969 (social assis- tions are B$1,092. tance), and 2007 (catastrophe fund). The maximum annual earnings used to calculate contribu- Type of program: Social insurance and social assistance tions are B$57,840. system. Employer Coverage Social insurance: 6.75% of weekly covered earnings (6.2% for permanent government employees; 5.93% for foreign Social insurance: Employed and self-employed persons, service help). including public-sector employees, residing in Barbados. The minimum weekly earnings used to calculate contribu- Voluntary coverage is available. tions are B$21; the minimum monthly earnings are B$91. Exclusions: Unpaid family labor. The maximum weekly earnings used to calculate contri- Social assistance: Resident citizens of Barbados. butions are B$1,112; the maximum monthly earnings are B$4,820. Source of Funds The employer’s contributions also finance cash sickness and Insured person maternity benefits. Social insurance: 6.75% of weekly covered earnings (6.2% Social assistance: 2% of weekly covered payroll. for permanent government employees; 5.93% for foreign The minimum weekly earnings used to calculate contribu- service help; 8.3% for the voluntarily insured) plus 0.1% for tions are B$21; the minimum monthly earnings are B$91. the catastrophe fund. The maximum weekly earnings used to calculate contri- The minimum weekly earnings used to calculate contribu- butions are B$1,112; the maximum monthly earnings are tions are B$21; the minimum monthly earnings are B$91. B$4,820. The maximum weekly earnings used to calculate contri- Government butions are B$1,112; the maximum monthly earnings are Social insurance: None; contributes as an employer. B$4,820. The insured person’s contributions also finance cash sick- Social assistance: Any deficit. ness and maternity benefits. Qualifying Conditions The catastrophe fund provides financial aid to low-income earners whose houses are damaged or destroyed by a Old-age pension (social insurance): Age 67 with at least catastrophe. 500 weeks of paid or credited contributions, including at least 150 weeks of paid contributions. Social assistance: 2% of weekly covered earnings. Contributions are credited for each complete contributory The minimum weekly earnings used to calculate contribu- week the insured received cash sickness, maternity, or work tions are B$21; the minimum monthly earnings are B$91. injury benefits, and during the three-day waiting period for The maximum weekly earnings used to calculate contri- a sickness benefit if the related claim period lasts at least butions are B$1,112; the maximum monthly earnings are two weeks. B$4,820. Early pension: Age 60 with at least 500 weeks of paid or Self-employed person credited contributions, including at least 150 weeks of paid contributions, and no longer employed or self-employed. Social insurance: 13.5% of monthly covered earnings plus 0.1% for the catastrophe fund.
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Deferred pension: The pension may be deferred until The widow(er)’s pension ceases upon remarriage or age 70. cohabitation. The old-age pension is payable abroad. The survivor pension is payable abroad.
Old-age grant (social insurance): Age 67 with at least Funeral grant (social insurance): The deceased or his or 50 weeks but less than 500 weeks of paid or credited her spouse received or was entitled to receive social insur- contributions. ance old-age, disability, sickness, maternity, or unemploy- Contributions are credited for each complete contributory ment benefits. week the insured received cash sickness, maternity, or work The funeral grant is payable abroad. injury benefits, and during the three-day waiting period for a sickness benefit if the related claim period lasts at least Old-Age Benefits two weeks. Old-age pension (social insurance): If the insured was The old-age grant is payable abroad. aged 56 or older on December 31, 2002, the pension is 40% Noncontributory old-age pension (social assistance, of the insured’s average annual earnings plus 1% of the income tested): Age 67, a resident of Barbados for at least insured’s total covered earnings in the contributory weeks 12 years (citizens) or 15 years (permanent residents) since after the first 500 weeks. age 40 or a total of 20 years since age 18 (citizens or perma- If the insured was younger than age 47 on December 31, nent residents), and does not qualify for the social insur- 2002, the pension is 2% of the insured’s average annual ance old-age pension or an old-age pension from a foreign earnings for the first 20 years of contributions plus 1.25% government or international organization. of average annual earnings for each year of contributions The noncontributory old-age pension is not payable abroad. exceeding 20 years. If the insured was aged 47 to 55 on December 31, 2002, Disability pension (social insurance): Must be younger than the normal retirement age, be incapable of any work, 50% of the pension is based on the first method of calcula- and have at least 150 weeks of paid contributions. tion and 50% on the second. The disability pension is not payable abroad. Average annual earnings are based on the insured’s cov- ered earnings in the best five years of contributions; if the Disability grant (social insurance): Must be younger than number of years worked is less than 15 years, the average is the normal retirement age, be incapable of any work, and based on the insured’s total covered earnings. have at least 50 weeks of paid or credited contributions but The maximum weekly earnings used to calculate benefits less than 150 weeks of paid contributions. are B$1,112; the maximum monthly earnings used to calcu- Contributions are credited for each complete contributory late benefits are B$4,820. week the insured received cash sickness, maternity, or work The minimum weekly old-age pension is B$239. injury benefits, and during the three-day waiting period for a sickness benefit if the related claim period lasts at least The maximum weekly old-age pension is 60% of the two weeks. insured’s average covered earnings, up to B$658.14. The disability grant is not payable abroad. Early pension: A reduced pension is paid. Noncontributory disability pension (social assistance, Deferred pension: An increased pension is paid. income tested): Must be aged 18 or older; be assessed with Benefit adjustment: Benefits are adjusted annually based on an incapacity for work as the result of a serious problem changes in the cost of living. with eyesight, or hearing and speech; and not qualify A lump sum of six for the social insurance disability pension or a disabil- Old-age grant (social insurance): weeks of the insured’s average annual earnings is paid for ity pension from a foreign government or international every 50 weeks of paid or credited contributions. organization. Average annual earnings are based on the insured’s cov- Income test: Weekly earnings must not exceed B$30. ered earnings in the best five years of contributions; if the The noncontributory disability pension is not payable number of years worked is less than 15 years, the average is abroad. based on the insured’s total covered earnings. Survivor pension (social insurance): The deceased Noncontributory old age pension (social assistance, received or was entitled to receive a social insurance old- income tested): B$225 a week is paid. age or disability pension at the time of death. Benefit adjustment: Benefits are adjusted annually based on Eligible survivors include a widow(er) and orphans younger changes in the cost of living. than age 16 (age 25 if a student; no limit if disabled) who were living with or totally dependent on the deceased.
SSPTW: The Americas, 2019 ♦ 59 Barbados
Permanent Disability Benefits The maximum weekly old-age or disability pension is B$658.14. Disability pension (social insurance): 40% of the insured’s average annual earnings plus 1% of the insured’s The maximum combined survivor pension is 100% of the total covered earnings in the contributory weeks after the social insurance old-age or disability pension the deceased first 500 weeks is paid. received or was entitled to receive at the time of death. Average annual earnings are based on the insured’s covered Funeral grant (social insurance): A lump sum of B$2,150 earnings in the best three years of contributions; if the is paid to the person who pays for the funeral. number of years worked is less than 15 years, the average is Benefit adjustment: Benefits are adjusted annually based on based on the insured’s total covered earnings. changes in the cost of living. The maximum weekly earnings used to calculate benefits are B$1,112; the maximum monthly earnings used to calcu- Administrative Organization late benefits are B$4,820. Ministry of Finance, Economic Affairs and Investment The minimum weekly disability pension is B$239. (https://www.gov.bb/Ministries/finance-economic-affairs/) The maximum weekly disability pension is 60% of the is responsible for policy. insured’s average covered earnings, up to B$658.14. National Insurance Office (https://www.nis.gov.bb/), Benefit adjustment: Benefits are adjusted annually based on directed by a tripartite board, collects contributions and changes in the cost of living. administers the programs. Disability grant (social insurance): A lump sum of six Sickness and Maternity weeks of the insured’s average annual earnings for every 50 weeks of paid or credited contributions is paid. Regulatory Framework Average annual earnings are based on the insured’s covered First and current laws: 1966 (social insurance); 1969 earnings in the best three years of contributions; if the (medical care); and 1980 (medicine), implemented in 1983. number of years worked is less than 15 years, the average is based on the insured’s total covered earnings. Type of program: Universal (medical benefits) and social insurance (cash benefits) system. Noncontributory disability pension (social assistance, income tested): B$225 a week is paid. Coverage Benefit adjustment: Benefits are adjusted annually based on changes in the cost of living. Universal (medical benefits): Residents of Barbados. Social insurance (cash benefits): Employed persons and Survivor Benefits self-employed citizens of Barbados. Permanent government Survivor pension (social insurance) employees are covered for cash maternity benefits only. Spouse’s pension: 50% of the social insurance old-age or Exclusions: Unpaid family labor. disability pension the deceased received or was entitled to receive is paid to a widow(er) aged 50 or older (any age if Source of Funds disabled) who was married to the deceased for at least three Insured person years; 33% to a widow(er) aged 45 to 49. A limited pension is paid for 12 months to a widow(er) younger than age 50 Universal (medical benefits): 1% of weekly covered or a widow who was married to the deceased for less than earnings. three years. The minimum weekly earnings used to calculate contribu- The maximum weekly spouse’s pension is 50% of the tions are B$21; the minimum monthly earnings are B$91. maximum weekly old-age or disability pension. The maximum weekly earnings used to calculate contri- The maximum weekly old-age or disability pension is butions are B$1,112; the maximum monthly earnings are B$658.14. B$4,820. Social insurance (cash benefits): See source of funds under Orphan’s pension: 16.67% of the social insurance old-age or disability pension the deceased received or was entitled to Old Age, Disability, and Survivors. receive is paid to each orphan younger than age 16 (age 25 Self-employed person if a student); 33.3% if a full orphan or disabled. Universal (medical benefits): 1% of monthly covered The maximum weekly orphan’s pension is 33.3% of the earnings. maximum weekly old-age or disability pension. The minimum annual earnings used to calculate contribu- tions are B$1,092.
60 ♦ SSPTW: The Americas, 2019 Barbados
The maximum annual earnings used to calculate contribu- a sickness benefit if the related claim period lasts at least tions are B$57,840. two weeks. Social insurance (cash benefits): See source of funds under The cash maternity benefit is payable abroad only in cases Old Age, Disability, and Survivors. where the insured has left temporarily to receive medical treatment. Employer Cash maternity grant: Paid for an uninsured woman or Universal (medical benefits): 1.5% of weekly covered an insured woman who does not qualify for cash maternity earnings. benefits but whose spouse qualifies. The minimum weekly earnings used to calculate contribu- The cash maternity grant is payable abroad only in cases tions are B$21; the minimum monthly earnings are B$91. where the insured has left temporarily to receive medical The maximum weekly earnings used to calculate contri- treatment. butions are B$1,112; the maximum monthly earnings are B$4,820. Sickness and Maternity Benefits Social insurance (cash benefits): See source of funds under Sickness benefit: 66.67% of the insured’s average weekly Old Age, Disability, and Survivors. earnings is paid after a three-day waiting period for up to Government 26 weeks; may be extended for an additional 26 weeks if the insured has at least 150 weeks of paid contributions, Universal (medical benefits): Provides subsidies as needed. including 75 weeks of contributions in the three years Social insurance (cash benefits): None; contributes as an before the year the incapacity began. The waiting period is employer. waived if the incapacity lasts at least 14 days. Average weekly earnings are based on the insured’s cov- Qualifying Conditions ered earnings in the contribution period used to qualify for the sickness benefit; special rules apply when periods of Cash sickness benefit: Must be aged 16 or older but incapacity are separated by 13 or fewer weeks. younger than the normal retirement age, have been employed immediately before the incapacity began, and The maximum weekly sickness benefit is B$741.33. have at least seven weeks of paid contributions in the Maternity benefit: 100% of the insured’s average weekly second to last quarter before the incapacity began. Insured earnings is paid for up to six weeks before and six weeks persons who were on leave or unemployed at the time the after the expected date of childbirth. incapacity began must have an additional 39 weeks of paid or credited contributions in the four consecutive quarters Average weekly earnings are based on the insured’s cov- ending in the second to last quarter before the incapacity ered earnings in the contribution period used to qualify for began. the maternity benefit. Contributions are credited for each complete contributory The maximum weekly maternity benefit is B$1,112. week the insured received cash sickness, maternity, or work Benefit adjustment: Benefits are adjusted annually based on injury benefits, and during the three-day waiting period for actuarial recommendations. a sickness benefit if the related claim period lasts at least A lump sum of B$1,240 is paid. two weeks. Maternity grant: Benefit adjustment: Benefits may be adjusted annually The cash sickness benefit is payable abroad only in cases based on the three-year average change in the consumer where the insured has left temporarily to receive medical price index or average national wages, whichever is lower, treatment. depending on the financial health of the system. Cash maternity benefit: Paid to employed women with at least 26 weeks of contributions, including 16 weeks of paid Workers’ Medical Benefits contributions in the two consecutive quarters ending in the Free medical care is available in public hospitals and health second to last quarter before the benefit is paid. centers. Benefits include general practitioner services; Self-employed women must have at least 39 weeks of paid maternity, dental, and eye care; HIV/AIDS prevention, or credited contributions in the four consecutive quarters treatment, and care; mental health services; geriatric care; ending in the second to last quarter before the benefit is nutrition services; and acute and emergency care. paid; and 16 weeks of paid contributions in the two con- The Barbados Drug Service provides free medicine to secutive quarters ending in the second to last quarter before persons suffering from certain chronic conditions (hyper- the benefit is paid. tension, diabetes, cancer, epilepsy, glaucoma, and asthma), Contributions are credited for each complete contributory persons aged 65 or older; children younger than age 16; week the insured received cash sickness, maternity, or work and certain persons aged 16 to 64. A dispensing fee may be injury benefits, and during the three-day waiting period for charged in private pharmacies.
SSPTW: The Americas, 2019 ♦ 61 Barbados
Dependents’ Medical Benefits Average weekly earnings are based on the insured’s cov- ered earnings in the second to last quarter or last quarter Benefits for dependents are the same as those for workers. before the disability began; the average weekly earnings of workers in similar employment may be used under certain Administrative Organization conditions. Ministry of Finance, Economic Affairs and Investment The maximum weekly temporary disability benefit is (https://www.gov.bb/Ministries/finance-economic-affairs/) 90% of the maximum weekly earnings used to calculate is responsible for policy for the social insurance program. contributions. National Insurance Office (https://www.nis.gov.bb/), The maximum weekly earnings used to calculate contribu- directed by a tripartite board, collects contributions and tions are B$1,112. administers the social insurance program. Benefit adjustment: Benefits are adjusted annually based on Ministry of Health and Wellness (https://www.gov.bb actuarial recommendations. /Ministries/health/) is responsible for policy and delivers medical benefits. Permanent Disability Benefits Work Injury Permanent disability pension: For a total (100%) perma- nent disability, 90% of the insured’s average weekly earn- Regulatory Framework ings is paid. The insured must have exhausted entitlement to the temporary disability benefit. First law: 1916 (workmen’s compensation). Average weekly earnings are based on the insured’s cov- Current law: 1966 (social insurance), implemented in 1971. ered earnings in the second to last quarter or last quarter Type of program: Social insurance system. before the disability began; the average weekly earnings of workers in similar employment may be used under certain Coverage conditions. Public- and private-sector employees, including some cat- The maximum weekly permanent disability pension is egories of fishermen, residing in Barbados. 90% of the maximum weekly earnings used to calculate contributions. Voluntary coverage is not available. The maximum weekly earnings used to calculate contribu- Exclusions: Self-employed persons and unpaid family labor. tions are B$1,112. Source of Funds Partial disability: For an assessed degree of disability of at least 30% but less than 100%, a percentage of the full Insured person: None. permanent disability pension is paid based on the assessed Self-employed person: Not applicable. degree of disability; a lump sum is paid if the assessed degree of disability is less than 30%. The insured must have Employer: 0.75% of weekly covered payroll. exhausted entitlement to the temporary disability benefit. The minimum weekly earnings used to calculate contribu- Constant-attendance supplement: 50% of the permanent tions are B$21; the minimum monthly earnings are B$91. disability pension for a total or partial disability is paid if The maximum weekly earnings used to calculate contri- the insured requires the constant attendance of others to butions are B$1,112; the maximum monthly earnings are perform daily functions. B$4,820. The insured’s doctor assesses the degree of disability, Government: None; contributes as an employer. which may be reviewed by National Insurance Office doctors. Qualifying Conditions The permanent disability pension ceases at the normal Must be assessed with a work injury or occupational retirement age and is replaced by the old-age pension. disease. Benefit adjustment: Benefits are adjusted annually based on actuarial recommendations. Temporary Disability Benefits 90% of the insured’s average weekly earnings is paid after Workers’ Medical Benefits a three-day waiting period for up to 52 weeks. The waiting Benefits include reimbursement of expenses for medical, period is waived if the disability lasts at least 14 days. surgical, dental, and hospital treatment; nursing care; medi- cine; appliances; and transportation.
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Survivor Benefits The minimum weekly earnings used to calculate contribu- tions are B$21; the minimum monthly earnings are B$91. Survivor pension The maximum weekly earnings used to calculate contri- Spouse’s pension: 50% of the temporary disability benefit butions are B$1,112; the maximum monthly earnings are the deceased received or was entitled to receive is paid to a B$4,820. dependent spouse. Self-employed person: Not applicable. The self-employed The spouse’s pension ceases upon remarriage or pay 0.5% of monthly declared income for the training levy. cohabitation. Remarriage settlement: A lump sum of one year of the Employer: 1% of weekly covered payroll plus 0.5% for the spouse’s pension is paid upon remarriage or cohabitation. training levy. Private-sector employers pay an additional 0.75% to the severance fund. Orphan’s pension: 16.6% of the temporary disability benefit The minimum weekly earnings used to calculate contribu- the deceased received or was entitled to receive is paid tions are B$21; the minimum monthly earnings are B$91. to each orphan younger than age 16 (age 25 if a student); 33.3% if a full orphan or disabled. The maximum weekly earnings used to calculate contri- butions are B$1,112; the maximum monthly earnings are The maximum combined survivor pension is 100% of the B$4,820. temporary disability benefit the deceased received or was entitled to receive. Government: None; contributes as an employer. The survivor pension is payable abroad under bilateral or multilateral agreements. Qualifying Conditions Must be younger than the normal retirement age with at Funeral grant: A lump sum of B$2,150 is paid to the per- least 52 weeks of paid or credited contributions, includ- son who pays for the insured’s funeral. ing at least 20 weeks of paid or credited contributions in The funeral grant is payable abroad under some bilateral the three consecutive quarters ending in the second to last agreements. quarter before the unemployment began and at least seven Benefit adjustment: Benefits are adjusted annually based on weeks of paid or credited contributions in the second to last actuarial recommendations. quarter. Contributions are credited for each complete contributory Administrative Organization week the insured received cash sickness, maternity, or work Ministry of Finance, Economic Affairs and Investment injury benefits, and during the three-day waiting period for (https://www.gov.bb/Ministries/finance-economic-affairs/) a sickness benefit if the related claim period lasts at least is responsible for policy. two weeks. National Insurance Office (https://www.nis.gov.bb/), directed by a tripartite board, collects contributions and Unemployment Benefits administers the program. 60% of the insured’s average weekly earnings is paid after a three-day waiting period for up to 26 weeks in any 52-week Unemployment period. The waiting period is waived if the insured is unem- ployed for at least 21 days. Regulatory Framework Average weekly earnings are based on the insured’s cov- ered earnings in the contribution period used to qualify for 1981 (social insurance). First and current law: the unemployment benefit. Type of program: Social insurance system. The maximum weekly unemployment benefit is B$667.20.
Coverage Administrative Organization Employed persons, including temporary public-sector Ministry of Finance, Economic Affairs and Investment employees residing in Barbados. (https://www.gov.bb/Ministries/finance-economic-affairs/) Voluntary coverage is not available. is responsible for policy. Exclusions: Self-employed persons, family labor, and per- National Insurance Office (https://www.nis.gov.bb/), manent public-sector employees. directed by a tripartite board, collects contributions and administers the program. Source of Funds Insured person: 0.75% of weekly covered earnings plus 0.5% for the training levy.
SSPTW: The Americas, 2019 ♦ 63 Barbados
Family Allowances Family Allowance Benefits National assistance grant: B$25 a week is paid for a child Regulatory Framework younger than age 16; B$28 a week for an able-bodied adult; Current law: 1969 (national assistance). up to B$33 a week if younger than age 55 with a disability; up to B$38 a week if aged 55 or older with a disability and Social assistance system. Type of program: not receiving an old-age or disability pension. The benefit is paid for up to 26 weeks. Coverage Needy resident citizens of Barbados. Administrative Organization Ministry of Finance, Economic Affairs and Investment Source of Funds (https://www.gov.bb/Ministries/finance-economic-affairs/) Insured person: None. provides general supervision. Self-employed person: None. Ministry of People Empowerment and Elder Affairs (https://www.gov.bb/Ministries/social-care/) administers Employer: None. the program. Government: The total cost.
Qualifying Conditions National assistance grant: Must be unable to work due to a disability, or have no resources and be unable to find work.
64 ♦ SSPTW: The Americas, 2019 Belize
The maximum weekly earnings used to calculate contribu- tions are B$420 (increasing to B$480 on January 6, 2020 Belize and to B$520 on January 4, 2021). Exchange rate: US$1.00 = The total contribution rate (employee and employer) is 8.5% 2.00 Belize dollars (B$). (increasing to 9% on January 6, 2020 and to 10% on Janu- ary 4, 2021). The insured person’s contributions also finance cash sick- Old Age, Disability, and Survivors ness and maternity benefits, and work injury benefits. Contributions are paid monthly. Regulatory Framework Voluntarily insured persons pay weekly contributions of First and current law: 1979 (social security), with 2003 B$1.76 to B$10.24 for old-age benefits, survivor benefits, amendment (social assistance). and the funeral grant. Contributions are based on the best three years of contributions previously paid. Type of program: Social insurance and social assistance system. Old-age pensioners aged 60 to 64 who resume employ- ment and employees aged 65 or older do not pay any Coverage contributions. Social insurance: Employed persons, including cer- Social assistance: None. tain public-sector employees, and self-employed persons Self-employed person aged 19 to 60. Social insurance: 7% of weekly declared income. Voluntary coverage (old-age benefits, survivor benefits, and the funeral grant only) for residents of Belize younger The minimum weekly earnings used to calculate contribu- than age 65 who cease to be employed, have paid at least tions are B$55. 150 contributions as an employee, and have not previously The maximum monthly earnings used to calculate contribu- received an old-age or disability pension. tions are B$320. Exclusions: Casual workers, persons employed for less than The self-employed person’s contributions also finance cash eight hours a week, military personnel, employees aged 65 sickness and maternity benefits, and work injury benefits. or older, and old-age pensioners aged 60 to 64 who return Social assistance: None. to work. Special complementary systems for most civil servants, Employer teachers, and certain other public-sector employees. Social insurance: Weekly contributions vary based on 11 wage classes: Social assistance: Needy resident citizens of Belize, and permanent residents of Belize who were receiving the old- • B$3.80 if weekly earnings are less than B$70, age social pension before January 12, 2019. • B$6.22 if B$70 to B$109.99, Source of Funds • B$8.98 if B$110 to B$139.99, • B$10.25 if B$140 to B$179.99, Insured person • B$11.95 if B$180 to B$219.99, Social insurance: Weekly contributions vary based on 11 wage classes: • B$13.65 if B$220 to B$259.99, • B$0.88 if weekly earnings are less than B$70, • B$15.35 if B$260 to B$299.99, • B$1.43 if B$70 to B$109.99, • B$17.05 if B$300 to B$339.99 • B$2.07 if B$110 to B$139.99, • B$11.89 if B$340 to B$379.99, • B$3.35 if B$140 to B$179.99, • B$13.73 if B$380 to B$419.99, or • B$5.05 if B$180 to B$219.99, • B$15.68 if B$420 or greater. • B$6.75 if B$220 to B$259.99, The maximum weekly earnings used to calculate contribu- tions are B$420 (increasing to B$480 on January 6, 2020 • B$8.45 if B$260 to B$299.99, and to B$520 on January 4, 2021). • B$10.15 if B$300 to B$339.99 The total contribution rate (employee and employer) is 8.5% • B$11.89 if B$340 to B$379.99, (increasing to 9% on January 6, 2020 and to 10% on Janu- • B$13.73 if B$380 to B$419.99, or ary 4, 2021). • B$15.68 if B$420 or greater.
SSPTW: The Americas, 2019 ♦ 65 Belize
The employer’s contributions also finance cash sickness and Disability grant (Invalidity Grant, social insurance): maternity benefits, and work injury benefits. Must be younger than age 60, be assessed with a disability Employers pay a flat-rate weekly contribution of B$2.60 for that has lasted at least 26 consecutive weeks, and have at old-age pensioners aged 60 to 64 who resume employment least 26 weeks of paid contributions but not meet the contri- and employees aged 65 or older. (The contribution finances bution requirements for the disability pension. work injury benefits only.) A medical board assesses the degree of disability.
Contributions are paid monthly. Survivor pension (social insurance): The deceased Social assistance: None. received or was entitled to receive a social insurance old- age or disability pension at the time of death. Government Eligible survivors include a widow aged 50 or older (at any Social insurance: None; contributes as an employer. age if assessed with a disability) or a disabled dependent widower who was married to the deceased for at least three Social assistance: The total cost. years; a pregnant widow or widow caring for the deceased’s child(ren); a partner who lived with the deceased for at least Qualifying Conditions five consecutive years; orphans younger than age 18 (age 21 Old-age pension (Retirement Pension, social insur- if a full-time student; no limit if disabled); and, if there are ance): Age 65 with at least 500 weeks of paid or cred- no other survivors, dependent parents aged 55 or older. ited contributions, including at least 150 weeks of paid contributions. Survivor grant (social insurance): The deceased had at least 26 weeks of paid contributions but did not meet the Contributions are credited for each complete contributory contribution requirements for a social insurance old-age or week the insured received sickness, maternity, and tem- disability pension. porary or permanent total (100%) disability work injury benefits. Eligible survivors include a widow aged 50 or older (at any age if assessed with a disability) or a disabled depen- Employment may continue. dent widower who was married to the insured for at least Early pension: Age 60 with at least 500 weeks of paid or three years; a pregnant widow or a widow caring for the credited contributions, including at least 150 weeks of paid deceased’s child(ren); a partner who lived with the deceased contributions. for at least five consecutive years; orphans younger than Employment must cease until age 65. age 16 (age 21 if a full-time student; no limit if disabled); and, if there are no other survivors, dependent parents Old-age grant (Retirement Grant, social insurance): aged 55 or older. Age 60 with at least 26 weeks of paid contributions but does not meet the contribution requirements for a social Funeral grant (social insurance): The deceased had at insurance old-age pension. least 50 weeks of paid contributions; at least 150 weeks of paid contributions for the funeral of a spouse or dependent Old-age social pension (Non Contributory Pension Pro- child younger than age 18 (age 21 if a full-time student). gram [NCP], social assistance, means tested): Age 67 (men) or age 65 (women) and assessed as needy. Since Old-Age Benefits January 2019, only one member of a family can receive the pension. (Beneficiaries who were receiving an old-age Old-age pension (Retirement Pension, social insur- social pension before this date will continue to receive their ance): The pension is 30% of the insured’s average weekly benefits.) covered earnings plus 2% of average weekly covered earnings for every 50 weeks of contributions exceeding Disability pension (Invalidity Pension, social insur- 500 weeks, up to 750 weeks, and 1% for every 50 weeks of ance): Must be younger than age 60; be assessed with a contributions exceeding 750 weeks. permanent incapacity for work; and have at least 150 weeks of paid contributions since 1981, at least 250 weeks of Average weekly covered earnings are based on the paid or credited contributions in the five consecutive years insured’s best three years of earnings. before the year in which the disability began, or at least Early pension: Calculated in the same way as the old-age five weeks of paid or credited contributions in the 13 weeks pension. The pension is suspended if the insured returns to immediately before the week in which the disability began. work before age 65. Contributions are credited for each complete contributory The maximum weekly earnings used to calculate benefits week the insured received sickness, maternity, and tem- are B$440 (increasing to B$480 on January 6, 2020, and to porary or permanent total (100%) disability work injury B$520 on January 4, 2021). benefits. The minimum weekly old-age pension is B$47. A medical board assesses the degree of disability.
66 ♦ SSPTW: The Americas, 2019 Belize
The maximum weekly old-age pension 60% of the insured’s Orphan’s pension: 25% of the social insurance old-age or average weekly covered earnings. disability pension the deceased received or was entitled to Schedule of payments: The pension is paid every four receive is paid to each eligible orphan; 40% to an orphan weeks. with a disability.
Old-age grant (Retirement Grant, social insurance): A Dependent parent’s pension: 40% of the social insurance lump sum of six times the insured’s average weekly covered old-age or disability pension the deceased received or was earnings or 2.5 times the insured’s total covered earnings entitled to receive is paid to an eligible dependent parent. divided by the number of weeks of contributions, whichever The minimum weekly survivor pension is B$47 and is split is greater, is paid for every 50 weeks of paid or credited among eligible survivors. contributions. The maximum combined survivor benefit is 100% of the Average weekly covered earnings are based on the pension the deceased received or was entitled to receive. insured’s best three years of earnings. Schedule of payments: Survivor pensions are paid every The minimum old-age grant is B$800. four weeks.
Old-age social pension (Non Contributory Pension Pro- Survivor grant (social insurance): A lump sum of six gram [NCP], social assistance, means tested): B$100 a times the deceased’s average weekly covered earnings or month is paid. 2.5 times the deceased’s total covered earnings divided by the number of weeks of contributions, whichever is greater, Permanent Disability Benefits is paid for every 50 weeks of paid or credited contributions. Disability pension (Invalidity Pension, social insur- Average weekly covered earnings are based on the ance): With at least 500 weeks of contributions, 30% of the deceased’s best three years of earnings. insured’s average weekly covered earnings plus 2% of aver- The minimum survivor grant is B$800. age weekly covered earnings for every 50 weeks of contri- butions exceeding 500 weeks, up to 750 weeks, and 1% for Survivor benefits may be paid in addition to old-age or dis- every 50 weeks of contributions exceeding 750 weeks is ability benefits. paid. With less than 500 weeks of contributions, 25% of the Funeral grant (social insurance): B$1,500 is paid for insured’s average weekly earnings is paid. the insured’s death; B$1,000 on the death of a spouse; and Average weekly covered earnings are based on the B$500 on the death of a dependent child. insured’s best three years of earnings. The maximum weekly earnings used to calculate benefits Administrative Organization are B$440 (increasing to B$480 on January 6, 2020, and to Ministry of Finance (https://www.mof.gov.bz/) provides B$520 on January 4, 2021). general supervision. The minimum weekly disability pension is B$47. Social Security Board (https://www.socialsecurity.org.bz/) administers the program and collects contributions. The maximum weekly disability pension is 60% of the insured’s average weekly covered earnings. Sickness and Maternity Schedule of payments: The pension is paid every four weeks. Regulatory Framework Disability grant (Invalidity Grant, social insurance): A First and current law: 1979 (social security). lump sum of six times the insured’s average weekly covered earnings or 2.5 times the insured’s total covered earnings Type of program: Social insurance (cash benefits only) divided by the number of weeks of contributions, whichever system. is greater, is paid for every 50 weeks of paid or credited Note: A 2012 amendment introduced national health insur- contributions. ance. The program was piloted but has not yet been fully Average weekly covered earnings are based on the implemented. insured’s best three years of earnings. The minimum disability grant is B$800. Coverage Employed persons, including certain public-sector employ- Survivor Benefits ees and self-employed persons aged 19 to 60. Survivor pension (social insurance) Exclusions: Casual workers, persons employed for less than eight hours a week, and military personnel. Spouse’s pension: 66.7% of the social insurance old-age or disability pension the deceased received or was entitled to Special system for most civil servants. receive is paid to an eligible widow(er).
SSPTW: The Americas, 2019 ♦ 67 Belize
Source of Funds The maximum weekly earnings used to calculate benefits are B$440 (increasing to B$480 on January 6, 2020, and to Insured person: See source of funds under Old Age, Dis- B$520 on January 4, 2021). ability, and Survivors. The minimum weekly maternity benefit is B$44.00. Self-employed person: See source of funds under Old Age, Disability, and Survivors. Maternity grant: A lump sum of B$300 is paid for each child. Employer: See source of funds under Old Age, Disability, and Survivors. Workers’ Medical Benefits Government: None; contributes as an employer. Subsidized medical benefits may be provided through gov- ernment hospitals and clinics. Qualifying Conditions Cash sickness benefit: Must be aged 14 to 64, be cur- Dependents’ Medical Benefits rently employed, and have at least 50 weeks of contribu- Benefits for dependents are the same as those for the tions, including at least five weeks of contributions in the insured. 13 weeks before the incapacity began. Must provide a medical certificate. Administrative Organization Cash maternity benefit (Maternity Allowance): Must be Ministry of Finance (https://www.mof.gov.bz/) provides aged 14 to 64; have at least 50 weeks of paid contributions; general supervision of cash benefits. and have at least 25 weeks of paid or credited contribu- Social Security Board (http://www.socialsecurity.org.bz/) tions in the 39 weeks before the seven weeks preceding the administers the cash benefits and collects contributions. expected date of child birth or before the date the claim is Ministry of Health (http://health.gov.bz/) provides general made (whichever is later), including at least 20 weeks of supervision and delivers medical services through four paid contributions. administrative regions. Maternity grant: Paid to an insured woman or to an insured man for his wife or common-law wife. The insured Work Injury must be aged 14 to 64 and have at least 50 weeks of paid contributions, including at least 25 weeks in the 50 weeks Regulatory Framework before the expected date of childbirth. Only one grant is paid. First and current law: 1979 (social security). Type of program: Social insurance system. Sickness and Maternity Benefits Sickness benefit: 80% of the insured’s average weekly Coverage covered earnings in the 13 weeks before the incapacity Public- and private-sector employees, including old-age began is paid from the first day of incapacity for up to pensioners who return to work, and self-employed persons 156 days; thereafter, 60% of average weekly covered earn- aged 19 to 60. ings is paid for an additional 78 days. After 234 days, a Exclusions: Casual workers, persons employed for less than disability pension may be paid at the discretion of a medical eight hours a week, and military personnel. board. The maximum weekly earnings used to calculate benefits Source of Funds are B$440 (increasing to B$480 on January 6, 2020, and to Insured person: See source of funds under Old Age, Dis- B$520 on January 4, 2021). ability, and Survivors. The minimum weekly sickness benefit is B$44.00 for the first 156 days, and B$33 for the remaining 78 days. Self-employed person: See source of funds under Old Age, Disability, and Survivors. Schedule of payments: The benefit is paid weekly. Employer: See source of funds under Old Age, Disability, Maternity benefit (Maternity Allowance): 80% of the and Survivors. insured’s average weekly covered earnings in the 39 weeks before the start of the benefit is paid for up to 14 weeks, Government: None; contributes as an employer. beginning seven weeks before the expected date of child- birth or the day on which the benefit was claimed. The Qualifying Conditions benefit is paid in two equal parts: one for the period before Must be assessed with a work injury or occupational dis- childbirth, one for the period after childbirth. ease. Occupational diseases are specified by law. There is
68 ♦ SSPTW: The Americas, 2019 Belize no minimum qualifying period. The accident must occur Eligible widow(er)s include a widow aged 50 or older (at during the course of employment. any age if assessed with a disability) or a disabled depen- dent widower who was married to the deceased for at least Temporary Disability Benefits three years; a pregnant widow, or a widow caring for the deceased’s children. Temporary disability benefit (Employment Injury Ben- efit): 80% of the insured’s average weekly covered earnings A limited pension may be paid to a widow for up to in the four weeks before the disability began is paid from 52 weeks if she does not qualify for a spouse’s pension. the first day of incapacity for up to 156 days; thereafter, The spouse’s pension ceases upon remarriage. 60% of average weekly covered earnings may be paid for up to an additional 91 days (Provisional Disablement Orphan’s pension: 25% of the permanent disability pen- Benefit). sion the deceased received or was entitled to receive is paid to each orphan up to age 18 (age 21 if a full-time student); The minimum weekly earnings used to calculate benefits 40% if disabled. are B$55. The maximum weekly earnings used to calculate benefits Dependent parent’s pension: If there are no other eligible are B$440 (increasing to B$480 on January 6, 2020, and to survivors, 40% of the pension the deceased received or was B$520 on January 4, 2021). entitled to receive is paid to dependent parents aged 55 or older. Schedule of payments: The temporary disability benefit is paid weekly. The minimum weekly survivor pension is B$47 and is split among the eligible survivors. Permanent Disability Benefits The maximum combined survivor pension is 60% of the deceased’s average covered earnings in the four weeks Permanent disability pension (Disablement Pension): before the date of the work injury resulting in the insured’s For an assessed degree of disability of at least 25%, 60% of death. the insured’s average weekly covered earnings in the four weeks before the disability began multiplied by the assessed Schedule of payments: Survivor pensions are paid every degree of disability is paid. four weeks. The minimum weekly permanent disability pension is Funeral grant: A lump sum of B$1,500 is paid. B$47. Constant-attendance allowance: 25% of the permanent dis- Administrative Organization ability pension is paid if the insured is assessed with a total Ministry of Finance (https://www.mof.gov.bz/) provides (100%) disability and requires the constant attendance of general supervision. others to perform daily functions. Social Security Board (https://www.socialsecurity.org.bz/) A medical board assesses and periodically reviews the administers the program and collects contributions. degree of disability. Schedule of payments: The pension is paid every four Unemployment weeks. Regulatory Framework Disability grant (Disablement Grant): For an assessed degree of disability of less than 25%, a lump sum of the No statutory unemployment benefits are provided. insured’s average weekly covered earnings in the four The Labour Act, as amended in 2011, requires employers to weeks before the disability began multiplied by the assessed provide severance pay to employees with at least 12 months degree of disability multiplied by 260 is paid. of continuous service. With five to 10 years of service, A medical board assesses the degree of disability. severance is paid for termination of employment, retirement after age 60, or medical reasons; with more than 10 years, Workers’ Medical Benefits in case of termination for reasons other than dismissal, for abandonment of service for a justifiable cause, completion The Social Security Board covers the cost of medical care, of a finite contract, retirement after age 60, or for medical including rehabilitation and treatment abroad if recom- reasons. mended by a medical doctor. The payment amount depends on the number of years of Survivor Benefits service: with five to 10 years of service, a lump sum of one week of the employee’s last wage is paid for each year of Survivor pension service; with more than 10 years of service, two weeks of Spouse’s pension: 66.7% of the permanent disability pen- the last wage is paid for each year of service. sion the deceased received or was entitled to receive is paid to an eligible widow(er).
SSPTW: The Americas, 2019 ♦ 69 Bermuda
The maximum annual earnings used to calculate contribu- tions are B$200,000. Bermuda Contributions are paid at less once a month. Exchange rate: US$1.00 = Social assistance: None. 1.00 Bermuda dollar (B$). Self-employed person Social insurance: B$71.84 a week; B$35.92 a week if Old Age, Disability, and Survivors aged 65 or older. Mandatory occupational pension: 10% of covered declared Regulatory Framework earnings. Additional voluntary contributions are possible. First law: 1967 (old-age and survivors). The maximum mandatory contribution on annual declared Current laws: 1970 (old age and survivors); 1980 (disabil- earnings is B$5,000. ity); 1998 (occupational pensions), implemented in 2000; Contributions are paid at less once a month. and 1999 (national pension scheme regulations). Social assistance: None. Type of program: Social insurance, mandatory occupa- Employer tional pension, and social assistance system. Note: A 2019 amendment will extend the coverage of the Social insurance: B$35.92 a week. mandatory occupational pension program to foreign nation- Mandatory occupational pension: 5% of covered payroll. als working in Bermuda. The maximum annual earnings used to calculate contribu- tions are B$200,000. Coverage Contributions are paid at less once a month. Social insurance: Employed and self-employed persons aged 18 or older working more than four hours a week, and Social assistance: None. temporary residents gainfully employed for more than 26 Government consecutive weeks. Social insurance: None; contributes as an employer. Voluntary coverage for persons who previously had manda- tory coverage. Mandatory occupational pension: None. Exclusions: Full-time students aged 26 or younger who Social assistance: The total cost. work weekends or during school vacations. Qualifying Conditions Mandatory occupational pension: Private-sector employ- ees aged 23 or older who have Bermudian status or are Old-age pension (Contributory Pension Fund, social the spouses of persons of Bermudian status and have insurance): Age 65 with at least 484 weeks of paid or worked 720 hours or more for their current employers in credited contributions and an annual average of at least any calendar year; self-employed persons aged 23 or older 50 weeks of paid or credited contributions across all years who have Bermudian status or are the spouses of persons of contributions. of Bermudian status and have annual earnings greater than Contributions may be credited under certain conditions for B$20,000. each complete contributory week an insured suffered from Special system for public-sector employees and employees a work incapacity due to illness or injury. Contributions are of quasigovernmental organizations. also credited for each complete contributory week a widow younger than the normal retirement age received a social Persons of Social assistance (old-age social pension): insurance survivor pension. The widow may also substitute Bermudian status. up to a year of her deceased husband’s contribution record Social assistance (disability social pension): Residents for her own. of Bermuda. Employment may continue. Source of Funds Partial pension: Age 65 with at least 484 weeks of paid or credited contributions and an annual average of 25 to Insured person 49 weeks of paid or credited contributions across all years Social insurance: B$35.92 a week; none if aged 65 or older. of contributions. The social insurance old-age pension is payable abroad. Mandatory occupational pension: 5% of gross covered earn- ings (excluding overtime payments).
70 ♦ SSPTW: The Americas, 2019 Bermuda
Old-age settlement (Old Age Gratuity, Contributory Survivor pension (Widow’s Allowance, Contributory Pension Fund, social insurance): Age 65 with at least one Pension Fund, social insurance): The deceased received week of contributions but does not meet the contribution or was entitled to receive a social insurance old-age or dis- requirements for the social insurance old-age pension. ability pension. The old-age settlement is payable abroad. Partial pension: Paid if the deceased qualified for a partial old-age or partial disability pension. Old-age pension (National Pension Scheme, mandatory occupational pension): Age 65. Eligible survivors include a widow(er) married to the The occupational old-age pension is payable abroad. deceased at the time of death. Child’s supplement: Paid for each dependent child younger Old-age social pension (Noncontributory Old-age Pen- than age 18 (age 26 if a full-time student). sion, social assistance, income tested): Age 65, has at least 10 years of continuous residence in Bermuda in the The survivor pension ceases upon remarriage or 20 years immediately before the claim is made, and does cohabitation. not qualify for any social insurance old-age benefit. The survivor pension is payable abroad. Disability pension (Disability Benefit, Contributory Survivor settlement (Contributory Pension Fund, social Pension Fund, social insurance): Must be aged 18 to insurance): The deceased had made contributions but did 64, assessed with a disability that has lasted at least 52 not meet the contribution requirements for a social insur- consecutive weeks, have been employed immediately ance survivor pension. before the disability began, have at least 150 weeks of Eligible survivors include a widow(er) married to the paid contributions, and have an annual average of at least deceased at the time of death, or, in the absence of a 50 weeks of paid or credited contributions across all years widow(er), dependent orphans younger than age 18 who are of contributions. full-time students. Contributions may be credited under certain conditions for each complete contributory week an insured suffered from Survivor benefit (National Pension Scheme, mandatory a work incapacity due to illness or injury. Contributions are occupational pension): The deceased received or was also credited for each complete contributory week a widow entitled to receive an occupational old-age or disability pen- younger than the normal retirement age received a social sion at the time of death. insurance survivor pension. The widow may also substitute Eligible survivors include beneficiaries named by the up to a year of her deceased husband’s contribution record deceased. for her own. Partial pension: Must be aged 18 to 64, assessed with a Old-Age Benefits disability that has lasted at least 52 consecutive weeks, have Old-age pension (Contributory Pension Fund, social been employed immediately before the disability began, insurance): B$244.95 a week (B$1,064.34 a month) plus have a medically certified incapacity to work, have at B$6.26 a week for every 26 weeks of contributions exceed- least 150 weeks of paid contributions, and have an aver- ing 484 weeks is paid. age of 25 to 49 weeks of contributions across all years of Partial pension: B$532.19 (one-half of the full pension) a contributions. month is paid if the annual average number of weeks of A registered medical practitioner assesses the disability. contributions is 25 to 29; B$638.62 (three-fifths) for 30 The social insurance disability pension is payable abroad. to 34 weeks; B$745.06 (seven-tenths) for 35 to 39 weeks; B$851.50 (four-fifths) for 40 to 44 weeks; or B$957.93 Disability pension (National Pension Scheme, manda- (nine-tenths) for 45 to 49 weeks. tory occupational pension): Must be assessed with an incapacity for work due to a physical or mental condition. Old-age settlement (Old Age Gratuity, Contributory Pension Fund, social insurance): A lump sum of total The occupational disability pension is payable abroad. employee and employer contributions is paid. Disability social pension (Noncontributory Disabil- Old-age pension (National Pension Scheme, manda- Must ity Benefit, social assistance, income tested): tory occupational pension): The pension is based on the be assessed with a permanent incapacity for work, have insured’s average earnings or the amount of the insured’s resided in Bermuda for at least 10 years immediately before accumulated capital, depending on the rules for the specific the claim is made, and not qualify for any social insurance occupational pension plan. disability benefit. Old-age social pension (Noncontributory Old-Age Pen- A registered medical practitioner assesses the disability. sion, social assistance, income tested): B$112.17 a week (B$488.40 a month) is paid with annual income greater than B$4,000; B$115.68 a week (B$502.66 a month) with annual income up to B$4,000.
SSPTW: The Americas, 2019 ♦ 71 Bermuda
Permanent Disability Benefits Pension Commission (http://www.pensioncommission.bm/) supervises and regulates the mandatory occupational pen- Disability pension (Disability Benefit, Contributory Pen- sion program. sion Fund, social insurance): B$163.27 a week (B$709.45 a month) is paid. Sickness and Maternity Partial pension: A percentage of the full pension is paid based on the average number of weeks of contributions Regulatory Framework across all years of contributions. First and current laws: 1970 (health insurance); 2000 Disability pension (National Pension Scheme, manda- (labor law); and 2004 (health council), implemented in tory occupational pension): The amount of the benefit 2006. depends on the rules for the specific occupational pension plan. Type of program: Universal (medical benefits), mandatory health insurance (medical benefits), employer-liability (cash Disability social pension (Noncontributory Disability benefits), and social assistance (medical benefits) system. Benefit, social assistance, income tested): B$112.40 a week (B$488.40 a month) is paid. Note: A 2019 amendment to the labor law will introduce a five-day paid paternity benefit and extend paid maternity Survivor Benefits leave to 13 weeks. Survivor pension (Widow’s Allowance, Contributory Coverage Pension Fund, social insurance): B$244.95 a week (B$1,064.37 a month) is paid. Universal (medical benefits): Residents of Bermuda up to Partial pension: B$532.19 (one-half of the full pension) a age 18 (age 21 if a full-time student) or aged 65 or older. month is paid if the deceased’s annual average number of Mandatory health insurance (medical benefits): Private- weeks of contributions was 25 to 29; B$638.62 (three-fifths) sector employees and their nonemployed spouses; and self- a month for 30 to 34 weeks; B$745.06 (seven-tenths) a employed persons. month for 35 to 39 weeks; B$851.50 (four-fifths) a month for Voluntary coverage for nonemployed persons. 40 to 44 weeks; or B$957.93 (nine-tenths) a month for 45 to 49 weeks. Special system for public-sector employees and public- sector pensioners. Child’s supplement: B$24.44 a week (B$106.20 a month) is paid for each eligible child. Note: Employers and self-employed persons may choose between a public or private carrier, or an approved The survivor pension is paid for 26 weeks or until orphans employer-operated plan. Of the public plans, the Health reach age 18 (age 26 if a full-time student); for life if the Insurance Plan is open to all residents and Future Care is widow(er) is older than age 50 or disabled. open to residents aged 65 or older. Survivor settlement (Contributory Pension Fund, social Employed persons. insurance): A lump sum of total employee and employer Employer liability (cash benefits): contributions is paid. Exclusions: Self-employed persons. Survivor benefit (National Pension Scheme, mandatory Social assistance (medical benefits): Needy residents of occupational pension): The benefit is paid as a lump sum Bermuda or persons of Bermudian status. or according to the pension plan based on the value of the deceased’s contributions, accumulated capital, or accrued Source of Funds benefits. Insured person A lump-sum benefit is paid to the survivor if the deceased was a member of an occupational pension plan for less than Universal (medical benefits): 30% of the total cost for two years at the time of death. residents aged 65 to 74; 20% of the total cost for residents aged 75 or older; none for residents up to age 18 (age 21 for Administrative Organization full-time students). Ministry of Finance (https://www.gov.bm/ministry Mandatory health insurance (medical benefits): Employed /finance/) provides general supervision of the social insur- persons and their nonemployed spouses pay 50% of a ance and social assistance programs. premium set based on medical underwriting (commercial insurance), B$214.62 a month (Health Insurance Plan), or Department of Social Insurance collects contributions B$250.07 a month (Future Care; B$749.24 a month for per- and administers the social insurance and social assistance sons who do not meet residency requirements). programs. Voluntarily insured persons pay B$429.24 a month (Health Insurance Plan) or B$500.14 a month (Future Care;
72 ♦ SSPTW: The Americas, 2019 Bermuda
B$1,498.48 a month for persons who do not meet residency Cash maternity benefit (employer liability): Must have requirements). at least one year of continuous employment with the same Children up to age 18 (age 21 if a full-time student) may be employer, provide a medical certificate specifying the voluntarily insured for supplemental benefits for B$190 a expected date of childbirth, and submit an application to the month (Health Insurance Plan). employer at least four weeks before the expected date the leave will begin. Employer liability (cash benefits): None. Medical benefits (universal): Residents aged 65 or older Social assistance (medical benefits): None. must have lived in Bermuda for at least 10 consecutive Self-employed person years in the last 20 years with no more than 3 months of absence in any year. There is no minimum qualifying Universal (medical benefits): Not applicable. period for residents up to age 18. Mandatory health insurance (medical benefits): Self- Medical benefits (mandatory employment-related insur- employed persons pay 100% of a premium set based on ance): There is no minimum qualifying period, except for a medical underwriting (commercial insurance), B$429.24 10-month waiting period for maternity care. a month (Health Insurance Plan), or B$500.14 a month Insurance through public plans is terminated after 60 days (B$1,498.48 a month for persons who do not meet residency of nonpayment of premiums. requirements; Future Care). Children up to age 18 (age 21 if a full-time student) may be voluntarily insured for supple- Eligible dependents include a nonemployed spouse, and mental benefits for B$190 a month (Health Insurance Plan). dependent children up to age 18 (age 21 if a full time stu- dent) who are living with the insured. Employer liability (cash benefits): Not applicable. Medical benefits (social assistance, income tested): Social assistance (medical benefits): None. Must be of Bermudian status or have resided in Bermuda Employer for at least 10 years. There is no minimum qualifying period. Universal (medical benefits): None. Mandatory health insurance (medical benefits): For employ- Sickness and Maternity Benefits ees and their nonemployed spouses, 50% of a premium set Sickness benefit (employer liability): 100% of the based on medical underwriting (commercial insurance), employee’s daily wages is paid for up to eight days a year. B$214.62 a month (Health Insurance Plan), or B$250.07 a month (Future Care; B$749.24 a month for persons who do Maternity benefit (employer liability): 100% of the not meet residency requirements). employee’s wages is paid for eight weeks (13 weeks as of January 1, 2020). The employee is entitled to an additional Employer liability (cash benefits): The total cost. four weeks of unpaid leave (discontinued as of January 1, Social assistance (medical benefits): None. 2020). If the employee has less than one year of continuous employment, up to eight weeks (13 weeks as of January 1, Government 2020) of unpaid leave is provided. Universal (medical benefits): 70% of the total cost for residents aged 65 to 74; 80% of the total cost for residents Workers’ Medical Benefits aged 75 or older; and 100% of the total cost for residents up to age 18 (age 21 for full-time students). Medical benefits (universal and social assistance): Beneficiaries receive a basic set of benefits defined by a Mandatory health insurance (medical benefits): Subsidizes schedule in law, including inpatient and outpatient services; the cost of premiums for supplemental benefits for children nursing; pharmaceuticals provided in the hospital; surgery; up to age 18 (age 21 if a full-time student), and residents diagnostic, laboratory and therapeutic services; and ortho- aged 65 or older who have lived in Bermuda for at least 10 pedic appliances. consecutive years in the last 20 years with no more than Cost sharing: Needy residents and residents up to age 18 three months of absence in any year. (age 21 if a full-time student) receive free basic health care Employer liability (cash benefits): None; contributes as an services. employer. Medical benefits (mandatory employment-related Social assistance (medical benefits): The total cost. insurance) Commercial medical benefits: Benefits include inpatient Qualifying Conditions and outpatient services; nursing, preventive, diagnostic, Cash sickness benefit (employer liability): Must have at laboratory, ambulance, air ambulance, air travel, room and least one year of continuous employment. board, specialist, and doctor services; surgery; appliances;
SSPTW: The Americas, 2019 ♦ 73 Bermuda prescription drugs; dental and vision care; and at-home Employer: The total cost (pays insurance premiums or nursing services. provides benefits directly to employees).
Health Insurance Plan: Benefits include inpatient and outpa- Government: None; contributes as an employer. tient services; nursing, diagnostic, laboratory, ambulance, specialist, and doctor services; surgery; appliances; medi- Qualifying Conditions cine; basic dental care; and health and wellness visits. Must have an incapacity for work due to a work-related Future Care: Benefits include inpatient and outpatient ser- injury or occupational disease lasting at least three days. vices; nursing, preventive, diagnostic, laboratory, ambu- Occupational diseases are specified by law. lance, specialist, and doctor services; surgery; appliances; medicine; dental and vision care; and at-home nursing Temporary Disability Benefits services. 50% of the employee’s lost earnings is paid for up to eight Cost sharing: Copayments are required under all plans. years. The maximum weekly temporary disability benefit is Dependents’ Medical Benefits B$170. Medical benefits (universal and social assistance): Ben- The benefit may be paid as a lump sum, which is calculated efits for dependents are the same as for the worker. based on the expected duration of the disability. Medical benefits (mandatory employment-related insur- The total temporary disability benefit must not exceed the ance): Benefits for insured dependents are the same as for permanent disability benefit the employee would be entitled the insured. to receive.
Administrative Organization Permanent Disability Benefits Department of Workforce Development (http://www.dwd For a total (100%) loss of earning capacity for any work, .bm/), under the Ministry of Home Affairs, administers four years of the employee’s earnings before the disabil- cash benefits. ity began, or four years of the average annual per capita Ministry of Health (https://www.gov.bm/ministry/health/) income, whichever is less, is paid. provides general supervision of medical benefits. The average annual per capita income is B$98,125 (2017). Health Insurance Department (https://www.gov.bm Constant-attendance supplement: 25% of the permanent /department/health-insurance/) administers and collects disability benefit is paid if the employee requires the con- contributions for the Health Insurance Plan and the Future stant attendance of others to perform daily functions. Care medical benefits. Partial disability: A percentage of the full permanent dis- Private carriers administer the private insurance medical ability benefit is paid based on the assessed loss of earning benefits program and collects contributions. capacity. A registered medical practitioner assesses the disability. Work Injury Workers’ Medical Benefits Regulatory Framework Benefits include the cost of necessary medical care, includ- First and current law: 1965 (workmen’s compensation). ing hospitalization (up to a maximum based on the prevail- ing public ward charge for 56 days); emergency outpatient Type of program: Employer-liability system. (The govern- treatment; surgery, according to a fee schedule; medical ment may require employers to carry insurance.) expenses, including the cost of nursing, ambulances, and medicine, up to B$1,000; the cost of prostheses up to Coverage B$2,000; and the cost of transportation up to B$250. Employed persons and apprentices. Exclusions: Self-employed persons, casual labor, part-time Survivor Benefits workers, temporary employees, students, and voluntary Survivor benefit: A lump sum of three years of the workers. deceased’s earnings, or three years of the average annual Special system for military personnel. per capita income, whichever is less, minus the value of any permanent disability benefits paid to the deceased, is paid. Source of Funds The average annual per capita income is B$98,125 (2017). Insured person: None. Eligible survivors include persons who were totally depen- dent on the deceased. Self-employed person: Not applicable.
74 ♦ SSPTW: The Americas, 2019 Bermuda
Partial survivor grant: A lump sum is paid to those who Source of Funds were partially dependent on the deceased. Insured person: None. Funeral grant and medical expenses: If there are no dependents, a lump sum of up to B$2,000 is paid. Self-employed person: None. Employer: None. Administrative Organization Government: The total cost. Department of Workforce Development (http://www.dwd .bm/), under the Ministry of Home Affairs, provides gen- Qualifying Conditions eral supervision. Child day care allowance (income tested): Paid to the Supreme Court administers the lump-sum benefits. primary caregiver of a child younger than age 4 who is not Courts supervise the agreement between an employer and in an approved or registered child care provider. The child the insured on the amounts paid. must not have begun preschool education. Employers insure work injury liability through private car- Income test: Annual household income must not exceed a riers or provide benefits directly to employees or dependent certain limit. survivors. Financial assistance (means tested): Paid to individuals and families unable to meet the cost of food, accommoda- Unemployment tion, utilities, transportation, laundry, adult day care, home care, health insurance, medication, or medical equipment. Regulatory Framework Must have resided in Bermuda for at least one year. Under the labor law (2000), employers are required to provide severance pay to employees with at least one year Family Allowance Benefits of continuous service in cases of redundancy, insolvency, The cost of death of the employer, and death of the employee due to a Child day care allowance (income tested): child care, up to B$800 a month for each eligible child, is work injury. The payment amount is at least two weeks of paid for three months. The benefit may be extended upon the employee’s wages for each year of service up to 10 years review. plus three weeks of wages for each year of service exceed- ing 10 years, up to 26 weeks of wages. Financial assistance (means tested): Assistance is paid for up to a total of five years, up to maximums defined in a Family Allowances schedule in law.
Regulatory Framework Administrative Organization First and current laws: 2001 (Financial Assistance Act) Department of Financial Assistance (https://www.gov.bm and 2008 (Child Day Care Allowance Act). /department/financial-assistance/), under the Ministry of Social Development and Sports, administers the program. Type of program: Social assistance system.
Coverage Needy persons of Bermudian status.
SSPTW: The Americas, 2019 ♦ 75 Bolivia
Self-employed person Bolivia Universal: None. Mandatory individual account: 10% of monthly covered Exchange rate: US$1.00 = 6.86 bolivianos. declared earnings (old age) plus 1.71% (disability and survivors) and 0.5% (administrative fees). For the soli- darity pension, 0.5% of monthly covered declared earn- Old Age, Disability, and Survivors ings from 2,122 bolivianos to 13,000 bolivianos, 1% of monthly covered declared earnings from 13,001 bolivianos Regulatory Framework to 25,000 bolivianos, 5% of monthly covered declared earnings from 25,001 bolivianos to 35,000 bolivianos, First law: 1949 (social insurance). and 10% of monthly covered declared earnings exceeding Current laws: 1956 (social security), implemented in 1959; 35,000 bolivianos. Self-employed persons working in min- 2007 (universal pension), implemented in 2008; 2010 (inte- ing cooperatives contribute an additional 2% of declared grated pensions system); 2011 (social security regulations); income from sales for the solidarity pension. 2012 (persons with disabilities); 2013 (disability solidar- The minimum monthly earnings used to calculate contribu- ity grant); and 2013 (increases in universal and solidarity tions are the legal monthly minimum wage. pension). The maximum monthly earnings used to calculate contribu- Type of program: Universal and mandatory individual tions are 60 times the legal monthly minimum wage. account system. The legal monthly minimum wage is 2,122 bolivianos. Note: In 1997, all active members of the old social insur- 20% of the self-employed person’s contributions for dis- ance program were transferred to the mandatory individual ability and survivor insurance also finances the solidarity account program. pension. See also source of funds under Work Injury.
Coverage Employer Universal: None. Universal: Resident citizens of Bolivia. Exclusions: Public-sector employees (for the disability Mandatory individual account: None (old age); premiums solidarity grant). finance disability and survivor insurance. For the solidarity pension, 3% of covered payroll (mining companies pay 2% Mandatory individual account: Employed persons, of covered payroll; mining cooperatives pay 2% of declared including military personnel, and apprentices. income from sales). See also source of funds under Work Voluntary coverage for self-employed persons. Injury. Government Source of Funds Universal: The total cost of the universal old-age pension, Insured person the universal funeral grant, and the solidarity disability Universal: None. grant is financed by taxes on hydro-carbons and dividends from public enterprises. Mandatory individual account: 10% of monthly covered earnings (old age) plus 1.71% (disability and survivors) Mandatory individual account: Finances the value of and 0.5% (administrative fees). For the solidarity pension, accrued rights under the social insurance program and the 0.5% of monthly covered earnings from 2,122 bolivianos to funeral grant; no contributions for the solidarity pension; 13,000 bolivianos, 1% of monthly covered earnings from contributes as an employer. 13,001 bolivianos to 25,000 bolivianos, 5% of monthly covered earnings from 25,001 bolivianos to 35,000 boli- Qualifying Conditions vianos, and 10% of monthly covered earnings exceeding Old-age pension (Renta Dignidad, Régimen No Con- 35,000 bolivianos. tributivo, universal): Age 60. The minimum monthly earnings used to calculate contribu- The universal old-age pension is payable abroad temporar- tions are the legal monthly minimum wage. ily under certain conditions. The maximum monthly earnings used to calculate contribu- Old-age pension (Pensión de Vejez, Régimen Con- tions are 60 times the legal monthly minimum wage. tributivo, mandatory individual account): At any age The legal monthly minimum wage is 2,122 bolivianos. if the account balance is sufficient to finance a monthly 20% of the insured person’s contributions for disability and pension of at least 60% of the insured’s average monthly survivor insurance also finances the solidarity pension. covered earnings in the last two years (or over the total contribution period if the insured has less than two years of
76 ♦ SSPTW: The Americas, 2019 Bolivia contributions), funeral expenses, and survivor benefits for Disability solidarity grant (Renta Solidaria para perso- the insured’s dependents. nas con discapacidad grave y muy grave, universal): Age 55 (men) or age 50 (women) with accrued rights under Must be assessed with a severe (unable to perform most the old social insurance program, if the account balance daily tasks) or very severe (in need of the constant atten- is sufficient to finance a monthly pension of at least 60% dance of others to perform daily tasks) disability. of the insured’s average monthly covered earnings in The disability solidarity grant is not paid for visual the last two years (or over the total contribution period impairments. if the insured has less than two years of contributions), Survivor pension (Pensión por Muerte, Régimen Con- funeral expenses, and survivor benefits for the insured’s tributivo, mandatory individual account): The deceased dependents. received or was entitled to receive an individual account Age 58 (age 56 for miners) with at least 10 years of con- old-age or disability pension; had at least five years of tributions if the account balance is sufficient to finance a contributions to the social insurance or individual account monthly pension that is greater than the solidarity pension. programs or during half the period from the date of the The retirement age for women is reduced by one year for first individual account contribution to the date of death; each live birth, up to three. The retirement age for min- and had contributed in the 12 months before the death. If ers is reduced by one year for every two years of work in the death was the result of an illness, the deceased must unhealthy conditions, up to a five-year reduction. also have had at least 18 months of contributions in the 36 months before the date of death. Solidarity pension (Pensión solidaria de vejez, régimen semicontributivo): Age 58 (age 56 for miners) with at least Eligible survivors include a widow(er) or cohabiting partner 10 years of contributions, and the account balance is insuf- and orphans younger than age 18 (age 25 if a student; no ficient to finance a monthly pension above a legally defined limit if disabled). If there is no eligible widow(er), partner, minimum monthly amount. or orphan, other eligible survivors include the deceased’s parents, brothers and sisters younger than age 18, or other The retirement age for women is reduced by one year for survivors named by the insured. each child born alive, up to three. The retirement age for miners is reduced by one year for every two years of work The widow(er)’s or partner’s pension ceases upon (re)mar- in unhealthy conditions, up to a five-year reduction. riage or cohabitation. The individual account old-age pension is payable abroad The survivor pension is payable abroad temporarily under temporarily under certain conditions. certain conditions. Disability pension (Pensión por Invalidez, Régimen Funeral grant (Gastos Funerales, Régimen No Contribu- Contributivo, mandatory individual account): Must be tivo, universal): Paid if a universal old-age pensioner dies. younger than age 65; have at least a 60% assessed degree A widow(er) or cohabiting partner, sibling, or parent can of disability; have at least five years of contributions to the claim the grant up to 18 months after the deceased’s death; social insurance or individual account programs or during other persons only have up to six months to claim the grant. half the period from the date of the first individual account The universal funeral grant cannot be combined with an contribution to the date the disability began; and have con- individual account funeral grant. tributed in the 12 months before the disability began. If the disability is due to an illness, the insured must also have at Funeral grant (Gastos Funerarios, Régimen Contribu- least 18 months of contributions in the 36 months before the tivo, mandatory individual account): Paid when an disability began. insured person younger than age 60 or a person aged 60 or older receiving or entitled to receive an individual account Partial disability: Must have a 50% to 59% assessed degree old-age, disability, or solidarity pension dies. of disability and meet the age and contribution require- ments for the full disability pension. A widow(er) or cohabiting partner, sibling, or parent can claim the grant up to 18 months after the deceased’s death; Severe disability supplement (Suplemento por gran other persons have only up to six months to claim the grant. invalidez): Must have at least an 80% assessed degree of disability. The individual account funeral grant cannot be combined with a universal funeral grant. Certified medical doctors assess the degree of disability. The disability pension ceases at age 65 and is replaced by Old-Age Benefits the individual account old-age pension. Old-age pension (Renta Dignidad, Régimen No Con- The disability pension is payable abroad temporarily under tributivo, universal): 4,550 bolivianos a year is paid; certain conditions. 3,900 bolivianos a year to a person receiving another pension.
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Schedule of payments: The pension is paid monthly, Severe disability supplement (Suplemento por gran invali- bimonthly, quarterly, or annually. dez): A monthly benefit equal to the legal monthly mini- Benefit adjustment: Benefits are adjusted every three years mum wage is paid. based on available funds. The legal monthly minimum wage is 2,122 bolivianos. Old-age pension (Pensión de Vejez, Régimen Contribu- The insurance company pays a monthly contribution of tivo, mandatory individual account): The insured must 10% of the insured’s average monthly covered earnings in use the account balance to purchase a fixed or variable life the last five years (or over the whole contribution period annuity, depending on the account balance at retirement. if the insured has less than five years of contributions) to (The value of accrued rights under the old social insur- the insured person’s individual account until retirement or ance program is combined with the account balance at death. retirement.) The minimum monthly earnings used to calculate the dis- The first monthly amount paid under a variable life annu- ability pension are the legal monthly minimum wage. ity must be at least 60% of the insured’s average monthly The maximum monthly earnings used to calculate the dis- covered earnings in the last two years (or over the total ability pension are 60 times the legal monthly minimum contribution period if the insured has less than two years of wage. contributions). Schedule of payments: 13 payments a year. Benefit adjustment: Benefits are adjusted annually based on changes in the UFV (Unidad de Fomento de Vivienda). If an insured person assessed with a disability does not meet the contribution requirements for a disability pension, The UFV is an index that is adjusted daily based on the insured may use the individual account balance plus changes in the consumer price index. accrued rights under the old social insurance program (if Solidarity pension (Pensión solidaria de vejez, régimen applicable) to purchase a temporary annuity. The monthly semicontributivo): The difference between the monthly pen- annuity is 60% of the insured’s average monthly covered sion financed by the account balance and a legally defined earnings in the last five years (or over the total contribution minimum monthly amount based on the insured’s years of period if the insured has less than five years of contribu- contributions is paid with 10 to 15 years of contributions: tions). The minimum monthly annuity is 60% of the legal 640 bolivianos with 10 years of contributions, 695 boli- monthly minimum wage. vianos with 11 years of contributions, 752 bolivianos with Benefit adjustment: Benefits are adjusted annually based on 12 years of contributions, 808 bolivianos with 13 years of changes in the UFV (Unidad de Fomento de Vivienda). contributions, 864 bolivianos with 14 years of contribu- tions, or 920 bolivianos with 15 years of contributions. If The UFV is an index that is adjusted daily based on the insured has at least 16 years of contributions, the legally changes in the consumer price index. defined minimum monthly amount varies depending on Disability solidarity grant (Renta Solidaria para perso- the insured’s years of contributions and average covered nas con discapacidad grave y muy grave, universal): earnings in the last 24 contribution periods: the monthly 250 bolivianos a month is paid. amount ranges from 954 bolivianos to 1,136 bolivianos with 16 years of contributions (depending on the insured’s aver- Survivor Benefits age covered earnings) and increases with each additional Survivor pension (Pensión por Muerte, Régimen Con- year of contributions until reaching 1,600 bolivianos to tributivo, mandatory individual account) 4,200 bolivianos with at least 35 years of contributions. Spouse’s pension: 90% of the monthly base survivor pen- Schedule of payments: 13 payments a year. sion is paid to a widow(er) or cohabiting partner with no eligible orphan; 70% with one eligible orphan; or 50% Permanent Disability Benefits with at least two eligible orphans. (Life insurance tops up Disability pension (Pensión por Invalidez, Régimen the deceased’s account balance if the balance plus accrued Contributivo, mandatory individual account): 70% of the rights under the old social insurance program [if applicable] insured’s average monthly covered earnings in the last five is insufficient to finance the survivor pension.) years (or over the total contribution period if the insured The monthly base survivor pension is the individual has less than five years of contributions) is paid. account old-age, disability, or solidarity pension the Partial disability: The insured’s average monthly covered deceased received or was entitled to receive at the time of earnings in the last five years (or over the total contribution death, whichever is greater, depending on the deceased’s period if the insured has less than five years of contribu- age at the time of death. tions) multiplied by the assessed degree of disability is paid. The minimum monthly earnings used to calculate the monthly base pension are the legal monthly minimum wage.
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The maximum monthly earnings used to calculate the Security will transfer administration of disability benefits monthly base survivor pension are 60 times the legal to the Public Insurance Entity, once established. monthly minimum wage. Ministry of the Economy and Public Finances (http://www The legal monthly minimum wage is 2,122 bolivianos. .economiayfinanzas.gob.bo/) provides general supervision. Orphan’s pension: 20% of the monthly base survivor pen- Approved financial entities pay the universal old-age sion is paid for one orphan; 50% is split equally if there are pension. two or more orphans; or 100% is split equally among full Ministry of Health (https://www.minsalud.gob.bo) adminis- orphans. (Life insurance tops up the deceased’s account ters the disability solidarity grant. balance if the balance plus accrued rights under the old Pension and Insurance Auditing Authority (APS) (http:// social insurance program [if applicable] is insufficient to www.aps.gob.bo/) supervises the Pension Fund Administra- finance the survivor pension.) tors (AFPs). When an orphan ceases to be eligible, the spouse’s pension AFPs administer the old-age and solidarity pensions and is recalculated. funeral grants and contract with insurance companies for The maximum combined spouse’s and orphan’s pension is disability and survivor insurance. 100% of the monthly base survivor pension. Financial institutions approved by AFPs collect contribu- Other eligible survivor’s pension: If there is no eligible tions through the integrated pension system (SIP). widow(er), partner, or orphan, 60% of the monthly base Insurance companies pay disability and survivor pensions. survivor pension is divided equally among other eligible survivors. Assessment Body, established by the AFPs and the insur- ance companies, determines the degree of disability. The maximum combined survivor pension for other eligible survivors is 60% of the monthly base survivor pension. Sickness and Maternity Schedule of payments: Survivor pensions are paid 13 times a year. Regulatory Framework If the deceased did not meet the contribution requirements First and current laws: 1956 (social security code); 1959 for an individual account old-age or disability pension, the (regulations), 1987 (social security), implemented in 1989; deceased’s account balance plus accrued rights under the 1988 (job protection); 1998 (basic health insurance); 2002 old social insurance program (if applicable) may be used (child and maternal health); 2009 (job protection; health to purchase a temporary annuity. The monthly annuity is insurance for university students; and health care for depen- 60% of the deceased’s average monthly covered earnings dents); 2011 (health resolution); 2012 (paternity); and 2013 in the last five years (or over the total contribution period (integral health care). if the insured has less than five years of contributions). The minimum monthly annuity is 60% of the legal monthly Type of program: Universal (medical benefits), social minimum wage. insurance (cash and medical benefits), and employer-liabil- ity (paternity benefit) system. Benefit adjustment: Benefits are adjusted annually based on changes in the UFV (Unidad de Fomento de Vivienda). Coverage The UFV is an index that is adjusted daily based on changes in the consumer price index. Universal: Citizens of Bolivia not covered by the social insurance program; noncitizens from a country under Funeral grant (Gastos Funerales, Régimen No Contribu- a reciprocity agreement with Bolivia; noncitizens from tivo, universal): A lump sum of 1,800 bolivianos is paid to a country without a reciprocity agreement with Bolivia the person who paid for the funeral. restricted to: pregnant women up to six months after child Funeral grant (Gastos Funerarios, Régimen Contribu- delivery, children younger than age 5, persons older than tivo, mandatory individual account): A lump sum of age 60, registered disabled persons, and women of repro- 1,800 bolivianos is paid to the person who paid for the ductive age for sexual and reproductive health care. funeral. Social insurance: Public- and private-sector employees, and persons older than age 60 (medical benefits only). Administrative Organization Voluntary coverage for self-employed persons. Note: The Public Management Body for Long-Term Social Security, once established, will take over administration of Employer liability: Public- and private-sector employees. old-age, disability, and survivors benefits, under the super- Exclusions: Self-employed persons. vision of the Ministry of the Economy and Public Finances. The Public Management Body for Long-Term Social
SSPTW: The Americas, 2019 ♦ 79 Bolivia
Source of Funds Medical benefits (Seguro de Enfermedad, social insur- ance): Must have at least one month of contributions in the Insured person last two months. Universal: None. Sickness and Maternity Benefits Social insurance: None; pensioners contribute 3% of their monthly pensions. Sickness benefit (Subsidio de Enfermedad, Seguro de Enfermedad, social insurance): 75% of the insured’s last Employer liability: None. monthly earnings is paid after a three-day waiting period Self-employed person for up to 26 weeks (the first three days of sick leave are paid by the employer). Universal: None. Maternity benefit (Subsidio de Maternidad, Seguro de Social insurance: Pay contributions. (Self-employed miners Maternidad, social insurance): 90% of the insured’s last contribute 10% of 1.3 times the legal monthly minimum monthly earnings before the maternity leave began is paid wage.) for up to 45 days before and 45 days after the expected date Mining cooperatives contribute 1.8% of declared income of childbirth. from sales. Job protection: Both parents have the right to retain their The legal monthly minimum wage is 2,122 bolivianos. job positions, salaries, and grades during the entire preg- The self-employed person’s contributions also finance tem- nancy and until the child is 12 months old. porary disability benefits and medical benefits under Work Additional maternity benefits are paid under Family Injury. Allowances. Employer liability: Not applicable. Paternity benefit (Licencia de Paternidad, employer liability): 100% of the employee’s daily earnings are paid Employer for up to three days. Universal: None. Social insurance: 10% of monthly payroll. Workers’ Medical Benefits The employer’s contributions also finance temporary dis- Medical benefits (universal): Benefits include general, ability benefits and medical benefits under Work Injury. specialist, and preventive care; maternity care; diagnostic services; surgery, hospitalization; dental care; and essen- Employer liability: The total cost. tial medicine. Medical services with a specialist must be Government accessed by referral. Universal: The total cost. Medical benefits (Seguro de Enfermedad, social insur- ance): Benefits include general, specialist, and preventive Social insurance: None; the total costs of health insurance care; maternity care; diagnostic services; surgery; hospi- for university students not otherwise covered; contributes talization; prostheses; organ transplants; dental care; and as an employer. medicine. Employer liability: None; contributes as an employer. Dependents’ Medical Benefits Qualifying Conditions Medical benefits (universal): Dependents are covered in Cash sickness benefit (Subsidio de Enfermedad, their own right. Seguro de Enfermedad, social insurance): Must have Medical benefits (Seguro de Enfermedad, social insur- at least two months of contributions before the incapacity ance): Benefits for dependents are the same as those for the began. insured. Cash maternity benefit (Subsidio de Maternidad, Seguro de Maternidad, social insurance): Must have at Administrative Organization least six months of contributions in the 12 months immedi- Ministry of Health (https://www.minsalud.gob.bo/) pro- ately before the expected month of childbirth. The benefit is vides supervision through the Supervisory Authority of paid to an insured woman or to the wife of an insured man. Short-Term Social Security (ASUSS) (http://asuss.gob.bo/). Paternity benefit (Licencia de Paternidad, employer Short-term social insurers administer the social insurance liability): Must provide a medical certificate confirming a program and collect contributions jointly with the National spouse’s or partners child delivery. Health Fund (https://www.cns.gob.bo/). Medical benefits (universal): There is no minimum quali- Employers pay paternity benefits directly. fying period.
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Free health care is provided under the universal program in The maximum monthly earnings used to calculate contribu- public health institutions. tions are 60 times the legal monthly minimum wage. The legal monthly minimum wage is 2,122 bolivianos. Work Injury 20% of the employer’s contribution also finances the soli- darity pension. See also source of funds under Old Age, Regulatory Framework Disability, and Survivors. 1924 (work injury). First law: Government Current laws: 1956 (social security code); 1959 (regula- Social insurance: None; contributes as an employer. tions); 1987 (social security); 1996 (mandatory individual account), implemented in 1997; and 2010 (integrated pen- Mandatory individual account: None; contributes as an sions system). employer.
Type of program: Social insurance (temporary disability Qualifying Conditions and medical benefits) and mandatory individual account (permanent disability and survivor benefits) system. Must be assessed with a work injury or occupational disease. Accidents that occur while commuting to and Coverage from work are covered if the employer provides the transportation. Social insurance: Public- and private-sector employees. Employed persons must be younger than age 65 and have Voluntary coverage for self-employed persons. an assessed degree of disability of at least 10%. If the Mandatory individual account: Employed persons, disability is the result of an accident at work, the insured including military personnel and apprentices. must have been employed when the accident occurred. If the disability is the result of an illness, the disability must Voluntary coverage for self-employed persons. begin while the insured is employed or up to 12 months (18 months for miners) after employment ceases. Source of Funds Self-employed persons must be younger than age 65, have Insured person an assessed degree of disability of at least 10%, and have Social insurance: None. made at least three contributions in the last 12 months before the disability began. If the disability is the result Mandatory individual account: None. of an accident at work, the disability must be assessed Self-employed person while the insured is making contributions. If the disability is the result of an illness, the disability must begin while Social insurance: See source of funds under Sickness and the insured is making contributions or up to nine months Maternity. (18 months for members of mining cooperatives) after con- Mandatory individual account: 1.71% of monthly covered tributions cease. declared earnings. The minimum monthly earnings used to calculate contribu- Temporary Disability Benefits tions are the legal monthly minimum wage. Temporary disability benefit (Subsidio por Incapacidad The maximum monthly earnings used to calculate contribu- Temporal, social insurance): 90% of the insured’s last tions are 60 times the legal monthly minimum wage. earnings is paid in the case of a work injury; 75% for an occupational disease. The legal monthly minimum wage is 2,122 bolivianos. 20% of the self-employed person’s contribution also Permanent Disability Benefits finances the solidarity pension. See also source of funds Permanent disability pension (Renta de Invalidez, under Old Age, Disability, and Survivors. mandatory individual account): For an assessed degree Employer of disability of at least 60%, 100% of the insured’s average monthly covered earnings in the last five years (or over the Social insurance: See source of funds under Sickness and total contribution period if the insured has less than five Maternity. years of contributions) is paid. Mandatory individual account: 1.71% of monthly covered Severe disability supplement (Suplemento por gran payroll. invalidez): A monthly benefit equal to the legal monthly The minimum monthly earnings used to calculate contribu- minimum wage is paid if the insured has at least an 80% tions are the legal monthly minimum wage. assessed degree of disability.
SSPTW: The Americas, 2019 ♦ 81 Bolivia
The insurance company pays a monthly contribution of The legal monthly minimum wage is 2,122 bolivianos. 10% of the insured’s average monthly covered earnings The spouse’s pension ceases upon remarriage or in the last five years (or over the total contribution period cohabitation. if the insured has less than five years of contributions) to the insured person’s individual account until retirement or Orphan’s pension: 20% of the monthly base survivor pen- death. sion is paid for one orphan up to age 18 (age 25 if a student; no limit if disabled); 50% is split equally if there are two or The minimum monthly earnings used to calculate benefits more orphans; or 100% is split equally among full orphans. are the legal monthly minimum wage. When an orphan ceases to be eligible, the spouse’s pension The maximum monthly earnings used to calculate benefits is recalculated. are 60 times the legal monthly minimum wage. The maximum combined spouse’s and orphan’s pension is The legal monthly minimum wage is 2,122 bolivianos. 100% of the monthly base survivor pension. Partial disability (Invalidez parcial): For an assessed degree of disability of at least 25% but less than 60%, the insured’s Other eligible survivor’s pension: If there is no surviving average monthly covered earnings in the last five years (or spouse, partner, or orphan, 60% of the monthly base survi- over the whole contribution period if the insured has less vor pension is split equally among other eligible survivors. than five years of contributions) multiplied by the assessed The monthly base survivor pension is 100% of the degree of disability is paid. deceased’s average monthly covered earnings in the last The disability pension ceases at age 65 and is replaced by five years (or over the whole contribution period if the the individual account old-age pension. deceased had less than five years of contributions). Disability grant (Indemnización global): For an assessed The maximum combined survivor pension for other eligible degree of disability of at least 10% but less than 25%, survivors is 60% of the monthly base survivor pension. a lump sum of 48 times the insured’s average monthly Schedule of payments: Survivor pensions are paid 13 times covered earnings in the last five years (or over the whole a year. contribution period if the insured has less than five years of If the deceased did not meet the contribution requirements contributions) is paid. for a permanent disability pension, the deceased’s individ- Certified medical doctors assess the degree of disability. ual account balance may be used to purchase a temporary Benefit adjustment: Benefits are adjusted annually based on annuity. The monthly annuity is 60% of the insured’s aver- the UFV (Unidad de Fomento de Vivienda). age monthly covered earnings in the last five years (or over the whole contribution period if the insured has less than The UFV is an index that is adjusted daily based on five years of contributions). The minimum monthly annuity changes in the consumer price index. is 60% of the legal monthly minimum wage. Workers’ Medical Benefits Benefit adjustment: Benefits are adjusted annually based on the UFV (Unidad de Fomento de Vivienda). Benefits include nec- Medical benefits (social insurance): The UFV is an index that is adjusted daily based on essary medical and surgical care, hospitalization, diagnos- changes in the consumer price index. tics, prosthesis, and medicine. Funeral grant (Gastos Funerales, mandatory individual Survivor Benefits account): A lump sum of 2,000 bolivianos is paid to the person who paid for the funeral. Survivor pension (Pensión por Muerte, mandatory indi- vidual account) Administrative Organization Spouse’s pension: 80% of the monthly base survivor pen- Note: Once established, the Public Management Body for sion is paid to a widow(er) or cohabiting partner with no Long-term Social Security, under the supervision of the eligible orphans; 60% if there is one eligible orphan; or Ministry of the Economy and Public Finances, will admin- 50% if there are two or more eligible orphan. ister the permanent disability and survivors benefits (work The monthly base survivor pension is 100% of the injury) until a Public Insurance Entity is established. deceased’s average monthly covered earnings in the last Ministry of the Economy and Public Finances (http://www five years (or over the total contribution period if the .economiayfinanzas.gob.bo/) provides general supervision. deceased had less than five years of contributions). Supervisory Authority of Short-Term Social Security The minimum monthly earnings used to calculate benefits (ASUSS) (http://asuss.gob.bo/) provides regulatory and are the legal monthly minimum wage. financial supervision for the social insurance program. The maximum monthly earnings used to calculate benefits are 60 times the legal monthly minimum wage.
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Short-term social insurers administer the social insurance Source of Funds program and collect contributions jointly with the National Insured person Health Fund (http://www.cns.gob.bo/). Pension and Insurance Auditing Authority (APS) (http:// Universal: None. www.aps.gob.bo/) supervises the Pension Fund Administra- Social insurance: None. tors (AFPs). Self-employed person Pension Fund Administrators (AFPs) collect contributions and contract insurance companies for work injury disability Universal: None. and survivor insurance. Social insurance: Not applicable. Insurance companies administer the work injury disability Employer and survivor programs. Universal: None. Assessment Body (EEC), established by the AFPs and the insurance companies under the legal form of a civil associa- Social insurance: 13% of monthly payroll. tion, determines the origin, cause, degree, and date of the Government disability for disability benefit purposes as well as the origin and cause of death for survivor benefit purposes Universal: The total cost. Social insurance: None; contributes as an employer. Unemployment Qualifying Conditions Regulatory Framework Child cash transfer (Bono Juancito Pinto, universal): No statutory unemployment benefits are provided. Paid for children younger than age 21 (no limit if disabled) The labor code requires employers to provide severance who are enrolled in and regularly attend primary or second- pay to dismissed employees with more than 90 days of ary school or special education institutions, present their continuous employment. The payment amount is 100% of national identity cards, and are accompanied by a parent or the employee’s average monthly earnings in the last three guardian to receive the payments. months of employment multiplied by the number of years of Mother and baby grant (Bono Juana Azurduy, univer- continuous employment (or a proportional sum for continu- sal): Paid to a pregnant woman without social insurance for ous employment of less than a year). Dismissed employees medical benefits, an imprisoned pregnant woman, or a child are covered for medical and maternity benefits for up to two not covered by social insurance for medical benefits up to months after employment ceases. age 2 (must be younger than age 1 at the time of the appli- cation for the grant). Mother and child must attend regular Family Allowances medical appointments. Beneficiaries must not receive any other family allowance. Regulatory Framework Prenatal subsidy (Subsidio Universal Prenatal por la First law: 1953 (family allowances for certain categories of Vida, universal, in kind): Paid to an uninsured woman who workers). has completed four months of pregnancy. Current laws: 1956 (Social Security Code), implemented in Prenatal grant (Subsidio Prenatal, social insurance, in 1959; 1987 (social security reform); 2009 (Juana Azurduy kind): Paid to an insured woman who has completed four mother and baby grant); 2011 (family allowances); and 2012 months of pregnancy and undergone monthly prenatal (Juancito Pinto cash transfer). examinations.
Type of program: Universal and social insurance system. Birth grant (Subsidio de Natalidad, social insurance): Paid for a child registered as the insured’s dependent with Coverage the National Health Fund. Universal: Residents of Bolivia. Nursing allowance (Subsidio de Lactancia, social insur- ance, in kind): Paid for a child younger than 12 months. Social insurance: Public- and private-sector employees, including employees of mining cooperatives, and their Burial allowance (Subsidio de Sepelio, social insur- spouses or partners and children. ance): Paid for the death of a child younger than age 19. Exclusions: Self-employed persons. Family Allowance Benefits Special systems for bank employees, military personnel, and other groups of workers. Child cash transfer (Bono Juancito Pinto, universal): 200 bolivianos a year is paid for each eligible child.
SSPTW: The Americas, 2019 ♦ 83 Bolivia
Mother and baby grant (Bono Juana Azurduy, univer- Administrative Organization A lump sum of 2,000 bolivianos is paid. sal): Ministry of Health (https://www.minsalud.gob.bo/) pro- Prenatal subsidy (Subsidio Universal Prenatal por la vides supervision for the social insurance system, the Juana Vida, universal, in kind): Four baskets of nutritional prod- Azurduy mother baby grant, and the universal prenatal ucts, each valued at 300 bolivianos, are provided during subsidy. pregnancy. Supervisory Authority of Short-Term Social Security Prenatal grant (Subsidio Prenatal, social insurance, in (ASUSS) (http://asuss.gob.bo/), along with other short-term kind): A monthly basket of food products equal in value to health entities, administer the social insurance program, 2,000 bolivianos is provided during the last five months of the Juana Azurduy mother baby grant, and the universal pregnancy. prenatal subsidy.
Birth grant (Subsidio de Natalidad, social insurance): A Ministry of Education (http://www.minedu.gob.bo/) admin- lump sum of 2,000 bolivianos is paid for each birth. isters the Juancito Pinto cash transfer program. Nursing allowance (Subsidio de Lactancia, social insur- Subsidy Distributor (https://www.sedem.gob.bo/) procures ance, in kind): A food and milk basket equal in value to and distributes in-kind benefits. 2,000 bolivianos is provided during the first year. Employers pay cash benefits directly to employees or pay Burial allowance (Subsidio de Sepelio, social insur- the Subsidy Distributor for in-kind benefits. ance): A lump sum of 2,000 bolivianos is paid.
84 ♦ SSPTW: The Americas, 2019 Brazil
The insured person’s contributions also finance cash sick- ness and maternity benefits and family allowances. Brazil Social assistance: None. Exchange rate: US$1.00 = 3.819 reais. Self-employed person Social insurance: 20% of monthly covered declared earn- ings; 11% of the legal monthly minimum wage for those Old Age, Disability, and Survivors who forego the right to the length of contribution pension (5% for small businesses). Regulatory Framework The minimum monthly earnings used to calculate contribu- First laws: 1923 (railroads), 1934 (commerce), and 1936 tions are the legal monthly minimum wage. (industry). The legal monthly minimum wage is 998 reais Current laws: 1991 (social security), 1991 (social insur- (January 2019). ance), 1993 (social assistance), 2013 (special disability pen- The maximum monthly earnings used to calculate contribu- sions), and 2015 (household workers). tions are 5,839.45 reais (January 2019). Type of program: Social insurance and social assistance The self-employed person’s contributions also finance cash system. sickness and maternity benefits. Social assistance: None. Coverage Employer Social insurance: Salaried workers in industry, commerce, and agriculture; rural workers; household workers; casual Social insurance: 20% of monthly covered payroll. workers; elected officials and public-sector employees not The minimum monthly earnings used to calculate contribu- covered by a special system; and self-employed persons. tions are the legal monthly minimum wage. Voluntary coverage for students, housewives and home- The legal monthly minimum wage is 998 reais makers, unemployed persons, and other persons without (January 2019). gainful employment. There are no maximum monthly earnings used to calculate Special systems for certain public-sector employees and contributions. military personnel. Microbusinesses (enterprises with annual earnings up Social assistance: Needy residents of Brazil. to 360,000 reais) and small businesses (enterprises with annual earnings exceeding 360,000 reais but less than Source of Funds 4,800,000 reais) contribute 1.66% to 10.07% of monthly declared earnings, depending on annual earnings declared Insured person in the last 12 months and the economic sector. Social insurance: 8% of monthly covered earnings with The employer’s contributions also finance cash sickness and monthly earnings up to 1,751.81 reais (January 2019); 9% maternity benefits and family allowances. with monthly earnings from 1,751.82 reais to 2,919.72 reais (January 2019); or 11% with monthly earnings exceeding Social assistance: None. 2,919.72 reais (January 2019). Government Voluntarily insured persons contribute 20% of monthly Social insurance: Finances any deficit; covers administra- declared earnings; 11% of the legal monthly minimum tive costs; and contributes as an employer. wage if they forego the right to the length of contribution pension. Housewives and homemakers of families with an Social assistance: The total cost. income up to two times the legal monthly minimum wage (excluding income from the Bolsa Familia cash grant) pay Qualifying Conditions 5% of the legal monthly minimum wage if they have no Old-age pension (social insurance) individual income. The minimum monthly earnings used to calculate contribu- Age pension (Aposentadoria por idade): Age 65 (men) or tions are the legal monthly minimum wage. age 60 (women) for salaried and self-employed urban work- ers; age 60 (men) or age 55 (women) for rural workers. The legal monthly minimum wage is 998 reais (January 2019). Urban workers first insured before July 25, 1991, must have 60 to 180 months of contributions, according to a sched- The maximum monthly earnings used to calculate contribu- ule in law; urban workers first insured on or after July 25, tions are 5,839.45 reais (January 2019). 1991, must have at least 180 months of contributions. Rural
SSPTW: The Americas, 2019 ♦ 85 Brazil workers first insured before July 25, 1991, must show proof Disability pension (Aposentadoria por invalidez, social of 60 to 180 months of work in the rural sector, according insurance): Must be assessed with a permanent incapacity to a schedule in law; rural workers first insured on or after for any work and have at least 12 months of contributions. July 25, 1991, must show proof of 180 months of work in The contribution period is waived if the disability is the the rural sector. result of an accident. Employment may continue. Employment must cease. The age pension is payable abroad under bilateral or multi- Constant-attendance allowance (Acréscimo por assistência lateral agreement. permanente): Paid if the insured requires the constant atten- dance of others to perform daily functions. Age pension for persons with disabilities (Aposentadoria por idade da pessoa com deficiência): Age 60 (men) or The National Social Security Institute assesses the degree age 55 (women) with at least 180 months of contributions of disability every two years. and assessed with a long-term physical, mental, intellectual, The disability pension is payable abroad under bilateral or or sensory disability. Must have been disabled for at least multilateral agreement. 180 months and provide a medical certificate. Disability assistance (Benefício de prestação con- The age pension for persons with disabilities is payable tinuada à pessoa com deficiência, social assistance, abroad under bilateral or multilateral agreement. income tested): Must be assessed with a disability. Length of contribution pension (Aposentadoria por tempo Income test: Monthly household income must be less than de contribuição): At any age with at least 35 years (men) or 25% of the legal monthly minimum wage per person. 30 years (women) of contributions. The legal monthly minimum wage is 998 reais The length of contribution pension is payable abroad under (January 2019). bilateral or multilateral agreement. Eligibility for disability assistance is reviewed every two Special length of contribution pension (Aposentadoria years. especial por tempo de contribuição): At any age if exposed to hazardous substances and have 15, 20, or 25 years of Survivor pension (Pensão por morte, social insurance): There is no minimum qualifying period. contributions, depending on the substance. Eligible survivors include a widow(er) or partner (opposite Employment must cease. or same sex) and orphans younger than age 21 (no limit if The special length of contribution pension is payable assessed with a total disability, an intellectual or mental abroad under bilateral or multilateral agreement. disability, or a severe physical disability); if there is no Length of contribution pension for persons with disabilities eligible widow(er), partner, or orphan (in order of prior- (Aposentadoria da pessoa com deficiência por tempo de ity), parents and siblings younger than age 21 (no limit if contribuição): At any age with at least 25 years (men) or disabled). 20 years (women) of contributions if assessed with a severe The survivor pension is payable abroad under bilateral or disability; at least 29 years (men) or 24 years (women) of multilateral agreement. contributions if assessed with a moderate disability; or at least 33 years (men) or 28 years (women) of contributions if Old-Age Benefits assessed with a mild disability. Old-age pension (social insurance) The National Social Security Institute assesses the degree of disability. Age pension (Aposentadoria por idade): 70% of the insured’s average monthly earnings plus 1% of average The length of contribution pension for persons with dis- monthly earnings for each year of contributions is paid. abilities is payable abroad under bilateral or multilateral agreement. For a person first insured on or before November 28, 1999, the average monthly earnings are based on the best 80% of Old-age assistance (Benefício de prestação continu- the insured’s total monthly earnings since July 1994. For ada à pessoa idosa, social assistance, income tested): a person first insured after November 28, 1999, the aver- Age 65 and not gainfully employed. age monthly earnings are based on the best 80% of the Income test: Monthly household income must be less than insured’s total monthly earnings. 25% of the legal monthly minimum wage per person. The insured may opt for the pension to be calculated using The legal monthly minimum wage is 998 reais the Social Security Factor (Fator Previdenciário) method. (January 2019). The Social Security Factor is an actuarial coefficient based Eligibility for the old-age assistance is reviewed every two on the insured’s contribution rate, contribution period, age, years. and life expectancy.
86 ♦ SSPTW: The Americas, 2019 Brazil
The minimum monthly earnings used to calculate benefits The minimum monthly earnings used to calculate benefits are the legal monthly minimum wage. are the legal monthly minimum wage. The legal monthly minimum wage is 998 reais The legal monthly minimum wage is 998 reais (January 2019). (January 2019). The maximum monthly earnings used to calculate benefits The maximum monthly earnings used to calculate benefits are 5,839.45 reais (January 2019). are 5,839.45 reais (January 2019). The minimum monthly age pension is the legal monthly The minimum monthly special length of contribution pen- minimum wage. sion is the legal monthly minimum wage. The maximum monthly age pension is 5,839.45 reais or Length of contribution pension for persons with disabilities 100% of the insured’s average monthly earnings, whichever (Aposentadoria da pessoa com deficiência por tempo de is less (January 2019). contribuição): Calculated in the same way as the special length of contribution pension. Age pension for persons with disabilities (Aposentadoria por idade da pessoa com deficiência): Calculated in the same Schedule of payments: 13 payments a year. way as the age pension. Benefit adjustment: Benefits are adjusted annually based Length of contribution pension (Aposentadoria por tempo on changes in the cost-of-living index or the legal monthly de contribuição): 100% of the insured’s average monthly minimum wage. earnings is paid. Old-age assistance (Benefício de prestação continu- For a person first insured before November 29, 1999, the ada à pessoa idosa, social assistance, income tested): average monthly earnings are based on the best 80% of the 100% of the legal monthly minimum wage is paid. insured’s total monthly earnings since July 1994, multiplied The legal monthly minimum wage is 998 reais by the Social Security Factor (Fator Previdenciário). For (January 2019). a person first insured after November 28, 1999, the aver- Benefit adjustment: Benefits are adjusted annually based on age monthly earnings are based on the best 80% of the changes in the legal monthly minimum wage. insured’s total monthly earnings, multiplied by the Social Security Factor. Permanent Disability Benefits The insured may opt for nonapplication of the Social Security Factor (Fator Previdenciário) if the sum of age and Disability pension (Aposentadoria por invalidez, social years of contributions is 95 (men, gradually increasing to insurance): 100% of the insured’s average monthly earn- 100 by 2026) or 85 (women, gradually increasing to 90 by ings is paid; 100% of the legal monthly minimum wage for 2026). rural workers. The Social Security Factor (Fator Previdenciário) is an For a person first insured before November 29, 1999, the actuarial coefficient based on the insured’s contribution average monthly earnings are based on the best 80% of rate, contribution period, age, and life expectancy. the insured’s total monthly earnings since July 1994. For a person first insured after November 28, 1999, the aver- The minimum monthly earnings used to calculate benefits age monthly earnings are based on the best 80% of the are the legal monthly minimum wage. insured’s total monthly earnings. The legal monthly minimum wage is 998 reais The minimum monthly earnings used to calculate benefits (January 2019). are the legal monthly minimum wage. The maximum monthly earnings used to calculate benefits The legal monthly minimum wage is 998 reais are 5,839.45 reais (January 2019). (January 2019). The minimum monthly length of contribution pension is the The maximum monthly earnings used to calculate benefits legal monthly minimum wage. are 5,839.45 reais (January 2019). Special length of contribution pension (Aposentadoria The minimum monthly disability pension is the legal especial por tempo de contribuição): 100% of the insured’s monthly minimum wage. average monthly earnings is paid. The maximum monthly disability pension is 5,839.45 reais For a person first insured before November 29, 1999, the (January 2019). average monthly earnings are based on the best 80% of the insured’s total monthly earnings since July 1994. For Constant-attendance allowance (Acréscimo por assistência a person first insured after November 28, 1999, the aver- permanente): 25% of the disability pension is paid. age monthly earnings are based on the best 80% of the Schedule of payments: 13 payments a year. insured’s total monthly earnings.
SSPTW: The Americas, 2019 ♦ 87 Brazil
Benefit adjustment: Benefits are adjusted annually based Sickness and Maternity on changes in the cost-of-living index or the legal monthly minimum wage. Regulatory Framework Disability assistance (Benefício de prestação con- First laws: 1923 (railroads), 1934 (commerce), 1936 (indus- tinuada à pessoa com deficiência, social assistance, try), and 1974 (maternity). income tested): 100% of the legal monthly minimum wage is paid. Current laws: 1990 (health), 1991 (social security), and 1991 (social insurance). The legal monthly minimum wage is 998 reais (January 2019). Type of program: Universal (medical benefits) and social Benefit adjustment: Benefits are adjusted annually based on insurance (cash benefits) system. changes in the legal monthly minimum wage. Coverage Survivor Benefits Universal: Residents of Brazil. Survivor pension (Pensão por morte, social insurance): Social insurance: Salaried workers in industry, commerce, 100% of the old-age or disability pension the deceased and agriculture; rural workers; household workers; casual received or would have been entitled to receive if disabled workers; elected officials and public-sector employees not is paid; 100% of the legal monthly minimum wage for rural covered by a special system; and self-employed persons. workers. The pension is split equally among eligible survi- Voluntary coverage for students, housewives and home- vors. If one survivor ceases to be eligible, the pensions for makers, unemployed persons, and other persons without the remaining survivors are recalculated. gainful employment. The pension is paid for four months if the deceased had Special systems for certain public-sector employees and less than 18 months of contributions or was married to or military personnel. living with the spouse or partner for less than two years before the death. If the deceased had at least 18 months of contributions and was married to or living with the spouse Source of Funds or partner for at least two years before the death, the dura- Insured person tion of the pension varies depending on the spouse’s or Universal: None. partner’s age: if the widow(er) or partner is younger than age 21, the pension is paid for three years; if aged 21 to 26, Social insurance: See source of funds under Old Age, Dis- for six years; if aged 27 to 29, for 10 years; if aged 30 to 40, ability, and Survivors. for 15 years; if aged 41 to 43, for 20 years; or if aged 44 or Self-employed person older, for life. Universal: None. The minimum monthly survivor pension is the legal monthly minimum wage. Social insurance: See source of funds under Old Age, Dis- The legal monthly minimum wage is 998 reais ability, and Survivors. (January 2019). Employer The maximum monthly survivor pension is 5,839.45 reais Universal: None. (January 2019). Social insurance: See source of funds under Old Age, Dis- Schedule of payments: 13 payments a year. ability, and Survivors. Benefit adjustment: Benefits are adjusted annually based on Government changes in the cost-of-living index or the minimum wage. Universal: The total cost. Administrative Organization Social insurance: Finances any deficit; covers administra- Ministry of Economy (http://www.economia.gov.br/) pro- tive costs; and contributes as an employer. vides general supervision and collects contributions. National Social Security Institute (http://www.inss.gov.br/) Qualifying Conditions administers benefits. Cash sickness benefit (Auxílio-doença comum, social insurance): Must have contributed in the last 12 months. There is no qualifying period for an accident or serious illness.
88 ♦ SSPTW: The Americas, 2019 Brazil
Cash maternity benefit (Salário-maternidade, social The maximum monthly earnings used to calculate benefits insurance): There is no minimum qualifying period for are 39,200 reais (January 2019) for employed women and salaried workers, household workers, and casual work- casual workers; 5,839.45 reais (January 2019) for household ers; 10 months of contributions for self-employed persons. workers, self-employed persons, and voluntarily insured Rural workers in predominantly family based subsistence women; or 998 reais (January 2019) for rural workers in activities must show proof of 10 months of work in the rural predominantly family based subsistence activities. sector. Benefit adjustment: Benefits are adjusted annually based on Medical benefits (universal): There is no minimum quali- changes in the consumer price index and the legal monthly fying period. minimum wage.
Sickness and Maternity Benefits Workers’ Medical Benefits Sickness benefit (Auxílio-doença comum, social insur- Medical benefits (universal): The Unified Health System ance): 91% of the insured’s average monthly earnings is provides medical services directly to patients in rural and paid; 100% of the legal monthly minimum wage for rural urban areas. Benefits include general, specialist, and mater- workers. The benefit is paid after a 15-day waiting period. nity care; hospitalization; medicine (some cost sharing is (The employer pays 100% of the insured’s earnings for the required); and necessary transportation. There is no limit to first 15 days.) duration There is no limit to duration. Dependents’ Medical Benefits Average monthly earnings are based on the best 80% of the insured’s total monthly earnings, up to the average monthly Medical benefits (universal): Dependents are covered in earnings in the last 12 months, or the average of the contri- their own right. butions made if the insured has less than 12 contributions. The minimum monthly earnings used to calculate benefits Administrative Organization are the legal monthly minimum wage. Ministry of Economy (http://www.economia.gov.br/) provides general supervision and collects contributions for The legal monthly minimum wage is 998 reais cash benefits. (January 2019). National Social Security Institute (http://www.inss.gov.br/) The maximum monthly earnings used to calculate benefits administers the cash benefits. are 5,839.45 reais (January 2019). Ministry of Health (http://saude.gov.br/) provides general Schedule of payments: 13 payments a year. supervision of the Unified Health System. Benefit adjustment: Benefits are adjusted annually based on Federal, state, and municipal institutions are part of the changes in the consumer price index and the legal monthly Unified Health System and administer medical benefits. minimum wage. Maternity benefit (Salário-maternidade, social insur- Work Injury ance): 100% of the insured’s last earnings is paid for employed women, household workers, and casual workers; Regulatory Framework 100% of average earnings in the last 12 months for self- employed and voluntarily insured women; 100% of the First laws: 1919, 1944, and 1967 (work injury). legal monthly minimum wage for rural workers in pre- Current laws: 1991 (social security) and 1991 (social dominantly family based subsistence activities. The benefit insurance). is paid for 120 days, from 28 days before to 91 days after the expected date of childbirth; may be extended by up to Type of program: Social insurance system. 60 days for employees of enterprises that are part of the Empresa Cidadã program. Coverage The maternity benefit is paid for two weeks for a miscar- Employed persons, casual workers, household workers, and riage; for 120 days to a person who adopts a child younger rural workers in predominantly family based subsistence than age 12 or to an insured widow(er) of a deceased spouse activities. who received or was entitled to receive the maternity Exclusions: Self-employed persons. benefit. The minimum monthly earnings used to calculate benefits Source of Funds are the legal monthly minimum wage. Insured person: None. The legal monthly minimum wage is 998 reais Self-employed person: Not applicable. (January 2019).
SSPTW: The Americas, 2019 ♦ 89 Brazil
Employer: 1% to 3% of gross payroll, depending on the The maximum monthly earnings used to calculate benefits assessed degree of risk; 0.1% of gross payroll for employers are 5,839.45 reais (January 2019). of rural workers in predominantly family based subsistence Constant-attendance supplement (Acréscimo por assistência activities. permanente): 25% of the permanent disability pension is There are no minimum or maximum earnings used to cal- paid if the insured requires the constant attendance of oth- culate contributions. ers to perform daily functions.
Government: Finances any deficit; contributes as an Schedule of payments: 13 payments a year. employer. The National Social Security Institute assesses the degree of disability every two years. Qualifying Conditions Accident benefit (Auxílio-acidente, partial disability): Must be assessed with a work injury or occupational dis- 50% of the insured’s average monthly earnings is paid to ease. There is no minimum qualifying period. Accidents workers with disabilities who have some work capacity. that occur while commuting to and from work are covered. Average monthly earnings are based on the best 80% of the Temporary Disability Benefits insured’s total monthly earnings. Schedule of payments: 13 payments a year. Temporary disability benefit (Auxílio-doença aciden- tário): 91% of the insured’s average monthly earnings is Benefit adjustment: Benefits are adjusted annually based on paid after a 15-day waiting period. (The employer pays changes in the cost-of-living index. 100% of the insured’s earnings for the first 15 days.) There is no waiting period for casual workers, household workers, Workers’ Medical Benefits or rural workers in predominantly family based subsistence Benefits are provided through the universal program under activities. Sickness and Maternity. There is no limit to duration. Average monthly earnings are based on the best 80% of the Survivor Benefits insured’s total monthly earnings, up to the average monthly Survivor pension (Pensão por morte): 100% of the earnings in the last 12 months, or the average of the contri- permanent disability pension the deceased received or was butions made if the insured person has less than 12 contri- entitled to receive is paid; 100% of the legal monthly mini- butions. For rural workers, average monthly earnings are mum wage for rural workers in predominantly family based 100% of the legal monthly minimum wage. subsistence activities. The pension is split equally among The legal monthly minimum wage is 998 reais eligible survivors. If one survivor ceases to be eligible, the (January 2019). pensions for the remaining survivors are recalculated. The minimum monthly earnings used to calculate benefits Eligible survivors include the widow(er) or partner (same are the legal monthly minimum wage. or opposite sex) and orphans younger than age 21 (no limit if assessed with a total disability, a severe physical disabil- The maximum monthly earnings used to calculate benefits ity, or a partial intellectual or mental disability); if there is are 5,839.45 reais (January 2019). no widow(er), partner, or orphan, other eligible survivors Schedule of payments: 13 payments a year. include (in order of priority) parents and brothers and Benefit adjustment: Benefits are adjusted annually based on sisters younger than age 21 (no limit if assessed with a total changes in the cost-of-living index and the legal monthly disability, a severe physical disability, or a partial intellec- minimum wage. tual or mental disability). The pension is paid for three years if the widow(er) or part- Permanent Disability Benefits ner is younger than age 21; for six years if the widow(er) or Permanent disability pension (Aposentadoria por partner is aged 21 to 26; for 10 years if aged 27 to 29; for invalidez): 100% of the insured’s average monthly earnings 15 years if aged 30 to 40; for 20 years if aged 41 to 43; or is paid if the insured has no work capacity. for life if aged 44 or older. Average monthly earnings are based on the best 80% of the The minimum monthly survivor pension is the legal insured’s total monthly earnings. monthly minimum wage. The minimum monthly earnings used to calculate benefits The legal monthly minimum wage is 998 reais are the legal monthly minimum wage. (January 2019). The legal monthly minimum wage is 998 reais The maximum monthly survivor pension is 5,839.45 reais (January 2019). (January 2019). Schedule of payments: 13 payments a year.
90 ♦ SSPTW: The Americas, 2019 Brazil
Benefit adjustment: Benefits are adjusted annually based on not be due to misconduct or resignation. Must have no other changes in the cost-of-living index and the legal monthly means of support and not receive social insurance benefits. minimum wage. Means test: Must not be receiving any other social security benefit (except work injury or survivor benefits) and not Administrative Organization have sufficient income to support his or her family. Ministry of Economy (http://www.economia.gov.br/) pro- vides general supervision of and collects contributions for Unemployment Benefits the cash benefits. Unemployment benefit (Seguro-desemprego, means National Social Security Institute (http://www.inss.gov.br/) tested): The monthly benefit varies depending on the administers cash benefits. insured’s average monthly earnings in the last three months Ministry of Health (http://saude.gov.br/) provides general of employment: 80% of average monthly earnings is paid supervision of the Unified Health System. with average monthly earnings up to 1,531.02 reais; 50% of average monthly earnings plus a lump sum of 1,224.82 reais Federal, state, and municipal institutions are part of the with average monthly earnings of 1,531.03 reais to 2,551.96; Unified Health System and administer medical benefits. a lump sum of 1,735.29 with average monthly earnings exceeding 2,551.96 reais. Unemployment The minimum monthly unemployment benefit is the legal monthly minimum wage. Regulatory Framework The legal monthly minimum wage is 998 reais First laws: 1966 (severance pay fund) and 1986 (unemploy- (January 2019). ment insurance). The maximum monthly unemployment benefit is Current laws: 1990 (unemployment benefit), 1991 (tra- 1,735.29 reais (January 2019). ditional fishermen), and 2015 (unemployment benefit The unemployment benefit is paid for three to five months, regulations). depending on the insured’s duration of coverage. For the Type of program: Social assistance system. first claim, the benefit is paid for four months with 12 Note: Employers contribute 8% of monthly earnings to an to 23 months of coverage; for five months with at least employee’s individual account in the Guarantee Fund for 24 months of coverage. For the second claim, the benefit is Severance Pay (FGTS). The insured may withdraw funds paid for three months with nine to 11 months of coverage; from the individual account for involuntary unemployment, for four months with 12 to 23 months of coverage; or for retirement, and other contingencies. five months with at least 24 months of coverage. For the third and subsequent claims, the benefit is paid for three Coverage months with six to 11 months of coverage; for four months with 12 to 23 months of coverage; for five months with at Employees in the formal private sector and other categories least 24 months of coverage. Under special conditions, the of workers, including household workers and fishermen benefit may be extended for an additional two months. (during closed season periods). Benefit adjustment: Benefits are adjusted annually based on Exclusions: Self-employed persons. changes in the legal monthly minimum wage.
Source of Funds Administrative Organization Insured person: None. Ministry of Labor (https://empregabrasil.mte.gov.br/) pro- Self-employed person: Not applicable. vides general supervision. Worker Assistance Fund Advisory Council administers the Employer: None. program. Government: The total cost. Family Allowances Qualifying Conditions Unemployment benefit (Seguro-desemprego, means Regulatory Framework tested): Must have received a salary in at least 12 of the First law: 1941 (large families). 18 months before unemployment began for the first claim; at least nine of the last 12 months for the second claim; at Current laws: 1991 (social insurance), 1998 (family allow- least six months immediately before unemployment began ances), and 2004 (Bolsa Familia). for the third and subsequent claims. Unemployment must Type of program: Social insurance and social assistance system.
SSPTW: The Americas, 2019 ♦ 91 Brazil
Coverage or a partial intellectual or mental disability); if there is no eligible spouse, partner, or child (in order of priority), par- Social insurance: Low-income employees with one or ents and siblings younger than age 21 (no limit if assessed more children. with a total disability, a severe physical disability, or a Exclusions: Self-employed persons and rural workers in partial intellectual or mental disability). predominantly family based subsistence activities. Income test: The insured’s monthly income must not exceed Special systems for certain public-sector employees and 1,364.43 reais. military personnel. Bolsa Familia cash grant (social assistance, income Social assistance: Citizens of Brazil living in poor or tested): Paid for children aged 6 to 15 who maintain an extremely poor households. 85% school attendance rate; 75% for children aged 16 to 17. Children younger than age 15 at risk of child labor must Source of Funds attend scheduled educational activities. Families must meet basic vaccination requirements for children younger than Insured person age 7, and women aged 14 to 44 must attend medical check- Social insurance: See source of funds under Old Age, Dis- ups, including prenatal examinations for pregnant women. ability, and Survivors. Social assistance: None. Family Allowance Benefits Family allowance (Salário-família, social insurance, Self-employed person income tested): 46.54 reais a month is paid for each Social insurance: Not applicable. eligible child if the insured’s earnings do not exceed 907.77 reais; 32.80 reais a month with earnings of Social assistance: None. 907.78 reais to 1,364.43 reais. Employer Employers pay allowances and the National Social Security Social insurance: See source of funds under Old Age, Dis- Institute reimburses them for the total cost. ability, and Survivors. Benefit adjustment: Benefits are adjusted annually based on Social assistance: None. changes in the consumer price index. Government Prisoner’s dependents pension (Auxílio-reclusão, social insurance, income tested): 100% of the disability Social insurance: Finances any deficit; covers administra- pension the insured would have been entitled to receive if tive costs; and contributes as an employer. disabled is paid; 100% of the legal monthly minimum wage Social assistance: The total cost. for rural workers. The pension is split equally among eli- gible dependents. If one dependent ceases to be eligible, the Qualifying Conditions pensions for the remaining dependents are recalculated. Family allowance (Salário-família, social insurance, The duration of the benefit varies depending on the spouse’s income tested): Paid for children younger than age 14. The or partner’s age: if the spouse or partner is younger than parents are required to present annual proof of vaccinations age 21, the pension is paid for three years; if aged 21 to 26, for children up to age 6 and proof of school attendance for six years; if aged 27 to 29, for 10 years; if aged 30 to 40, each semester from age 7. The parents must be currently for 15 years; if aged 41 to 43, for 20 years; and if aged 44 or in covered employment or receive an age pension; a length older, for life. of contribution pension; a disability pension; or a length of The minimum monthly prisoner’s dependents pension is the contribution pension for persons with disabilities and be legal monthly minimum wage. aged 65 or older (men) or aged 60 or older (women). The The legal monthly minimum wage is 998 reais family allowance is paid to both parents if both are insured. (January 2019). Income test: The insured’s monthly income must not exceed Schedule of payments: 13 payments a year. 1,364.43 reais. Benefit adjustment: Benefits are adjusted annually based on Prisoner’s dependents pension (Auxílio-reclusão, changes in the cost-of-living index and the legal monthly social insurance, income tested): Paid to eligible minimum wage. dependents if the insured is imprisoned and had a monthly income up to 1,364.43 reais immediately before imprison- Bolsa Familia cash grant (social assistance, income ment and has at least 24 months of contributions. tested): A basic benefit of 89 reais a month is paid for a household with monthly income up to 89 reais per per- Eligible dependents include a spouse or partner (same or son. An additional variable monthly benefit of 41 reais opposite sex) and children younger than age 21 (no limit if a month is paid for each child younger than age 16, for assessed with a total disability, a severe physical disability, pregnant women for up to nine months of pregnancy, and
92 ♦ SSPTW: The Americas, 2019 Brazil for breastfeeding mothers for up to six months, up to five payments per household; and 48 reais a month for each child aged 16 to 17, up to two payments per household. If the monthly household income per person, including the basic and variable benefit, is less than 89 reais, the differ- ence between the monthly household income per person and 89 reais is paid.
Administrative Organization Ministry of Economy (http://www.economia.gov.br/) pro- vides general supervision and collects contributions for the social insurance program. National Social Security Institute (http://www.inss.gov.br/) administers the social insurance program. Employers pay social insurance benefits to employees. Ministry of Citizenship (http://www.mds.gov.br/) provides general supervision of the social assistance program. Interministerial Administrating Council for the Bolsa Familia Program coordinates the administration of the social assistance program.
SSPTW: The Americas, 2019 ♦ 93 British Virgin Islands
The maximum earnings used to calculate contributions are $815.00 ($837.00 as of January 2020) a week, $3,531.66 British Virgin Islands ($3,627.00 as of January 2020) a month, or $42,380 ($43,524 as of January 2020) a year. Exchange rate: Currency is the US dollar ($). The employer’s contributions also finance cash sickness and maternity benefits (only cash maternity benefits for the public sector), and work injury benefits. Old Age, Disability, and Survivors Government: None; contributes as an employer. Regulatory Framework Qualifying Conditions First and current laws: 1979 (social security), 1980 (social security), and 2016 (retirement age). Old-age pension: Age 65 with at least 500 weeks of contributions. Social insurance system. Type of program: Employment may continue. Coverage The old-age pension is payable abroad. Employed and self-employed persons. Old-age grant: Age 65 with at least 50 weeks but less than 500 weeks of contributions. Voluntary coverage for persons who previously had manda- tory coverage for at least one year. Employment may continue. The old-age grant is payable abroad. Source of Funds Disability pension: Must be younger than the normal Insured person: 4% (private sector) or 3.5% (public sector) retirement age, be assessed with a permanent incapacity for of monthly covered earnings; 7% of covered earnings for any work, have been unable to work for at least the last six the voluntarily insured (old-age, disability, and survivor months, and have at least 250 weeks of contributions. benefits); none for persons aged 65 or older. A medical doctor assesses the degree of disability every six There are no minimum earnings used to calculate months. contributions. The disability pension ceases at the normal retirement age The maximum earnings used to calculate contributions and is replaced by the old-age pension. are $815.00 ($837.00 as of January 2020) a week, $3,531.66 The disability pension is payable abroad. ($3,627.00 as of January 2020) a month, or $42,380 ($43,524 as of January 2020) a year. Disability grant: Must be younger than the normal retire- The insured person’s contributions also finance cash sick- ment age, be assessed with a permanent incapacity for ness and maternity benefits (only cash maternity benefits any work, have been unable to work for at least the last six for the public sector). months, and have at least 50 weeks but less than 500 weeks of contributions. Self-employed person: 8.5% of monthly covered declared The disability grant is payable abroad. earnings. There are no minimum earnings used to calculate Survivor pension: The deceased received or was entitled contributions. to receive an old-age or disability pension or had at least 250 weeks of contributions at the time of death. The maximum earnings used to calculate contributions are $815.00 ($837.00 as of January 2020) a week, $3,531.66 Eligible survivors include a widow(er) (or a partner who ($3,627.00 as of January 2020) a month, or $42,380 lived with the deceased for at least three years) who is ($43,524 as of January 2020) a year. aged 40 or older, who is disabled, or who is caring for a dependent child younger than age 15 (age 21 if a student), The self-employed person’s contributions also finance cash and orphans younger than age 15 (age 21 if a student). sickness and maternity benefits, and work injury benefits. The widow(er)’s pension ceases upon remarriage. Employer: 4.5% (private sector) or 4% (public sector) of The survivor pension is payable abroad. monthly covered payroll; 0.5% for persons age 65 or older (work injury benefits only). Survivor grant: The deceased did not qualify for an old- There are no minimum earnings used to calculate age or disability pension and had at least 50 weeks but less contributions. than 250 weeks of contributions at the time of death.
94 ♦ SSPTW: The Americas, 2019 British Virgin Islands
Eligible survivors include a widow(er) (or a partner who The maximum annual disability pension is 60% of the lived with the deceased for at least three years) who is insured’s average annual covered earnings. aged 40 or older, who is disabled, or who is caring for a The insured may receive the disability pension and the sur- dependent child younger than age 15 (age 21 if a student), vivor pension at the same time. The total amount received and orphans younger than age 15 (age 21 if a student). is 100% of the disability pension plus 50% of the survivor The survivor grant is payable abroad. pension, up to 100% of the insured’s average annual cov- ered earnings. Funeral grant: Paid to the person who pays for the funeral when an insured person, the spouse of an insured per- Benefit adjustment: Benefits are adjusted annually based son, or a dependent child younger than age 15 (age 21 if a on changes in a composite consumer price index or 5%, student) dies. The insured must have at least 26 weeks of whichever is lower. contributions. Disability grant: A lump sum of six times the insured’s The funeral grant is payable abroad. average weekly earnings is paid for every 50 weeks of con- tributions exceeding 50 weeks. Old-Age Benefits Survivor Benefits Old-age pension: 30% of the insured’s average annual covered earnings plus 1% of average annual covered Survivor pension earnings for every 50 weeks of contributions exceeding Spouse’s pension: 66.7% of the old-age pension the 500 weeks is paid. deceased received or was entitled to receive is paid to a Average annual covered earnings are the sum of the widow(er) or cohabiting partner. insured’s earnings in the best 11 years of earnings in the Orphan’s pension: 33.3% of the spouse’s pension is paid; last 15 years of contributions (or the total years of contribu- 66.7% for full orphans. tions, if less) before retirement divided by 11. The maximum annual earnings used to calculate benefits Survivor grant are $42,380 ($43,524 as of January 2020). Spouse’s grant: 66.7% of the old-age grant the deceased The minimum monthly old-age pension is $260. received or was entitled to receive is paid to a widow(er) or cohabiting partner. The maximum annual old-age pension is 60% of the insured’s average annual covered earnings. Orphan’s grant: 33.3% of the spouse’s grant is paid; 66.7% The insured may receive the old-age pension and the survi- for full orphans. vor pension at the same time. The total amount received is Funeral grant: The benefit amount depends on the 100% of the old-age pension plus 50% of the survivor pen- deceased’s age at the time of death. For a child younger sion, up to 100% of the insured’s average annual covered than age 1, $450 is paid; for a child aged 1 to 15, $1,950; for earnings. a person aged 16 or older, $3,000. Benefit adjustment: Benefits are adjusted annually based on changes in a composite consumer price index or 5%, Administrative Organization whichever is lower. Social Security Board (http://www.bvissb.vg/), managed by a tripartite board of directors appointed by the Minister of Old-age grant: A lump sum of six times the insured’s aver- age weekly earnings is paid for every 50 weeks of contribu- Health and Social Development (http://www.bvi.gov.vg tions exceeding 50 weeks. /content/ministry-health-and-social-development/), admin- isters the program and collects contributions. Permanent Disability Benefits Sickness and Maternity Disability pension: 30% of the insured’s average annual covered earnings plus 1% of average annual covered Regulatory Framework earnings for every 50 weeks of contributions exceeding 500 weeks is paid. First and current laws: 1979 (social security), 1980 (social security), and 2015 (national health insurance). Average annual covered earnings are the sum of the insured’s earnings in the best 11 years of earnings in the Type of program: Social insurance system. last 15 years of contributions (or the total years of contribu- tions, if less) before retirement divided by 11. Coverage The maximum annual earnings used to calculate benefits Cash benefits: Employed and self-employed persons. are $42,380 ($43,524 as of January 2020). Public-sector employees and civil servants are covered for The minimum monthly disability pension is $260. maternity benefits only.
SSPTW: The Americas, 2019 ♦ 95 British Virgin Islands
Medical benefits (National Health Insurance): Legal Eligible parents include the mother, her husband, or her residents of the British Virgin Islands. cohabiting partner who has lived with her for at least two years. Source of Funds Medical benefits: Must be insured. There is no minimum Insured person qualifying period. Cash benefits: See source of funds under Old Age, Disabil- ity, and Survivors. Sickness and Maternity Benefits 66.7% of the insured’s average weekly Medical benefits: 3.75% of monthly covered earnings plus Sickness benefit: 3.75% for a nonemployed spouse. covered earnings in the 13 weeks before the incapacity began is paid after a three-day waiting period for up to There are no minimum earnings used to calculate 26 weeks. contributions. The maximum weekly earnings used to calculate benefits is The maximum earnings used to calculate contributions are $815 ($837 as of January 2020). $1,630.00 a week, $7,063.34 a month, or $84,760.00 a year. There is no minimum weekly sickness benefit. Self-employed person Maternity benefit: 66.7% of the insured’s average weekly Cash benefits: See source of funds under Old Age, Disabil- covered earnings in the 39 weeks before the expected date ity, and Survivors. of childbirth is paid for up to 13 weeks, beginning no ear- Medical benefits: 7.5% of monthly covered declared lier than six weeks before the expected date of childbirth. earnings. The maximum weekly earnings used to calculate benefits is There are no minimum earnings used to calculate $815 ($837 as of January 2020). contributions. There is no minimum weekly maternity benefit.
The maximum earnings used to calculate contributions are Maternity grant: A lump sum of $300 per child is paid to $1,630.00 a week, $7,063.34 a month, or $84,760.00 a year. each eligible parent. Employer Workers’ Medical Benefits Cash benefits: See source of funds under Old Age, Disabil- ity, and Survivors. The National Health Insurance (NHI) program covers a comprehensive package of primary, secondary, and tertiary Medical benefits: 3.75% of monthly covered payroll. care. Benefits include preventive care, diagnostic proce- There are no minimum earnings used to calculate dures, outpatient care, hospitalizations, surgery, acute and contributions. intensive care, medicine, mental health services, dental and eye care, prostheses, and rehabilitation. The maximum earnings used to calculate contributions are $1,630.00 a week, $7,063.34 a month, or $84,760.00 a year. Cost sharing: No copayment is required for medical treat- ment at community health clinics within the NHI network. Government Copayments vary depending on whether the providers are Cash benefits: None; contributes as an employer. in the NHI network and whether they are local or overseas: 5% for the local public hospital; 10% for local providers in Medical benefits: Pays contributions for dependent children, the NHI network; 20% for out-of-network local providers unemployed elderly persons, needy persons, and prisoners; and overseas providers in the NHI network; and 40% for contributes as an employer. out-of-network overseas providers.
Qualifying Conditions Dependents’ Medical Benefits Cash sickness benefit: Must have at least 26 weeks of Benefits for dependents are the same as those for the contributions, including at least eight weeks of contribu- insured. tions in the 13 weeks immediately before the incapacity began. Administrative Organization Cash maternity benefit: Must have at least 26 weeks of Social Security Board (http://www.bvissb.vg/), managed by contributions, including at least 20 weeks of contributions a tripartite board of directors appointed by the Minister of in the 39 weeks immediately before the expected date of Health and Social Development (http://www.bvi.gov.vg childbirth. /content/ministry-health-and-social-development/), admin- isters the program and collects contributions. Maternity grant: Must have at least 26 weeks of contributions.
96 ♦ SSPTW: The Americas, 2019 British Virgin Islands
Work Injury Survivor Benefits Survivor pension Regulatory Framework Spouse’s pension: 50% of the maximum survivor pension First and current law: 1994 (employment injury). is paid to a widow(er) or a cohabiting partner who lived Type of program: Social insurance system. with the deceased for at least three years. The maximum survivor pension is 75% of the deceased’s Coverage average weekly earnings. Employed and self-employed persons. The spouse’s pension ceases upon remarriage or cohabitation. Source of Funds Orphan’s pension: 16.7% of the maximum survivor pen- Insured person: None. sion is paid to each orphan younger than age 15 (age 21 if a student, no limit if disabled). Self-employed person: See source of funds under Old Age, Disability, and Survivors. Other eligible survivor’s pension: Up to 50% of the maxi- mum survivor pension is split equally among other depen- Employer: See source of funds under Old Age, Disability, and Survivors. dent survivors. Funeral grant (Employment Injury Funeral Benefit): A Government: None; contributes as an employer. lump sum of up to $3,000 is paid to the person who paid for Qualifying Conditions the funeral. The benefit must be claimed within six months of the date of death. Must be assessed with a work injury or occupational disease. Administrative Organization Temporary Disability Benefits Social Security Board (http://www.bvissb.vg/), managed by a tripartite board of directors appointed by the Minister of 75% of the insured’s average weekly covered earnings is Health and Social Development (http://www.bvi.gov.vg paid for up to 26 weeks. /content/ministry-health-and-social-development/), admin- The maximum weekly temporary disability benefit is isters the program and collects contributions. $611.25. Unemployment Permanent Disability Benefits For a total (100%) disability, 75% of the insured’s average Regulatory Framework weekly covered earnings is paid. The Labour Code (2010) requires employers to provide The maximum weekly permanent disability benefit is severance pay to employees with at least 12 months of $611.25. continuous service. Severance is paid in cases of redun- dancy, mental or physical incapacity, liquidation of the A medical doctor assesses the degree of disability, accord- firm, in situations where the employee cannot continue to ing to a schedule in law. work without breaking a law, or if the employer dies. The Partial disability: For an assessed degree of disability of payment amount for a full-time employee is 75% of the at least 30% but less than 100%, a percentage of the full employee’s daily pay multiplied by the number of months permanent disability pension is paid based on the assessed of service, or nine days of pay multiplied by the number of degree of disability; a lump sum is paid for an assessed years of service. (Different formulas apply for casual, part- degree of disability of less than 30%. time, or piece-work employees.) A medical doctor assesses the degree of disability every six months. Family Allowances
Workers’ Medical Benefits Regulatory Framework Benefits include medical, surgical, dental, and hospital Under the 2013 Public Assistance Act, the Social Develop- treatment; skilled nursing services; medicine; prostheses ment Department (http://www.bvi.gov.vg/departments (including maintenance and repair); and the cost of trans- /social-development-department/) under supervision of the portation to and from medical services. Ministry of Health and Social Development (http://www .bvi.gov.vg/content/ministry-health-and-social -development/) provides cash and in-kind benefits to needy individuals.
SSPTW: The Americas, 2019 ♦ 97 Canada
Self-employed person Canada Universal and social assistance: None. Social insurance: 10.2% (gradually increasing to 11.9% Exchange rate: US$1.00 = by 2023) of covered annual earnings exceeding C$3,500 1.309 Canadian dollars (C$). if aged 18 to 69 (CPP) or 11.1% (gradually increasing to 12.8% by 2023) of covered annual earnings exceeding C$3,500 if aged 18 or older (QPP). Old Age, Disability, and Survivors The minimum annual earnings used to calculate contribu- tions are C$3,500. Regulatory Framework The maximum annual earnings used to calculate contribu- First laws: 1927 (old-age assistance); 1937 (blind assis- tions are C$57,400. tance); and 1954 (disability assistance), implemented in 1955. The minimum annual earnings used to calculate contribu- tions are not adjusted regularly; the maximum annual earn- Current laws: 1951 (universal pension), implemented in ings are adjusted annually based on changes in the average 1952 and amended in 1967 (income-based supplement); and wage across industries. 1965 (social insurance), implemented in 1966. Employer Type of program: Universal, social insurance, and social Universal and social assistance: None. assistance system. Social insurance: 5.1% (gradually increasing to 5.95% by Coverage 2023) of annual covered payroll exceeding C$3,500 for each employee aged 18 to 69 (CPP) or 5.55% (gradually Universal and social assistance (Old-Age Security increasing to 6.4% by 2023) of annual covered payroll [OAS)]: Legal residents of Canada. exceeding C$3,500 for each employee of any age (QPP). Social insurance (Canada Pension Plan [CPP]/Quebec Employer contributions to CPP are mandatory for employ- Pension Plan [QPP]): Employed and self-employed per- ees aged 65 to 69 receiving a CPP old-age pension who sons working in Canada. choose to contribute. Exclusions: Casual workers (workers with annual earnings The minimum annual earnings used to calculate contribu- less than C$3,500). tions are C$3,500. A province may opt out of the federal social insurance pro- The maximum annual earnings used to calculate contribu- gram (CPP) if it establishes a comparable program, as with tions are C$57,400. the QPP; benefits are portable between the two plans. The minimum annual earnings used to calculate contribu- tions are not adjusted regularly; the maximum annual earn- Source of Funds ings are adjusted annually based on changes in the average Insured person wage across industries. Universal and social assistance: None. Government Social insurance: 5.1% (gradually increasing to 5.95% by Universal and social assistance: The total cost. 2023) of annual covered earnings exceeding C$3,500 if Social insurance: None; contributes as an employer. aged 18 to 69 (CPP) or 5.55% (gradually increasing to 6.4% by 2023) of annual covered earnings exceeding C$3,500 if aged 18 or older (QPP). CPP contributions are voluntary for Qualifying Conditions employed persons aged 65 to 69 who are receiving a CPP Old-Age Security pension (OAS, universal, income old-age pension. tested): Age 65 with at least 10 years of residence in The minimum annual earnings used to calculate contribu- Canada since age 18. tions are C$3,500. Employment may continue. The maximum annual earnings used to calculate contribu- Income test: The pension of a high-income pensioner (with tions are C$57,400. an annual income exceeding C$77,580) is subject to recov- The minimum annual earnings used to calculate contribu- ery. The pension is completely recovered with an annual tions are not adjusted regularly; the maximum annual earn- income of C$125,937. ings are adjusted annually based on changes in the average Deferred pension: The pension may be deferred until wage across industries. age 70.
98 ♦ SSPTW: The Americas, 2019 Canada
The universal old-age pension is payable abroad if the ben- or half of the period since age 18 to the month in which the eficiary resided in Canada for at least 20 years since age 18 insured is assessed as disabled, and at least two years of (for up to six months with less than 20 years of residence). contributions. Guaranteed income supplement (GIS, income tested): Child’s benefit: Paid for dependent children younger than Paid to an OAS pensioner with an annual income of up to age 18 (age 25 if a full-time student for the CPP only). C$18,408 for a single person and C$24,336 for a couple The minimum annual earnings used to establish eligibil- (July to September 2019). Income is based on individual ity for the disability pension are C$5,700 (10% of the income or family income if the pensioner has a spouse or maximum annual earnings used to calculate contributions common-law partner (same sex or opposite sex) and does rounded down to the nearest C$100). not include the OAS pension. The maximum annual earnings used to calculate contribu- The guaranteed income supplement is payable abroad for tions are C$57,400. up to six months. The disability pension ceases at age 65 and is replaced by Old-age allowance (social assistance, income tested): the social insurance old-age pension. Must be aged 60 to 64 with at least 10 years of residence The disability pension is payable abroad. in Canada since age 18, have an annual income up to C$34,080 (July to September 2019), and have a spouse or Survivor pension (CPP/QPP, social insurance): The common-law partner (same sex or opposite sex) who is deceased must have at least 10 years of contributions; or receiving the guaranteed income supplement. have contributions in at least one-third of the years from The old-age allowance ceases at age 65 and is replaced by age 18 to the month of death, with at least three years of the OAS pension and, depending on income, the guaranteed contributions. income supplement. Eligible survivors include a widow(er) or common-law The old-age allowance is payable abroad for up to six partner (same sex or opposite sex), and dependent orphans months. of the deceased younger than age 18 (age 25 if a full-time student for the CPP only). Old-age pension (CPP/QPP, social insurance): Age 65 The survivor pension does not cease upon remarriage or with at least one valid annual contribution. entering into a common-law relationship. If a surviving Employment may continue. spouse is entitled to more than one spouse’s pension from Early pension: Age 60 with at least one valid annual previous relationships, only one pension (whichever is contribution. greatest) is paid. Employment may continue. Survivor allowance (Allowance for the Survivor, social Paid to a widow(er) aged 60 Deferred pension: The pension may be deferred until age 70 assistance, income tested): to 64, with an annual income of up to C$24,816 (July to with actuarial increase. September 2019), who has resided in Canada for at least CPP post-retirement benefit/QPP retirement pension 10 years since age 18. supplement: Paid to a pensioner who continued to work and The survivor allowance ceases upon remarriage or entering contribute while receiving the CPP/QPP old-age pension into a common-law relationship lasting at least one year. (contributions allowed until age 70 for CPP; no limit for QPP). The survivor allowance ceases at age 65 and is replaced by the Old-Age Security pension and, depending on the survi- CPP post-retirement disability benefit: Must be aged 60 vor’s income, the guaranteed income supplement. to 64, be assessed with a severe and prolonged disability that prevents any substantial gainful occupation, meet the The survivor allowance is payable abroad for up to six contribution requirement for the CPP disability pension, months. and have received the CPP old-age pension for more than Death benefit (CPP/QPP, social insurance): The deceased 15 months. must have at least 10 years of contributions; or have contri- The social insurance old-age pension is payable abroad. butions in at least one-third of the years since age 18 to the month of death, and at least three years of contributions. Disability pension (CPP/QPP, social insurance): Must be younger than age 65 and be assessed with a severe and The death benefit is payable abroad. prolonged disability that prevents any substantial gainful occupation. For the CPP, must have contributions in four of Old-Age Benefits the last six years, or three of the last six years for those with Old-Age Security pension (OAS, universal, income at least 25 years of contributions, and not be receiving a tested): The pension is 0.025 times the maximum monthly CPP early old-age pension (or have not received it for more pension for each year of residence in Canada since age 18, than 15 months). For the QPP, must have contributions in up to 40 years. at least two of the last three years; five of the last 10 years;
SSPTW: The Americas, 2019 ♦ 99 Canada
The maximum monthly pension is C$607.46 (July to Deferred pension: The pension is increased by 0.7% for September 2019). each month it is deferred after age 65, up to 42%. Income test: The pension of a high-income pensioner (with CPP post-retirement benefit/QPP retirement pension supple- annual net income exceeding C$77,580) is subject to recov- ment: Up to an additional 1/40th of the maximum monthly ery (the pension is reduced by 15% of annual net income in pension (CPP) or 0.5% of the insured’s annual covered excess of the threshold). The pension is completely recov- earnings from the previous year (QPP) is paid for each year ered with an annual net income of C$126,058. the pensioner continued to work and contribute. Deferred pension: The pension is increased by 0.6% for CPP post-retirement disability benefit: An additional each month it is deferred after age 65 until age 70. C$496.36 a month is paid. Guaranteed income supplement (GIS, income tested): Up to Pension credits accumulated by spouses or common-law C$907.30 (if single or if married or partnered to someone partners (same sex or opposite sex) during marriage or not receiving an Old-Age Security pension) or C$546.17 cohabitation may be shared between them (divided equally (if married or partnered to someone receiving an Old-Age in case of divorce or separation). Security pension) a month is paid, depending on annual Benefit adjustment: Benefits are automatically adjusted in income (combined annual income if married or partnered). January of each year based on changes in the consumer Benefit adjustment: Benefits are adjusted quarterly based on price index. changes in the consumer price index. Permanent Disability Benefits Old-age allowance (social assistance, income tested): Up to C$1,153.63 (July to September 2019) a month is paid. Disability pension (CPP/QPP, social insurance): The Benefit adjustment: Benefits are adjusted quarterly based on monthly disability pension consists of a flat-rate amount of changes in the consumer price index. C$496.36 (CPP) or C$496.33 (QPP) plus 75% of the social insurance old-age pension. Old-age pension (CPP/QPP, social insurance): The The maximum monthly disability pension is C$1,362.30 benefit is the sum of two components: a basic pension of (CPP) or C$1,362.27 (QPP). 25% of the insured’s lifetime average monthly pensionable earnings and an enhanced pension of 8.33% of the insured’s Child’s benefit: A flat-rate benefit of C$250.27 (CPP) or first additional monthly pensionable earnings. (Another C$79.46 (QPP) a month is paid for each eligible child. component will be introduced in January 1, 2024.) Benefit adjustment: Benefits are automatically adjusted in The lifetime average monthly pensionable earnings are January of each year based on changes in the consumer based on the insured’s covered earnings from age 18 or price index. January 1, 1966, whichever is later, to the date the pension is claimed, age 70, or the date of death, whichever is earlier. Survivor Benefits Months in which the insured was caring for a child younger Survivor pension (CPP/QPP, social insurance) than age 7 or receiving a disability benefit may be disre- garded, and 17% (CPP) or 15% (QPP) of the months with Survivor’s pension (CPP): 60% of the social insurance the lowest income are disregarded. Months of contributions old-age pension the deceased received or was entitled to made after age 65 may be used to replace earlier periods of receive, up to C$692.75 a month, is paid to a widow(er) or lower earnings or disregarded. common-law partner aged 65 or older who is not receiving any CPP pension; 37.5% plus C$193.66, up to C$626.63 a The first additional monthly pensionable earnings are the month, to a widow(er) or common-law partner younger than insured’s best 480 months (40 years) of covered earnings age 65. from age 18 or January 1, 2019, whichever is later, to the date the pension is claimed, age 70, or the date of death, A widow(er) or common-law spouse may receive a sur- whichever is earlier, divided by 480. Months in which the vivor’s pension and an old-age or disability pension at insured was caring for a child younger than age 7 will be the same time. The benefit is 100% of the larger pension credited based on the insured’s average earnings in the five plus 60% of the smaller one, up to the maximum monthly years before the childbirth or adoption. Months in which old-age pension of C$1,154.58, if the widow(er) combines the insured was receiving a disability benefit will be cred- old-age and survivor’s pensions, or maximum monthly ited based on 70% of the insured’s average earnings in the disability pension of C$1,362.30, if the widow(er) combines six years before the disability began. disability and survivor’s pensions. The maximum monthly old-age pension (with 39 years of Survivor’s pension (QPP): Up to C$692.75 a month is paid contributions) is C$1,154.58. to a widow(er) or common-law spouse aged 65 or older Early pension: The pension is reduced by 0.6% for each who is not receiving any other QPP or CPP pension; up month it is claimed before age 65, up to 36%. to C$929.30 if aged 45 to 64 or disabled; up to C$893.82 if younger than age 45, not disabled, and caring for a
100 ♦ SSPTW: The Americas, 2019 Canada dependent child; up to C$560.09 if younger than age 45, not Coverage disabled, and has no dependent children. Social insurance (Employment Insurance [EI], cash Orphan’s benefit (CPP/QPP): C$250.27 a month is paid for benefits): Employed persons, including federal government each eligible orphan. employees, and self-employed fishermen. Benefit adjustment: Benefits are automatically adjusted in Voluntary coverage for self-employed persons. (After January of each year based on changes in the consumer receiving cash benefits, coverage for self-employed persons price index. is mandatory.) Survivor allowance (Allowance for the Survivor, social Cash benefits (special EI benefits) include maternity, paren- assistance, income tested): Up to C$1,375.17 a month tal, sickness, compassionate care, and family caregiver ben- (July to September 2019) is paid to an eligible widow(er). efits. Self-employed persons are not eligible for the regular Benefit adjustment: Benefits are revised quarterly based on EI program (unemployment benefits). changes in the consumer price index. Social insurance (Quebec Parental Insurance Plan [QPIP], cash maternity and parental benefits): Employed Death benefit (CPP/QPP, social insurance): A lump sum and self-employed persons residing in Quebec. of C$2,500 is paid. Benefit adjustment: The benefit amount is not indexed. Universal (medical benefits): Residents of Canada. Cover- age is portable when insured residents move from one prov- Administrative Organization ince/territory to another and for emergency care anywhere in the world. Employment and Social Development Canada (https:// www.canada.ca/en/employment-social-development.html), Source of Funds through district and local offices, administers the universal, social insurance (CPP), and social assistance programs. Insured person Canada Revenue Agency (https://www.canada.ca/en Social insurance (EI/QPIP, cash benefits): See source of /revenue-agency.html) collects contributions for the social funds under Unemployment. In Quebec, an additional insurance (CPP) program. 0.526% of covered earnings. Quebec Ministry of Finance (http://www.finances.gouv An insured person with annual earnings of C$2,000 or less .qc.ca/) supervises the social insurance (QPP) program. is eligible for a full refund of his or her contributions. Quebec Department of Revenue (http://www.revenuquebec The maximum annual earnings used to calculate contribu- .ca/) collects contributions for the social insurance (QPP) tions in Quebec are C$76,500, adjusted annually. program. Universal (medical benefits): Pays premiums in British Quebec Pension Board (http://www.retraitequebec.gouv Columbia. Ontario has a health premium based on taxable .qc.ca/) administers the social insurance (QPP) program. income above a certain threshold. No premiums in the other provinces. Sickness and Maternity Self-employed person Regulatory Framework Social insurance (EI/QPIP, cash benefits): 0.934% of covered earnings in Quebec (QPIP). For the voluntarily First laws: 1957 (hospital services); 1966 (hospital and insured (EI special benefits), see source of funds under physician services), implemented in 1968; and 1971 (cash Unemployment. sickness and maternity benefits). The maximum annual earnings used to calculate contribu- Current laws: 1984 (hospital and physician services), tions in Quebec are C$76,500, adjusted annually. implemented in 1985; 1996 (cash sickness, maternity, and Universal (medical benefits): Pays premiums in British parental benefits); and 2005 (Quebec maternity and parental Columbia. Ontario has a health premium based on taxable benefits), implemented in 2006. income above a certain threshold. No premiums in the other Type of program: Universal (medical benefits) and social provinces. insurance (cash benefits) system. Employer Note: The province of Quebec administers Cash maternity, paternity, adoption, and parental benefits for eligible resi- Social insurance (EI/QPIP, cash benefits): See source of dent through the Quebec Parental Insurance Plan (QPIP). funds under Unemployment. In Quebec, an additional The QPIP benefits replace similar benefits provided under 0.736% of covered payroll. the federal Employment Insurance program. There are no minimum earnings used to calculate contri- butions. The maximum annual earnings used to calculate contributions in Quebec are C$76,500, adjusted annually.
SSPTW: The Americas, 2019 ♦ 101 Canada
Universal (medical benefits): Contributions vary by Self-employed persons who are voluntarily enrolled must province/territory. have at least one year of contributions and have earned at least C$7,121 in 2018 for claims paid in 2019 (at least Government C$3,760 in the previous 31 weeks for self-employed Social insurance (EI/QPIP, cash benefits): None; contrib- fishermen). utes as an employer. Family supplement (income tested): Paid to a family with a Universal (medical benefits): The total cost is financed net annual income up to C$25,921, with at least one depen- through the general revenues of the federal, provincial, and dent child younger than age 18, and receiving a Canada territorial governments, except in those provinces where Child Benefit (see Family Allowances). premiums are paid. The federal government makes contri- Cash maternity, paternity, adoption, and parental butions to provinces and territories through block transfers benefits (QPIP, social insurance): Must have covered (provinces and territories must meet the federal program income of at least C$2,000 in the last 52 weeks (104 weeks requirements in the Canada Health Act). under certain conditions; for self-employed persons, the calendar year) and have ceased working or have at least a Qualifying Conditions 40% reduction in earnings (for self-employed persons, 40% Cash sickness benefit (EI, social insurance): Must have reduction in time spent working). The mother, the father, at least 600 hours of covered employment in the 52 weeks or both parents may be eligible for parental benefits. The before the claim is made or since the last claim (whichever paternity benefit is paid only to the biological father. The period is shorter), have at least a 40% reduction in weekly biological father can receive both paternity and parental earnings, and have exhausted employer-paid sick leave. benefits, but not simultaneously. Self-employed persons who are voluntarily enrolled must Compassionate care benefit (EI, social insurance): have at least one year of contributions and have earned Must have at least 600 hours of covered employment in the at least C$7,121 in 2018 for claims paid in 2019 (at least 52 weeks before the claim is made or since the last claim C$3,760 in the previous 31 weeks for self-employed (whichever period is shorter), have at least a 40% reduction fishermen). in weekly earnings, and leave work temporarily to provide Family supplement (income tested): Paid to a family with a care or support to a family member with a grave illness and net annual income up to C$25,921, with at least one depen- a significant risk of death within 26 weeks. dent child younger than age 18, and receiving a Canada Self-employed persons who are voluntarily enrolled must Child Benefit (see Family Allowances). have at least one year of contributions and have earned at least C$7,121 in 2018 for claims paid in 2019 (at least Paid to an Cash maternity benefit (EI, social insurance): C$3,760 in the previous 31 weeks for self-employed insured woman who is away from work because of preg- fishermen). nancy or childbirth. Must have at least 600 hours of covered employment in the 52 weeks before the claim is made or Family supplement (income tested): Paid to a family with a since the last claim (whichever period is shorter) and have net annual income up to C$25,921, with at least one depen- at least a 40% reduction in weekly earnings. dent child younger than age 18, and receiving a Canada Child Benefit (see Family Allowances). Self-employed persons who are voluntarily enrolled must have at least one year of contributions and have earned Family caregiver benefit (EI, social insurance): Must be at least C$7,121 in 2018 for claims paid in 2019 (at least absent from work to provide care or support for a critically C$3,760 in the previous 31 weeks for self-employed ill or injured family member. Must have at least 600 hours fishermen). of covered employment in the 52 weeks before the claim is Family supplement (income tested): Paid to a family with a made or since the last claim (whichever period is shorter), net annual income up to C$25,921, with at least one depen- and have at least a 40% reduction in weekly earnings. dent child younger than age 18, and receiving a Canada Self-employed persons who are voluntarily enrolled must Child Benefit (see Family Allowances). have at least one year of contributions and have earned at least C$7,121 in 2018 for claims paid in 2019 (at least Paid to an Cash parental benefit (EI, social insurance): C$3,760 in the previous 31 weeks for self-employed insured mother or father who is away from work to care fishermen). for a newborn or newly adopted child. Must have at least 600 hours of covered employment in the 52 weeks before Family supplement (income tested): Paid to a family with a the claim is made or since the last claim (whichever period net annual income up to C$25,921, with at least one depen- is shorter), and have at least a 40% reduction in weekly dent child younger than age 18, and receiving a Canada earnings. Child Benefit (see Family Allowances). The parental benefit is paid to one parent or may be shared Medical benefits (physician and hospital services, uni- between both parents if they are both eligible. versal): Generally, the insured must have three months of
102 ♦ SSPTW: The Americas, 2019 Canada residence in the province/territory where he or she resides. one parent, it applies to all subsequent claims related to the When the insured moves from one province/territory to child. another, the former province/territory continues to provide Basic plan: The maternity benefit is 70% of the insured’s coverage during the three-month waiting period. average weekly covered earnings paid for 18 weeks; the paternity benefit is 70% of the insured’s average weekly Sickness and Maternity Benefits covered earnings paid for five weeks; the parental benefit is Sickness benefit (EI, social insurance): 55% of the 70% of the insured’s average weekly covered earnings paid insured’s average weekly covered earnings, up to the maxi- for seven weeks followed by 55% of average weekly cov- mum insurable earnings, is paid after a one-week waiting ered earnings paid for 25 weeks; and the adoption benefit is period for up to 15 weeks. 70% of average weekly covered earnings paid for 12 weeks Average weekly covered earnings are based on the followed by 55% of average weekly covered earnings paid insured’s best 14 to 22 weeks of earnings (depending on the for 25 weeks. regional unemployment rate) in the last 52 weeks or since Average weekly covered earnings are based on the insured’s the last claim (whichever period is shorter). last 26 weeks of earnings in the qualifying period (or total The maximum weekly sickness benefit is C$562. earnings in the period worked if less than 26 weeks, but the minimum divisor for calculating the average is 16). Family supplement (income tested): Up to an additional 25% of the insured’s average weekly covered earnings is Special plan: The maternity benefit is 75% of the insured’s paid, depending on family income and the number and ages average weekly covered earnings paid for 15 weeks; the of the eligible children. paternity benefit is 75% of average weekly covered earn- ings paid for three weeks; the parental benefit is 75% of Maternity benefit (EI, social insurance): 55% of the average weekly covered earnings paid for 25 weeks; and the insured’s average weekly covered earnings is paid after a adoption benefit is 75% of average weekly covered earnings one-week waiting period for 15 weeks. paid for 28 weeks. Average weekly covered earnings are based on the Average weekly covered earnings are based on the insured’s insured’s best 14 to 22 weeks of earnings (depending on the last 26 weeks of earnings in the qualifying period (or total regional unemployment rate) in the last 52 weeks or since earnings in the period worked if less than 26 weeks, but the the last claim (whichever period is shorter). minimum divisor for calculating the average is 16). The maximum weekly maternity benefit is C$562. Compassionate care benefit (EI, social insurance): 55% Family supplement (income tested): Up to an additional of the insured’s average weekly covered earnings in the last 25% of the insured’s average weekly covered earnings is 52 weeks is paid after a one-week waiting period for up to paid, depending on family income and the number and ages 26 weeks. of the eligible children. Average weekly covered earnings are based on the Parental benefit (EI, social insurance): The insured par- insured’s best 14 to 22 weeks of earnings (depending on ents must choose between 55% of average weekly covered the regional unemployment rate) in the 52 weeks before the earnings paid for a shared total of up to 40 weeks (up to claim is made or since the last claim (whichever period is 35 weeks if taken by only one parent) or 33% of average shorter). weekly covered earnings paid for a shared total of up to The maximum weekly compassionate care benefit is C$562. 69 weeks (up to 61 weeks 35 weeks if taken by only one parent). Once a choice is made by one parent, it applies to Family supplement (income tested): Up to an additional all subsequent claims related to the child. 25% of the insured’s average weekly covered earnings is paid, depending on family income and the number and ages Average weekly covered earnings are based on the of the eligible children. insured’s best 14 to 22 weeks of earnings (depending on the regional unemployment rate) in the last 52 weeks or since Family caregiver benefit (EI, social insurance): 55% the last claim (whichever period is shorter). of the insured’s average weekly covered earnings is paid after a one-week waiting period for up to 15 weeks (for the The maximum weekly parental benefit is C$562; the maxi- care of an adult) or up to 35 weeks (for the care of a child mum weekly extended parental benefit is C$377. younger than age 18). Family supplement (income tested): Up to an additional Average weekly covered earnings are based on the 25% of the insured’s average weekly covered earnings is insured’s best 14 to 22 weeks of earnings (depending on paid, depending on family income and the number and ages the regional unemployment rate) in the 52 weeks before the of the eligible children. claim is made or since the last claim (whichever period is Maternity, paternity, adoption, and parental benefits shorter). The insured must choose (QPIP, social insurance): The maximum weekly family caregiver benefit is C$562. between the basic or special plan. Once a choice is made by
SSPTW: The Americas, 2019 ♦ 103 Canada
Family supplement (income tested): Up to an additional Providers are usually public, not-for-profit hospitals and 25% of the insured’s average weekly covered earnings is other specialized institutions; doctors and allied practitio- paid, depending on family income and the number and ages ners in entrepreneurial practice. of the eligible children. Employment and Social Development Canada, through Service Canada (http://www.canadabenefits.gc.ca/), is Workers’ Medical Benefits responsible for cash sickness, maternity, parental, and com- Physician services: Benefits include general medical and passionate care benefits provided under the Employment maternity care, and surgical, specialist, and laboratory Insurance program. services provided by recognized medical practitioners and Canada Revenue Agency (https://www.canada.ca/en deemed to be medically required. Provinces and territories, /revenue-agency.html) collects contributions for cash sick- in consultation with the medical professionals and medi- ness, maternity, parental, and compassionate care benefits cal associations, determine which services are medically provided under the Employment Insurance program. required. Provincial and territorial authorities pay providers Quebec Parental Insurance Plan (http://www.rqap.gouv directly based on predetermined formulas and agreed-upon .qc.ca/), under the Ministry of Labor, Employment, and fee schedules. Solidarity (https://www.mtess.gouv.qc.ca/), administers Hospital services: Benefits include inpatient and out- maternity and parental benefits in Quebec. patient care at a hospital, where services are medically Quebec Department of Revenue (https://www necessary for the purpose of maintaining health, prevent- .revenuquebec.ca/) collect contributions for maternity and ing disease, or diagnosing or treating an injury, illness, or parental benefits in Quebec. disability. Services include standard ward care, necessary nursing, pharmaceuticals provided in the hospital, diagnos- tic and therapeutic services, and dental surgeries performed Work Injury in a hospital. Provincial authorities pay providers directly based on predetermined formulas and agreed-upon fee Regulatory Framework schedules. First and current laws: 1908 (Newfoundland and Lab- rador), 1915 (Nova Scotia), 1915 (Ontario), 1916 (British Additional services: In some provinces/territories, Columbia), 1916 (Manitoba), 1917 (Yukon), 1918 (New benefits may include medical devices and supplies, non- Brunswick), 1918 (Alberta), 1928 (Quebec), 1930 (Saskatch- surgical dental services, and optometric services. Coverage ewan), 1949 (Prince Edward Island), 1974 (Northwest Ter- for these services may be targeted to specific groups (such ritories), 1974 (Nunavut), and 1918 (Federal Public Service as children, seniors, or social assistance recipients). Employees). Some cost sharing may be required. Type of program: Social insurance system. Emergency care in another province or abroad is paid at the rate of the person’s home province. Coverage Dependents’ Medical Benefits Employed persons. Benefits for dependents are the same as those for the Voluntary coverage is available for self-employed persons. insured if the dependent is also an eligible resident. Exclusions: Self-employed persons and certain employees in excluded or exempted activities (which vary by province/ Administrative Organization territory). Health Canada (https://www.canada.ca/en/health-canada .html) administers programs for groups not covered under Source of Funds provincial plans; monitors provincial compliance with con- Insured person: None. ditions of national legislation; and provides provinces with technical, consultative, and coordinating services. Self-employed person: Not applicable. Provincial and territorial authorities administer and manage Employer: The total cost is financed through contributions their health insurance plans, establish resident eligibility that vary by province/territory, industry, and the assessed status, assess hospital and medical claims, pay health care degree of risk. In some provinces and territories, certain providers, and monitor all aspects of the programs. Prov- employers may self-insure. inces and territories also determine, in conjunction with Depending on the province/territory, the average employer physicians in their jurisdictions, which medical and hospital assessment rate per C$100 of payroll ranges from C$0.95 services are medically necessary. to C$2.65. (Different assessment methods are used by British Columbia and Ontario administer health care premi- provincial and territorial authorities, including the weight- ums and related income taxes. ing of individual rates by payroll or by industry, the mix of industry, the varying benefit levels and earnings ceilings,
104 ♦ SSPTW: The Americas, 2019 Canada the extent of industry coverage, and the degree of funding common-law partner, and the number of dependents. Some of liabilities.) jurisdictions may pay a lump-sum benefit instead. The maximum annual covered earnings used to calculate The minimum monthly spouse’s pension varies by prov- contributions varies by province/territory, from C$55,000 ince/territory, up to C$1,105.63 (2015 information). to C$127,000. The maximum monthly spouse’s pension varies by prov- Government: None; contributes as an employer ince/territory, up to C$5,215.70 (2015 information). (self-insured). Orphan’s pension: Depending on the province/territory, either a monthly flat-rate pension or a percentage of the Qualifying Conditions deceased’s wages is paid. Must be assessed with a work injury or occupational Other dependent’s pension (if there is no spouse or orphan): disease. Depending on the province/territory, the benefit level is either the same as the orphan’s pension or is determined by Temporary Disability Benefits the provincial and territorial workers’ compensation board. Temporary disability benefits (Workers’ Compensa- Funeral grant: The grant paid varies by province/territory. tion): 75% to 90% of the insured’s net covered earnings is paid, depending on province/territory. The minimum funeral grant ranges from C$0 to C$2,950. The maximum annual covered earnings used to calcu- The maximum funeral grant ranges from C$5,000 to no late benefits varies by province/territory and ranges from maximum. C$55,000 to C$127,000. The minimum weekly benefit varies by province/territory, Administrative Organization up to C$546.19 (2015 information). Workers’ Compensation Boards in each province/territory The maximum weekly benefit varies by province/ter- collect contributions, adjudicate claims, and provide com- ritory and ranges from C$611.58 to C$1,362.08 (2015 pensation and benefits. information). Federal Workers’ Compensation Service (www.canada.ca /en/employment-social-development/services/health-safety Permanent Disability Benefits /compensation.html), in partnership with provincial work- ers’ compensation boards, administer work injury benefits Permanent disability pension (Workers’ Compensa- for federal public service employees. tion): 80% to 90% of the insured’s net covered earnings is paid for a full disability, depending on province/territory. Unemployment The permanent disability pension ceases at the normal retirement age or is replaced by an old-age pension, Regulatory Framework depending on the province/territory. 1940. The maximum annual covered earnings used to calculate First law: benefits varies by province/territory, from C$55,000 to Current law: 1996 (employment insurance). C$127,000. Type of program: Social insurance system. The minimum monthly benefit varies depending on prov- ince/territory, up to C$2,124.74 (2015 information). Coverage The maximum monthly benefit varies depending on prov- Employed persons and self-employed fishermen. ince/territory, up to C$5,901.89 (2015 information). Exclusions: Self-employed persons other than fishermen. Partial disability: A percentage of the total disability pen- sion is paid based on the assessed loss of earning capacity. Source of Funds Workers’ Medical Benefits Insured person: 1.62% of covered earnings; 1.25% of covered earnings in the province of Quebec. Premiums are Benefits include medical, surgical, nursing, and hospital adjusted annually. services; medicine; and appliances. The maximum annual earnings used to calculate contribu- Survivor Benefits tions are C$53,100. The ceiling is adjusted annually. An insured person with annual earnings of C$2,000 or less Survivor pension is eligible for a full refund of his or her contributions. Spouse’s pension: The pension varies by province/terri- The insured person’s contributions also finance cash sick- tory and is adjusted based on a percentage of the deceased’s ness and maternity benefits (in the province of Quebec, the net earnings, the age of the surviving widow(er) or
SSPTW: The Americas, 2019 ♦ 105 Canada insured person’s contributions finance certain cash sickness Family supplement (income tested): Up to an additional and maternity benefits). 25% of the insured’s average weekly covered earnings is paid, depending on family income and the number and ages Self-employed person: 1.62% of covered earnings. Premi- of the eligible children. ums are adjusted annually. The insurable earnings of a self-employed fishermen are the Administrative Organization amounts paid or payable to the fishermen from the sale of a Canada Employment Insurance Commission (https://www catch. .canada.ca/en/employment-social-development/corporate Employer: 2.268% of covered payroll; 1. 75% of covered /portfolio/ei-commission.html) reviews regulations and payroll in the province of Quebec. Premiums are adjusted benefit rates. annually. Employment and Social Development Canada, through Ser- The maximum annual earnings used to calculate contribu- vice Canada (https://www.canada.ca/en/services/benefits tions are C$53,100. The ceiling is adjusted annually. /ei.html) regional and local offices, administers the The employer’s contributions also finance cash sickness and program. maternity benefits (in the province of Quebec, the insured Canada Revenue Agency (https://www.canada.ca/en person’s contributions finance certain cash sickness and /revenue-agency.html) collects contributions. maternity benefits).
Government: None; contributes as an employer. Family Allowances
Qualifying Conditions Regulatory Framework Unemployment benefits (EI regular benefits and EI First law: 1944, implemented in 1945. fishing benefits): Must have at least 420 to 700 hours Current laws: 2016 (amendment to the 1985 Income Tax (depending on the regional unemployment rate) of covered Act). employment in the last 52 weeks or since the last claim (whichever period is shorter); and be able to provide proof Type of program: Universal (benefit administered through of being available for and actively seeking work. Fishermen the tax system). must have earnings from C$2,500 to C$4,200, depending on the regional unemployment rate, in the last 31 weeks. Coverage The loss of employment cannot be due to voluntary leaving Families with children younger than age 18, generally resi- without just cause or to misconduct. dent in Canada. Family supplement (income tested): Paid to a family with net annual income up to C$25,921, with at least one depen- Source of Funds dent child younger than age 18, and who are receiving a Insured person: None. Canada Child Benefit (see Family Allowances). Self-employed person: None. Unemployment Benefits Employer: None. Unemployment benefits (EI regular benefits and EI fish- Government: The total cost. ing benefits): 55% of the insured’s average weekly covered earnings is paid after a one-week waiting period for up to Qualifying Conditions 14 to 45 weeks, depending on the number of hours worked in the qualifying period and the regional unemployment Canada Child Benefit (income tested): Paid to an eligible rate where the insured resides. For fishermen, the maximum individual (the primary caregiver) for each child younger duration of benefits is 26 weeks and fishermen can accumu- than age 18 who lives with the primary caregiver. The pri- late up to two claims per year. mary caregiver or his or her spouse or common-law partner (same sex or opposite sex) must be one of the following: Average weekly covered earnings are based on the a citizen of Canada, an Indian within the meaning of the insured’s best 14 to 22 weeks of earnings (depending on the Indian Act, a permanent resident, a temporary resident regional unemployment rate) in the qualifying period. For (subject to limitations), or a protected person within the fishermen, average weekly covered earnings are calcu- meaning of the Immigration and Refugee Protection Act. lated based on the insured’s total earnings from fishing in the qualifying period, the insured’s earnings from other As the Canada Child Benefit is administered through the employment in the qualifying period, and the regional tax system, the primary caregiver and their cohabiting unemployment rate. spouse or common-law partner must file an annual income tax return to receive the benefit. The maximum weekly unemployment benefit is C$562.
106 ♦ SSPTW: The Americas, 2019 Canada
Income test: The full benefit is paid with adjusted fam- Income test: The full benefit is paid with adjusted fam- ily net annual income up to C$31,120. Above this income ily net annual income up to C$31,120. Above this income level, the benefit decreases as income increases. The rate level, the benefit decreases as income increases. The rate of decrease varies depending on the household income and of decrease varies depending on the household income and number of eligible children. number of eligible children. Child disability supplement (income tested): Paid for chil- Child disability supplement (income tested): Up to C$2,832 dren with severe disabilities. a year is paid for each eligible child. Income test: The full supplement is paid with adjusted fam- Income test: The full supplement is paid with adjusted fam- ily net annual income up to C$67,426. Above this income ily net annual income up to C$67,426. Above this income level, the supplement decreases as income increases. The level, the supplement decreases as income increases. The rate of decrease varies depending on the number of eligible rate of decrease varies depending on the number of eligible children. children.
Family Allowance Benefits Administrative Organization Canada Child Benefit (income tested): Up to C$6,639 Canada Revenue Agency (https://www.canada.ca/en a year (C$553.25 a month) is paid for each eligible child /revenue-agency.html) administers the benefit. younger than age 6; up to C$5,602 a year (C$466.83 a month) for each eligible child aged 6 to 17. The benefit is delivered through the income tax system.
SSPTW: The Americas, 2019 ♦ 107 Chile
Social assistance and universal child benefit: Residents of Chile. Chile Source of Funds Exchange rate: US$1.00 = 678.80 pesos. Insured person Social insurance: 18.84% of covered earnings for wage Old Age, Disability, and Survivors earners; 20% to 30% of covered earnings for salaried employees, depending on the occupation. Regulatory Framework The maximum monthly earnings used to calculate contri- butions are 60 UFs (Unidad de Fomento). The ceiling is First law: 1924 (social insurance). adjusted annually based on changes in real wages in the Current laws: 1952 (social insurance), 1952 (wage earners), previous year. 1975 (social assistance), 1980 (individual accounts), 1980 The UF, an index that is adjusted daily based on monthly (social insurance), and 2008 (social security reform). changes in the consumer price index, is 27,908.86 pesos Type of program: Social insurance, mandatory individual (July 1, 2019). account, social assistance, and universal (child benefit) Mandatory individual account: 10% of monthly covered system. earnings (old age) plus an average of 1.25% (administrative Note: A 2019 law introduced mandatory social security fees). Persons working under arduous conditions contrib- contributions for certain self-employed persons with annual ute an additional 1% or 2% of monthly covered earnings, incomes of at least five times the legal monthly minimum depending on the occupation. wage. Until 2028, covered self-employed persons can The minimum monthly earnings used to calculate contribu- choose to make partial contributions for access to a reduced tions are the legal monthly minimum wage. benefit package. Provisions included below summarize the comprehensive benefit package for self-employed persons. The legal monthly minimum wage is 301,000 pesos if aged 18 to 65 (March 2019); 224,704 pesos if younger than Coverage age 18 or older than age 65 (March 2019). The maximum monthly earnings used to calculate contri- Wage earners, salaried employees, and Social insurance: butions are 79.2 UFs (Unidad de Fomento). The ceiling is self-employed persons with earnings less than three times adjusted annually based on changes in real wages in the the legal monthly minimum wage who paid social insur- previous year. ance contributions before January 1, 1983 and opted to remain in the social insurance program. The UF, an index that is adjusted daily based on monthly changes in the consumer price index, is 27,908.86 pesos The legal monthly minimum wage is 301,000 pesos if (July 1, 2019). aged 18 to 65 (March 2019); 224,704 pesos if younger than age 18 or older than age 65 (March 2019). Social assistance and the universal child benefit: None. Special systems for certain salaried employees, including Self-employed person railroad employees, seamen and port workers, public-sector Social insurance: 18.84% of covered income. employees, and military and police personnel. The minimum monthly income used to calculate contribu- Mandatory individual account: Employees who entered tions is the legal monthly minimum wage. the labor force after December 31, 1982, and self-employed persons issuing professional service invoices with annual The legal monthly minimum wage is 301,000 pesos if covered incomes of at least the legal monthly minimum aged 18 to 65 (March 2019); 224,704 pesos if younger than wage. age 18 or older than age 65 (March 2019). Voluntary coverage for workers covered by the social insur- The maximum monthly income used to calculate contribu- ance program before January 1, 1983 and self-employed tions is 60 UFs (Unidad de Fomento). persons with annual covered incomes less than the legal The UF, an index that is adjusted daily based on monthly monthly minimum wage. changes in the consumer price index, is 27,908.86 pesos The self-employed person’s annual covered income is 80% (July 1, 2019). of his or her gross income in the previous year. Mandatory individual account: 3.04% (increasing to 10% by The legal monthly minimum wage is 301,000 pesos if 2028) of covered income (old age and administrative fees) aged 18 to 65 (March 2019); 224,704 pesos if younger than plus 1.53% (disability and survivor). age 18 or older than age 65 (March 2019). The self-employed person’s annual covered income is 80% of his or her gross income in the previous year.
108 ♦ SSPTW: The Americas, 2019 Chile
The minimum annual covered income used to calculate Employment may continue for wage earners; salaried contributions is the legal monthly minimum wage. employees must cease all gainful activity. The legal monthly minimum wage is 301,000 pesos if Child supplement: Paid for the dependent children of a aged 18 to 65 (March 2019); 224,704 pesos if younger than salaried woman who has at least 20 years of contributions; age 18 or older than age 65 (March 2019). no contribution requirement for widows. The maximum annual income used to calculate contribu- The social insurance old-age pension is payable abroad. tions is 878.4 UFs (Unidad de Fomento). Old-age pension (Pensión de Vejez, mandatory indi- The UF, an index that is adjusted daily based on monthly vidual account): Age 65 (men) or age 60 (women). changes in the consumer price index, is 27,908.86 pesos The normal retirement age for insured persons with at least (July 1, 2019). 20 years of contributions is reduced by one or two years for Social assistance and the universal child benefit: None. every five years of work under arduous conditions, depend- ing on the occupation, up to 10 years. Employer Early pension (Pensión anticipada): At any age if the Social insurance: None. individual account balance is sufficient to finance a pension Mandatory individual account: 1.53% of payroll (disability of at least 70% of the insured’s average monthly covered and survivor); employers of persons working under arduous earnings in the last 10 years and 80% of the monthly PMAS conditions contribute an additional 1% or 2% of monthly (Pensión Máxima con Aporte Solidario). covered payroll (old age), depending on the occupation. The PMAS is the lowest value of the old-age pension before The maximum monthly earnings used to calculate contribu- qualifying for the old-age solidarity top-up benefit (APSV). tions are 79.2 UFs. The ceiling is adjusted annually based The monthly PMAS is 325,646 pesos. on changes in real wages in the previous year. Recognition bond (Bono de reconocimiento): Age 65 (men) The UF, an index that is adjusted daily based on monthly or age 60 (women) and moved from the social insurance changes in the consumer price index, is 27,908.86 pesos program to the mandatory individual account program. (July 1, 2019). Must have had 12 contributions under the social insurance program from November 1975 to October 1980 or at least Social assistance and the universal child benefit: None. one contribution from July 1, 1979, to the date of enroll- Government ment in the mandatory individual account program. Social insurance: The total cost of accrued rights. Guaranteed minimum old-age pension (Pensión de vejez mínima garantizada): Age 65 (men) or age 60 (women) Mandatory individual account: The total cost of the guar- with at least 20 years of contributions whose sum of pen- anteed minimum old-age and disability pensions, old-age sions, earnings, and other income is less than the minimum solidarity top-up benefit (APSV), and disability solidar- monthly old-age pension. ity top-up benefit (APSI); subsidizes contributions for young workers (50% of monthly contributions for earn- The minimum monthly old-age pension is 138,585.79 pesos ings less than the minimum monthly earnings) for the first if younger than age 70; 151,532.91 pesos if aged 70 to 75; or 24 months of contributions; and contributes as an employer. 161,680.50 pesos if older than age 75. The guaranteed minimum old-age pension is being phased Social assistance and the universal child benefit: The total out and replaced by the old-age solidarity top-up benefit cost. (APSV) by 2023. Until then, there is a choice between the two benefits for persons who received the guaranteed Qualifying Conditions minimum old-age pension before July 1, 2008, and those Old-age pension (Pensión de Vejez, social insurance): aged 50 or older and affiliated with a pension fund manage- For wage earners, age 65 with at least 1,040 weeks of con- ment company (AFP) on July 1, 2008. tributions or 800 weeks of contributions, including at least The individual account old-age pension is payable abroad. 50% of the weeks since coverage began (men), or age 60 with at least 520 weeks of contributions (women); for Old-age solidarity top-up benefit (Aporte Previsional salaried employees, age 65 (men) or age 60 (women) with at Solidario de Vejez [APSV], social assistance, means Age 65 and a resident of Chile for at least 20 years least 10 years of contributions. tested): since age 20, including four of the last five years. The normal retirement age for insured persons with at least Means test: The beneficiary’s monthly base pension (indi- 1,020 weeks of contributions is reduced by one year (two vidual account or social insurance old-age pension plus years for workers in mining or smelting) for every five any work-injury survivor pension received) must be less years of work under arduous conditions, up to five years than the monthly PMAS, and the beneficiary’s family must (10 years for workers in mining or smelting). be among the poorest 60% of the population as assessed
SSPTW: The Americas, 2019 ♦ 109 Chile through the Social Security Targeting Score (Puntaje de last requirement). For salaried employees, must be younger Focalización Previsional). than age 65 (men) or age 60 (women), be assessed with at The PMAS is the lowest value of the old-age pension before least a 66.7% degree of disability, and have at least three qualifying for the old-age solidarity top-up benefit. The years of contributions. monthly PMAS is 325,646 pesos. Preventive and disability medical commissions assess The Social Security Targeting Score compiles information the degree of disability for wage earners and salaried on household composition, needs, and income, which is employees. provided by the Ministry of Social Development, the Inter- Child supplement: Paid for the dependent children of a nal Revenue Service, and the Superintendence of Pensions. salaried woman. Old-age solidarity pension (Pensión Básica Solidaria The social insurance disability pension is payable abroad. de Vejez [PBSV], social assistance, means tested): Disability pension (Pensión de Invalidez, mandatory Age 65; a resident of Chile for at least 20 years since age 20, individual account): Must be younger than the normal including at least four of the last five years; and does not retirement age and assessed with at least a 66% loss of meet the contribution requirements for any other pension. earning capacity not caused by a work-related accident. Means test: The beneficiary’s family must be among the Coverage is extended for up to 12 months after employment poorest 60% of the population as assessed through the ceases if the insured has six months of contributions in Social Security Targeting Score (Puntaje de Focalización the last year of employment (voluntarily insured and self- Previsional). employed persons must also have contributed in the month The Social Security Targeting Score compiles information immediately before the disability began). on household composition, needs, and income, which is Partial disability: Must be younger than the normal retire- provided by the Ministry of Social Development, the Inter- ment age and assessed with a 50% to 65% loss of earning nal Revenue Service, and the Superintendence of Pensions. capacity not caused by a work-related accident. Coverage is extended for up to 12 months after employment ceases if Child benefit (Bono por Hijo, universal): Paid to a woman the insured has six months of contributions in the last year aged 65 or older who has been a resident of Chile for at of employment (voluntarily insured and self-employed per- least 20 years since age 20, including at least four of the last sons must also have contributed in the month immediately five years; who gave birth to or adopted at least one child in before the disability began). her lifetime; and receives an old-age solidarity pension, an old-age solidarity top-up benefit, or a survivor pension; or Regional medical commissions assess the degree of who retired on or after July 1, 2009, and is affiliated with a disability. pension fund management company (AFP). Guaranteed minimum disability pension (Pensión de invali- Winter grant (Bono de Invierno, social assistance, dez mínima garantizada): Paid to persons who received the income tested): Must be aged 65 or older and receive a guaranteed minimum pension or a disability pension on monthly old-age pension less than the minimum monthly July 1, 2008, or who were aged 50 or older and affiliated old-age pension for pensioners older than age 75. with a pension fund management company (AFP) on July 1, 2008. The insured’s disability pension must be less than the The minimum monthly old-age pension for pensioners older minimum monthly disability pension. than age 75 is 161,680.50 pesos. The minimum monthly disability pension is Golden wedding anniversary grant (Bono Bodas de 138,585.79 pesos if younger than age 70; 151,532.91 pesos if Oro, social assistance, income tested): Paid to a couple aged 70 to 75; or 161,680.50 pesos if older than age 75. married for at least 50 years who has resided in Chile for at least four of the five years before the claim is made. The guaranteed minimum disability pension is being The claim must be made within one year of the couple’s phased out and replaced by the disability solidarity top- 50th anniversary. up benefit (APSI) by 2023. Until then, there is a choice between the two benefits for persons who received the Income test: The couple’s household income must be in one guaranteed minimum disability pension before July 1, of the lowest four income quintiles. 2008, and those aged 50 or older and affiliated with an AFP Disability pension (Pensión de Invalidez, social insur- on July 1, 2008. ance): For wage earners, must have been younger than The individual account disability pension is payable abroad. age 65 (men) or age 60 (women) when the disability began; be assessed with a total (at least a 70% loss of earning Disability solidarity top-up benefit (Aporte Previsional capacity) or partial (30% to 69% loss of earning capacity); Solidario Invalidez [APSI], social assistance, means and have at least 50 weeks of contributions, including at tested): Must be aged 18 to 64, a resident of Chile for at least 40% of the weeks in the last five years and at least least five of the last six years, and assessed with a disability. 50% of the weeks since coverage began (women and men Means test: The beneficiary’s base pension (individual with at least 400 weeks of coverage are exempt from this account or social insurance disability pension plus any
110 ♦ SSPTW: The Americas, 2019 Chile survivor benefits) of less than the disability solidarity age 18 (age 24 if a student; no age limit if disabled); and the pension, and the beneficiary’s family must be among the deceased’s parents if there are no other eligible survivors. poorest 60% of the population as assessed through the The individual account survivor pension is payable abroad. Social Security Targeting Score (Puntaje de Focalización Previsional). Funeral grant (Asignación por Muerte, social insurance and social assistance): Paid to the person who pays for The monthly disability solidarity pension is 110,201 pesos. the funeral of the insured worker or pensioner. The Social Security Targeting Score compiles information The social insurance and social assistance funeral grants on household composition, needs, and income, which is are payable abroad. provided by the Ministry of Social Development, the Inter- nal Revenue Service, and the Superintendence of Pensions. Funeral grant (Cuota Mortuoria, mandatory individual account): Paid to the person who pays for the funeral of the Disability solidarity pension (Pensión Básica Solidaria insured worker or pensioner. de Invalidez [PBSI], social assistance, means tested): Must be aged 18 to 64, a resident of Chile for at least five of The individual account funeral grant is payable abroad. the last six years, assessed with a disability, and does not meet the contribution requirements for any other pension. Old-Age Benefits Means test: The beneficiary’s family must be among the Old-age pension (Pensión de Vejez, social insur- poorest 60% of the population as assessed through the ance): For wage earners, the monthly pension is 50% Social Security Targeting Score (Puntaje de Focalización of the insured’s base wage plus 1% of the base wage for Previsional). every 50 weeks of contributions exceeding 500 weeks; for salaried employees, the monthly pension is 1/35 of the The Social Security Targeting Score compiles information insured’s base salary multiplied by the number of years of on household composition, needs, and income, which is contributions. provided by the Ministry of Social Development, the Inter- nal Revenue Service, and the Superintendence of Pensions. The base wage or salary is the insured’s average monthly wage or salary in the last five years, with the first two years Survivor pension (Pensión de Sobrevivientes, social adjusted for wage or salary changes. insurance): For a deceased wage earner, must have had at least 400 weeks of paid contributions, or at least 50 weeks Child supplement: 1/35 of the insured’s base salary is paid of paid contributions, including at least 40% of the weeks for each eligible child; 2/35 of the base salary if the insured in the last five years and at least 50% of the weeks since is a widow. coverage began (women are exempt from this last require- The minimum monthly old-age pension is 138,585.79 pesos ment). For a deceased salaried employee, must have had at if younger than age 70; 151,532.91 pesos if aged 70 to 75; or least three years of contributions. 161,680.50 pesos if older than age 75. Eligible survivors include a widow(er) who was married Benefit adjustment: Benefits are adjusted automatically to the insured for at least six months (at least three years if each year based on changes in the consumer price index; the insured was a pensioner), a widow(er) who had children earlier if the change in the consumer price index is at least with the deceased, or a widow who was pregnant with the 15% before the 12-month cycle ends. deceased’s child at the time of death; the mother of the Old-age pension (Pensión de Vejez, mandatory indi- deceased’s extramarital children; orphans younger than vidual account): The insured has four different payment age 18 (age 24 if a student; no age limit if disabled); and the options: an immediate life annuity, temporary income with deceased’s parents if there are no other eligible survivors. a deferred life annuity, programmed withdrawals, or an The widow(er)’s pension ceases upon remarriage. immediate life annuity with programmed withdrawals. Remarriage settlement: Paid to a widow younger than Recognition bond (Bono de reconocimiento): 12 times age 55 who remarries. the insured’s monthly earnings before July 1979 plus 4% The social insurance survivor pension is payable abroad. accrued annual interest is deposited into the individual account in the month after the insured reaches the normal Survivor pension (Pensión de Sobrevivencia, manda- retirement age. tory individual account): The deceased received or was entitled to receive an individual account old-age or disabil- Guaranteed minimum old-age pension (Pensión de vejez ity pension. mínima garantizada): 138,585.79 pesos a month is paid if the insured is younger than age 70; 151,532.91 pesos a Eligible survivors include a widow(er) who was married month if aged 70 to 75; or 161,680.50 pesos a month if older to the insured for at least six months (at least three years if than age 75. the insured was a pensioner), a widow(er) who had children with the deceased, or a widow who was pregnant with the Benefit adjustment: Benefits are adjusted automatically deceased’s child at the time of death; the mother of the based on changes in the consumer price index. deceased’s extramarital children; orphans younger than
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Old-age solidarity top-up benefit (Aporte Previsional Permanent Disability Benefits Solidario de Vejez [APSV], social assistance, means Disability pension (Pensión de Invalidez, social insur- tested): The monthly pension is the difference between the basic solidarity pension and the value of the base pension ance): For a total disability, the monthly pension is 50% of (old-age pension plus any survivor benefits received) multi- the insured’s base wage plus 1% of the base wage for every plied by and adjustment factor. 50 weeks of contributions exceeding 500 weeks for wage earners; for salaried employees, the monthly pension is 70% The basic monthly solidarity pension is 110,201 pesos. of the insured’s base salary plus 2% of the base salary for The adjustment factor is the basic monthly solidarity each year of contributions exceeding 20 years. For a partial pension divided by the monthly PMAS (Pensión máxima disability, 50% of the total disability pension is paid for con aporte solidario). (The adjustment factor is currently wage earners and salaried employees. 33.8%.) The base wage or salary is the insured’s average monthly The PMAS is the lowest value of the old-age pension before wage or salary in the last five years, with the first two years qualifying for the old-age solidarity top-up benefit. (The adjusted for wage or salary changes. monthly PMAS is currently 325,646 pesos.) The minimum monthly disability pension is Benefit adjustment: Benefits are adjusted automatically 138,585.79 pesos if younger than age 70; 151,532.91 pesos if each year based on changes in the consumer price index; aged 70 to 75; or 161,680.50 pesos if older than age 75. earlier if the change in the consumer price index is at least Child supplement: 1/35 of the insured’s base salary (1/30 10% before the 12-month cycle ends. for civil servants) is paid for each eligible child; 2/35 of Old-age solidarity pension (Pensión Básica Solidaria the base salary (2/30 for civil servants) if the insured is a de Vejez [PBSV], social assistance, means tested): widow. 110,201 pesos a month is paid. Benefit adjustment: Benefits are adjusted automatically Benefit adjustment: Benefits are adjusted automatically each year based on changes in the consumer price index; each year based on changes in the consumer price index; earlier if the change in the consumer price index within the earlier if the change in the consumer price index is at least year is at least 15% before the 12-month cycle ends. 10% before the 12-month cycle ends. Disability pension (Pensión de Invalidez, manda- Child benefit (Bono por Hijo, universal): A bond is paid tory individual account): For a total disability, 70% of for each live birth or adopted child. For women younger the insured’s base salary is paid. The pension is financed than age 65 on July 1, 2009, 10% of 18 times the legal through the individual account. (Disability insurance tops monthly minimum wage at the time of the child’s birth or up the accumulated capital in the individual account if the adoption is deposited into the individual account in the balance is less than the required minimum to finance the month after the mother reaches age 65. For children born or permanent disability pension.) adopted before July 1, 2009, the bond accrues interest from Temporary partial disability: 50% of the insured’s base July 1, 2009, until the insured reaches age 65. For children salary is paid for up to three years. The insured’s pension born or adopted after July 1, 2009, the bond accrues interest fund management company (AFP) pays the benefit through from the date of the childbirth or adoption until the insured an insurance policy covering the insured. The funds from reaches age 65. The bond’s interest rate is the average the individual account are only used to pay the benefit if the annual rate for Fund C minus administrative fees for that insured is not covered by disability and survivor insurance period. (has not made any contributions to the individual account The legal monthly minimum wage is 301,000 pesos if for at least one year). aged 18 to 65 (March 2019); 224,704 pesos if younger than The base salary is the insured’s average monthly salary in age 18 or older than age 65 (March 2019). the last 10 years. Winter grant (Bono de Invierno, social assistance, Long-term partial disability pension: Following a second income tested): 62,791 pesos a year is paid in May. level of assessment after three years and certification, the Benefit adjustment: Benefits are adjusted automatically pension is financed through the individual account. (Dis- each year. ability insurance tops up the accumulated capital in the individual account if the balance is less than that required Golden wedding anniversary grant (Bono Bodas de to finance a pension of 50% of the insured’s base salary). Oro, social assistance, income tested): A lump sum of 321,474 pesos (160,737 pesos per spouse) is paid. Guaranteed minimum disability pension (Pensión de invalidez mínima garantizada): 138,585.79 pesos is paid if Benefit adjustment: Benefits are adjusted automatically younger than age 70; 151,532.91 pesos if aged 70 to 75; or each year. 161,680.50 pesos if older than age 75. Benefit adjustment: Benefits are adjusted automatically based on changes in the consumer price index.
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Disability solidarity top-up benefit (Aporte Previsional Survivor pension (Pensión de Sobrevivencia, manda- Solidario Invalidez [APSI], social assistance, means tory individual account) tested): The difference between the insured’s monthly Spouse’s pension (Pensión de cónyuge): 60% of the indi- base pension (old-age pension plus any survivor benefits vidual account old-age or disability pension the deceased received) and the monthly disability solidarity pension is received or was entitled to receive is paid to a widow(er) paid. if there are no eligible children; 50% to a widow(er) with The monthly disability solidarity pension is 110,201 pesos. eligible children; and 36% to the mother or father of the Benefit adjustment: Benefits are adjusted automatically deceased’s extramarital children (30% if the deceased and each year based on changes in the consumer price index; the spouse had eligible children together). earlier if the change in the consumer price index within the The minimum monthly spouse’s pension with children is year is at least 10% before the 12-month cycle ends. 69,292.91 pesos if younger than age 70; 75,766.45 pesos if Disability solidarity pension (Pensión Básica Solidaria aged 70 to 75; or 80,840.25 pesos if older than age 75. de Invalidez [PBSI], social assistance, means tested): The minimum monthly spouse’s pension without children 110,201 pesos a month is paid. is 83,151.47 pesos if younger than age 70; 90,919.74 pesos if Benefit adjustment: Benefits are adjusted automatically aged 70 to 75; or 97,008.31 pesos if older than age 75. each year based on changes in the consumer price index; Orphan’s pension (Pensión de hijo): 15% of the individual earlier if the change in the consumer price index within the account old-age or disability pension the deceased received year is at least 10% before the 12-month cycle ends. or was entitled to receive is paid to each eligible orphan younger than age 18 (age 24 if a student and single; no limit Survivor Benefits if disabled); 11% for each partially disabled orphan older Survivor pension (Pensión de Sobrevivientes, social than age 24. insurance) The minimum monthly orphan’s pension is 20,787.87 pesos. Spouse’s pension (Pensión de cónyuge): 60% of the Other survivor’s pension: 50% of the individual account deceased’s base wage or salary or of the social insurance old-age or disability pension the deceased received or was old-age or disability pension the deceased received or was entitled to receive is paid to each parent, if there are no entitled to receive, whichever is greater, is paid to a widow other eligible survivors and the parents are entitled to fam- aged 55 or older or to a widower with a disability if there ily benefits. are no eligible children; 50% with eligible children. The mother of the deceased’s extramarital children receives If the deceased was actively contributing to an individual 60% of the widow’s pension. account, survivor pensions are calculated based on a refer- ence pension of 70% of the deceased’s average monthly The base wage or salary is the deceased’s average monthly earnings in the last 10 years. wage or salary in the last five years, with the first two years adjusted for wage or salary changes. The pension paid as the result of the death of an insured person or a temporary partial disability beneficiary is The minimum monthly spouse’s pension with children is financed with the deceased’s individual account balance; if 75,226.83 pesos if younger than age 70; 96,899.69 pesos if the deceased was a pensioner, the type of benefit depends aged 70 or older. on the type of retirement pension that the deceased chose. The minimum monthly spouse’s pension without children is (Life insurance tops up the accumulated capital in the 89,933.16 pesos if younger than age 70; 112,214.13 pesos if deceased’s individual account if the balance is less than the aged 70 or older. required minimum to finance the survivor pension.) Remarriage settlement (Dote matrimonial): A widow There is no maximum survivor pension. younger than age 55 receives a lump sum of two years of Benefit adjustment: Benefits are adjusted automatically the pension. each year based on changes in the consumer price index. Orphan’s pension (Pensión de orfandad): 20% of the base Funeral grant (Asignación por Muerte, social insurance wage or salary or of the social insurance old-age or disabil- and social assistance): A lump sum of up to three times ity pension the deceased received or was entitled to receive, the monthly non-remuneration minimum wage is paid. whichever is greater, is paid to each eligible orphan. The monthly non-remuneration minimum wage is The minimum monthly orphan’s pension 20,787.87 pesos. 194,164 pesos (March 2019). Benefit adjustment: Benefits are adjusted automatically Funeral grant (Cuota Mortuaria, mandatory indi- each year based on changes in the consumer price index; vidual account): A lump sum of 15 UFs is paid (from the earlier if the change in the consumer price index within the deceased’s individual account or the private insurer if the year is at least 15% before the 12-month cycle ends. insured purchased a life annuity) to the relative who paid for the funeral expenses.
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The UF, an index that is adjusted daily based on monthly Voluntary coverage for self-employed persons with annual changes in the consumer price index, is 27,908.86 pesos incomes less than five times the legal monthly minimum (July 1, 2019). wage. The legal monthly minimum wage is 301,000 pesos if Administrative Organization aged 18 to 65; 224,704 pesos if younger than age 18 or older Ministry of Labor and Social Security is responsible for than age 65 (March 2019). policy development. Special systems for military and police personnel. Superintendent of Pensions (http://www.spensiones.cl/), Employer liability: Private-sector employees, and public- under the Ministry of Labor and Social Security, provides sector employees not covered by a special system. general supervision. Exclusion: Self-employed persons. Individual pension fund management companies (AFPs) administer individual accounts and collect contributions. Special systems for civil servants and most categories of employees of public institutions and public enterprises. Social Security Institute (http://www.ips.gob.cl/) adminis- ters the social insurance and social assistance programs. Source of Funds Sickness and Maternity Insured person Social insurance: 7% of monthly covered income; none for Regulatory Framework pensioners and solidarity beneficiaries. First law: 1924 (social insurance). The minimum monthly earnings used to calculate contribu- tions are the legal monthly minimum wage. Current laws: 1978 (sickness benefits); 1979 (national health system); 1984 (sick leave); 1985 (public health The legal monthly minimum wage is 301,000 pesos if system), implemented in 1986; 1990 (private health sys- aged 18 to 65 (March 2019); 224,704 pesos if younger than tem); 2004 (health guarantees), implemented in 2005; 2011 age 18 or older than age 65 (March 2019). (extended parental leave); 2014 (maternity); 2015 (health The maximum monthly earnings used to calculate contri- insurance contributions eliminated for pensioners); and butions are 79.2 UFs (Unidad de Fomento). The ceiling is 2017 (mandatory insurance for sick child leave). adjusted annually based on changes in real wages in the Type of program: Social insurance (cash and medical previous year. benefits), mandatory private insurance (cash and medical The UF, an index that is adjusted daily based on monthly benefits), and employer-liability (paternity benefit) system. changes in the consumer price index, is 27,908 pesos. Note: A 2019 law introduced mandatory social security Mandatory private insurance: At least 7% of gross earnings, contributions for certain self-employed persons with annual depending on the health plan. incomes of at least five times the legal monthly minimum The minimum monthly earnings used to calculate contribu- wage. Until 2028, covered self-employed persons can tions are the legal monthly minimum wage. choose to make partial contributions for access to a reduced benefit package. Provisions included below summarize the The legal monthly minimum wage is 301,000 pesos if comprehensive benefit package for self-employed persons. aged 18 to 65 (March 2019); 224,704 pesos if younger than age 18 or older than age 65 (March 2019). Cash and medical benefits are provided through parallel public and private programs. By default, insured persons Employer liability: None. are enrolled in the public social insurance program, but Self-employed person they can choose to contract with registered private health institutions for their benefits. Social insurance: 7% of annual covered income. The self-employed person’s annual covered income is 80% Coverage of his or her gross income in the previous year. Social insurance and mandatory private insurance: The minimum monthly income used to calculate contribu- Public- and private-sector employees; self-employed tions are the legal monthly minimum wage. persons with annual incomes of at least five times the legal The legal monthly minimum wage is 301,000 pesos if monthly minimum wage; contract workers; pensioners; aged 18 to 65; 224,704 pesos if younger than age 18 or older persons receiving work injury, unemployment, or social than age 65 (March 2019). assistance benefits; persons entitled to family allowances; and pregnant women. (Persons without earnings, social See source of funds under Work Injury for the sick child assistance beneficiaries pregnant women, and mothers up to benefit. six months after childbirth are covered by the social insur- ance program.)
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Mandatory private insurance: At least 7% of annual covered for old-age, health insurance, and insurance for work injury income, depending on the health plan. and occupational diseases. The self-employed person’s annual covered income is 80% Cash paternity benefit (Permiso Paterno Pagado, of his or her gross income in the previous year. employer liability): There is no minimum qualifying The minimum monthly earnings used to calculate contribu- period. tions are the legal monthly minimum wage. Medical benefits (social insurance and mandatory pri- The legal monthly minimum wage is 301,000 pesos if vate insurance): There is no minimum qualifying period. aged 18 to 65; 224,704 pesos if younger than age 18 or older than age 65 (March 2019). Sickness and Maternity Benefits Employer liability: Not applicable. Sickness benefit (Subsidio por Incapacidad Laboral, social and mandatory private insurance): For public-sec- Employer tor employees, the benefit is 100% of the insured’s monthly Social insurance: None; see source of funds under Work net earnings before the incapacity began; for private-sector Injury for the sick child benefit. employees, 100% of the insured’s average monthly net earnings in the last three months; for self-employed per- Mandatory private insurance: None. sons, 100% of the insured’s annual covered income divided Employer liability: The total cost. by 12 (mandatorily covered) or 100% of the insured’s average monthly declared earnings in the last six months Government (voluntarily insured). Social insurance: The total cost of maternity benefits; any The sickness benefit is paid retroactively from the first day deficit in the national health system. if the sick-leave period is at least 11 days; from the fourth Mandatory private insurance: Partially finances the cost of day if the sick-leave period is less than 11 days. Under a sickness benefits. collective agreement, the employer is only required to pay benefits for the first three days. Employer liability: None; contributes as an employer for public-sector employees not covered by a special system. The minimum daily sickness benefit is 1/30th of 50% of the monthly non-remuneration minimum wage. Qualifying Conditions The monthly non-remuneration minimum wage is 194,164 pesos. Cash sickness and maternity benefits (social insurance and mandatory private insurance): Employees must have Sick child benefit (Subsidio Maternal por Enfermedad at least six months of contributions, including at least three Grave Niño menor de un Año, social insurance): For months of contributions in the last six months; contract employees, the benefit is 100% of the insured’s net earnings workers, at least six months of contributions, including at before the leave began; for self-employed persons, 100% of least 30 days of contributions in the last six months; and the insured’s annual covered income divided by 12 (man- self-employed persons, at least 12 months of coverage datorily covered) or 100% of the insured’s average monthly with at least six months of paid contributions in the last declared earnings in the last five months before the leave 12 months. began (voluntarily insured). There is no minimum qualifying period for an incapacity Maternity benefit (Subsidio Maternal, social insurance that is the result of an accident. and mandatory private insurance): For public-sector employees, the benefit is 100% of the insured’s net monthly Sick child benefit (Subsidio Maternal por Enfermedad earnings before the incapacity began; for private-sector Grave Niño menor de un Año, social insurance): Paid to employees, 100% of the insured’s average monthly net a parent who is absent from work and caring for a gravely earnings in the three months before the expected date of sick or terminally ill child aged 1 to 17 (up to age 14 in case childbirth; for self-employed persons, 100% of the insured’s of a serious accident). annual covered income divided by 12 (mandatorily cov- Employees must have at least eight months of contributions ered) or 100% of the insured’s average monthly declared in the last 24 months, including three continuous months of earnings in the last six months (voluntarily covered). The contributions immediately before taking leave; mandatorily benefit is paid for six weeks before and 12 weeks after the covered self-employed must have paid their contributions expected date of childbirth; may be extended in cases of based on the last tax declaration; and voluntarily insured premature or multiple births. self-employed persons must have at least 12 months of If both spouses work, either may receive the maternity contributions in the last 24 months, including five continu- benefit. ous months of contributions immediately before taking leave, and be up-to-date with their contribution payments The minimum daily maternity benefit is 1/30th of 50% of the monthly non-remuneration minimum wage.
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The monthly non-remuneration minimum wage is Administrative Organization 194,164 pesos. Ministry of Health (http://www.minsal.cl/) provides general The maternity benefit is also paid for 12 months for the supervision. adoption of a child younger than age 6 months. Superintendent of Health (http://www.supersalud.gob.cl/) Extended postnatal parental leave: 100% of the maternity oversees the public and private medical benefits and public benefit is paid for 12 weeks after the maternity benefit and private health providers. ends; 50% is paid for up to 18 weeks if the woman returns National Health Fund (FONASA) collects contributions and to work part time after the normal parental leave ends. Up administers the social insurance program. to six weeks of the benefit may be transferred to the father from the seventh week if the mother returns to work at that Health Institutions (ISAPREs) (http://www.isapre.cl/) col- time. lect contributions and administer the mandatory private insurance program. Paternity benefit (Permiso Paterno Pagado, employer liability): 100% of the insured’s last monthly earnings is Employers pay paternity benefits directly to employees. paid for five days in the 30-day period after the childbirth or the adoption of a child younger than age 6 months. Work Injury
Workers’ Medical Benefits Regulatory Framework Medical benefits (social insurance): Public or private First law: 1916 (work injury). health institutions and professionals registered with the Current laws: 1968 (work injury and occupational dis- National Health Fund provide benefits. Benefits include eases), 1994 (public-sector workers), 1998 (contribution general and specialist care, periodic medical examinations, rates), 2005 (coverage to students and apprentices), 2008 hospitalization, medicine, dental care, and maternity care. (self-employed workers), 2017 (special contribution), and There is no limit to duration. 2017 (equalizing provisions for workers and employees).
General Scheme of Health Guarantees establishes the mini- Type of program: Social insurance system. mum benefits to be provided by the public system. Note: A 2019 law introduced mandatory social security Cost sharing: Copayments are required for certain treat- contributions for certain self-employed persons with annual ments. Persons with monthly covered earnings above incomes of at least five times the legal monthly minimum 439,460 pesos pay 20% (10% with three dependents); wage. Until 2028, covered self-employed persons can with monthly covered earnings from 301,000 pesos to choose to make partial contributions for access to a reduced 439,460 pesos, 10% (0% with three dependents). Benefi- benefit package. Provisions included below summarize the ciaries of basic solidarity pensions or family subsidies, and comprehensive benefit package for self-employed persons. persons with monthly earnings below 301,000 pesos are exempt (April 2019). Coverage The maximum annual limit on copayments is 3.5 times the Public- and private-sector workers, self-employed per- insured’s annual covered earnings. sons with annual incomes of at least five times the legal There is no cost sharing for general care and certain monthly minimum wage, household workers, contract and medicines. temporary workers, students, apprentices, and trade union representatives. Medical benefits (mandatory private insurance): The insured must sign a minimum 12-month contract with a Voluntary coverage for self-employed persons with annual private health institute and can choose among open, closed, incomes less than five times the legal monthly minimum or preferred doctor plans. Benefits, as well as cost sharing, wage. vary by contract but must be at least equal to those pro- The legal monthly minimum wage is 301,000 pesos if vided by the public system. aged 18 to 65; 224,704 pesos if younger than age 18 or older than age 65 (March 2019). Dependents’ Medical Benefits Medical benefits (social insurance): Benefits for depen- Source of Funds dents are the same as those for the insured. Insured person: None. Medical benefits (mandatory private insurance): Ben- Self-employed person: 0.91% of annual covered income efits for dependents are the same as those for the insured. plus up to 3.4% of annual covered income, depending on A widow(er) and dependent children are covered for a year the industry and the assessed degree of risk, and 0.02% of after the insured’s death. covered income for the sick child benefit under Sickness and Maternity.
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The self-employed person’s annual covered income is 80% in the six months before the disability began (voluntarily of his or her gross income in the previous year. insured persons). The minimum annual income used to calculate contribu- The benefit is paid from the day of injury for up to 52 weeks tions is four times the legal monthly minimum wage for (may be extended up to an additional 52 weeks). mandatorily covered self-employed persons; the legal The minimum daily temporary disability benefit is 1/30th monthly minimum wage for voluntarily insured self- of 50% of the monthly non-remuneration minimum wage. employed persons. The monthly non-remuneration minimum wage is The legal monthly minimum wage is 301,000 pesos if 194,164 pesos. aged 18 to 65; 224,704 pesos if younger than age 18 or older than age 65 (March 2019). Benefit adjustment: Benefits are adjusted based on salary and wage increases. The maximum annual income used to calculate contribu- tions is based on the maximum monthly earnings used to Permanent Disability Benefits calculate contributions effective on December 31 for the reporting year. Permanent disability pension (Pensión por Incapacidad Permanente): For a total disability (at least a 70% assessed The maximum monthly earnings used to calculate contri- degree of disability), 70% of the insured’s basic wage is butions are 79.2 UFs (Unidad de Fomento). The ceiling is paid. adjusted annually based on changes in real wages in the previous year. The basic wage is the insured employee’s average monthly covered earnings or the voluntarily insured self-employed The UF, an index that is adjusted daily based on monthly person’s average monthly covered income in the six months changes in the consumer price index, is 27,908.86 pesos before the disability began; the annual covered income (July 1, 2019). divided by 12 for mandatorily covered self-employed Employer: 0.91% of monthly covered payroll plus up to persons. 3.4% of monthly covered payroll depending on the indus- Preventive and Disability Medical Commissions (Comis- try and the assessed degree of risk, and 0.02% of monthly iones de Medicina Preventiva e Invalidez [COMPIN]) covered payroll for the sick child benefit under Sickness and evaluation commissions under the organizations that and Maternity. administer the program assess the degree of disability. The The minimum monthly earnings used to calculate contribu- degree of disability is reassessed once every two years in tions are the legal monthly minimum wage. the eight years after the pension is awarded. The legal monthly minimum wage is 301,000 pesos if Constant-attendance allowance (Suplemento por gran aged 18 to 65; 224,704 pesos if younger than age 18 or older invalidez): 30% of the insured’s basic wage is paid if the than age 65 (March 2019). insured requires the constant attendance of others to per- The contribution can increase up to 6.8% of monthly cov- form daily functions. ered payroll in companies with high accident rates. Child’s supplement (Suplemento por hijo): 5% of the permanent disability pension is paid for the third and each Government: None; contributes as an employer. subsequent child entitled to family allowances. Qualifying Conditions The minimum monthly permanent disability pension is 138,585.79 pesos if younger than age 70; 151,532.91 pesos if Must be assessed with a work injury or occupational dis- aged 70 to 75; or 161,680.50 pesos if older than age 75. ease. Accidents that occur while commuting to and from work are covered. The maximum initial monthly permanent disability pension is 1,293,981 pesos. Self-employed persons must have paid all due contributions. Partial disability: For an assessed degree of disability of 40% to 69%, 35% of the insured’s basic wage is paid. A Temporary Disability Benefits lump sum of up to 15 months of the basic wage is paid for an assessed degree of disability of 15% to 39%. Temporary disability benefit (Subsidio por Incapaci- The permanent disability pension is payable abroad under dad Laboral): For public-sector employees, 100% of the insured’s net monthly earnings is paid; for private-sector bilateral or multilateral agreement. employees, 100% of the insured’s average net monthly Benefit adjustment: Benefits are adjusted automatically earnings in the three months before the disability began; for each year based on changes in the consumer price index; self-employed persons, 100% of the insured’s annual cov- earlier if the change in the consumer price index is at least ered income divided by 12 (mandatorily covered persons) or 10% before the 12-month cycle ends. 100% of the insured’s average net monthly declared income
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Disability education allowance (Subsidio de Escolari- Benefit adjustment: Benefits are adjusted automatically dad en caso de Invalidez): For a student assessed with at each year based on changes in the consumer price index; least a 70% loss of current or future work capacity (at least earlier if the change in the consumer price index is at least a 15% loss subject to a means test) that is due to a school 10% before the 12-month cycle ends. accident, 22.275% of the non-remuneration minimum wage See the funeral grant (Asignación por is paid a month. Funeral grant: Muerte) paid under Old Age, Disability, and Survivors. The monthly non-remuneration minimum wage is 194,164 pesos. Administrative Organization Ministry of Labor and Social Security, through the Super- Workers’ Medical Benefits intendent of Social Security (http://www.suseso.cl/), pro- Benefits include necessary medical, surgical, dental, and vides general supervision. pharmaceutical products; hospitalization; prostheses; Occupational Safety Institute (http://www.isl.gob.cl/) and rehabilitation; transfer costs, and occupational retrain- the Employer’s Mutuals (Asociación Chilena de Seguridad, ing. Benefits are provided from the day after the disability https://www.achs.cl/; Mutual de Seguridad de la Cámara began or the diagnosis of the occupational disease until the Chilena de la Construcción, https://www.mutual.cl/; and person has recovered. Instituto de Seguridad del Trabajo, http://www.ist.cl/) There is no limit to duration. administer the program and collect contributions. There is no cost sharing. Unemployment Survivor Benefits Survivor pension (Pensión de Sobrevivencia) Regulatory Framework Spouse’s pension (Pensión de cónyuge): 50% of the per- First law: 1937 (salaried employees). manent disability pension the deceased received or was Current laws: 1981 (unemployment); and 2001 (severance entitled to receive is paid to a widow older than age 45 (at account system), implemented in 2002. any age if disabled or caring for a child) or to a dependent widower with a disability; 60% if there are no eligible Type of program: Employment-related and mandatory children. individual account system. A widow(er) younger than age 45 receives a pension while Coverage receiving family benefits for legitimate children (for one year without family benefits). If a widow(er) caring for a Employment related: Employed persons and certain self- child reaches age 45 during this period, the benefit is paid employed persons. for life. Mandatory individual account: Employed persons hired The minimum monthly spouse’s pension is 89,933.16 pesos on or after October 2, 2002. (if younger than age 70 without children), 112,214.13 pesos Voluntary coverage for employed persons hired before (if aged 70 or older without children), 75,226.83 pesos (if October 2, 2002. younger than age 70 with children), or 96,899.699 pesos (if aged 70 or older with children). Exclusions: Household workers, apprentices, pensioners (unless partially disabled), self-employed persons, civil The spouse’s pension ceases upon remarriage. servants, and military personnel. Remarriage settlement (Asignación por nuevo matrimonio): A lump sum of two years of the spouse’s pension is paid to Source of Funds a widow aged 45 or older who remarries. Insured person Orphan’s pension (Pensión de orfandad): 20% of the Employment related: None. permanent disability pension the deceased received or was entitled to receive is paid for each orphan younger than Mandatory individual account: 0.6% of monthly covered age 18 (age 24 if a student; no limit if disabled); 50% for earnings plus an administrative fee of about 0.04% for each full orphan. workers with permanent contracts. Workers with fixed-term The minimum monthly orphan’s pension is 20,787.87 pesos. contracts do not contribute. The maximum combined survivor pension is 100% of the The minimum monthly earnings used to calculate contribu- permanent disability pension the deceased received or was tions are the legal monthly minimum wage. entitled to receive. The legal monthly minimum wage is 301,000 pesos if Survivor pensions are payable abroad under bilateral or aged 18 to 65 (March 2019); 224,704 pesos if younger than multilateral agreement. age 18 or older than age 65 (March 2019).
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The maximum monthly earnings used to calculate contri- If the balance in the individual account is insufficient to pay butions are 118.9 UFs (Unidad de Fomento). The ceiling a benefit, the insured is eligible for a benefit under the Soli- is adjusted annually based on changes in real wages in the darity Severance Fund if unemployment was involuntary previous year. and the insured has made at least 12 months of contribu- The UF, an index that is adjusted daily based on monthly tions in the last two years before unemployment began (the changes in the consumer price index, is 27,908.86 pesos last three under the same employer); has not received more (July 1, 2019). than 10 payments from the Solidarity Severance Fund in the last five years; is actively seeking employment, and is Self-employed person available to take job interviews and receive training and Employment related: None. temporary job offers. Solidarity supplement: The insured must opt for payment of Mandatory individual account: Not applicable. benefits under the Solidarity Severance Fund. Employer Employment related: None. Unemployment Benefits Mandatory individual account: 1.6% of monthly covered Unemployment benefit (Subsidio de Cesantía, employ- payroll for up to 11 years of service plus 0.8% to the ment related): 17,338 pesos a month is paid for the first Solidarity Severance Fund for employees with permanent 90 days; from 91 days to 180 days, 11,560 pesos a month; contracts; 2.8% of monthly covered payroll plus 0.2% to the from 181 days to 360 days, 8,669 pesos a month. Solidarity Severance Fund for employees with fixed-term Unemployment beneficiaries may continue to receive fam- contracts. ily allowances, maternity benefits, medical benefits and the The maximum monthly earnings used to calculate contribu- funeral grant. tions are 118.9 UFs. The ceiling is adjusted annually based If the benefit ceases because the insured has started a on changes in real wages in the previous year. new job before 360 days of benefits have been paid, but The UF, an index that is adjusted daily based on monthly the insured subsequently becomes unemployed again, the changes in the consumer price index, is 27,908.86 pesos insured may continue receiving the benefit for the remain- (July 1, 2019). ing period, up to 360 days. Unemployment benefit (Seguro de Cesantía, mandatory Government individual account): The number of monthly benefits paid Employment related: The total cost, financed through the depends on the individual account balance plus accrued Unified Family Allowances and Unemployment Fund. interest. The benefit has a decreasing replacement rate of 70%, 55%, 45%, 40%, 35%, 30% and 30% (for the seventh Mandatory individual account: An annual contribution to the Solidarity Severance Fund of 225,792 UTMs (Unidad and each subsequent monthly payment). Tributaria Mensual). If the insured had a permanent contract and is entitled to The UTM, a monthly tax indexed unit set by law, is the Solidarity Severance Fund, he or she can receive up to 49,033 pesos. five monthly benefits with a decreasing replacement rate of 70%, 55%, 45%, 40% and 35% on the average monthly Qualifying Conditions earnings in the last 12 months. The minimum monthly benefit for a permanent contract Unemployment benefit (Subsidio de Cesantía, employ- is 187,272 pesos for the first payment, 147,143 pesos for ment related): Must be involuntarily unemployed and the second payment, 120,389 pesos for the third payment, have at least 12 months or 52 weeks of contributions in 107,013 pesos for the fourth payment, 93,637 pesos for the last two years, be registered as seeking employment, the fifth payment, and 80,259 pesos for each subsequent and able and willing to work. The insured may not receive payment. an employment-related benefit and an individual account benefit at the same time. The maximum monthly benefit for a permanent contract is 624,241 pesos for the first payment, 490,476 pesos for Unemployment benefit (Seguro de Cesantía, mandatory the second payment, 401,297 pesos for the third payment, For insured persons who had perma- individual account): 356,709 pesos for the fourth payment, 312,120 pesos for nent contracts, must be involuntarily unemployed with at the fifth payment, and 267,532 pesos for each subsequent least 12 months of contributions. For insured persons who payment. had fixed-term contracts, must have at least six months of contributions. In both cases, the contributions must have If the insured had a fixed-term contract and is entitled to been made since the insured first jointed the program or the Solidarity Severance Fund, he or she can receive up to since the last unemployment benefit was received, which three monthly benefits with a decreasing replacement rate occurred last. of 50%, 40% and 35% on his or her average monthly earn- ings in the last 12 months.
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The minimum monthly benefit for a fixed-term contract is implemented in 1982; 2008 (social security reform); 2009 133,765 pesos for the first payment, 107,013 pesos for the (social protection for children); 2009 (employment subsi- second payment, 93,637 pesos for the third payment, and dies); 2012 (CCT); and 2018 (family allowances and mater- 80,259 pesos for each subsequent payment. nity benefits).
The maximum monthly benefit for a fixed-term contract is Type of program: Employment-related and social assis- 445,887 pesos for the first payment, 356,709 pesos for the tance system. second payment, 312,120 pesos for the third payment, and 267,532 pesos for each subsequent payment. Coverage For every month that the national unemployment rate is one Employment related: Public- and private-sector employ- percentage point greater than the national four-year aver- ees; self-employed persons who contribute to old-age and age, beneficiaries of the Solidarity Severance Fund who are sickness schemes; pensioners; persons receiving work due to receive their final payments are entitled to receive injury, sickness, or unemployment benefits; minors who two additional months of benefits. The extended benefit is are entrusted to adults by a judge; unemployed persons 30% of the insured’s average monthly earnings in the last receiving benefits from the Solidarity Severance Fund; and 12 months. persons in state institutions. If the insured dies before retirement, the accumulated Needy residents of Chile. capital is transferred to a named survivor, who can then Social assistance: withdraw the accumulated capital or transfer it to his or her Families covered by the employment-related program can individual pension account at retirement (no taxes). opt for social assistance family benefits. The insured can opt not to receive benefits from the Soli- darity Severance Fund and only use his or her individual Source of Funds account. Unemployment beneficiaries may continue to Insured person: None. receive family allowances, maternity benefits, and medical None. benefits. Self-employed person: Solidarity supplement: 10% of the monthly unemployment Employer: None. benefit is paid to the mandatory individual account for old- Government: The total cost, financed through the Uni- age, disability, and survivor benefits (see Old Age, Disabil- fied Family Allowances and Unemployment Fund (family ity, and Survivors). allowances) and the Family Subsidy National Fund (family Benefits are paid 10 days after the claim is accepted. subsidy).
Administrative Organization Qualifying Conditions Ministry of Labor and Social Welfare is responsible for Family allowance (Asignación Familiar, employment policy development. related, income tested): Paid to the insured for certain Social Security Institute (http://www.ips.gob.cl/) and Fam- dependents: children younger than age 18 (age 24 if a ily Allowance Compensation Funds administer the employ- student; no limit if disabled), a wife, a husband with a dis- ment-related program. ability, a widowed mother, stepchildren, orphaned or aban- doned grandchildren and great-grandchildren, orphans, Superintendent of Pensions (https://www.spensiones.cl/), parents older than age 65 or disabled, and minors who are under the Ministry of Labor and Social Welfare, provides entrusted to adults by a judge. general supervision of the mandatory individual account program. Income test: The insured’s average monthly income in the last period from January to June must not exceed AFC Chile (Sociedad Administradora de Fondos de 719,502 pesos. Cesantía de Chile S.A.) (https://www.afc.cl/) administers the mandatory individual account program and collects Maternity allowance (Asignación Maternal, employment contributions. related, income tested): Paid to pregnant insured persons or insured persons on behalf of their pregnant wives. Family Allowances Income test: The insured’s average monthly income in the last period from January to June must not exceed Regulatory Framework 719,502 pesos. First laws: 1937 (salaried employees), 1945 (civil servants), Family subsidy (Subsidio Familiar/Subsidio Único and 1953 (wage earners). Familiar [SUF], social assistance, means tested): Paid to families with children younger than age 18 (no limit if Current laws: 1981 (family allowances for low-income disabled) or with mentally disabled family members who persons); 1981 (wage earners and salaried employees), do not receive a disability pension. If mothers receive the
120 ♦ SSPTW: The Americas, 2019 Chile benefit on account of their children, they are entitled to an Means test: Must be included in the social registry as additional subsidy. among the 40% most vulnerable households and have an Children older than age 6 must regularly attend primary, annual gross income below 5,699,580.71 pesos or a monthly middle, or secondary school in recognized education insti- gross income below 474,965.62 pesos. tutions (unless disabled). Permanent family grant (Aporte Familiar Permanente, The family subsidy is not paid to individuals who receive social assistance, income tested): Paid to beneficiaries the family allowance or the basic solidarity pension (see in the previous year of the family allowance, maternity Old Age, Disability, and Survivors). allowance, family subsidy, or family cash transfer. Means test: Must be included in the social registry of Income test: Must have income below a certain limit. households as among the 60% most vulnerable households. Child benefit (Chile Crece Contigo, social assistance, Maternity and pregnancy subsidy (Subsidio Familiar de means tested): Paid for children from pregnancy to age 4 la Mujer Embarazada, social assistance, means tested): who are delivered at public health centers. Paid to pregnant women not receiving a family subsidy. Means test: Must be included in the social registry of Means test: Must be included in the social registry of households as among the 60% most vulnerable households. households as among the 60% most vulnerable households. Family Allowance Benefits Family cash transfer (Ingreso Ético Familiar, social assistance, means tested): Paid to extremely poor Family allowance (Asignación Familiar, employ- families, vulnerable people aged 65 or older, homeless ment related, income tested): A monthly allowance is persons, and children younger than age 18 whose parents paid for each dependent based on the insured’s earnings: are incarcerated. 12,364 pesos with monthly earnings up to 315,841 pesos; 7,587 pesos with monthly earnings exceeding 315,841 pesos Basic benefit (Bono de Protección): Paid to all families and up to 461,320 pesos; and 2,398 pesos with monthly enrolled in Ingreso Ético Familiar. earnings exceeding 461,320 pesos and up to 719,502 pesos. Supplementary benefit (Bono Base Familiar): Paid to fami- The family allowance is doubled for dependents with lies enrolled in Ingreso Ético Familiar with a monthly per disabilities. capita income of less than 40,647 pesos. Benefit adjustment: Benefits are adjusted on an ad-hoc Health benefit (Bono Control del Niño Sano): Paid for basis. children younger than age 6 who undergo regular medical Maternity allowance (Asignación Maternal, employment examinations. related, income tested): A family allowance is paid to a School attendance benefit (Bono por Asistencia Escolar): pregnant woman from conception until childbirth; only one Paid for children aged 6 to 18. Each child must attend 85% allowance is paid for multiple births. The allowance may of monthly classes in an official educational institution. be claimed from the fifth month of pregnancy and is paid retroactively. School achievement benefit (Bono por Logro Escolar): Paid for certain vulnerable children younger than age 24 who Benefit adjustment: Benefits are adjusted on an ad-hoc attend school and who score among the top 30% in their basis. cohort in a school year. Family subsidy (Subsidio Familiar/Subsidio Único
Youth employment subsidy (Subsidio al Empleo Jóven Familiar [SUF], social assistance, means tested): 12,364 pesos a month is paid. [SEJ], employment related, means tested): Paid to vulnerable salaried and self-employed workers aged 18 to Benefit adjustment: Benefits are adjusted on an ad-hoc 24 who do not work for the state or a quasi-public company basis. and are paying contributions. Workers aged 21 to 24 must Maternity and pregnancy subsidy (Subsidio Familiar de also have a high school diploma. la Mujer Embarazada, social assistance, means tested): Means test: Must be included in the social registry of 12,364 pesos a month is paid. households as among the 40% most vulnerable house- Benefit adjustment: Benefits are adjusted on an ad-hoc holds and have a gross annual income of less than basis. 5,699,580.71 pesos or a monthly gross income of less than 474,965.62 pesos. Family cash transfer (Ingreso Ético Familiar, social assistance, means tested) Women’s employment subsidy (Bono al Trabajo de la Mujer [BTM], employment related, means tested): Paid Basic benefit (Bono de Protección): 17,446 pesos a month to salaried and self-employed women aged 25 to 59 who are is paid during the first six months of enrollment in the paying contributions. program; 13,292 pesos from month seven to 12; 9,138 pesos from month 13 to 18; 11,887 pesos from month 19 to 24.
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Supplementary benefit (Bono Base Familiar): Up to difference between the annual income and 3,166,435 pesos 21,442 pesos a month is paid, depending on the fam- with income of 3,166,436 pesos to 5,669,581 pesos. ily income, for up to 24 months after enrollment in the The women’s employment subsidy is paid for up to four program. years. Health benefit (Bono Control del Niño Sano): 6,000 pesos a The employer receives a subsidy of 50% of the workers’ month is paid for up to 24 months; may be paid in addition monthly benefit for 24 months. to other subsidies or allowances. Schedule of payments: Employees can chose to receive a School attendance benefit (Bono por Asistencia Escolar): monthly payment or an annual payment in August; self- 6,000 pesos a month is paid for up to 24 months; may be employed persons receive benefits annually; employers paid in addition to other subsidies or allowances. receive subsidies monthly. School achievement benefit (Bono por Logro Escolar): A Benefit adjustment: Benefits are adjusted on an ad-hoc lump sum of 60,601 pesos is paid for each student in the top basis. 15% of his or her cohort; 36,362 pesos for each student in Permanent family grant (Aporte Familiar Permanente, the top 30%. social assistance, income tested): 46,374.06 pesos a Benefit adjustment: Benefits are adjusted on an ad-hoc year is paid for each family member entitled to a family basis. allowance or subsidy or a maternity allowance or subsidy; 46,374.06 pesos a year for each family entitled to the family Youth employment subsidy (Subsidio al Empleo Jóven cash transfer. [SEJ], employment related, means tested): The annual benefit amount depends on the insured’s annual income Benefit adjustment: Benefits are adjusted on an ad-hoc in the previous year: 20% of annual income is paid with basis. annual income up to 2,533,147 pesos; 506,629.40 pesos Child benefit (Chile Crece Contigo, social assistance, with income exceeding 2,533,147 pesos and up to means tested): Benefits include a layette, free kindergar- 3,166,435 pesos; 506,629.40 pesos minus 20% of the differ- ten counselling, and other services. ence between the annual income and 3,166,435 pesos with Benefit adjustment: Benefits are adjusted on an ad-hoc income of 3,166,436 pesos to 5,669,581 pesos. basis. The employer receives a subsidy of 50% of the workers’ monthly benefit for 24 months. Administrative Organization Schedule of payments: Employees can chose to receive a Ministry of Labor and Social Welfare (http://www.mintrab monthly payment or an annual payment in August; self- .gob.cl/), through the Superintendent of Social Security employed persons receive benefits annually; employers (http://www.suseso.cl/) provides general supervision. receive subsidies monthly. Social Security Institute (http://www.ips.gob.cl/), Family Benefit adjustment: Benefits are adjusted on an ad-hoc Allowance Compensation Funds, individual pension fund basis. management companies (AFPs), insurance companies, Women’s employment subsidy (Bono al Trabajo de employer mutuals, and AFC Chile (Sociedad Administra- la Mujer [BTM], employment related, means tested): dora de Fondos de Cesantía de Chile S.A.) (https://www.afc The annual benefit amount depends on the insured’s .cl/) administer the employment-related program. annual income in the previous year: 20% of annual Municipalities and the Social Security Institute (http:// income is paid with annual income up to 2,533,147 pesos; www.ips.gob.cl/) administer the social assistance program. 506,629.40 pesos with income exceeding 2,533,147 pesos up to 3,166,435 pesos; 506,629.40 pesos minus 20% of the
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Source of Funds Colombia Insured person Social insurance, mandatory individual account, and social Exchange rate: US$1.00 = 3,196.15 pesos. assistance: 4% of covered earnings. An additional con- tribution that ranges from 1% of covered earnings with income from four to 15 times the legal monthly minimum Old Age, Disability, and Survivors wage up to 2% of covered earnings with income above 20 times the legal monthly minimum wage finances the Regulatory Framework Pension Solidarity Fund (the first 0.5% finances contribu- tion subsidies for certain self-employed persons; the rest First laws: 1946 (social insurance), implemented in 1965; subsidizes the BEPS voluntary individual account and the 2003 (social assistance); and 2005 (voluntary individual Colombia Mayor social pension). account (BEPS)). The minimum monthly earnings used to calculate contribu- Current laws: 1993 (social security), implemented in 1994; tions are the legal monthly minimum wage. 2005 (means-tested individual account (BEPS)), imple- The maximum monthly earnings used to calculate contribu- mented in 2014; 2007 (national development); 2007 (social tions are 25 times the legal monthly minimum wage. assistance); 2012 (family pensions), implemented in 2014; 2013 (voluntary individual account (BEPS)); 2013 (self- The legal monthly minimum wage is 828,116 pesos. employed workers); and 2016 (pension system). Of the combined insured person and employer social insur- ance contributions, 13% is allocated to old-age benefits, Social insurance, mandatory and volun- Type of program: 0.80% to disability benefits, 1.11% to survivor benefits, and tary individual account, and social assistance system. 1.09% to administrative fees. Note: The insured must choose between the social insur- Of the combined insured person and employer individual ance and mandatory individual account programs and may account contributions, 11.5% is allocated to old-age ben- switch membership every five years up to 10 years before efits, 3.0% to disability and survivor benefits and adminis- the normal retirement age. trative fees, and 1.5% to the guaranteed minimum pension. The Beneficios Económicos Periódicos (BEPS) individual Contributions are paid monthly (weekly for short-term or account program was introduced in 2014 to allow low- daily workers). income individuals without mandatory coverage to contrib- ute voluntarily to the general pension system. Participating Voluntary individual account (BEPS): See the source of individuals receive a 20% match of lifetime contributions funds for social insurance, mandatory individual account, from the government upon reaching the normal retirement and social assistance above. Voluntary contributions are age. also possible. The minimum annual voluntary contribution is 5,000 pesos. Coverage The maximum annual voluntary contribution is Social insurance and mandatory individual account: 1,200,000 pesos. Public- and private-sector employees, including household, Contributions do not have to be made regularly. short-term (less than one month of consecutive work), and daily workers; foreign employees not covered by any other Self-employed person pension program; and employees of the state oil company Social insurance: 13% of covered declared earnings (old (Ecopetrol) hired on or after January 29, 2003; and self- age), 0.80% (disability), 1.11% (survivors), and 1.09% employed persons. (administrative fees). Voluntary coverage for residents of Colombia without Certain vulnerable self-employed persons may receive a mandatory coverage, citizens residing abroad, and foreign subsidy of 70% to 95% of their required contributions for employees covered through another pension program. 500 to 750 weeks. Special systems for Ecopetrol employees and teachers in The minimum monthly earnings used to calculate contribu- the public education system hired before January 30, 2003; tions are the legal monthly minimum wage. and military and police personnel. The maximum monthly earnings used to calculate contribu- Voluntary individual account (Beneficios Económicos tions are 25 times the legal monthly minimum wage. Periódicos, BEPS): Citizens of Colombia with monthly earnings of less than 828,116 pesos. The legal monthly minimum wage is 828,116 pesos. Mandatory individual account: 11.5% of declared earnings Social assistance (Colombia Mayor): Needy citizens of Colombia. (old age), 1.5% (disability and survivors), 1.5% (administra- tive fees), and 1.5% (guaranteed minimum pension).
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Voluntary individual account (BEPS): Voluntary account balance to BEPS voluntary individual accounts; contributions. also pays 20% of balances transferred from the social The minimum annual voluntary contribution is 5,000 pesos. insurance or mandatory individual account programs to the BEPS voluntary individual account program. The maximum annual voluntary contribution is 1,200,000 pesos. Social assistance: Partially finances contribution subsidies for certain self-employed persons and the Colombia Mayor Contributions do not have to be made regularly. social pension. Social assistance: None with monthly income less than four times the legal monthly minimum wage; 1% of cov- Qualifying Conditions ered earnings with income from four to 15 times the legal Age 62 (men) or monthly minimum wage; up to 2% of covered earnings Old-age pension (social insurance): age 57 (women) with at least 1,300 weeks of contributions. with income above 20 times the legal monthly minimum wage. The old-age pension is payable abroad. The minimum monthly earnings used to calculate contribu- Old-age family pension (social insurance, means tions are four times the legal monthly minimum wage. tested): Paid to a couple of pensionable age (married or The maximum monthly earnings used to calculate contribu- domestic partners) who have lived together for at least five tions are 20 times the legal monthly minimum wage. years before the claim is made, and individually do not meet the contribution requirements for a social insurance The legal monthly minimum wage is 828,116 pesos. old-age pension but together have at least 1,300 weeks of Contributions are paid monthly (weekly for short-term or contributions. Each member of the couple must have had at daily workers). least 325 weeks of contributions at age 45 and be classified as SISBEN I or II. If one member of the couple is covered Employer by the social insurance program and the other by the man- Social insurance and mandatory individual account: 12% of datory individual account program, the member in the man- covered payroll. datory individual account program must first transfer to the The minimum monthly earnings used to calculate contribu- social insurance program (only permitted if the member is tions are the legal monthly minimum wage. at least 10 years younger than the normal retirement age). The maximum monthly earnings used to calculate contribu- SISBEN is a targeting system used to identify poor and tions are 25 times the legal monthly minimum wage. vulnerable households, families, and individuals. The legal monthly minimum wage is 828,116 pesos. The old-age family pension ceases upon divorce or separation. Of the combined insured person and employer social insur- ance contributions, 13% is allocated to old-age benefits, The old-age family pension is payable abroad. 0.80% to disability benefits, 1.11% to survivor benefits, and Special pension (social insurance): Age 55 with 1.09% to administrative fees. 1,300 weeks of contributions, including at least 700 weeks Of the combined insured person and employer individual of contributions made while in certain forms of hazardous account contributions, 11.5% is allocated to old-age ben- employment. The age requirement is reduced by one year efits, 3.0% to disability and survivor benefits and adminis- for every 60 weeks of contributions in hazardous employ- trative fees, and 1.5% to the guaranteed minimum pension. ment exceeding 700 weeks, up to five years. The employer pays an additional 10% of covered payroll for The special pension is payable abroad. workers engaged in certain forms of hazardous employment Old-age settlement (Indemnización sustitutiva, social to finance the special pension. insurance): Age 62 (men) or age 57 (women) and does not Contributions are paid monthly (weekly for short-term or meet the contribution requirements for a social insurance daily workers). old-age pension and cannot continue to work to reach the minimum contribution period (1,300 weeks). Voluntary individual account (BEPS): Voluntary contributions. The old-age settlement is payable abroad. Social assistance: None. Old-age pension (mandatory individual account): At any age if the account balance is sufficient to purchase an Government annuity greater than 110% of the legal monthly minimum Social insurance and mandatory individual account: None; wage. Must have at least 1,150 weeks of contributions. contributes as an employer. Guaranteed minimum pension: Age 62 (men) or age 57 Voluntary individual account (BEPS): Partially subsidizes (women) with at least 1,150 weeks of contributions and the the Pension Solidarity Fund, which directs 20% of its account balance is insufficient to finance the minimum pen- sion set by law.
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The minimum pension set by law is the legal monthly mini- SISBEN is a targeting system used to identify poor and mum wage. vulnerable households, families, and individuals. The legal monthly minimum wage is 828,116 pesos. The old-age social pension can be combined with the BEPS The old-age pension is payable abroad. voluntary individual account. Disability pension (social insurance and mandatory Old-age family pension (mandatory individual account): Must have at least a 50% assessed Paid to a couple of pensionable age (married or domestic individual account): loss of work capacity and: be younger than age 20 and partners) who have lived together for at least five years have at least 26 weeks of contributions in the year before before claiming the pension; individually each person does the disability began; be aged 20 or older and have at least not have enough funds in his or her mandatory individual 50 weeks of contributions in the three years before the dis- account to finance an old-age pension but the combined ability began; or be of any age with at least 975 weeks of account balances are sufficient for an old-age pension. contributions, including 25 weeks of contributions in the Both members of the couple must be enrolled in the same three years before the disability began. pension fund management company (SAFP); if they are enrolled in different SAFPs, the member with the lower A medical board assesses and may review the degree of dis- account balance must switch to the other’s company. If ability every three years. one member of the couple is covered by the social insur- Disability settlement (social insurance and mandatory ance program and the other is covered by the mandatory individual account): Must meet the age and disability individual account program, the member covered by social requirements for a social insurance or mandatory individual insurance program must first transfer to the mandatory account disability pension but not meet the contribution individual account program and enroll in the same SAFP as requirements. the other member (only permitted if the member is at least 10 years younger than the normal retirement age). A medical board assesses the degree of disability. The old-age family pension is payable abroad. Disability benefit (BEPS, voluntary individual account): Paid if the fund member is diagnosed with certain chronic Guaranteed minimum family pension: The couple must diseases. Must have made at least six contributions or con- have at least a combined 1,150 total weeks of contributions. tributions equal to six times the legal daily minimum wage The minimum pension set by law is the legal monthly mini- in the last 12 months. mum wage. Survivor pension (social insurance and mandatory indi- The legal monthly minimum wage is 828,116 pesos. vidual account): The deceased received or was entitled to Old-age settlement (Devolución de saldos, mandatory receive an old-age or disability pension at the time of death individual account): Age 62 (men) or age 57 (women), or had at least 50 weeks of contributions in the three years has less than 1,150 weeks of contributions, and is unable to immediately before death. work to reach this contribution requirement. Eligible survivors include a widow(er) or partner who lived with the deceased for at least five years or who had children Old-age benefit (BEPS, voluntary individual account): Age 62 (men) or age 57 (women); the combined balance with the deceased and dependent orphans younger than of all individual accounts is insufficient to finance the age 18 (age 25 if a student, no limit if disabled). If there is minimum pension set by law. The amount saved a year no widow(er) or eligible orphan, the pension is paid to a is less than the minimum annual contribution for old-age dependent parent or a dependent sibling with a disability. pensions. The survivor pension is payable abroad. The minimum pension set by law is the legal monthly mini- Survivor settlement (social insurance and mandatory mum wage. individual account): The deceased did not meet the contri- The legal monthly minimum wage is 828,116 pesos. bution requirements for an old-age or disability pension or the survivor had lived with the deceased for less than five BEPS account balances (including accrued interest) can be years in the case of a widow(er) or partner. transferred to the social insurance or mandatory individual account programs and are credited as additional contribu- Eligible survivors include a widow(er) or partner who lived tion periods. with the deceased for at least five years or who had children with the deceased and dependent orphans younger than The BEPS benefit can be combined with the old-age social age 18 (age 25 if a student, no limit if disabled). If there is pension but not a guaranteed minimum pension. no widow(er) or eligible orphan, the pension is paid to a Old-age social pension (Colombia Mayor, social assis- dependent parent or a dependent sibling with a disability. Must be three years younger than tance, means tested): Survivor settlement (BEPS, voluntary individual the normal retirement age or older, have resided in Colom- account): Paid to family members when a fund member bia for the last 10 years, and be classified as SISBEN I or II. dies before reaching the normal retirement age.
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Survivor benefit (BEPS, voluntary individual account): Old-age settlement (Indemnización sustitutiva, social The deceased must have made at least six contributions or insurance): A portion of the insured’s average weekly contributions equal to six times the legal daily minimum covered earnings on which the insured made contributions wage in the last 12 months and was not receiving a BEPS multiplied by the number of weeks of contributions is paid pension. as a lump sum. The legal daily minimum wage is 27,604 pesos. Instead of a lump sum payment, the insured can choose to transfer the value of his or her old-age settlement to the Funeral grant (social insurance and mandatory individ- BEPS voluntary individual account. ual account): Paid to the person who paid for the funeral when an insured person or pensioner dies. Old-age pension (mandatory individual account): The insured has three payment options: receive programmed Funeral grant (BEPS, voluntary individual account): withdrawals, purchase an annuity, or use a combination of Paid to the person who paid for the funeral if the deceased these two options. had at least six contributions or contributions equal to six times the legal daily minimum wage in the last 12 months Guaranteed minimum pension: The difference between and was not receiving a BEPS pension. the account balance and the balance needed to finance the minimum pension set by law is paid. The legal daily minimum wage is 27,604 pesos. The minimum pension set by law is the legal monthly mini- Old-Age Benefits mum wage. Old-age pension (social insurance): 55% to 65% of the The legal monthly minimum wage is 828,116 pesos. insured’s average monthly earnings, depending on the level Old-age family pension (mandatory individual account): of earnings (the lower the salary, the higher the replacement The mandatory individual account old-age pension is split rate) plus 1.5% for every 50 weeks of contributions is paid. equally between the spouses or domestic partners. The maximum monthly old-age pension is 80% of the Guaranteed minimum family pension: Calculated in the insured’s average monthly earnings. same way as the guaranteed minimum pension for the man- Average monthly earnings are the insured’s average datory individual account old-age pension. monthly covered earnings in the last 10 years. Benefit adjustment: Benefits are adjusted annually based on The minimum monthly earnings used to calculate benefits changes in the consumer price index or the minimum wage. are the legal monthly minimum wage. Old-age settlement (Devolución de saldos, mandatory The maximum monthly earnings used to calculate benefits individual account): A lump sum of the account balance is are 25 times the legal monthly minimum wage. paid. The minimum monthly social insurance old-age pension is Instead of a lump sum payment, a fund member may the legal monthly minimum wage. choose to transfer his or her account balance to the BEPS The legal monthly minimum wage is 828,116 pesos. voluntary individual account. Schedule of payments: 13 payments a year; 14 payments Old-age benefit (BEPS, voluntary individual account): if the old-age pension was less than three times the legal The account balance plus a 20% subsidy is paid as an annu- monthly minimum wage and the insured retired before ity; if the social insurance old-age settlement or the manda- July 31, 2011. tory individual account balance is transferred to the BEPS voluntary individual account, an additional 20% subsidy of Benefit adjustment: Benefits are adjusted annually based on the transferred amount is paid. changes in the consumer price. If the fund member opts for a lump sum payment, only the Old-age family pension (social insurance, means account balance is paid. tested): The legal monthly minimum wage is split equally between the spouses or domestic partners. The maximum monthly old-age benefit is 85% of the legal monthly minimum wage. Special pension (social insurance): Calculated in the The legal monthly minimum wage is 828,116 pesos. same way as the social insurance old-age pension. Schedule of payments: Benefits are paid every two months. Schedule of payments: 13 payments a year; 14 payments if the old-age pension was less than three times the legal Old-age social pension (Colombia Mayor, social assis- monthly minimum wage and the insured retired before tance, means tested): 40,000 to 75,000 pesos a month is July 31, 2011. paid. The maximum benefit is paid if the beneficiary con- Benefit adjustment: Benefits are adjusted annually based on tributed to the BEPS voluntary individual account. changes in the consumer price index or the minimum wage. Local governments may cofinance the program to increase the benefit levels in their jurisdictions.
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Permanent Disability Benefits couple had a common child; up to 20 years if the widow(er) or partner was younger than age 30 and did not have a child Disability pension (social insurance and mandatory with the deceased. individual account): For an assessed degree of disability of at least 66%, 54% of the insured’s average monthly earn- The minimum monthly earnings used to calculate benefits ings plus 2% for every 50 weeks of contributions exceed- are the legal monthly minimum wage. ing 800 weeks is paid, up to 75%. For an assessed degree The maximum monthly earnings used to calculate benefits of disability of at least 50% but less than 66%, 45% of the are 25 times the legal monthly minimum wage. insured’s average monthly earnings plus 1.5% for every The minimum combined survivor pension is the legal 50 weeks of contributions exceeding 500 weeks is paid. monthly minimum wage. Average monthly earnings are the insured’s average The legal monthly minimum wage is 828,116 pesos. monthly covered earnings in the last 10 years before the disability began (or over the total contribution period if less The maximum monthly survivor pension is 75% of the than 10 years). deceased’s average monthly earnings. The minimum monthly earnings used to calculate benefits If the deceased received an old-age family pension, 100% are the legal monthly minimum wage. of the deceased’s old-age family pension is paid to the widow(er) in the absence of dependent children; if there are The maximum monthly earnings used to calculate benefits dependent children, the deceased’s old-age family pension are 25 times the legal monthly minimum wage. is split between the widow(er) and children without any The minimum monthly disability pension is the legal change to the widow(er)’s old-age family pension. monthly minimum wage. Schedule of payments: 13 payments a year; 14 payments The legal monthly minimum wage is 828,116 pesos. if the survivor pension was less than three times the legal Schedule of payments: 13 payments a year; 14 payments monthly minimum wage and the pension was awarded if the disability pension was less than three times the legal before July 31, 2011. monthly minimum wage and the pension was awarded Benefit adjustment: Benefits are adjusted annually based on before July 31, 2011. changes in the consumer price index or the minimum wage. Benefit adjustment: Benefits are adjusted annually based on Survivor settlement (Indemnización sustitutiva, social changes in the consumer price. insurance): The old-age settlement the deceased was Disability settlement (Indemnización sustitutiva, social entitled to receive at the time of death is paid. insurance): A portion of the insured’s average weekly Survivor settlement (Devolución de saldos, manda- earnings on which the insured made contributions multi- tory individual account): A lump sum of the deceased’s plied by the number of weeks of contributions is paid as a account balance is paid. lump sum. Survivor benefit (BEPS, voluntary individual account): Disability settlement (Devolución de saldos, manda- A lump sum of 10 to 15 times the account balance for tory individual account): A lump sum of the mandatory annual savings from 100,001 to 1,200,000 pesos; up to individual account balance may be paid or the insured may 1,000,000 pesos for annual savings up to 100,000 pesos. continue to make contributions to qualify for an old-age pension. Survivor settlement (BEPS, voluntary individual account): A lump sum of the account balance plus accrued Disability benefit (BEPS, voluntary individual account): interest is paid. A lump sum of 10 to 15 times the account balance for annual savings from 100,001 to 1,200,000 pesos is paid; up Funeral grant (social insurance and mandatory individ- to 1,000,000 pesos for annual savings up to 100,000 pesos. ual account): A lump sum of one month of the deceased’s old-age or disability pension or last monthly earnings is Survivor Benefits paid to the person who paid for the funeral. The minimum funeral grant is five times the legal monthly Survivor pension (social insurance and mandatory indi- minimum wage. vidual account): 100% of the old-age or disability pension the deceased received, or 45% of the deceased’s average The maximum funeral grant is 10 times the legal monthly monthly earnings plus 2% for every 50 weeks of contribu- minimum wage. tions exceeding 500 weeks, is paid. The legal monthly minimum wage is 828,116 pesos. Average monthly earnings are the deceased’s average Funeral grant (BEPS, voluntary individual account): A monthly covered earnings in the last 10 years before death lump sum of 1.5 times the legal monthly minimum wage is (or over the total contribution period if less than 10 years). paid to cover the cost of the funeral. The pension is paid for life if the widow(er) or partner was The legal monthly minimum wage is 828,116 pesos. aged 30 or older at the time of the insured’s death or if the
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Administrative Organization Self-employed person Ministry of Labor (http://www.mintrabajo.gov.co/) provides Social insurance: 12.5% of monthly covered declared earn- general supervision. ings, 1.5% of which finances the social assistance program Financial Superintendence of Colombia provides general (solidarity contributions). financial supervision. The minimum monthly earnings used to calculate contribu- Colpensiones (https://www.colpensiones.gov.co/) adminis- tions are the legal monthly minimum wage. ters the social insurance and BEPS programs nationally. The maximum monthly earnings used to calculate contribu- Pension and Severance Pay Fund management companies tions are 25 times the legal monthly minimum wage. (SAFPCs) administer the individual accounts program. The legal monthly minimum wage is 828,116 pesos. Fiduagraria (https://www.fiduagraria.gov.co/) manages the Social assistance: None. social assistance program. Employer Administrator of the Integrated Platform for Payment of Contributions (PILA, https://www.minsalud.gov.co Social insurance: 8.5% of monthly covered payroll, 1.5% /proteccionsocial/Paginas/pila.aspx) collects contributions. of which finances the social assistance program (solidarity contributions); 12.5% for vocational training students and Sickness and Maternity apprentices. The minimum monthly earnings used to calculate contribu- Regulatory Framework tions are the legal monthly minimum wage. First laws: 1938 (maternity); and 1946 (social insurance), The maximum monthly earnings used to calculate contribu- implemented in 1965. tions are 25 times the legal monthly minimum wage. The legal monthly minimum wage is 828,116 pesos. Current laws: 1950 (labor code), implemented in 1951; 1993 (social insurance and social assistance), implemented Social assistance: None. in 1994; and 2002 (parental leave). Government Type of program: Social insurance and social assistance Social insurance: None; contributes as an employer. system. Social assistance: Provides subsidies as needed. Coverage Qualifying Conditions Social insurance: Residents of Colombia who are employ- ees, including public-sector employees and civil servants; Cash sickness benefit (social insurance): Must have at self-employed persons, vocational training students and least four weeks of contributions immediately before the apprentices, unemployed persons, and pensioners (medical incapacity began. benefits only). Cash maternity benefit (social insurance): Must have at Special systems for military and police personnel. least nine months of contributions before the expected date of childbirth or adoption. Social assistance: Needy residents of Colombia. Paternity leave (social insurance): Must have paid contri- Source of Funds butions during the full duration of the pregnancy.
Insured person Medical benefits (social insurance): Must have at least Social insurance: 4% of monthly covered earnings; none four weeks of contributions (except for emergencies). for vocational training students and apprentices; 12% of the Eligible dependents include a spouse (or same-sex partner); monthly pensions for pensioners (medical benefits only). dependent children and stepchildren younger than age 25 The minimum monthly earnings used to calculate contribu- (no limit if disabled); dependent grandchildren, siblings, tions are the legal monthly minimum wage. nieces, and nephews under certain conditions; and, if there is no spouse (or same-sex partner) and children, dependent The maximum monthly earnings used to calculate contribu- parents not receiving a pension. tions are 25 times the legal monthly minimum wage. Provided to vulner- The legal monthly minimum wage is 828,116 pesos. Medical benefits (social assistance): able persons, including persons classified as SISBEN I or II Social assistance: None. (or SISBEN III for persons covered by the program before January 9, 2007); indigenous and internally displaced persons; children under the custody of ICBF; prisoners; and former rebels.
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SISBEN is a targeting system used to identify poor and Administrative Organization vulnerable households, families, and individuals. National Superintendent of Health (https://www.supersalud .gov.co/) provides general supervision. Sickness and Maternity Benefits Ministry of Health (https://www.minsalud.gov.co/) admin- Sickness benefit (social insurance): 66.6% of the isters the program. insured’s earnings in the month before the incapacity Administrator of the Integrated Platform for Payment of began (the average monthly earnings in the year before the Contributions (PILA, https://www.minsalud.gov.co incapacity began or during the total employment period, /proteccionsocial/Paginas/pila.aspx/) collects contributions. whichever is greater, for casual workers) is paid after a two- day waiting period for up to 90 days; 50% from the 91st to Private health institutions provide health services. the 180th day. (The employer pays 100% of the insured’s earnings for the first two days of incapacity.) Work Injury Maternity benefit (social insurance): 100% of the insured’s last earnings before the maternity leave is paid for Regulatory Framework 18 weeks (20 weeks for multiple births). In case of pre- First law: 1915 (work injury compensation). mature birth, the difference (number of days) between the actual and the expected date of childbirth is added. Current laws: 1993 (social insurance), implemented in 1994; 2002 (work injury organization); 2012 (work injury); Paternity leave (social insurance): 100% of the insured’s and 2016 (self-employed persons). earnings is paid for eight working days. Type of program: Social insurance system. Workers’ Medical Benefits Coverage Benefits include Medical benefits (social insurance): Employed persons, including civil servants and pension- medical, surgical, hospital, pharmaceutical, maternity, and ers who re-enter the workforce; members of coopera- dental care; and related services. Pre-existing conditions tives; apprentices; and self-employed persons in high-risk are covered but may be subject to a waiting period; no wait- occupations. ing period for pregnant women. Voluntary coverage for self-employed persons and infor- Previously insured persons who are no longer in cov- mal-sector workers without mandatory coverage. ered employment may receive medical benefits for up to 12 weeks, depending on their contribution records. Source of Funds Cost sharing: A copayment is required, depending on the insured’s monthly covered earnings, for certain services. Insured person: None. 0.348% to 4.089% of covered Medical benefits (social assistance): Benefits are the Self-employed person: same as under the social insurance program. declared earnings, depending on the assessed degree of risk. Cost sharing: A copayment of up to 10% of the cost of the treatment may be required for certain services. The minimum monthly earnings used to calculate contribu- tions are the legal monthly minimum wage. Dependents’ Medical Benefits The maximum monthly earnings used to calculate contribu- tions are 25 times the legal monthly minimum wage. Medical benefits (social insurance): Benefits for depen- dents are the same as those for the insured person. There is The legal monthly minimum wage is 828,116 pesos. no waiting period for pregnant women or children younger Employer: 0.348% to 8.7% of monthly covered payroll, than age 1. depending on the assessed degree of risk. (Up to 3% of Cost sharing: A copayment plus additional fees for depen- the employer’s contribution finances the work injury fund, dents are required. which promotes health and safety for workers.)
Medical benefits (social assistance): Benefits for The minimum monthly earnings used to calculate contribu- dependents are the same as those for the main beneficiary. tions are the legal monthly minimum wage. There is no waiting period for pregnant women or children The maximum monthly earnings used to calculate contribu- younger than age 1. tions are 25 times the legal monthly minimum wage. Cost sharing: A copayment plus additional fees for depen- The legal monthly minimum wage is 828,116 pesos. dents are required. Government: Contributes to the work injury fund using general revenues; contributes as an employer.
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Qualifying Conditions Survivor Benefits Must be assessed with a work injury or occupational dis- Survivor pension (Pensión de sobrevivientes): 75% of ease. Accidents that occur while commuting to and from the deceased’s base earnings is paid to eligible survivors if work are not covered (except if the employer provides the the deceased was employed at the time of death; 100% of transportation). Occupational diseases are specified by law. the deceased’s permanent disability pension if the deceased A medical board assesses the degree of disability, and reas- was a pensioner at the time of death. If the pensioner sesses permanent disabilities every three years. received a constant-attendance allowance, the survivor pen- sion is reduced by 15% of the permanent disability pension. Temporary Disability Benefits Base earnings are the deceased’s average monthly earnings 100% of the insured’s last monthly covered earnings is in the last six months for a work accident benefit or in the paid from the day after the work injury occurred or the last 12 months for an occupational disease benefit. occupational disease was diagnosed until rehabilitation or Eligible survivors include a widow(er) or partner who lived certification of permanent disability, up to 180 days (may be with the deceased for at least five years or who had children extended under certain conditions for up to 180 days). with the deceased and dependent orphans younger than age 18 (age 25 if a student, no limit if disabled). If there is Permanent Disability Benefits no widow(er) or eligible orphan, the pension is paid to a dependent parent or a dependent sibling with a disability. Permanent disability pension (Pensión de invalidez): For an assessed degree of disability of at least 66%, 75% of The minimum monthly earnings used to calculate benefits the insured’s base earnings is paid; for an assessed degree are the legal monthly minimum wage. of disability of at least 50% but less than 66%, 60% of base The maximum monthly earnings used to calculate benefits earnings is paid. are 25 times the legal monthly minimum wage. Base earnings are the insured’s average monthly earnings The legal monthly minimum wage is 828,116 pesos. in the last six months for a work accident benefit or in the last 12 months for an occupational disease benefit. Schedule of payments: 13 payments a year; 14 payments if the survivor pension was less than three times the legal The minimum monthly permanent disability pension is the monthly minimum wage and the pension was awarded legal monthly minimum wage. before July 31, 2011. The maximum monthly permanent disability pension is Benefit adjustment: Benefits are adjusted annually based on 20 times the legal monthly minimum wage. changes in the consumer price index. The legal monthly minimum wage is 828,116 pesos. Funeral grant (Auxilio funerario): One month of the Constant-attendance allowance: 15% of the permanent dis- deceased’s permanent disability pension or last wage is paid ability pension is paid if the insured requires the constant to the person who paid for the funeral. attendance of others to perform daily functions. The minimum funeral grant is five times the legal monthly Partial disability (Indemnización por incapacidad perman- minimum wage. ente parcial): For an assessed degree of disability of at least The maximum funeral grant is 10 times the legal monthly 5% but less than 50%, a lump sum of two to 24 times the minimum wage. insured’s base earnings is paid. The legal monthly minimum wage is 828,116 pesos. Base earnings are the insured’s average monthly earnings in the last six months for a work accident benefit or in the Administrative Organization last 12 months for an occupational disease benefit. Ministry of Labor (http://www.mintrabajo.gov.co/), Finan- The minimum monthly earnings used to calculate benefits cial Superintendence of Colombia, and the National Super- are the legal monthly minimum wage. intendent of Health (http://www.supersalud.gov.co/) provide The maximum monthly earnings used to calculate benefits general supervision. are 25 times the legal monthly minimum wage. Labor Risk Administrators (ARLs) authorized by the Benefit adjustment: Benefits are adjusted annually based on Financial Superintendence of Colombia administer the changes in the consumer price index. program. Administrator of the Integrated Platform for Payment of Workers’ Medical Benefits Contributions (PILA, https://www.minsalud.gov.co Benefits include medical, surgical, dental, and hospital care; /proteccionsocial/Paginas/pila.aspx) collects contributions. medicine; appliances; rehabilitation; and transportation.
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Unemployment Qualifying Conditions Unemployment benefit (Mecanismo de Protección al Regulatory Framework Cesante, social insurance, income tested): Must have First and current laws: 1990 (severance) and 2013 (unem- been enrolled in a family allowances fund for at least one ployment protection). year (at least two years for self-employed persons) in the three years before becoming unemployed, register with an Type of program: Social insurance, and mandatory and employment service, and participate in training and voca- voluntary individual account system. tional rehabilitation programs. Previously employed per- sons must provide a certificate of employment termination. Coverage Must be actively seeking employment; be available to Employed persons. receive training, accept job interviews, and job offers, in Voluntary coverage for self-employed persons and for agreement with the public employment service; and not be certain employed persons with monthly earnings above receiving any other income or benefits. 10,765,508 pesos. The unemployment benefit is paid only once in an insured person’s working life. Source of Funds Severance benefit (Cesantías, mandatory individual Insured person account): Must be unemployed or retired. Social insurance: None. Other withdrawals: Withdrawals are possible to finance Mandatory individual account: None. family members’ tertiary education, or to upgrade or pur- chase housing or property, regardless of the employment Voluntary individual account: Employed persons may choose status. Must provide proof of the amount due. to allocate a portion of their contribution to the manda- tory individual account to their supplemental individual Supplemental unemployment benefit (voluntary indi- Must have contributed at least 10% of the account. vidual account): insured’s average monthly wage in the last year (for those Self-employed person with earnings less than twice the legal monthly minimum Social insurance: See source of funds under Family wage) or at least 25% of the insured’s average monthly Allowances. wage in the last year (for those with earnings of at least twice the legal monthly minimum wage). Mandatory individual account: One month of the insured’s The legal monthly minimum wage is 828,116 pesos. annual salary is paid a year. Voluntary individual account: Self-employed persons may Unemployment Benefits choose to allocate a portion of their contribution to the Unemployment benefit (Mecanismo de Protección al mandatory individual account to their supplemental indi- Cesante, social insurance, income tested): A monthly vidual account. family benefit (which varies depending on the region) is Employer paid for up to six months. A food voucher is paid for a six- month period worth, in total, 1.5 times the legal monthly Social insurance: See source of funds under Family minimum wage. The Solidarity Fund for Employment Allowances. Promotion and Protection against Unemployment pays Mandatory individual account: One month of the insured’s the unemployed person’s social security contributions for annual salary, except salaried person under certain types old-age, disability, survivors, medical benefits, and family of contract (integral salary; earning more than 13 times the allowances for up to six months. The contribution is calcu- legal monthly minimum wage) is paid a year. lated based on the legal monthly minimum wage. Voluntary individual account: None. The legal monthly minimum wage is 828,116 pesos. Government Severance benefit (Cesantías, mandatory individual account): A lump sum of one month of the insured’s Social insurance: None; contributes as an employer. annual salary is paid for each year of employment; Mandatory individual account: None; contributes as an a reduced benefit is paid with less than one year of employer. employment. Voluntary individual account: None. Other withdrawals: The insured may make authorized partial or total withdrawals from his or her mandatory indi- vidual severance account for education or housing.
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Supplemental unemployment benefit (voluntary indi- wage); 0.6% of the legal monthly minimum wage for vidual account): A monthly benefit based on the account reduced benefits. balance is paid for up to six months. The legal monthly minimum wage is 828,116 pesos. Administrative Organization Social assistance: None. Ministry of Labor (http://www.mintrabajo.gov.co/) and the Self-employed person Superintendence for Family Subsidies (http://www.ssf.gov Social insurance: 2% of monthly covered declared earn- .co/) provide general supervision. ings; 0.6% of the legal monthly minimum wage for reduced Solidarity Fund for Employment Promotion and Protection benefits. against Unemployment (FOSFEC), administered by fam- The legal monthly minimum wage is 828,116 pesos. ily allowance funds, pays social insurance unemployment benefits. The self-employed person’s contributions also finance the social insurance unemployment benefit under Pension and Severance Pay Fund management companies Unemployment. (SAFPCs) administer the individual accounts. Social assistance: None. Family Allowances Employer
Regulatory Framework Social insurance: 4% of gross monthly covered payroll (weekly earnings for short-term or daily workers). 1957 (family allowances). First law: The minimum monthly earnings used to calculate contribu- Current laws: 1982 (family allowances), 2012 (More Fami- tions for household workers are the legal monthly minimum lies in Action program), 2013 (Youth in Action program; wage (a proportion of the legal monthly minimum wage for household workers), and 2014 (migrant workers). short-term or daily workers).
Type of program: Social insurance and social assistance The legal monthly minimum wage is 828,116 pesos. system. The employer’s contributions also finance the social insur- Note: Voluntarily insured persons are eligible for in- ance unemployment benefit under Unemployment. kind benefits only; self-employed persons may be eli- Social assistance: None. gible for the social insurance unemployment benefit (see Unemployment). Government Social insurance: None; contributes as an employer. Coverage Social assistance: The total cost. Social insurance: Public- and private-sector employees, including household and short-term (less than one month Qualifying Conditions of continuous employment) and daily workers; and persons receiving unemployment benefits. Family benefit (Subsidio familiar, social insurance, income tested): Paid for eligible dependents if the insured Voluntary coverage for self-employed persons; pensioners, has completed at least 60 days of continuous employment residents of Colombia without mandatory coverage, citizens with the same employer, including 96 hours in the last 25 residing abroad, and unemployed persons (in-kind benefits working days. only). Eligible dependents include children younger than age 18 Special systems for military and police personnel. (age 23 if a student, no limit if disabled); a dependent parent Social assistance (Family cash transfer): Needy resi- older than age 60; orphan siblings younger than age 18 or dents of Colombia. dependent, disabled siblings (any age). Income test: The insured’s monthly income must not exceed Social assistance (Student cash transfer): Needy resi- four times the legal monthly minimum wage and the com- dent citizens of Colombia. bined monthly earnings of a couple (married or domestic partners) must not exceed six times the legal monthly Source of Funds minimum wage. Insured person The legal monthly minimum wage is 828,116 pesos. Social insurance: None; 2% of the legal monthly minimum In-kind benefits: Provided to insured persons (including the wage or pension for the voluntarily insured (Colombians voluntarily insured) and their eligible dependents. residing abroad pay 2% of their declared earnings, which must be at least two times the legal monthly minimum
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Dependent’s death allowance (Subsidio extraordinario Family Allowance Benefits por fallecimiento de beneficiario, social insurance, Family benefit (Subsidio familiar, social insurance, income tested): Paid to an employee who qualifies for family benefits when an eligible dependent dies. income tested): The monthly benefit amount varies from 23,386 to 46,570 pesos depending on the fund and may be Eligible dependents include children younger than age 18 paid in cash or in kind. A double allowance is paid to a par- (age 23 if a student, no limit if disabled); a dependent parent ent, an orphan sibling, or a child assessed with a disability older than age 60; orphan siblings younger than age 18 or of at least 60%. dependent, disabled siblings (any age). In-kind benefits: Certain in-kind benefits, including medi- Income test: The insured’s monthly income must not exceed cal benefits and vocational training, are provided. four times the legal monthly minimum wage and the com- bined monthly earnings of a couple (married or domestic Dependent’s death allowance (Subsidio extraordinario partners) must not exceed six times the legal monthly por fallecimiento de beneficiario, social insurance, minimum wage. income tested): A lump sum of 12 times the monthly fam- ily benefit is paid for each surviving dependent. The legal monthly minimum wage is 828,116 pesos. Surviving spouse allowance (Subsidio extraordinario Surviving spouse allowance (Subsidio extraordinario por fallecimiento de trabajador, social insurance, por fallecimiento de trabajador, social insurance, income tested): Twelve times the monthly family benefit is income tested): The deceased received the social insur- paid to a widow or the guardian for each eligible dependent. ance family benefit and left behind a dependent. Family cash transfer (Más Familias en Acción, social Eligible dependents include children younger than age 18 assistance): 77,000 to 89,800 pesos a month is paid for (age 23 if a student, no limit if disabled); a dependent parent each child aged 0 to 5 (health benefit); an additional 12,875 older than age 60; an orphan sibling younger than age 18, or to 70,600 pesos a month (depending on the region and edu- a dependent disabled sibling (any age). cation level) is paid for each child aged 5 to 18 (education Income test: The deceased’s monthly income must not have benefit), up to three children (no limit for disabled children exceeded four times the legal monthly minimum wage and and children age 5). the combined monthly earnings of the couple (married or Schedule of payments: The benefit is paid every two domestic partners) must not have exceeded six times the months to the head of the family. legal monthly minimum wage. Benefits are adjusted annually based on changes in the The legal monthly minimum wage is 828,116 pesos. consumer price index. Family cash transfer (Más Familias en Acción, social Student cash transfer (Jóvenes en Acción, social assis- assistance): Paid to households with children younger than tance): 200,000 pesos a month is paid. The benefit is paid age 18 that are classified as SISBEN I, II, or III, registered for six months for a vocational program, for 12 months for in Red Unidos, or classified as internally displaced or a technological program, and for 30 months for a univer- indigenous. sity degree. University students with good results (3.5 out SISBEN is a targeting system used to identify poor and of 5 or better) receive a top up of 400,000 pesos after each vulnerable households, families, and individuals. semester; an additional premium of 200,000 pesos is paid Red Unidos is a part of the government’s national strategy after each semester to university students with excellent for overcoming extreme poverty. results (4.3 out of 5 or better). Families with children aged 0 to 5 must attend scheduled Schedule of payments: The benefit is paid every two growth and development check-ups and follow the vaccina- months to the student. tion schedule. Children must enroll in school, attend at least 80% of monthly classes, and not miss more than two years Administrative Organization of school. Ministry of Labor (http://www.mintrabajo.gov.co/) provides general supervision. Student cash transfer (Jóvenes en Acción, social assis- tance): Paid for persons aged 16 to 24 enrolled in higher Superintendent of Family Subsidies (http://www.ssf.gov education. Must be classified as SISBEN I, II, or III, regis- .co/) supervises family allowance funds. tered in Red Unidos, registered with the Family Wellbeing Family allowance funds provide social insurance benefits. Institute, or classified as internally displaced or indigenous. The Department for Social Prosperity (http://www SISBEN is a targeting system used to identify poor and .prosperidadsocial.gov.co/Paginas/Inicio.aspx/) supervises vulnerable households, families, and individuals. and manages social assistance benefits. Red Unidos is a part of the government’s national strategy Administrator of the Integrated Platform for Payment of for overcoming extreme poverty. Contributions (PILA, https://www.minsalud.gov.co /proteccionsocial/Paginas/pila.aspx/) collects contributions.
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The minimum monthly earnings used to calculate contribu- tions are 268,955 colones (June 2019). Costa Rica There are no maximum earnings used to calculate Exchange rate: US$1.00 = 581.30 colones. contributions. Mandatory individual account: Not applicable. Employer Old Age, Disability, and Survivors Social insurance: 5.08% (gradually increasing to 5.75% by 2035) of gross monthly covered payroll. Regulatory Framework The minimum monthly earnings used to calculate contribu- First law: 1941 (social insurance fund). tions are 309,143.36 colones (January 2019). Current laws: 1992 (pensions); 1995 (self-employed), There are no maximum earnings used to calculate implemented in 2000; 1995 (individual accounts); 2000 contributions. (workers’ protection); and 2005 (old-age, disability, and survivors). Mandatory individual account: 3.25% of monthly payroll. Government Type of program: Social insurance and mandatory indi- vidual account system. Social insurance: 1.24% (gradually increasing to 1.91% by Note: A means-tested benefit is paid to certain elderly per- 2035) of the gross monthly covered earnings of all employ- sons, persons with disabilities, and survivors under Family ees; 0.99% to 4.95% for self-employed and voluntarily Allowances. insured persons (inversely proportional to the declared earnings) based on five income categories; contributes as an Coverage employer. Social insurance: Public- and private-sector employees Mandatory individual account: None; contributes as an and self-employed persons residing in Costa Rica. employer. Voluntary coverage is available. Qualifying Conditions Special systems for teachers and employees of the justice Old-age pension (Pensión Ordinaria de Vejez, Régimen department. de Pensión Básico, social insurance): Age 65 with at Mandatory individual account: Public- and private-sector least 300 months of contributions. The retirement age may employees younger than age 55 in 2005. be reduced with additional months of contributions to as Exclusions: Self-employed persons. low as age 61 years and 11 months with at least 462 months of contributions (men) or age 59 years and 11 months with at least 450 months of contributions (women). Source of Funds Partial pension (Pensión de vejez proporcional): Age 65 Insured person with at least 180 months but less than 300 months of Social insurance: 3.84% (gradually increasing to 4.5% by contributions. 2035) of gross monthly covered earnings; 3.67% to 7.93% Early pension (Pensión de vejez anticipada): Age 62 (men) of gross monthly covered earnings based on five income or age 60 (women) with at least 360 months of contributions categories for the voluntarily insured. See source of funds (increasing to 420 months in September 2019). The early under Sickness and Maternity for the funeral grant. pension is being phased out by March 2021. The minimum monthly earnings used to calculate contribu- Deferred pension (Pensión de vejez diferida): The pension tions are 309,143.36 colones (January 2019); 268,955 colo- may be deferred. nes for the voluntarily insured (June 2019). Employment must cease for public-sector employees. There are no maximum earnings used to calculate contributions. The old-age pension is payable abroad. Mandatory individual account: 1% of monthly earnings plus Old-age pension (Pensión de Vejez, Régimen Obligato- rio de Pensiones Complementarias [ROP], mandatory up to 0.5% of the account balance once a year for adminis- individual account): Age 65 with at least 300 months of trative fees (October 2019). contributions and receives a social insurance old-age pen- Self-employed person sion. The retirement age may be reduced with additional months of contributions to as low as age 61 years and Social insurance: 3.67% to 7.93% of gross monthly covered declared earnings based on five income categories. 11 months with at least 462 months of contributions (men) or age 59 years and 11 months with at least 450 months of
134 ♦ SSPTW: The Americas, 2019 Costa Rica contributions (women). Persons who do not qualify for a time of death, or had at least three months of contributions social insurance old-age pension may withdraw accumu- in the last six months before death. lated funds from their individual accounts at age 65. Disability pension (Pensión de Invalidez, Régimen de Old-Age Benefits Pensión Básico, social insurance): Must be younger than Old-age pension (Pensión de Vejez, Régimen de the normal retirement age, have at least a 66.7% assessed Pensión Básico, social insurance): The pension’s loss of work capacity in the usual or equivalent occupa- replacement rate varies depending on the insured’s aver- tion, and have at least 12 (if aged 24 or younger) to 120 (if age indexed monthly earnings in the last 60 months before aged 48 or older) months of contributions, including at least retirement. The monthly pension is 43% (with average 12 months of contributions in the two years before the dis- monthly earnings of at least eight times the legal monthly ability began (if aged 48 or younger) or at least 24 months minimum wage) to 52.5% (with average monthly earn- in the four years before the disability began (if older than ings of less than two times the legal monthly minimum age 48). These contribution requirements are waived if the wage) of the insured’s average indexed monthly earnings insured has at least 180 months of contributions. in the last 240 months, plus 0.0833% of average indexed Partial pension (Pensión de invalidez proporcional): Must monthly earnings for each month of contributions exceed- be younger than the normal retirement age; have at least a ing 240 months. 66.7% assessed loss of work capacity in the usual or equiva- The earnings used to calculate benefits are adjusted based lent occupation; have at least 60 months of contributions, on changes in the consumer price index. including at least 12 months of contributions in the two The legal monthly minimum wage ranges from years before the disability began (if aged 48 or younger) 309,143.36 colones to 663,772.10 colones, depending on the or at least 24 months in the four years before the disability occupation. began (if older than age 48); and not meet the contribution requirements for a full disability pension. The minimum monthly old-age pension is 136,865 colones; if the calculated pension amount is lower, a lump sum is The disability pension ceases at the normal retirement age paid. and is replaced by an old-age pension. The maximum monthly old-age pension is The disability pension is payable abroad. 1,612,851 colones. Survivor pension (Pensión de Sobrevivientes, Régi- Partial pension (Pensión de vejez proporcional): The pen- men de Pensión Básico, social insurance): The deceased sion is proportionally reduced for each month of contribu- received or was entitled to receive a social insurance tion less than the 300 months required for a full pension. old-age or disability pension, had at least 12 months of contributions in the last 24 months, or had a total of at least Early pension (Pensión de vejez anticipada): The pension is 180 months of contributions. reduced by 1.75% for each trimester it is claimed before the normal retirement age. The early pension is being phased Eligible survivors include a widow(er) or cohabiting part- out by March 2021. ner; orphans up to age 18 (age 25 if a student; no limit if disabled); dependent children older than age 55 who were The minimum early pension is the minimum monthly old- living with the deceased; and dependent parents and sib- age pension. lings if there are no other eligible survivors. Deferred pension (Pensión diferida): The pension is The spouse’s pension ceases upon (re)marriage or increased by 0.133% of the insured’s average indexed cohabitation. monthly earnings in the last 240 months for each month it is deferred after the normal retirement age. Survivor settlement (Indemnización por Muerte, Régi- The maximum monthly deferred old-age pension is men de Pensión Básico, social insurance): The deceased 2,282,184 colones. had at least 12 months of contributions. The settlement is paid to eligible survivors who do not qualify for a social Schedule of payments: 13 payments a year. insurance survivor pension. Benefit adjustment: Pensions are adjusted twice a year, in Eligible survivors include a widow(er) or cohabiting part- January and July, based on changes in wages and the cost of ner; unmarried orphans up to age 18 (age 25 if a student; no living. limit if disabled); dependent unmarried disabled children Old-age pension (Pensión de Vejez, Régimen Obligato- older than age 55 who were living with the deceased; and rio de Pensiones Complementarias [ROP], mandatory dependent parents and siblings if there are no other eligible individual account): There are two different payment survivors. options: make programmed withdrawals or purchase an Funeral grant (Gastos de Funeral, Régimen de Pensión annuity. If the amount of the monthly individual account Básico, social insurance): The deceased received or was pension would be lower than 10% of the insured’s monthly entitled to receive a social insurance old-age pension at the social insurance old-age pension, the insured can choose to withdraw the total account balance as a lump sum.
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Permanent Disability Benefits Benefit adjustment: Pensions are adjusted twice a year, in January and July, based on changes in wages and the cost of Disability pension (Pensión de Invalidez, Régimen living. de Pensión Básico, social insurance): The pension’s replacement rate varies depending on the insured’s average Survivor settlement (Indemnización por Muerte, Régi- indexed monthly earnings in the last 60 months before the men de Pensión Básico, social insurance): A lump sum disability began. The monthly pension is 43% (with average of 8.33% of the deceased’s average monthly earnings in the monthly earnings of at least eight times the legal monthly last 12 months of contributions is paid for each month of minimum wage) to 52.5% (with average monthly earnings contributions. of less than two times the legal monthly minimum wage) of Funeral grant (Gastos de Funeral, Régimen de Pensión the insured’s average indexed monthly earnings in the last Básico, social insurance): A lump sum of 95,000 colones 240 months plus 0.0833% of average indexed monthly earn- is paid for the funeral of an insured person or pensioner; ings for each month of contributions exceeding 240 months. 63,000 colones for a spouse or partner. The earnings used to calculate benefits are adjusted based on changes in the consumer price index. Administrative Organization The legal monthly minimum wage ranges from Costa Rican Social Insurance Fund (http://www.ccss.sa.cr), 309,143.36 colones to 663,772.10 colones, depending on the directed by a general director, an executive president, and a occupation. nine-member board, administers the social insurance pro- The minimum monthly disability pension is 136,865 colo- gram and collects contributions for both the social insur- nes; if the calculated pension is lower, a lump sum is paid. ance and mandatory individual account programs. The maximum monthly disability pension is State auditor supervises the financial operations of the 1,612,851 colones. social insurance fund. Partial pension (Pensión de invalidez proporcional): The National Council for the Supervision of the Financial pension is proportionally reduced for each month of contri- System (http://www.conassif.fi.cr) provides regulatory over- butions less than the months required for a full pension. sight of the mandatory individual account program. Schedule of payments: 13 payments a year. Superintendent of Pensions (https://www.supen.fi.cr/) regu- lates and supervises pension operators. Benefit adjustment: Pensions are adjusted twice a year, in January and July, based on changes in wages and the cost of Pension operators (OPCs) manage the individual accounts. living. Sickness and Maternity Survivor Benefits Regulatory Framework Survivor pension (Pensión de Sobrevivientes, Régimen de Pension Básico, social insurance) First law: 1941 (social insurance fund). Spouse’s pension (Pensión por viudez): 50% of the social Current laws: 1943 (labor); 1961; 1973 (health); and 1993 insurance old-age or disability pension the deceased (social insurance), implemented in 1997. received or was entitled to receive is paid to a widow(er) or Social insurance (cash and medical surviving partner if younger than age 50; 60% if aged 50 to Type of program: benefits), employer-liability (cash maternity benefits), and 59; 70% if aged 60 or older or disabled. social assistance (medical benefits) system. Orphan’s pension (Pensión por orfandad): 30% of the social insurance old-age or disability pension the deceased Coverage received or was entitled to receive is paid for each eligible Employed and self-employed persons, orphan; 60% for a full orphan. Social insurance: and pensioners residing in Costa Rica; visitors to the Other eligible survivor’s pension (Pensión a otros sobre- country may receive emergency medical care according to vivientes): If there is no widow(er), surviving partner, or international agreements. orphan, 20% of the social insurance old-age or disability Voluntary coverage is available. pension the deceased received or was entitled to receive is paid to each dependent parent and dependent sibling; 60% Employer liability: Employed persons. to dependents older than age 55. Exclusions: Self-employed persons. The maximum combined survivor pension is 100% of the Social assistance: Needy residents of Costa Rica. social insurance old-age or disability pension the deceased received or was entitled to receive.
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Source of Funds six months of contributions in the 12 months before the incapacity began and have contributed in the month imme- Insured person diately before the incapacity began. Social insurance: 5.5% of gross monthly covered earnings; Cash maternity benefit (Subsidio por Maternidad, pensioners contribute 5% of the pension. Seguro de Salud, social insurance): Must have contrib- The minimum monthly earnings used to calculate contribu- uted in the month immediately before birth or the maternity tions are 309,143.36 colones (January 2019); 287,349 colo- leave began, or six months in the 12 months before birth or nes for the voluntarily insured with very low contributory the maternity leave began. capacity (February 2019). Cash maternity benefit (employer liability): There is no There are no maximum earnings used to calculate minimum qualifying period. Must provide a medical cer- contributions. tificate with the expected date of childbirth. The insured person’s contributions also finance the funeral Medical benefits (Seguro de Salud, social insurance): grant under Old Age, Disability, and Survivors. There is no minimum qualifying period. Employer liability: None. Medical benefits (social assistance, means tested): Social assistance: None. There is no minimum qualifying period. Self-employed person Means test: Must be assessed as unable to pay social insur- ance contributions for medical benefits. Social insurance: 2.89% to 10.69% of monthly covered declared earnings based on five income categories. Sickness and Maternity Benefits The minimum monthly earnings used to calculate contribu- Sickness benefit (Subsidio por Incapacidad, Seguro tions are 287,349 colones for self-employed persons with de Salud, social insurance): For employees, 60% of the very low contributory capacity (February 2019). insured’s monthly earnings in the last three months is paid There are no maximum earnings used to calculate after a three-day waiting period. contributions. For self-employed persons the amount of the sickness ben- Employer liability: Not applicable. efit is based on the combined monthly contributions by the insured and the government, and the insured’s number of Social assistance: None. months of contributions. Employer Maternity benefit (Subsidio por Maternidad, social Social insurance: 9.25% of monthly covered payroll. insurance and employer liability): For employees, 100% The minimum monthly earnings used to calculate contribu- of the insured’s monthly earnings is paid for 30 days before tions are 309,143.36 colones (January 2019). and 90 days after the expected date of childbirth (the cost of the benefit is split equally between the Costa Rican Social There are no maximum earnings used to calculate Insurance Fund and the employer); 66.6% is paid by the contributions. employer if the insured does not qualify for a social insur- Employer liability: The total cost. ance benefit. For self-employed persons the amount of the maternity Social assistance: See source of funds under Family Allowances. benefit is based on the combined monthly contributions by the insured and the government, and the insured’s number Government of months of contributions. Social insurance: 0.25% of total covered earnings; 1.31% to 9.11% of declared earnings for self-employed persons Workers’ Medical Benefits and the voluntarily insured (inversely proportional to the Medical benefits (Seguro de Salud, social insurance): declared earnings) based on five income categories; for The Social Insurance Fund normally provides medical ser- pensioners, the Social Insurance Fund contributes 8.75% of vices directly to patients. Benefits include general, special- the pension. ist, and maternity care; hospitalization; medicine; dental, Employer liability: None; contributes as an employer. auditory, and limited optometry services; and appliances (at a reduced cost). Social assistance: Provides subsidies as needed. Medical benefits (social assistance, means tested): Qualifying Conditions Benefits are the same as those for the insurance program. Cash sickness benefit (Subsidio por Incapacidad, Seguro de Salud, social insurance): Must have at least
SSPTW: The Americas, 2019 ♦ 137 Costa Rica
Dependents’ Medical Benefits The legal monthly minimum wage ranges from 309,143.36 colones to 663,772.10 colones, depending on the Medical benefits (Seguro de Salud, social insurance): occupation. Benefits for dependents are the same as those for the insured. Permanent Disability Benefits Medical benefits (social assistance, means tested): Permanent disability pension (Pensión por Incapaci- Benefits for dependents are the same as those for the pri- dad Permanente Total): For a total disability (an assessed mary beneficiary. degree of disability greater than 67%), the monthly pension is 100% of the legal monthly minimum wage plus 67% of Administrative Organization the insured’s monthly earnings that exceed this amount. Costa Rican Social Insurance Fund (http://www.ccss.sa.cr), The legal monthly minimum wage ranges from directed by a general director, an executive president, and a 309,143.36 colones to 663,772.10 colones, depending on the nine-member board, administers the programs and collects occupation. contributions. Constant-attendance allowance (Gran invalidez): Costa Rican Social Insurance Fund owns and operates 44,547 colones a month is paid if the insured requires the hospitals and clinics and is gradually extending jurisdiction constant attendance of others to perform daily tasks. over other hospitals and clinics. Grants may be awarded to insured persons with disabilities to purchase, rent, or modify housing. Work Injury Partial disability (Pensión por incapacidad permanente Regulatory Framework parcial): For an assessed degree of disability from 50% to 67%, 67% of the insured’s monthly earnings is paid for up First law: 1925 (work injury). to 10 years; for 0.5% to 49%, the insured’s annual earnings Current law: 1943 (labor code), implemented in 1947. multiplied by the assessed degree of disability is paid for up to five years (pensión por incapacidad menor perman- Type of program: Employer-liability system through a ente). The benefit may be extended for additional five-year public carrier. periods on a means-tested basis. The permanent disability pension is payable abroad. Coverage Employed persons and apprentices residing in Costa Rica. Workers’ Medical Benefits Voluntary coverage for self-employed persons. Benefits include medical and surgical care, hospitalization, medicine, appliances, and rehabilitation. Source of Funds Insured person: None. Survivor Benefits Self-employed person: 2.99% to 10.99% of net monthly Survivor pension (Renta por Muerte del Trabajador) declared earnings, depending on the type of economic Spouse’s pension: 40% of the deceased’s average monthly activity. earnings in the 12 months before death is paid to a depen- Employer: The total cost (pays insurance premiums that dent widow(er). The pension is paid for 10 years; may be vary depending on the assessed degree of risk). extended for additional five-year periods under certain conditions. Government: None; contributes as an employer. The maximum widow(er)’s pension is 40% of the deceased’s average monthly earnings; 30% if there are Qualifying Conditions other eligible dependents. Must be assessed with a work injury or occupational dis- ease. Accidents that occur while commuting to and from Orphan’s pension: 15% to 40% of the deceased’s average work are covered. monthly earnings in the 12 months before death is paid for up to three orphans younger than age 18 (age 25 if a Temporary Disability Benefits student; no limit if disabled). 60% of the insured’s daily earnings is paid for the first Other eligible survivor’s pension: 20% of the deceased’s 45 days; thereafter, 100% of the insured’s daily earnings. average monthly earnings in the 12 months before death is The benefit is paid from the date the disability began for up paid to the deceased’s mother (30% if there are no eligible to two years. orphans) for 10 years. A pension is also paid to a dependent father or other dependent adults, including those aged 60 or The minimum temporary disability benefit is the legal older and unable to work. monthly minimum wage at the time the disability began.
138 ♦ SSPTW: The Americas, 2019 Costa Rica
The maximum combined survivor pension is 75% of the Authorized labor capitalization funds administer the sever- deceased’s earnings. ance accounts. The survivor pension is payable abroad. Family Allowances Funeral grant (Gastos de Funeral): A lump sum of 95,000 colones plus transportation costs is paid. Regulatory Framework The funeral grant is not payable abroad. First and current laws: 1974 (family allowances and social development) and 2006 (Avancemos cash transfer). Administrative Organization Council of Occupational Health (http://www.cso.go.cr/) Type of program: Social assistance system. provides general supervision. Coverage National Insurance Institute (http://portal.ins-cr.com/) administers the program and collects contributions. Needy persons and households with school-aged children.
Unemployment Source of Funds Insured person: None. Regulatory Framework Self-employed person: None. First and current laws: 1943 (labor code), implemented in 5% of monthly payroll finances the Family 1947; and 2000 (severance account). Employer: Allowance and Social Development Fund (FODESAF); cer- Type of program: Mandatory individual account system. tain public institutions and employers with revenues below certain thresholds are exempted from paying contributions. Coverage FODESAF is used to finance social assistance family allow- Public- and private-sector employees. ances, medical benefits under Sickness and Maternity, and Exclusions: Self-employed persons. certain other education, infrastructure, and social assis- tance programs, including the Avancemos cash transfer Source of Funds program. Provides subsidies as needed. Insured person: None. Government: Self-employed person: Not applicable. Qualifying Conditions Employer: 1.5% of gross monthly payroll. Family allowance (Pensión No Contributiva, Régimen No Contributivo [RNC], income tested): Paid to persons Government: None; contributes as an employer. older than age 65, persons with disabilities, widows aged 55 to 65, and widows younger than age 55 with dependent Qualifying Conditions children younger than age 18 (age 21 if a student or unem- Paid if the employee’s service with an employer ceases. ployed), and orphans younger than age 18. Must not qualify for a social insurance pension. Unemployment Benefits Income test: Family or individual income must be less than The total account balance minus any previous withdrawals the poverty line. The benefit is not paid if another family is paid. (The employee may withdraw the account balance member receives an income-tested family allowance. after every five-year period of continuous service with the The poverty line is 110,047 colones in urban areas; same employer.) 84,535 colones in rural areas (June 2018). If the employee dies, the total account balance may be with- drawn by his or her eligible survivor(s). Family cash transfer (Avancemos, means tested): Paid for children aged 11 or older who are enrolled in second- Eligible survivors include, in order of priority, a widow(er) ary education and comply with the academic and program who was married to the deceased at the time of death and attendance requirements. orphans younger than age 18 (no limit if disabled); orphans older than age 18 and the deceased’s parents; and the legal Means test: Households must be classified as living in heirs of the deceased. extreme poverty, basic poverty, or vulnerable conditions by the Regional Associations of Social Development (ARDS). Administrative Organization Superintendent of Pensions (https://www.supen.fi.cr/) pro- vides general and regulatory supervision.
SSPTW: The Americas, 2019 ♦ 139 Costa Rica
Family Allowance Benefits Costa Rican Social Insurance Fund (http://www.ccss.sa.cr), directed by an executive president and a nine-member Family allowance (Pensión No Contributiva, Régi- board, collects contributions and administers the family men No Contributivo [RNC], income tested): At least allowances. 82,000 colones a month is paid. Mixed Institute for Social Assistance (http://www.imas Schedule of payments: 13 payments a year. .go.cr/) administers the family cash transfer. Family cash transfer (Avancemos, means tested): 11,000 colones to 60,000 colones a month is paid for each eligible child, depending on the type of education program (2017).
Administrative Organization Ministry of Labor and Social Security (http://www.mtss .go.cr/) provides general supervision. Social Development and Family Allowances Fund (FODE- SAF) (https://fodesaf.go.cr) directs the program.
140 ♦ SSPTW: The Americas, 2019 Cuba
Government Cuba Universal and social assistance: The total cost. Social insurance: Finances any deficit; contributes as an Exchange rate: US$1.00 = employer. 1.00 convertible peso (CUC)1. Qualifying Conditions Old Age, Disability, and Survivors Old-age pension (Pensión por Edad Ordinaria, social insurance): Age 65 (men) or age 60 (women) with at least 30 years of employment; age 60 (men) or age 55 (women) Regulatory Framework if 75% of the insured’s total employment history or the First laws: 1963, 1964, and 1979 (social security). 15 years of employment immediately before retirement involved arduous or dangerous work. Current law: 2008 (social security), implemented in 2009. The insured must be employed immediately before retire- Type of program: Universal, social insurance, and social ment or have been employed at the time the pension quali- assistance system. fying conditions were met. Coverage Partial pension (Pensión por edad extraordinaria): Age 65 (men) or age 60 (women) with at least 20 years but less than Universal: Residents of Cuba. 30 years of employment. Social insurance: Public- and private-sector employees. The insured must be employed immediately before retire- Special systems for military personnel, interior ministry ment or have been employed at the time the pension quali- staff, self-employed persons, certain artists, musicians, and fying conditions were met. members of agricultural and nonagricultural cooperatives. Old-age pensioners who retired with a full or partial old- age pension may re-enter the labor force and receive both a Social assistance: Needy residents of Cuba. pension and a salary as long as they are employed in a posi- tion different from the one held before retirement. Source of Funds Supplement for exceptional merit (Incremento por mérito Insured person excepcional): Paid if the insured had an exceptionally dis- Universal and social assistance: None. tinguished career. Social insurance: 2.5% of monthly earnings up to 20 CUC The old-age pension is not payable abroad. (500 CUP) and 5% of monthly earnings exceeding 20 CUC Old-age benefit (social assistance, means tested): (500 CUP). Age 65 (men) or age 60 (women) with less than 20 years of There are no minimum or maximum earnings used to cal- employment. Must be incapable of work and have no family culate contributions. members for support. The insured person’s contributions also finance cash sick- Disability pension (Pensión por Invalidez, social insur- ness and maternity benefits, and work injury benefits. ance): Must be assessed with a total physical and/or mental incapacity for usual work while currently employed or Self-employed person within 60 days of ceasing employment. Universal and social assistance: None. An expert medical commission assesses the degree of Social insurance: Not applicable. disability. Employer Constant-attendance supplement (Incremento por asistencia por otra persona): Paid if the insured requires the constant Universal and social assistance: None. attendance of others to perform daily tasks. Social insurance: 12.5% (public sector) or 14.5% (private Partial disability (Pensión por invalidez parcial): Must be sector) of gross monthly payroll. assessed with a diminished physical and/or mental capacity There are no minimum or maximum earnings used to cal- but able to work under certain conditions. culate contributions. Supplement for exceptional merit (Incremento por mérito The employer’s contributions also finance cash sickness and excepcional): Paid if the insured had an exceptionally dis- maternity benefits, and work injury benefits. tinguished career. Heroic act supplement (Incremento por acto heróico): Paid if the illness or injury occurred while the insured was 1 Note: Cuba has a two currency system consisting of the Cuban convertible peso (CUC) and the Cuban peso (CUP).
SSPTW: The Americas, 2019 ♦ 141 Cuba defending the country, saving lives, preventing violent acts, The maximum monthly old-age pension (including the or protecting public property. supplement for exceptional merit) is 90% of the insured’s The disability pension is not payable abroad. average monthly earnings. Benefit adjustment: Benefits are adjusted by government Disability benefit (social assistance, means tested): decree based on social and economic factors. Must be assessed as incapable of work and have no family members for support. Old-age benefit (social assistance, means tested): A periodical benefit is paid. Survivor pension (Pensión por causa de Muerte, social insurance): The deceased received or was entitled to Benefit adjustment: Benefits are adjusted by government receive an old-age or disability pension, was employed decree based on social and economic factors. at the time of death or disappearance, or had ceased employment within the six months before the death or Permanent Disability Benefits disappearance. Disability pension (Pensión por Invalidez, social insur- Eligible survivors include a widow or female partner who ance): For a total disability, 50% of the insured’s average was married to or had lived with the deceased for at least monthly earnings in the best five years of earnings in the one year at the time of death, or who had children with the last 15 years of employment is paid for up to 20 years of deceased (no restrictions if the death was due to an acci- employment plus 1% of average monthly earnings for dent); a widower or male partner aged 65 or older or dis- each year of employment from 21 to 30 years of employ- abled; orphans younger than age 17 (no limit if disabled and ment plus 2% of average monthly earnings for each year of economically dependent on the deceased or if a full orphan employment exceeding 30 years. in higher or technical education); and dependent parents. Constant-attendance supplement (Incremento por asistencia Heroic act supplement (Incremento por acto heróico): Paid por otra persona): 20% of the disability pension is paid. if the death occurred while the deceased was defending the The minimum monthly disability pension is 11.20 CUC country, saving lives, preventing violent acts, or protecting (280 CUP). public property. The maximum monthly disability pension (including the The survivor pension is not payable abroad. heroic act supplement and the supplement for exceptional Survivor benefit (social assistance, means tested): Paid merit) is 90% of the insured’s average monthly earnings. to a survivor of an employee or old-age or disability pen- Partial disability (Pensión por invalidez parcial): 60% sioner who was dependent on the deceased, is incapable of of the insured’s average monthly earnings in the 12 months any work, and does not qualify for a survivor pension. before the disability began is paid for up to one year while Funeral benefit (Servicios Funerarios, universal, in- the insured is waiting to modify his or her job, switch jobs, kind): There is no minimum qualifying condition. or reduce working hours to adapt to the disability, or until rehabilitated. After returning to work, 50% of the differ- Old-Age Benefits ence between the insured’s salary before and after the dis- ability began is paid. Old-age pension (Pensión por Edad Ordinaria, social insurance): 60% of the insured’s average monthly earn- Supplement for exceptional merit (Incremento por mérito ings in the best five years of earnings in the last 15 years of excepcional): 10% to 25% of the disability pension is paid. employment plus 2% of average monthly earnings for each Heroic act supplement (Incremento por acto heróico): 20% year of employment exceeding 30 years is paid. of the insured’s average monthly earnings in the best five of For a pensioner who returns to work, the pension is earnings in the last 15 years of employment is paid. increased by 2% of his or her new average monthly earn- Benefit adjustment: Benefits are adjusted by government ings for each year of employment since reentering the labor decree based on social and economic factors. force. Disability benefit (social assistance, means tested): A Partial pension (Pensión por edad extraordinaria): 40% periodical benefit is paid. of the insured’s average monthly earnings in the best five years of earnings in the last 15 years of employment plus Benefit adjustment: Benefits are adjusted by government 2% of average monthly earnings for each year of employ- decree based on social and economic factors. ment exceeding 20 years is paid. Survivor Benefits Supplement for exceptional merit (Incremento por mérito excepcional): 10% to 25% of the old-age pension is paid. Survivor pension (Pensión por causa de Muerte, social insurance): If the deceased received or was entitled to The minimum monthly old-age pension is 11.20 CUC receive an old-age or disability pension, 100% of the old- (280 CUP). age or disability pension is paid for the first month; thereaf- ter, 70%, 85%, or 100% of the old-age or disability pension
142 ♦ SSPTW: The Americas, 2019 Cuba for one, two, or three or more dependent survivors, respec- Social insurance: Public- and private-sector employees. tively. If the deceased was not entitled to receive an old-age Special systems for military personnel, interior ministry or disability pension, 100% of the deceased’s earnings is staff, self-employed persons, certain artists, musicians, and paid for one month. The pension is split equally among all members of agricultural and nonagricultural cooperatives. eligible survivors. A nonworking widow younger than age 40 who is able to Source of Funds work and has no dependents may receive the pension for up Insured person to two years. A working widow may receive the survivor pension in addition to her salary. Universal: None. Heroic act supplement (Incremento por acto heróico): 20% Social insurance: See source of funds under Old Age, Dis- of the deceased’s average monthly earnings in the best five ability, and Survivors. years of earnings in the last 15 years of employment is paid. Self-employed person The minimum monthly survivor pension is 11.20 CUC (280 CUP). Universal: None. The maximum monthly survivor pension for a working Social insurance: Not applicable. widow is 25% of the combined monthly survivor pension. Employer Benefit adjustment: Benefits are adjusted by government Universal: None. decree based on social and economic factors. Social insurance: See source of funds under Old Age, Dis- Survivor benefit (social assistance, means tested): A ability, and Survivors. periodical benefit is paid. Government Benefit adjustment: Benefits are adjusted by government decree based on social and economic factors. Universal: The total cost. Funeral benefit (Servicios Funerarios, universal, in- Social insurance: Finances any deficit; contributes as an kind): Free funeral services are provided. employer.
Administrative Organization Qualifying Conditions Ministry of Labor and Social Security (http://www.mtss Cash sickness benefit (Subsidio por Enfermedad o .gob.cu/) oversees and administers the programs through Accidente, social insurance): There is no minimum the Directorate of Prevention, Assistance and Social Labor qualifying period. Must present a medical certificate that and the National Institute of Social Security (INASS). validates the sickness. Municipal offices of the National Institute of Social Secu- Medical certification is required every 30 days; a review by rity (INASS) process applications for the social assistance a medical committee is required every 26 weeks. program and provide free funeral services. Heroic act supplement (Incremento por acto heróico): Paid People’s Savings Bank (http://www.bpa.cu/) pays pensions. if the incapacity began while defending the country, saving National Tax Administration Office (http://www.onat.gob lives, preventing violent acts, or protecting public property. .cu/) collects and manages contributions. Tuberculosis benefit (social insurance): Must be diag- nosed with tuberculosis and provide a medical certificate. Sickness and Maternity Cash maternity benefit (Licencia Retribuida de Mater- nidad, social insurance): Must be currently employed Regulatory Framework with at least 75 days of employment in the 12 months before First laws: 1934 (maternity benefits) and 1963 (sickness maternity leave. Maternity leave must begin no earlier than benefits). the 34th (32nd for a multiple births) week of pregnancy.
Current laws: 2008 (social security), implemented in 2009; Maternity social benefit (Prestación Social, social 2013 (labor code), implemented in 2014; and 2016 (mater- insurance): Paid for the birth of a child after the cash nity), implemented in 2017. maternity benefit ends.
Type of program: Universal (medical benefits) and social Complementary maternity leave (Licencia Complemen- insurance (cash and in-kind benefits) system. taria de Maternidad, social insurance): Must be currently employed and have at least 75 days of employment in the Coverage 12 months before maternity leave. Universal: Citizens and permanent residents of Cuba. Medical benefits (universal): There is no minimum quali- fying period.
SSPTW: The Americas, 2019 ♦ 143 Cuba
Sickness and Maternity Benefits Dependents’ Medical Benefits Sickness benefit (Subsidio por Enfermedad o Acci- Medical benefits (universal): Dependents are covered in dente, social insurance): 60% (50% if hospitalized) of their own right. the insured’s average monthly earnings in the 12 months before the incapacity began is paid after a three-day Administrative Organization waiting period (no waiting period if hospitalized) for up Ministry of Labor and Social Security (http://www.mtss to six months or until a disability pension is paid; may .gob.cu/) oversees and administers the program through the be extended for an additional six months with a medical Directorate of Prevention, Assistance, and Social Labor and certificate. the National Institute of Social Security. Heroic act supplement (Incremento por acto heróico): 20% Ministry of Public Health (https://salud.msp.gob.cu/) of the sickness benefit is paid. oversees and administers the provision of medical benefits The minimum monthly sickness benefit is 50% of the legal through the National Health System. monthly minimum wage. The legal monthly minimum wage is 16 CUC (400 CUP). Work Injury The maximum monthly sickness benefit is 90% of the insured’s average monthly earnings in the last 12 months. Regulatory Framework
Tuberculosis benefit (social insurance): 100% of the First law: 1916 (work injury). insured’s earnings is paid until recovery. Current law: 2008 (social security), implemented in 2009. Maternity benefit (Licencia Retribuida de Maternidad, Type of program: Social insurance system. social insurance): 100% of the insured’s average weekly earnings in the 12 months immediately before the leave Coverage begins is paid for six weeks (eight weeks for multiple births) before and 12 weeks after the expected date of childbirth. Public- and private-sector employees. The minimum monthly maternity benefit is the legal Special systems for military personnel, interior ministry monthly minimum wage. staff, self-employed persons, certain artists, musicians, and members of agricultural and nonagricultural cooperatives. The legal monthly minimum wage is 16 CUC (400 CUP). Schedule of payments: The maternity benefit is paid in Source of Funds three installments. Insured person: See source of funds under Old Age, Dis- Maternity social benefit (Prestación Social, social ability, and Survivors. insurance): 60% of the insured’s mother’s average monthly Not applicable. earnings in the 12 months before the maternity leave is Self-employed person: paid until the child is aged 12 months and continues if the Employer: See source of funds under Old Age, Disability, mother returns to work. The benefit may be transferred to and Survivors. an employed father or grandparent, in which case 60% of Finances any deficit; contributes as an his or her average monthly earnings in the 12 months before Government: employer. childbirth is paid. Complementary maternity leave (Licencia Comple- Qualifying Conditions mentaria de Maternidad, social insurance): Before the Must be assessed with a work injury or occupational dis- maternity leave begins, the woman is entitled to six days ease. Accidents that occur while commuting to and from or 12 half days of paid leave for prenatal care. After the work are covered. maternity leave ends, the mother or father is entitled to one day a month for pediatric care and one hour a day for breastfeeding. Temporary Disability Benefits 80% (70% if hospitalized) of the insured’s average monthly Workers’ Medical Benefits earnings in the 12 months before the disability began is paid from the first day of disability for up to six months Medical benefits (universal): Public medical centers or until certification of a permanent disability; may be provide free medical services. Benefits include general and extended for an additional six months with a medical specialized medical care, dental, and maternity care; medi- certificate. cine; hospitalization (including food and medicine); and rehabilitation. Benefits are provided until recovery. Medical certification is required every 30 days; a review by a medical committee is required every 26 weeks.
144 ♦ SSPTW: The Americas, 2019 Cuba
Heroic act supplement (Incremento por acto heróico): 20% of the old-age or disability pension for one, two, or three of the temporary disability benefit is paid if the accident or more dependent survivors, respectively. If the deceased occurred or occupational disease began while defending the was not entitled to receive an old-age or disability pension, country, saving lives, preventing violent acts, or protecting 100% of the deceased’s earnings is paid for one month. The public property. pension is split equally among all eligible survivors. The minimum monthly temporary disability benefit is 50% The pension is paid for up to two years to a nonworking of the legal monthly minimum wage. widow younger than age 40 who is able to work and has no The legal monthly minimum wage is 16 CUC (400 CUP). dependents. A working widow may receive the survivor pension in addition to her salary. The maximum monthly temporary disability ben- efit (including the heroic act supplement) is 90% of the Heroic act supplement (Incremento por acto heróico): 20% insured’s average monthly earnings in the 12 months before of the deceased’s average monthly earnings in the five years the disability began. of highest earnings in the last 15 years of employment is paid if the death occurred while defending the country, Permanent Disability Benefits saving lives, preventing violent acts, or protecting public property.
Permanent disability pension (Pensión por Invalidez): Eligible survivors include a widow or female partner who 60% of the insured’s average monthly earnings in the best was married to or had lived with the deceased for at least five years of earnings in the last 15 years of employment one year at the time of death, or who had children with the plus 2% of average monthly earnings for each year of deceased (no restrictions if the death was due to an acci- employment exceeding 30 years plus an additional 10% of dent); a widower or male partner aged 65 or older or dis- the resulting amount is paid. abled; orphans younger than age 17 (no limit if disabled and Constant-attendance allowance (Incremento por asistencia economically dependent on the deceased or if a full orphan por otra persona): 20% of the permanent disability pension in higher or technical education); and dependent parents. is paid if the insured requires the constant attendance of The minimum monthly survivor pension is 11.20 CUC others to perform daily functions. (280 CUP). The minimum monthly permanent disability pension is The maximum monthly survivor pension for a working 11.20 CUC (280 CUP). widow is 25% of the combined monthly survivor pension. The maximum monthly permanent disability pen- Benefit adjustment: Benefits are adjusted by government sion (including the heroic act supplement) is 90% of the decree, based on social and economic factors. insured’s average monthly earnings. Partial disability: 80% of the insured’s average monthly Administrative Organization earnings in the 12 months before the disability began is Ministry of Labor and Social Security (http://www.mtss paid for up to one year while the insured is waiting to .gob.cu/) oversees and administers the program through the modify his or her job, switch jobs, or reduce working hours Directorate of Prevention, Assistance, and Social Labor and to adapt to the disability, or until rehabilitated or assessed the National Institute of Social Security. with a total disability. After returning to work, 60% of the difference between the insured’s earnings before and after Ministry of Public Health (https://salud.msp.gob.cu/) the date of disability is paid. oversees and administers the provision of medical benefits through the National Health System. Heroic act supplement (Incremento por acto heróico): 20% of the insured’s average monthly earnings in the best five years of earnings in the last 15 years of employment is paid Family Allowances if the disability began while defending the country, saving lives, preventing violent acts, or protecting public property. Regulatory Framework Dependents of young workers conscripted into military Workers’ Medical Benefits service are eligible for social security assistance. Cash The National Health System provides universal medical benefits are available for families whose head of household services, including for work injuries (see Sickness and is unemployed due to health, disability, or other justifiable Maternity). causes, and has insufficient income for food and medicine or basic household needs. Survivor Benefits Survivor pension (Pensión por causa de Muerte): If the deceased received or was entitled to receive an old-age or disability pension, 100% of the old-age or disability pension is paid for the first month; thereafter, 70%, 85%, or 100%
SSPTW: The Americas, 2019 ♦ 145 Dominica
There are no minimum earnings used to calculate contributions. Dominica The maximum annual earnings used to calculate contribu- Exchange rate: US$1.00 = tions are EC$84,000. 2.70 East Caribbean dollars (EC$). The employer’s contributions also finance cash sickness and maternity benefits, and work injury benefits.
Government: None; contributes as an employer. Old Age, Disability, and Survivors Qualifying Conditions Regulatory Framework Old-age pension: Age 64 (rising by six months a year until First law: 1970 (provident fund). reaching age 65 in 2021) with at least 500 weeks of paid or Current laws: 1975 (social security) and 2012 (social secu- credited contributions, including at least 150 weeks of paid rity regulations). contributions.
Type of program: Social insurance system. Contributions are credited for each complete contributory week the insured received sickness, maternity, or work Note: The public assistance program provides a noncon- injury temporary disability benefits. Contributions may be tributory social assistance pension of EC$300 a month to credited under certain conditions for each complete con- needy persons older than age 70 who have no other source tributory week the insured received work injury permanent of income. total disability benefits. Coverage Early pension: Age 60 with at least 500 weeks of paid or credited contributions, including at least 150 weeks of paid Employed and self-employed persons, and apprentices. contributions. Voluntary coverage is available. Deferred pension: The pension may be deferred indefinitely. Source of Funds The old-age pension is payable abroad. Insured person: 6.0% (gradually rising by 0.25% every Old-age grant: Age 64 (rising by six months a year until two years until reaching 7.50% in 2031) of weekly covered reaching age 65 in 2021) with at least 50 weeks but less than earnings; 10.65% (gradually rising by 0.25% each year 500 weeks of paid or credited contributions. until reaching 13.65% in 2031) of covered earnings for the Contributions are credited for each complete contributory voluntarily insured. week the insured received sickness, maternity, or work There are no minimum earnings used to calculate injury temporary disability benefits. Contributions may be contributions. credited under certain conditions for each complete con- tributory week the insured received work injury permanent The maximum annual earnings used to calculate contribu- total disability benefits. tions are EC$84,000. The old-age grant is payable abroad. The insured person’s contributions also finance cash sick- ness and maternity benefits. Disability pension: Must be younger than age 60, assessed with a permanent incapacity for work, and have at least Self-employed person: 12% (gradually rising by 0.25% 150 weeks of paid or credited contributions. each year until reaching 15% in 2031) of covered declared income for the previous year. Contributions are credited for each complete contributory week the insured received sickness, maternity, or work Self-employed persons may pay contributions monthly or injury temporary disability benefits. Contributions may be quarterly. credited under certain conditions for each complete con- The minimum annual earnings used to calculate contribu- tributory week the insured received work injury permanent tions are EC$7,200. total disability benefits. The maximum annual earnings used to calculate contribu- A registered medical practitioner assesses the incapacity for tions are EC$84,000. work. The self-employed person’s contributions also finance cash The disability pension ceases at the normal retirement age sickness and maternity benefits. and is replaced by an old-age pension of the same value.
Employer: 6.75% (gradually rising by 0.25% every two The disability pension is payable abroad if the purpose of years until reaching 8.25% in 2031) of weekly or monthly travel is to receive medical treatment. covered payroll.
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Disability grant: Must be younger than age 60, assessed The maximum monthly old-age pension is 60% of the with a permanent incapacity for work, and have at least insured’s average monthly earnings. 50 weeks but less than 150 weeks of paid or credited Early pension: The pension is reduced by 0.5% for each contributions. month it is claimed before the normal retirement age. Contributions are credited for each complete contributory Deferred pension: The pension increases by 6% for each week the insured received sickness, maternity, or work complete year of deferral after the normal retirement age. injury temporary disability benefits. Contributions may be credited under certain conditions for each complete con- Old-age grant: A lump sum of three times the insured’s tributory week the insured received work injury permanent average weekly earnings is paid for every 50 weeks of paid total disability benefits. or credited contributions. A registered medical practitioner assesses the incapacity for Average weekly earnings are the insured’s total cov- work. ered earnings divided by the total number of weeks of contributions. The disability grant is payable abroad if the purpose of travel is to receive medical treatment. Benefit adjustment: Benefits are adjusted every three years based on changes in the consumer price index, up to a Survivor pension: The deceased received or was entitled maximum of 5%. to receive an old-age or disability pension at the time of death. Permanent Disability Benefits Eligible survivors include a dependent spouse; dependent 30% of the insured’s average earnings orphans younger than age 16 (age 21 if a student, unmar- Disability pension: plus 1% of average earnings for every 50 weeks of paid or ried, and unemployed; no limit if disabled); and dependent credited contributions exceeding 500 weeks is paid. parents and grandparents of pensionable age, if there is no widow(er) or dependent orphan. Average earnings are based on the insured’s best 10 years of earnings in the last 15 years; if the number of years The survivor pension ceases upon remarriage or worked is less than 10, the average is based on insured’s cohabitation. total earnings. The survivor pension is payable abroad. The minimum weekly disability pension is EC$75. Survivor grant: The deceased had at least 50 weeks of paid The maximum monthly disability pension is 60% of the or credited contributions but did not qualify for an old-age insured’s average monthly earnings. or disability pension at the time of death. A lump sum of three times the insured’s Contributions are credited for each complete contributory Disability grant: average weekly earnings is paid for every 50 weeks of paid week the deceased received sickness, maternity, or work or credited contributions. injury temporary disability benefits. Contributions may be credited under certain conditions for each complete con- Average weekly earnings are the insured’s total cov- tributory week the deceased received work injury perma- ered earnings divided by the total number of weeks of nent total disability benefits. contributions. The survivor grant is payable abroad. Benefit adjustment: Benefits are adjusted every three years based on changes in the consumer price index, up to a Funeral grant: The deceased received or was entitled to maximum of 5%. receive an old-age, disability, sickness, maternity, or work injury benefit. Paid when the insured, the insured’s unin- Survivor Benefits sured spouse, or one of the insured’s dependent children younger than age 21 (if a student, unmarried, and unem- Survivor pension ployed) dies. Spouse’s pension: 50% of the old-age or disability pension The funeral grant is not payable abroad. the deceased received or was entitled to receive is paid to a widow(er). If the widow(er) was married to the deceased Old-Age Benefits for less than three years or is younger than age 50, the widow(er) receives a survivor pension for one year or while Old-age pension: 30% of the insured’s average earnings caring for dependent children. plus 1% for every 50 weeks of paid or credited contribu- tions exceeding 500 weeks is paid. A widow(er) can receive a survivor pension and either an old-age pension or a disability pension at the same time. Average earnings are based on the insured’s best 10 years The total amount received is 100% of the higher pension of earnings in the last 15 years. and 50% of the lower pension. The minimum weekly old-age pension is EC$75. Orphan’s pension: 25% of the old-age or disability pension the deceased received or was entitled to receive is paid for
SSPTW: The Americas, 2019 ♦ 147 Dominica each of the first two eligible orphans (33% if a full orphan Coverage or disabled). If there are more than two orphans, the total Employed and self-employed persons, and apprentices. pension amount is split equally. Other eligible survivor’s pension: If there is no eligible Source of Funds widow(er) or orphan, 50% of the old-age or disability pen- Insured person: See source of funds under Old Age, Dis- sion the deceased received or was entitled to receive is paid ability, and Survivors. to a dependent parent or grandparent. The maximum combined survivor pension is 100% of the Self-employed person: See source of funds under Old old-age or disability pension the deceased received or was Age, Disability, and Survivors. entitled to receive. Employer: See source of funds under Old Age, Disability, Benefit adjustment: Survivor pensions are adjusted every and Survivors. three years based on changes in the consumer price index, Government: None; contributes as an employer. up to a maximum of 5%.
Survivor grant: A lump sum of three times the deceased’s Qualifying Conditions average weekly earnings is paid for every 50 weeks of paid Cash sickness benefit: Employed persons must have at or credited contributions. least 13 weeks of covered employment immediately before Average weekly earnings are the insured’s total cov- the incapacity began, including at least eight weeks of paid ered earnings divided by the total number of weeks of contributions. Self-employed persons must have at least contributions. 52 weeks of covered self-employment immediately before Benefit adjustment: The survivor grant is adjusted every the incapacity began, including at least two quarters of paid three years based on changes in the consumer price index, contributions in the last three consecutive quarters. The up to a maximum of 5%. incapacity must last at least four days. A registered medical practitioner assesses the incapacity for A lump sum is paid to the person who Funeral grant: work. pays for the funeral. EC$3,000 is paid when the insured dies; EC$2,500 for the death of an uninsured spouse; or Cash maternity benefit: Employed persons must have at EC$1,250 for the death of a dependent child. least 30 weeks of contributions, including at least 20 weeks Benefit adjustment: The funeral grant for insured persons in the 30 weeks before maternity leave began. Self- increases by EC$300 every three years; the grant amounts employed persons must have at least three quarters of paid for other eligible persons increase proportionally at the contributions in the four consecutive quarters before the same time. quarter in which maternity leave began. Cash maternity grant: Paid to an insured woman or the Administrative Organization uninsured spouse of an insured man. Employed persons Ministry of Finance (http://finance.gov.dm/) provides gen- must have at least 26 weeks of paid contributions in the eral supervision. 52 weeks before the expected date of childbirth. Self- employed persons must have at least three quarters of paid Dominica Social Security (https://www.dss.dm/), governed contributions in the four consecutive quarters before the by the Social Security Board, administers the social insur- expected date of childbirth. ance program and collects contributions. Division of Social Welfare of the Ministry of Social Sickness and Maternity Benefits Services, Family and Gender Affairs administers social assistance benefits. Sickness benefit: 60% of the insured’s average weekly earnings in the last 13 weeks is paid from the first day of incapacity. The benefit is paid for up to 26 weeks. Sickness and Maternity Maternity benefit: 60% of the insured’s average weekly Regulatory Framework earnings in the last 30 weeks is paid from three weeks before until nine weeks after the expected date of child- First and current law: 1975 (social security). birth; under certain conditions, the benefit may be paid Type of program: Social insurance system. Cash benefits from six weeks before until up to six weeks after the only. expected date of childbirth for a maximum period of 12 weeks.
Maternity grant: A lump sum of EC$575 is paid for each child.
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Workers’ Medical Benefits Permanent Disability Benefits No statutory benefits are provided. Up to 60% of the insured’s average earnings in the last Public hospitals and clinics under the Ministry of Health 13 weeks is paid, depending on the assessed degree of provide primary and secondary health care to the general disability. population. Constant-attendance allowance: If the insured is assessed with a 100% disability and requires the constant attendance Dependents’ Medical Benefits of others to perform daily functions, 50% of the insured’s Benefits for dependents are the same as those for the permanent disability benefit is paid. The allowance is sus- insured. pended if the insured is hospitalized. If the assessed degree of disability is less than 30%, a lump Administrative Organization sum is paid. Ministry of Finance (http://finance.gov.dm/) provides gen- A registered medical practitioner assesses the incapacity for eral supervision. work. Dominica Social Security (https://www.dss.dm/), governed by the Social Security Board, administers the program and Workers’ Medical Benefits collects contributions. Medical expenses of up to EC$6,000 are reimbursed for local and overseas treatment of work injuries and occupa- Work Injury tional diseases.
Regulatory Framework Survivor Benefits First law: 1938 (workmen’s compensation). Survivor pension (Death Benefit) Current law: 1985 (employment injury and occupational Spouse’s pension: 50% of the permanent disability benefit diseases). the deceased received or was entitled to receive is paid to a dependent widow(er). Type of program: Social insurance system. The spouse’s pension ceases upon remarriage or cohabitation. Coverage Employed persons, including apprentices. Orphan’s pension: 25% of the permanent disability benefit the deceased received or was entitled to receive (33% if Voluntary coverage is not available. a full orphan or disabled) is paid for each of the first two Exclusions: Self-employed persons. unmarried dependent orphans younger than age 16 (age 21 if a student, unmarried, and unemployed; no limit if dis- Source of Funds abled). If there are more than two eligible orphans, the total pension amount is split equally. Insured person: None. The minimum monthly orphan’s pension is EC$50. Self-employed person: Not applicable. Other eligible survivor’s pension: If there is no eligible Employer: See source of funds under Old Age, Disability, widow(er) or orphan, 50% of the permanent disability ben- and Survivors. efit the deceased received or was entitled to receive is paid Government: None; contributes as an employer. to a dependent parent or grandparent. The maximum combined survivor pension is 100% of the Qualifying Conditions permanent disability benefit the deceased received or was Must be assessed with a work injury or occupational dis- entitled to receive. ease. There is no minimum qualifying period. The disabil- Funeral grant: See funeral grant under Old Age, Disability, ity must last at least four days. and Survivors.
Temporary Disability Benefits Administrative Organization 60% of the insured’s average earnings in the last 13 weeks Ministry of Finance (http://finance.gov.dm/) provides gen- is paid for up to 26 weeks until the disability ends or certifi- eral supervision. cation of permanent disability. Dominica Social Security (https://www.dss.dm/), governed by the Social Security Board, administers the social insur- ance program and collects contributions.
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Unemployment Family Allowances
Regulatory Framework Regulatory Framework The Protection of Employment Act (1984) requires private- No known statutory benefits are provided. sector employers to contribute 0.25% of the employee’s The public assistance program provides cash benefits of covered earnings to the Redundancy Benefit Fund to EC$150 a month to needy adults and EC$127.50 a month finance mandatory redundancy pay in cases of redundancy to needy children (EC$300 a month if disabled), up to a for employees with at least three years of continuous ser- maximum of EC$375 a month per family. vice. The benefit amount varies depending on the length of service: with up to five years of service, one week of the employee’s pay for each year of service plus two weeks of pay for each year of service exceeding three years; with at least five years but less than 10 years of service, nine weeks of pay plus two weeks for each year of service exceeding five years; with at least 10 years of service, 19 weeks of pay plus three weeks for each year of service exceeding 10 years (up to a maximum of 52 weeks of pay). Managerial staff, household workers, family workers, and certain dock workers are excluded.
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The maximum monthly earnings used to calculate contribu- tions are 20 times the average monthly minimum wage for Dominican Republic private-sector employees. Exchange rate: US$1.00 = 50.45 pesos. The average monthly minimum wage for private-sector employees is 11,826.40 pesos (13,482 pesos as of August 1, 2019). Of the total insured person and employer contributions Old Age, Disability, and Survivors (9.97%), 8.0% is allocated to the individual account, 1% to disability and survivor insurance, 0.5% to administrative Regulatory Framework fees, 0.4% to the solidarity fund, and 0.07% to the Superin- First law: 1947 (civil servants). tendent of Pensions’ operating costs. Current laws: 2001 (social security), implemented in Self-employed person: Not applicable. 2004; 2005 (contribution exemptions); 2007 (settlement of Employer: 7.1% of monthly covered payroll. Additional arrears); 2009 (amnesty for nonpayment of employer con- voluntary contributions are possible. tributions); 2016 (police personnel); and 2017 (commercial drivers). The minimum monthly earnings used to calculate contribu- tions are the average monthly minimum wage for private- Type of program: Mandatory individual account system. sector employees. Note: The pay-as-you-go social insurance program for The maximum monthly earnings used to calculate contribu- private-sector workers was closed to new entrants in 2003 tions are 20 times the average monthly minimum wage for and is being phased out. It covers private-sector workers private-sector employees. aged 45 or older in 2003 who chose to remain in the social The average monthly minimum wage for private-sector insurance program and private-sector pensioners who employees is 11,826.40 pesos (13,482 pesos as of August 1, began receiving their pensions before June 2003. Public- 2019). sector workers who opted not to join the individual account program remain in the separate social insurance program Of the total insured person and employer contributions for public-sector workers. (9.97%), 8.0% is allocated to the individual account, 1% to disability and survivor insurance, 0.5% to administrative Subsidized individual accounts for self-employed per- fees, 0.4% to the solidarity fund, and 0.07% to the Superin- sons and other vulnerable groups have not yet been tendent of Pensions’ operating costs. implemented. The 2001 social security law introduced a social assistance Government: Partially finances the guaranteed minimum old-age, disability, and survivor pension, which is in the pension; finances the value of accrued rights for those who process of being implemented. made contributions under the old social insurance program; contributes as an employer. Coverage Qualifying Conditions Public- and private-sector employees aged 45 or younger in 2003. Old-age pension (Pensión por vejez): Age 60 with at least 30 years of contributions. Voluntary coverage for citizens of the Dominican Republic living abroad, and for public- and private-sector employees All gainful activity must cease. older than age 45 in 2003. Once enrolled, an insured person Early pension: Age 55 if the individual account balance is may not opt out. sufficient to finance a monthly pension of at least 150% of Exclusions: Self-employed persons. the minimum monthly old-age pension. Special systems for elected or appointed officials in the Unemployed worker’s old-age pension (Pensión por cesantía judiciary and legislative system, employees of the central por edad avanzada): Aged 57 to 59, unemployed, and have bank of the Dominican Republic, teachers, and certain at least 25 years of contributions. (If the insured has less employees of the Ministry of Finance. than 25 years of contributions, he or she can continue con- tributing to reach 25 years or claim a partial pension.) Source of Funds Guaranteed minimum pension (Solidarity Fund): Age 65 Insured person: 2.87% of monthly covered earnings. (age 57 if receiving an unemployed worker’s old-age pen- Additional voluntary contributions are possible. sioner) with at least 25 years of contributions and have an individual account balance that is insufficient to finance the The minimum monthly earnings used to calculate contribu- minimum monthly old-age pension. tions are the average monthly minimum wage for private- sector employees.
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The minimum monthly old-age pension is the lowest legal Unemployed worker’s old-age pension (Pensión por monthly minimum wage for private-sector employees or the cesantía por edad avanzada): Calculated in the same way as legal monthly minimum wage for public-sector employees, the old-age pension. depending on the insured’s sector of employment. Guaranteed minimum pension (Solidarity Fund): The The lowest legal monthly minimum wage for private-sector difference between the insured’s account balance and the employees is 9,411.60 pesos (November 2017); the legal account balance needed to finance the minimum monthly monthly minimum wage for public-sector employees is old-age pension is paid. 10,000 pesos. The minimum monthly old-age pension is the lowest legal The old-age pension is payable abroad under certain monthly minimum wage for private-sector employees or the conditions. legal monthly minimum wage for public-sector employees, depending on the insured’s sector of employment. Old-age benefit (Pensión por ingreso tardío): Age 60, unemployed for at least 30 days, and does not qualify for The lowest legal monthly minimum wage for private-sector the old-age pension. Must have made the first contribution employees is 9,411.60 pesos (November 2017); the legal to the individual account program at age 45 or older. monthly minimum wage for public-sector employees is 10,000 pesos. Disability pension (Pensión por discapacidad): Must have at least a 66.7% assessed loss of earning capacity and Benefit adjustment: Benefits are adjusted based on changes have exhausted sickness benefits. The disability must be the in the legal monthly minimum wage for public- and private- result of a chronic illness or nonwork-related accident. sector employees. Partial disability: Must have an assessed loss of earning Old-age benefit (Pensión por ingreso tardío): If the capacity of at least 50% but less than 66.7%. account balance is sufficient to finance the minimum monthly old-age pension, the insured has two payment A regional medical committee assesses the loss of earning options: purchase a price-indexed annuity or make pro- capacity. The national medical committee may revise, vali- grammed withdrawal. If the account balance is insufficient, date, or reject the decision of a regional medical committee. a lump sum of the account balance is paid. The disability pension is payable abroad. The minimum monthly old-age pension is the lowest legal Disability settlement: Must have been diagnosed with a monthly minimum wage (private-sector employees) or the terminal illness and not qualify for any other social insur- legal monthly minimum wage (public-sector employees). ance benefit. The lowest legal monthly minimum wage for private-sector Employment must cease. employees is 9,411.60 pesos (November 2017); the legal A regional medical committee assesses the degree of dis- monthly minimum wage for public-sector employees is ability. The national medical committee may revise, vali- 10,000 pesos. date, or reject the decision of a regional medical committee. Permanent Disability Benefits Survivor pension (Pensión por sobrevivencia): The deceased received or was entitled to receive an old-age or Disability pension (Pensión por discapacidad): 60% disability pension at the time of death. of the insured’s average indexed covered earnings in the three years immediately before the disability began is paid. Eligible survivors include a widow(er) or partner and The disability pension is financed by the disability insur- unmarried orphans younger than age 18 (age 21 if a full- ance provided by an insurance company until retirement or time student, no limit if disabled). death. The insurance company also pays a monthly contri- The survivor pension is payable abroad. bution to the insured’s individual account until retirement or death. Survivor settlement: Paid to legal heirs if there is no eli- gible survivor for the survivor pension. The disability pension ceases at the normal retirement age when the insured may access his or her account balance Old-Age Benefits to purchase a price-indexed annuity or make programmed withdrawals. Old-age pension (Pensión por vejez): The insured has two payment options: purchase a price-indexed annuity Partial disability: 30% of the insured’s average indexed or make programmed withdrawals. (The value of accrued covered earnings in the three years immediately before the rights under the social insurance program is combined with disability began is paid. the account balance at retirement.) There is no minimum or maximum disability pension. Early pension: Calculated in the same way as the old-age Benefit adjustment: Benefits are adjusted periodically based pension. on changes in the consumer price index.
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Disability settlement: The account balance is paid as a Ministry of Finance, and certain former police and military lump sum. personnel.
Social assistance: Needy residents of the Dominican Survivor Benefits Republic. Survivor pension (Pensión por sobrevivientes): 60% of the deceased’s average indexed covered earnings in the last Source of Funds three years is paid. (Life insurance tops up the deceased’s Insured person individual account if the balance is less than the required minimum to finance the survivor pension.) Social insurance: 3.04% of monthly covered earnings; 6.3% of their monthly covered earnings for persons receiving The survivor pension is paid for life to a spouse or part- public-sector pensions. ner older than age 55; for six years to a spouse or partner aged 50 to 55; or for five years to a spouse or partner The minimum monthly earnings used to calculate contribu- younger than age 50. tions are the average monthly minimum wage for private- sector employees. If there are orphans, 50% of the survivor pension is paid to the spouse or partner and 50% is split among eligible The maximum monthly earnings used to calculate contribu- orphans. tions are 10 times the average monthly minimum wage for private-sector employees. There is no minimum or maximum survivor pension. The average monthly minimum wage for private-sector Benefit adjustment: Benefits are adjusted periodically based employees is 11,826.40 pesos (13,482 pesos as of August 1, on changes in the consumer price index. 2019). Survivor settlement: The account balance is paid as a Social assistance: None. lump sum. Self-employed person Administrative Organization Social insurance: Not applicable. National Social Security Board (CNSS) (http://www.cnss .gob.do/) is responsible for policy development and provides Social assistance: None. overall governance of the social security system. Employer Superintendent of Pensions (SIPEN) (http://www.sipen.gob Social insurance: 7.09% of monthly covered payroll. .do/) supervises implementation of legislation. The minimum monthly earnings used to calculate contribu- Individual pension fund management companies admin- tions are the average monthly minimum wage for private- ister the individual accounts and contract with insurance sector employees. companies for disability and survivors insurance. The maximum monthly earnings used to calculate contribu- Treasury of Social Security (http://www.tss.gov.do/) col- tions are 10 times the average monthly minimum wage for lects contributions. private-sector employees. The average monthly minimum wage for private-sector Sickness and Maternity employees is 11,826.40 pesos (13,482 pesos as of August 1, 2019). Regulatory Framework Social assistance: None. First law: 1948 (social insurance), implemented in 1949. Government Current law: 2001 (social security), implemented in 2007. Social insurance: None; contributes as an employer. Type of program: Social insurance (cash and medical ben- efits) and social assistance (medical benefits only) system. Social assistance: The total cost.
Coverage Qualifying Conditions Social insurance: Employed persons, including public- Cash sickness benefit (social insurance): Must have sector employees not covered by a special system; and at least 12 months of contributions before the incapacity pensioners (medical benefits only). began. Exclusions: Self-employed persons. Cash maternity benefit (social insurance): Must have at least eight months of contributions in the 12 months before Special systems for elected or appointed officials in the childbirth and not work during the period in which the judiciary and legislative system, employees of the central benefit is paid. bank of the Dominican Republic, certain employees of the
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Nursing allowance (social insurance, income tested): The legal monthly minimum wage for private-sector Paid for a child younger than 12 months. employees ranges from 9,411.60 pesos to 15,447.60 pesos, Income test: The insured’s monthly covered earnings must depending on the type and size of the business (Novem- be less than three times the legal monthly minimum wage. ber 2017); the legal monthly minimum wage for public- sector employees is 10,000 pesos. The legal monthly minimum wage for private-sector employees ranges from 9,411.60 pesos to 15,447.60 pesos, Workers’ Medical Benefits depending on the type and size of business (Novem- ber 2017); the legal monthly minimum wage for public- Medical benefits (Basic health plan, social insurance sector employees is 10,000 pesos. and social assistance): Benefits include preventive, inpa- tient, outpatient, maternity, pediatric, emergency, surgery, Medical benefits (Basic health plan, social insurance): and specialist care; medicine; and prostheses for persons Must have at least one month of contributions (except in with disabilities, according to a schedule in law. case of an emergency and for child delivery). Cost sharing: The insured pays 30% of the cost of prescrip- Eligible dependents include a spouse or cohabiting partner tion drugs. and children up to age 18 (age 21 if a full-time student, no limit if disabled). Children older than age 21 and the Medical benefits (Basic health plan, social assistance, insured’s dependent parents may be covered under certain means tested): Benefits include preventive, inpatient, conditions. outpatient, maternity, pediatric, emergency, surgery, and specialist care; medicine; and prostheses for persons with Medical benefits (Basic health plan, social assistance, disabilities, according to a schedule in law. means tested): Provided to unemployed persons and their families, persons with disabilities, indigent persons and Cost sharing: There is no cost sharing for prescription their families, single mothers; and self-employed persons drugs. and persons older than age 60 with monthly income below the average monthly minimum wage for private-sector Dependents’ Medical Benefits employees. Medical benefits (Basic health plan, social insurance): The average monthly minimum wage for private-sector Benefits for dependents are the same as those for the employees is 11,826.40 pesos (13,482 pesos as of August 1, insured. In-patient services for children are provided from 2019). the 45th day after birth until age 5. Benefits include nutri- tion, general care, and child development programs. Means test: The household must be classified as poor and vulnerable based on the Quality of Life Index (Indice de Medical benefits (Basic health plan, social assistance, Calidad de Vida, ICV) administered by the SIUBEN. means tested): Benefits for dependents are the same as those for the primary beneficiary. In-patient services for The ICV is a targeting system used to identify poor and children are provided from the 45th day after birth until vulnerable families based on their income, consumption age 5. Benefits include nutrition, general care, and child patterns, housing conditions, and access to public services. development programs. Sickness and Maternity Benefits Administrative Organization Sickness benefit (social insurance): 60% of the insured’s National Social Security Board (CNSS) (http://www.cnss average monthly earnings in the last six months (40% if .gob.do/) is responsible for policy development and provides hospitalized) is paid after a three-day waiting period, for up overall governance of the social security system. to 26 weeks. Treasury of Social Security (http://www.tss.gov.do/) col- Maternity benefit (social insurance): Three months of lects contributions. the insured’s earnings is paid for 14 weeks, including seven Directorate of Information and Protection of the Affili- weeks before and seven weeks after the expected date of ates (DIDA) (http://dida.gob.do/) is protecting customer childbirth. information. Nursing allowance (social insurance, income tested): Superintendent of Health and Labor Risks (http://www A percentage of the insured’s monthly covered earnings is .sisalril.gov.do/) supervises implementation of legislation. paid for up to 12 months after the child’s birth: 33% with monthly earnings up to the legal monthly minimum wage; Health Risk Management Companies (ARS) administer 12% with monthly earnings greater than one and up to the basic health plan and may be private, public, or mixed two times the legal monthly minimum wage; and 6% for entities. monthly earnings greater than two and up to three times National Health Insurance (SENASA) administers the the legal monthly minimum wage. In the case of multiple social assistance program. births, the allowance is paid for each child.
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Work Injury disability of at least 50% but less than 66%), 50% of base salary is paid. Regulatory Framework Partial disability: For an assessed degree of disability of at First law: 1932 (work injury). least 15% but less than 50%, a lump sum of five to 10 times the insured’s base salary is paid. Current law: 2001 (social security), implemented in 2004. The base salary is the insured’s average monthly covered Type of program: Social insurance system. earnings in the six months before the disability began (or over the total contribution period if less than six months). Coverage Benefit adjustment: Benefits are adjusted every two years. Public- and private-sector employees, and military and police personnel. Workers’ Medical Benefits Exclusions: Self-employed persons. Benefits include preventive, inpatient, outpatient, pediatric, emergency, surgery, and specialist care; medicine; rehabili- Source of Funds tation; and prostheses for persons with disabilities, accord- ing to a schedule in law. Insured person: None. Self-employed person: Not applicable. Survivor Benefits Employer: The total cost is financed through contributions Survivor pension that vary depending on the assessed degree of risk. The Spouse’s pension: 50% of the permanent disability pen- average contribution is 1.2% of monthly covered payroll. sion the deceased received or was entitled to receive is paid There are no minimum earnings used to calculate to a widow(er) or partner aged 45 or older or disabled. A contributions. lump sum of two years of the spouse’s pension is paid to a The maximum earnings used to calculate contributions are widow(er) or partner younger than age 45. four times the average monthly minimum wage. The spouse’s pension ceases upon (re)marriage. The average monthly minimum wage is 11,826.40 pesos Remarriage settlement: A lump sum of two years of the (13,482 pesos as of August 2019). spouse’s pension is paid to a widow(er) or partner receiving a monthly pension upon (re)marriage. Government: None; contributes as an employer. Orphan’s pension: 20% of the permanent disability pen- Qualifying Conditions sion the deceased received or was entitled to receive is paid Must be assessed with a work injury or occupational dis- to each orphan younger than age 18 (age 21 if a full-time ease. Accidents that occur while commuting to and from student, no limit if disabled), up to five. work are covered. The maximum combined orphan’s pension is 100% of the A medical board assesses the degree of disability. permanent disability pension the deceased received or was entitled to receive. Temporary Disability Benefits Administrative Organization 75% of the insured’s base salary is paid after a three-day period for up to 52 weeks (the employer pays 75% of the National Social Security Board (CNSS) (http://www.cnss insured’s base salary the first three days). The disability is .gob.do/) is responsible for policy development and provides reassessed 30 days before the benefit expires to determine if overall governance of the social security system. the disability is permanent. Superintendent of Health and Labor Risks (SISALRIL) The base salary is the insured’s average daily covered earn- (http://www.sisalril.gov.do/) supervises implementation of ings in the six months before the disability began (or over legislation. the total contribution period if less than six months). Labor Risk Management Fund (http://www.arlss.gov.do/) administers the work injury program. Permanent Disability Benefits For a severe total disability (a 100% assessed degree of dis- Unemployment ability, totally disabled, and in need of constant attendance), 100% of the insured’s base salary is paid; for a permanent Regulatory Framework total disability for any work (at least a 67% assessed degree The 1993 labor code regulates severance pay for employ- of disability), 70% of base salary is paid; and for a perma- ees with at least three months of continuous employment. nent total disability for usual work (an assessed degree of A lump sum of six days of the employee’s salary is paid with at least three but less than six months of continuous
SSPTW: The Americas, 2019 ♦ 155 Dominican Republic employment; 13 days of salary with at least six but less than Means test: The household must be classified as moder- 12 months; 21 days of salary for each year of service with at ately or extremely poor based on the Quality of Life Index least one but less than five years; and 23 days of salary for (Indice de Calidad de Vida, ICV) administered by the each year of service with at least five years of service. SIUBEN. The ICV is a targeting system used to identify poor and Family Allowances vulnerable families based on their income, consumption patterns, housing conditions, and access to public services. Regulatory Framework First and current laws: 2001 (social security), 2005 Family Allowance Benefits (conditional cash transfer), 2012 (conditional cash trans- Single mother’s pension (income tested): 60% of the fer consolidation), and 2013 (social assistance pensions legal monthly minimum wage for public-sector employees regulations). is paid. Type of program: Social assistance system. The legal monthly minimum wage for public-sector Note: A 2001 law introduced a social assistance benefit employees is 10,000 pesos. for single mother without family support, which is in the Schedule of payments: Twelve monthly payments a years process of being implemented. Provisions of the law are plus a 13th payment for Christmas. included below. Benefit adjustment: Benefits are adjusted based on changes in the consumer price index. Coverage Solidarity cash transfer (Progresando con Solidaridad, Needy residents of the Dominican Republic. means tested): 825 pesos a month is paid to the head of household for nutritional support; 150 pesos a month for Source of Funds each child aged 6 to 16 enrolled in the first to eighth years Insured person: None. of basic education; 500 pesos a month for each child up to age 21 enrolled in the first or second year of secondary Self-employed persons: None. education; 750 pesos a month for each child up to age 21 Employer: None. enrolled in the third or fourth year of secondary education; 1,000 pesos a month for each child up to age 21 enrolled in Government: The total cost. technical education; and 500 pesos a month to university students. Qualifying Conditions Single mother’s pension (income tested): Paid for Administrative Organization a single mother with children younger than age 18 and National Social Security Board (CNSS) (http://www.cnss attending school. The mother must be unemployed or have .gob.do/) is responsible for policy development and provides irregular income, and not be economically dependent on a overall governance of the social security system. person insured for social insurance benefits. Provinces and municipalities administer the single mother’s Income test: Household income must not exceed a certain pensions under the supervision of CNSS and SIPEN. limit. Cabinet for the Coordination of Social Policy, under the Solidarity cash transfer (Progresando con Solidari- Vice Presidency, provides general oversight of the solidar- dad, means tested): Paid to families that meet a series of ity cash transfer. requirements related to health, education, nutrition, civic Progresando con Solidaridad (http:// responsibility, information and communication technology progresandoconsolidaridad.gob.do/) program office admin- (ICT) literacy, and housing. For example, children must isters the solidarity cash transfer program. have a birth certificate and adults must have a national iden- tity card; women aged 35 or older and men aged 40 or older Administrator of Social Subsidies (ADESS) (http://www must undergo annual medical examinations and be given .adess.gov.do/) pays benefits. information about reproductive and preventive health; illit- erate adults and youths must learn to read; children must be enrolled in and pass each grade in primary and secondary school and not work; families must attend training activities on inclusion, violence prevention, ICT use, among others; and housing conditions must meet certain basic standards.
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Self-employed person Social insurance: 8.86% of gross monthly declared earnings Ecuador plus 0.1% of gross monthly declared earnings for special Exchange rate: Currency is the US dollar ($). disability pension. The minimum monthly earnings used to calculate contribu- tions are $394. Old Age, Disability, and Survivors There are no maximum earnings used to calculate contributions. Regulatory Framework Social assistance: None. First law: 1928 (social security). Employer Current laws: 2001 (social security), 2003 (social pen- Social insurance: 2.22% of gross monthly payroll. sions), 2006 (social pensions), 2010 (disability attendance grant), 2012 (general law on disabilities), and 2013 (social The minimum monthly earnings used to calculate contribu- pensions increment). tions are $394. There are no maximum earnings used to calculate Social insurance and social assistance Type of program: contributions. system. Note: The provision under the 2001 law to create an indi- Social assistance: None. vidual account program to complement the social insurance Government program has not been implemented yet. Social insurance: Covers 40% of the cost of old-age, dis- A 2018 decree introduced a new old-age social pension ability, and survivor pensions; contributes as an employer. (Pensión Mis Mejores Años) and disability social pen- sion (Pensión Toda Una Vida), each of which pays $100 a Social assistance: The total cost. month. Once rolled out across the country, these pensions will completely replace the social assistance old-age and Qualifying Conditions disability pensions. Old-age pension (Jubilación Ordinaria por Vejez, social insurance): At any age with at least 480 months of contri- Coverage butions; age 60 with at least 360 months of contributions; age 65 with at least 180 months of contributions; or age 70 Social insurance: Employed and self-employed persons. with at least 120 months of contributions. Voluntary coverage for persons without mandatory cover- Employment must cease at the time the claim is made, but age, including citizens of Ecuador residing abroad. it may resume afterwards. During the first year of receiving Special systems for agricultural workers and small-scale the pension, a pensioner who resumes employment must fishermen and for unpaid home-based workers. work for an employer other than the one that certified the Social assistance: Needy residents of Ecuador. pension claim. Old-age social pension (Pensión para Adultos Mayores, Source of Funds social assistance, income tested): Age 65 and not receiv- Insured person ing or entitled to receive any social insurance benefit. Income test: The family’s income must be in the bottom Social insurance: 6.64% (most public- and private-sector 40% of all household incomes according to the SIIRS. employees) or 8.64% (employees of subnational public insti- tutions and bank employees) of gross monthly earnings, The SIIRS is a national registry used to identify needy plus 0.1% of gross monthly earnings for the special dis- families. ability pension. The voluntarily insured pay 8.86% of gross Disability pension (Jubilación por Invalidez, social monthly earnings plus 0.1% of gross monthly earnings for insurance): Must have at least a 50% assessed loss of the special disability pension. earning capacity and at least 60 months of contributions, The minimum monthly earnings used to calculate contribu- including contributions in the six months before the dis- tions are $394. ability began; at least 120 months of contributions and not There are no maximum earnings used to calculate receiving an old-age pension if the disability began within contributions. two years after the termination of employment. Special disability pension (Jubilación Especial de Social assistance: None. Discapacidad, social insurance): Must have at least a 30% assessed degree of disability and at least 300 (physical
SSPTW: The Americas, 2019 ♦ 157 Ecuador disability) or 240 (mental disability) months of contribu- increased by 1.25% of average monthly earnings for each tions; no contribution requirements for a total (100%) or year of contributions exceeding 40 years. absolute disability. Average monthly earnings are based on the insured’s best Disability social pension (Pensión para Personas con five years of earnings. Discapacidad, social assistance, income tested): Must The minimum monthly old-age pension is $197. have at least a 40% assessed degree of disability and not be receiving or entitled to receive any social insurance benefit. The maximum monthly old-age pension is $2,167. Income test: The family’s income must be in the bottom Schedule of payments: 12 monthly payments plus two 40% of all household incomes according to the SIIRS. bonus payments a year. The SIIRS is a national registry used to identify needy Benefit adjustment: The old-age pension is adjusted annu- families. ally based on the average inflation rate in the previous year. Old-age social pension (Pensión para Adultos Mayores, Caregiver allowance (Bono Joaquín Gallegos Lara, social assistance, income tested): $50 a month is paid. social assistance, income tested): Paid to the primary caregiver of a person with at least a 75% (physical disabil- ity) or 65% (mental disability) assessed degree of disability, Permanent Disability Benefits suffering from a rare or catastrophic disease, or diagnosed Disability pension (Jubilación por Invalidez, social with HIV/AIDS and younger than age 14. insurance): A percentage of the insured’s average monthly Income test: The family must be assessed as vulnerable, or earnings is paid based on the insured’s years of contribu- living in poverty or extreme poverty, based on the SIIRS; tions: 43.75% with five years of contributions, increasing no income test if the beneficiary is diagnosed with HIV/ by 1.25% for each additional year of contributions up to AIDS and is younger than age 14. 35 years. 83.25% of the insured’s average monthly earn- ings is paid with 36 years of contributions, 86.05% with The SIIRS is a national registry used to identify needy 37 years, 89.70% with 38 years, 94.30% with 39 years, families. or 100% with 40 years of contributions. The pension is Survivor pension (Pensión de Montepío, social insur- increased by 1.25% of average monthly earnings for each ance): The deceased received or was entitled to receive a year of contributions exceeding 40 years. social insurance old-age or disability pension or had at least Average monthly earnings are based on the insured’s best 60 months of contributions at the time of death. five years of earnings. Eligible survivors include a widow or a dependent, disabled The minimum monthly disability pension is $197. widower; a female or dependent, disabled male partner who cohabitated with the deceased for at least two years before The maximum monthly disability pension is $2,167. the death or had children with the deceased; dependent Schedule of payments: 12 monthly payments plus two orphans younger than age 18 (no limit if disabled); and, bonus payments a year. if there are no other survivors, a dependent mother and a Benefit adjustment: The disability pension is adjusted annu- dependent, disabled father. ally based on the average inflation rate in the previous year. The widow(er) or partner’s pension ceases upon (re)mar- Special disability pension (Jubilación Especial de riage or cohabitation. Discapacidad, social insurance): 68.75% of the insured’s Funeral grant (Auxilio de Funerales, social insurance): average monthly earnings in the best five years of earnings The deceased received or was entitled to receive a social is paid. insurance old-age or disability pension or had at least six The minimum monthly special disability pension is $197. months of contributions in the last 12 months at the time of The maximum monthly special disability pension is $2,167. death. Schedule of payments: 12 monthly payments plus two Old-Age Benefits bonus payments a year. Old-age pension (Jubilación Ordinaria por Vejez, social Benefit adjustment: The special disability pension is insurance): A percentage of the insured’s average monthly adjusted annually based on the average inflation rate in the earnings is paid based on the insured’s years of contribu- previous year. tions: 43.75% with five years of contributions, increasing Disability social pension (Pensión para Personas con by 1.25% for each additional year of contributions up to Discapacidad, social assistance, income tested): $50 a 35 years. 83.25% of the insured’s average monthly earn- month is paid. ings is paid with 36 years of contributions, 86.05% with 37 years, 89.70% with 38 years, 94.30% with 39 years, Caregiver allowance (Bono Joaquín Gallegos Lara, $240 a month is paid. or 100% with 40 years of contributions. The pension is social assistance, income tested):
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Survivor Benefits Employer liability: Employed persons. Survivor pension (Pensión de Montepío, social Exclusions: Self-employed persons. insurance) Source of Funds Spouse’s pension: 60% of the social insurance old-age or disability pension the deceased received or was entitled to Insured person receive is paid to an eligible widow(er) or partner. Social insurance: None for private-sector employees, Orphan’s pension: 40% of the social insurance old-age or employees of subnational public institutions, and social disability pension the deceased received or was entitled to security beneficiaries; 2% of gross monthly covered receive is split equally among eligible orphans. earnings for other public-sector employees; 9% of gross monthly covered earnings for the voluntarily insured. Other dependent’s pension: In the absence of an eligible widow(er), partner, or orphan, 40% of the social insurance Insured persons may insure their spouse with an additional old-age or disability pension the deceased received or was contribution of 3.41% of gross monthly covered earnings; entitled to receive is split equally among eligible dependent beneficiaries of an old-age, disability, or work injury pen- parents. sion may insure a spouse with an additional contribution of 4.15% of the monthly pension and children younger than The minimum monthly combined survivor pension is $197. 18 with an additional contribution of 3.41% of the monthly The maximum monthly combined survivor pension is pension. $1,737 (2018). The minimum monthly earnings used to calculate contribu- Benefit adjustment: Benefits are adjusted annually based on tions are $394. the average inflation rate in the previous year. There are no maximum earnings used to calculate Funeral grant (Auxilio de Funerales, social insurance): contributions. A lump sum of up to $1,357.73 is paid. Employer liability: None. Administrative Organization Self-employed person Ecuadorian Social Security Institute (https://www.iess.gob Social insurance: 9% of gross declared earnings. .ec/), through its Directive Council, regulates, administers, The minimum monthly earnings used to calculate contribu- and collects contributions to the social insurance program. tions are $394. Ministry of Social and Economic Inclusion (http://www There are no maximum earnings used to calculate .inclusion.gob.ec/) administers the old-age and disability contributions. social pensions as part of the Bono de Desarrollo Humano program (see Family Allowances) and pays the caregiver Employer liability: Not applicable. allowance. Employer Social insurance: 9% of payroll for private-sector employ- Sickness and Maternity ees and employees of subnational public institutions; 7% for other public-sector employees. Regulatory Framework The minimum monthly earnings used to calculate contribu- First law: 1935 (social insurance), implemented in 1942. tions are $394. Current law: 2001 (social security). There are no maximum earnings used to calculate contributions. Type of program: Social insurance (cash and medical ben- efits) and employer-liability (cash maternity benefit) system. Employer liability: The total cost. Government Coverage Social insurance: The total cost for old-age, disability and Employed and self-employed persons; Social insurance: work injury beneficiaries; contributes as an employer. and beneficiaries of old-age, disability, work injury, or sur- vivor benefits (medical benefits only). Employer liability: None. Voluntary coverage for persons without mandatory coverage. Qualifying Conditions Special systems for agricultural workers and small-scale Cash sickness benefit (Subsidio de Enfermedad, social fishermen. insurance): Must have at least six months of contributions before the incapacity began or at least 189 days of contri- butions in the eight months before the incapacity began.
SSPTW: The Americas, 2019 ♦ 159 Ecuador
Coverage continues for 60 days after the insured ceases to Work Injury pay contributions. Cash maternity benefit (Subsidio de Maternidad, social Regulatory Framework insurance and employer liability): Must have at least First law: 1964 (work injury insurance). 12 months of contributions before giving birth. Prenatal care is provided with at least three months of contributions. Current law: 2001 (social security) and 2015 (labor justice and domestic work). Medical benefits (social insurance): Must have at least three months of continuous contributions. Cover- Type of program: Social insurance system. age continues for 60 days after the insured ceases to pay contributions. Coverage Eligible dependents include a worker’s children up to Employed and self-employed persons. age 18, and beneficiaries of the orphan’s pension. Voluntary coverage for persons without mandatory coverage. Sickness and Maternity Benefits Exclusions: Citizens of Ecuador residing abroad. Sickness benefit (Subsidio de Enfermedad, social insurance): 75% of the insured’s earnings used to calcu- Source of Funds late contributions in the three months before the incapacity None; 0.2% of gross monthly covered began is paid for up to 70 days after a three-day waiting Insured person: earnings for the voluntarily insured. period; thereafter, 66% is paid for up to 112 days. (The employer pays 50% of the insured’s earnings during the The minimum monthly earnings used to calculate contribu- first three days of incapacity.) tions are $394. Maternity benefit (Subsidio de Maternidad, social There are no maximum earnings used to calculate insurance and employer liability): 100% of the insured’s contributions. last earnings used to calculate contributions is paid for Self-employed person: 0.2% of gross monthly covered two weeks before and 10 weeks after the expected date of declared earnings. childbirth. The benefit is paid for an additional 10 days for multiple births. (The Ecuadorian Social Security Institute The minimum monthly earnings used to calculate contribu- pays 75% of the cost of the benefit, and the employer pays tions are $394. the remaining 25%.) There are no maximum earnings used to calculate contributions. Workers’ Medical Benefits Employer: 0.2% of monthly covered payroll. Medical benefits (social insurance): Medical facili- The minimum monthly earnings used to calculate contribu- ties operated by the Ecuadorian Social Security Institute tions are $394. provide medical services directly to patients. Benefits include general and specialist care, surgery, hospitalization, There are no maximum earnings used to calculate medicine, laboratory services, and dental care. A refund for contributions. the cost of medical care provided through external health Government: Covers 40% of the cost of work injury pen- service providers is available. sions; contributes as an employer.
Dependents’ Medical Benefits Qualifying Conditions Medical benefits (social insurance): Benefits for depen- Must be assessed with a work injury or occupational dis- dents are the same as for the insured. ease. Must have at least six months or 180 days of contribu- tions for a disability resulting from an occupational disease. Administrative Organization Accidents that occur while commuting to or from work are Ecuadorian Social Security Institute (https://www.iess.gob covered. .ec/), through its Directive Council, regulates, administers, and collects contributions to the programs and operates its Temporary Disability Benefits own clinics, dispensaries, and hospitals. 75% of the insured’s average earnings is paid after a two- day waiting period for up to 70 days; thereafter, 66% until the end of the 12th month. If the disability lasts more than one year, 80% of the insured’s average earnings is paid for up to one additional year.
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Average earnings are based on the insured’s earnings in the Funeral grant (Auxilio de Funerales): A lump sum of up three months before the disability began. to $1,357.73 is paid.
Permanent Disability Benefits Administrative Organization Permanent disability pension (Pensión por Incapaci- Ecuadorian Social Security Institute (https://www.iess.gob dad Permanente): 80% of the insured’s average monthly .ec/), through its Directive Council, regulates, administers, earnings is paid if the insured is assessed with a total and collects contributions to the program. disability that does not require the constant attendance of others; 100% of average monthly earnings if the insured Unemployment requires the constant attendance of others to perform daily functions. Regulatory Framework Average monthly earnings are based on the insured’s cov- First law: 1951. ered earnings the last year before the disability began or in the last five years, whichever is greater Current laws: 2001 (social security) and 2016 (unemploy- ment benefit). Partial disability (Indemnización Global Única por Incapa- cidad Permanente Parcial): For an assessed partial disabil- Type of program: Social insurance and mandatory indi- ity, a lump sum of 60 times the insured’s average monthly vidual account system. earnings in the year before the disability began (over the Note: In 2016, a new unemployment benefit was introduced total contribution period if less than one year) multiplied by that is partially financed through funds that were previously the assessed degree of disability is paid. accumulated in the individual account. The maximum partial disability benefit is 100 times the minimum monthly earnings used to calculate contributions. Coverage The minimum monthly earnings used to calculate contribu- Social insurance: Public- and private-sector employees. tions are $394. Exclusions: Self-employed persons, agricultural workers, Schedule of payments: 12 monthly payments plus two small-scale fishermen, and unpaid home-based workers. bonus payments a year. Mandatory individual account: Employed persons. Benefit adjustment: Benefits are adjusted annually. Adjust- ments range from 4.31% to 16.16% and are inversely pro- Exclusions: Self-employed persons. portional to the benefit amount. Source of Funds Workers’ Medical Benefits Insured person Benefits include medical and surgical care, hospitalization, Social insurance: None. appliances, and rehabilitation. Mandatory individual account: 2% of gross monthly covered Survivor Benefits earnings. The minimum monthly earnings used to calculate contribu- Survivor pension (Pensión de Montepío) tions are $394. Spouse’s pension: 60% of the permanent disability pension There are no maximum earnings used to calculate the deceased received or was entitled to receive is paid to contributions. a widow(er) or registered partner who cohabitated with the deceased. Self-employed person Orphan’s pension: 40% of the permanent disability pen- Social insurance: Not applicable. sion the deceased received or was entitled to receive is split Mandatory individual account: Not applicable. equally among dependent orphans younger than age 18 (no limit if disabled). Employer Other dependent’s pension: If there is no eligible widow(er), Social insurance: 1% of gross monthly covered payroll. partner, or orphan, 40% of the permanent disability pen- The minimum monthly earnings used to calculate contribu- sion the deceased received or was entitled to receive is split tions are $394. equally among a dependent mother and a dependent father There are no maximum earnings used to calculate with a disability. contributions. The minimum monthly combined survivor pension is $197. Mandatory individual account: None. The maximum monthly combined survivor pension is $1,737 (2018).
SSPTW: The Americas, 2019 ♦ 161 Ecuador
Government Coverage Social insurance: None; contributes as an employer. Needy citizens of Ecuador. Mandatory individual account: Provides subsidies in special Source of Funds cases. Insured person: None. Qualifying Conditions Self-employed person: None. Unemployment benefit (social insurance and manda- Employer: None. tory individual account): Must have at least 24 months of contributions, including six continuous months of contribu- Government: The total cost. tions immediately before unemployment began. The benefit is paid after two months of involuntary unemployment. Qualifying Conditions Severance benefit (mandatory individual account): Must Family cash transfer (Bono de Desarrollo Humano, have at least 24 months of contributions. The benefit is paid income tested): Paid to vulnerable families who meet after two months of unemployment. certain requirements related to health, education, housing, eradication of child labor, and family development. Unemployment Benefits Income test: Must be registered as living in poverty or Unemployment benefit (social insurance and manda- extreme poverty in the SIIRS. tory individual account): Up to 70% of the insured’s The SIIRS is a national registry used to identify needy average monthly earnings in the 12 months before unem- families. ployment began is paid in the first month; 65% in the Child supplement (Bono de Desarrollo Humano con second month; 60% in the third month; 55% in the fourth Componente Variable): Paid to families living in extreme month; and 50% in the fifth month. The benefit is paid for a poverty with children younger than age 18. maximum of five months. After the fifth month, the insured may withdraw the total Family Allowance Benefits account balance remaining in the individual account. Family cash transfer (Bono de Desarrollo Humano, The social insurance solidarity fund pays part of the income tested): $50 a month is paid to the head of monthly benefit, and the individual account funds the household. remainder. Child supplement (Bono de Desarrollo Humano con Severance benefit (mandatory individual account): Componente Variable): $30.00 a month is paid for the first A lump sum of the account balance is paid if the insured child younger than age 5, $27.00 a month for the second, becomes unemployed or starts receiving an old-age, per- and $24.30 a month for the third. $10 a month is paid for the manent disability, or permanent work injury pension. If first child aged 5 to 17, $9.00 a month for the second, and the insured dies, the benefit is paid to a widow, a disabled $8.10 a month for the third. widower, orphans younger than age 18, or, if there is no The maximum monthly family cash transfer is $150. widow(er) or orphan, certain other surviving relatives. Administrative Organization Administrative Organization Ministry of Social and Economic Inclusion (http://www Ecuadorian Social Security Institute (https://www.iess.gob .inclusion.gob.ec/) administers the program. .ec/) collects contributions and administers the programs.
Family Allowances
Regulatory Framework First law: 1998 (Bono Solidario). Current laws: 2003 (conditional cash transfer), 2013 (conditional cash transfer increment), and 2019 (social assis- tance benefits).
Type of program: Social assistance system.
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The maximum earnings used to calculate contributions are $6,500 (January 2019). El Salvador Pensioners receiving monthly pensions greater than the Exchange rate: Currency is the US dollar ($). minimum monthly pension pay a special contribution to finance the Solidarity Guarantee Fund; the contribution ranges from 3% of the pension for a monthly pension up to three times the minimum monthly pension, to 10% of the Old Age, Disability, and Survivors pension for a monthly pension greater than eight times the minimum monthly pension. Regulatory Framework The minimum monthly pension is $207.60. 1949 (social insurance); 1953 (social insurance First laws: Social assistance: None. fund); 1968 (old-age, disability, and survivor insurance), implemented in 1969. Self-employed person
Current laws: 1996 (individual account), implemented Mandatory individual account: 15% of monthly covered in 1998; 1996 (pension supervision), implemented in declared earnings. 1998; 2009 (social assistance pension); and 2014 (social Of the self-employed person’s contributions, 8.05% (gradu- protection). ally rising to 11.1% by 2050) is allocated to the individual account,0.8797% to disability and survivor insurance, Type of program: Mandatory individual account and social assistance system. 1.0703% for administrative fees, and 5% (gradually decreasing to 2% by 2050) to the Solidarity Guarantee Note: Insured persons who were older than age 55 (men) or Fund. age 50 (women) in 1998 and workers older than age 36 in 1998 who did not opt for the individual account program The minimum monthly earnings used to calculate contribu- are covered under the old pay-as-you-go social insurance tions are the legal monthly minimum wage. program. The government has issued indexed bonds to The legal monthly minimum wage ranges from $202.88 individual account participants who made contributions (agriculture and cotton sector) to $304.17 (commerce and under the social insurance program. The bond is equal to service sector), depending on the economic sector. an insured person’s social insurance contributions plus The maximum earnings used to calculate contributions are accrued interest. $6,500 (January 2019). In June 2017, new enrolments for the universal basic old- Social assistance: None. age pension ceased; persons enrolled in the pension before this date can continue to receive benefits. Employer Mandatory individual account: 7.75% of monthly covered Coverage payroll. Mandatory individual account: Public- and private-sector Of the employer’s contributions, 0.8% (gradually rising employees. to 3.85% by 2050) is allocated to the individual account, Voluntary coverage for self-employed persons, owners 0.8797% to disability and survivor insurance, 1.0703% for of small enterprises, and citizens of El Salvador residing administrative fees; and 5% (gradually decreasing to 2% by abroad. 2050) to the Solidarity Guarantee Fund.
Social assistance: Residents of municipalities with severe The minimum monthly earnings used to calculate contribu- or high prevalence of extreme poverty. tions are the legal monthly minimum wage. The legal monthly minimum wage ranges from $202.88 Source of Funds (agriculture and cotton sector) to $304.17 (commerce and service sector), depending on the economic sector. Insured person The maximum monthly earnings used to calculate contribu- Mandatory individual account: 7.25% of monthly covered tions are $6,500 (January 2019). earnings. The minimum monthly earnings used to calculate contribu- Social assistance: None. tions are the legal monthly minimum wage. Government The legal monthly minimum wage ranges from $202.88 Mandatory individual account: Provides subsidies as needed; (agriculture and cotton sector) to $304.17 (commerce and contributes as an employer. service sector), depending on the economic sector. Social assistance: The total cost.
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Qualifying Conditions Partial disability: Must be assessed with a degree of disabil- ity of at least 50% but less than 65% and meet the contribu- Old-age pension (Pensión de Vejez, mandatory individ- tion requirements for a total disability pension. ual account): Age 60 (men) or age 55 (women) with at least 25 years of contributions; at any age with at least 30 years Guaranteed minimum disability pension (Pensión de of contributions until December 31, 2004. invalidez mínima garantizada): Must have at least 10 years of contributions before the disability began; at least three Guaranteed minimum old-age pension (Pensión de vejez years of contributions in the five years before the disabil- mínima garantizada): Age 60 (men) or age 55 (women) with ity began; or at least six months of contributions in the at least 25 years of contributions. Paid when the account 12 months before the disability began if the disability is the balance is exhausted after being used to finance the mini- result of an accident and the insured was actively contribut- mum monthly old-age pension for less than 20 years. ing before the disability began. Paid when the account bal- The minimum monthly old-age pension is $207.60. ance is exhausted after being used to finance the disability The guaranteed minimum old-age pension ceases 20 years pension. after the old-age pension is claimed or at age 85 (men) or The guaranteed minimum disability pension ceases at the age 80 (women), whichever occurs first, and is replaced by normal retirement age and is replaced by the guaranteed a longevity pension of the same amount. minimum old-age pension. Longevity pension (Pensión de longevidad): Paid to a The Disability Commission assesses the degree of pensioner 20 years after the old-age pension is claimed or at disability. age 85 (men) or age 80 (women), whichever occurs first. Survivor pension (Pensión de Sobrevivencia, manda- Special contribution supplement: Age 85 and paying the tory individual account): The deceased was actively con- special contribution to the Solidarity Guarantee Fund. tributing to an individual account at the time of death and Permanent old-age benefit (Beneficio Económico Per- had at least six months of contributions in the 12 months manente, mandatory individual account): Age 60 (men) before death; unemployed persons must have contributed in or age 55 (women) with 21 to 24 years of contributions. the last 12 months and had at least six months of contribu- tions in the 12 months before the last contribution. Insured persons qualifying for this benefit may claim the old-age settlement instead of this benefit. Eligible survivors include the widow(er) or cohabiting partner who lived with the deceased for at least three years, Longevity benefit (Beneficio de longevidad): Paid when the orphans younger than age 18 (age 24 if a student; no limit if account balance is exhausted after being used to finance the disabled), and dependent parents. permanent old-age benefit. Guaranteed minimum survivor pension (Pensión de sobre- Temporary old-age benefit (Beneficio Económico Tem- vivencia mínima garantizada): The deceased had at least Age 60 (men) or poral, mandatory individual account): 10 years of contributions; at least three years of contribu- age 55 (women) with 10 to 20 years of contributions. tions in the five years before the death; at least six months Insured persons qualifying for this benefit may claim the of contributions in the 12 months before death if the death old-age settlement instead of this benefit. was the result of an accident and the insured was actively Old-age settlement (Devolución de Saldo, mandatory contributing to an individual account. Paid when the individual account): Age 60 (men) or age 55 (women) with deceased’s account balance is exhausted after being used to less than 25 years of contributions. finance the survivor pension. Basic old-age pension (Pensión Básica Universal, Pro- Old-Age Benefits grama Nuestros Mayores Derechos, social assistance, income tested): Age 70, not receiving any other pension, Old-age pension (Pensión de Vejez, mandatory indi- and never contributed to social security during his or her vidual account): The insured has three different payment working life. options: make programmed withdrawals; purchase an annu- ity from a private insurance company; or a combination of Disability pension (Pensión de Invalidez, mandatory these two options. (For workers who opted to switch from Must be assessed with at degree of individual account): the old social insurance program to the individual account disability of at least 66% and have been actively contribut- program in 1998, the value of accrued rights under the old ing before the disability began or have at least six months program is combined with the individual account bal- of contributions in the 12 months before the disability ance at retirement.) The pension is paid for up to 20 years began; unemployed persons must have contributed in the (240 monthly payments and 20 Christmas payments) if the 12 months before the disability began and have at least six programmed withdrawals option is chosen. For all payment months of contributions in the 12 months before the last options, the monthly benefit must be at least the minimum contribution. monthly old-age pension. The minimum monthly old-age pension is $207.60.
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Guaranteed minimum old-age pension (Pensión de vejez Schedule of payments: Twelve monthly payments a years mínima garantizada): The minimum monthly old-age pen- plus a 13th payment for Christmas equal to 50% of the sion is paid. monthly pension. Longevity pension (Pensión de longevidad): At least the minimum monthly old-age pension is paid. Survivor Benefits Special contribution supplement: 10% of the old-age pen- Survivor pension (Pensión de Sobrevivencia, manda- sion is paid. tory individual account) The guaranteed minimum old-age pension and longevity Spouse’s pension: 50% of the old-age or disability pension pension are paid from the Solidarity Guarantee Fund. the deceased received or was entitled to receive is paid to a widow(er) or cohabiting partner with children (if there is Schedule of payments: Twelve monthly payments a years no widow(er) or cohabiting partner, the pension is paid to plus a 13th payment for Christmas equal to 50% of the orphans); 60% if there is no eligible orphan. monthly pension. Orphan’s pension: 25% of the old-age or disability pension Permanent old-age benefit (Beneficio Económico the deceased received or was entitled to receive is paid to Permanente, mandatory individual account): The total account balance, divided into a monthly benefit over each eligible orphan; 40% for a full orphan. 20 years, is paid. Dependent parent’s pension: 20% of the old-age or disabil- The monthly benefit may be lower than the minimum ity pension the deceased received or was entitled to receive monthly old-age pension. is paid to each dependent parent; 30% if there is only one surviving parent. If there is no eligible widow(er) or part- The minimum monthly old-age pension is $207.60. ner, 40% is paid to each dependent parent; 80% if there is Longevity benefit (Beneficio de longevidad): The longevity only one surviving parent. benefit is equal in value to the permanent old-age benefit Guaranteed minimum survivor pension (Pensión de sobre- the insured received. vivencia mínima garantizada): The minimum monthly Temporary old-age benefit (Beneficio Económico Tem- survivor pension is paid. poral, mandatory individual account): A monthly benefit The minimum monthly survivor pension is $207.60. of 40% to 60% of the minimum monthly old-age pension, based on the insured’s years of contributions, or the account The maximum combined survivor pension is 100% of the balance divided by 12 times the insured’s years of contribu- old-age or disability pension the deceased received or was tions, whichever is greater, is paid. entitled to receive. The minimum monthly old-age pension is $207.60. Schedule of payments: Twelve monthly payments a years plus a 13th payment for Christmas equal to 50% of the Old-age settlement (Devolución de Saldo, mandatory monthly pension. individual account): A lump sum of the total account bal- ance plus the total contributions to the Solidarity Guarantee Administrative Organization Fund is paid. Superintendent of Financial System (http://www.ssf.gob Basic old-age pension (Pensión Básica Universal, Pro- .sv/) provides general supervision. grama Nuestros Mayores Derechos, social assistance, income tested): $100 is paid every two months. Individual pension fund management companies (AFPs) administer individual accounts and collects contributions. Permanent Disability Benefits Social Investment Fund for Local Development (FISDL) (http://www.fisdl.gob.sv/) administers the basic old-age Disability pension (Pensión de Invalidez, mandatory pension. individual account): For a total disability, 50% of the insured’s base salary is paid. Sickness and Maternity The base salary is the insured’s average monthly earnings in the last 120 months. Regulatory Framework The minimum monthly disability pension for a total dis- ability is $207.60 First law: 1949 (social insurance). Partial disability: 36% of the insured’s base salary is paid. Current laws: 1953 (social security), 1996 (social insur- ance), 2007 (for teachers and professors), 2010 (household The minimum monthly disability pension for a partial dis- workers), 2017 (voluntary health insurance for nationals ability is $145.32. residing abroad), and 2018 (voluntary health insurance for Guaranteed minimum disability pension (Pensión de invali- self-employed persons). dez mínima garantizada): The minimum monthly pension for a total disability or partial disability is paid. Type of program: Social insurance system.
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Coverage Medical benefits: There is no minimum qualifying period if the insured is currently employed and contributing. Public- and private-sector employees, household workers, Unemployed persons must have at least eight weeks of con- and pensioners and certain unemployed persons (medical tributions in the last three months. Self-employed persons, benefits only). household workers, and citizens residing abroad have a Voluntary coverage for self-employed persons, and citizens qualifying period of six months for certain conditions. of El Salvador residing abroad. Exclusions: Agricultural and casual workers. Sickness and Maternity Benefits Sickness benefit (Subsidio de Enfermedad): 75% of the Source of Funds insured’s average daily base earnings in the first three of Insured person: 3% of monthly covered earnings; a the four months before the incapacity began is paid after a monthly premium of $55.92 for voluntarily covered citizens three-day waiting period for up to 26 weeks for the same residing abroad. Pensioners contribute 7.8% of the old-age, incapacity; may be extended for an additional 26 weeks. disability, or survivor pension; or 6% of the work injury Schedule of payments: The benefit is paid daily. disability or survivor pension. Maternity benefit (Subsidio de Maternidad): 100% of the The minimum monthly earnings used to calculate contribu- insured’s average daily base earnings in the first three of tions are the legal monthly minimum wage. the four months before the maternity leave is paid for up to The legal monthly minimum wage ranges from $202.88 16 weeks, including at least 10 weeks after childbirth; other (agriculture and cotton sector) to $304.17 (commerce and benefits include milk (with a medical prescription) and a service sector), depending on the economic sector. layette. The maximum monthly earnings used to calculate contribu- Schedule of payments: The benefit is paid daily. tions are $1,000 ($685.71 for pensioners). The insured person’s contributions also finance work injury Workers’ Medical Benefits benefits. Benefits include complete medical, accident and maternity care, hospitalization, medicine, auxiliary services for diag- Self-employed person: A monthly premium of $40; $56 if the insured chooses to cover family members. nosis and treatment, and dental care (except for cosmetic reasons). Unemployed persons receive medical benefits for The self-employed person’s contributions also finance work up to a year. injury benefits.
Employer: 7.5% of monthly covered payroll. Dependents’ Medical Benefits The minimum monthly earnings used to calculate contribu- The insured’s wife receives maternity care (including a tions are the legal monthly minimum wage. breastfeeding grant and layette) and medical and dental benefits. Children up to age 12 receive basic medical care. The legal monthly minimum wage ranges from $202.88 Benefits are the same for dependents of self-employed (agriculture and cotton sector) to $304.17 (commerce and persons covered under family insurance as for the primary service sector), depending on the economic sector. insured. The maximum monthly earnings used to calculate contribu- tions are $1,000. Administrative Organization The employer’s contributions also finance work injury Salvadorian Social Insurance Institute (http://www.isss benefits. .gob.sv/), supervised by a board of directors, administers the program and collects contributions. Government: Pays an annual subsidy; contributes as an employer. Salvadorian Social Insurance Institute operates its own clinics and hospitals. Qualifying Conditions Cash sickness benefit (Subsidio de Enfermedad): Must Work Injury be currently employed. There is no minimum qualifying period. Household workers do not qualify for cash sickness Regulatory Framework benefits. First law: 1949 (social insurance). Cash maternity benefit (Subsidio de Maternidad): Must Current laws: 1953 (social security), 1996 (social insur- have at least 16 weeks of contributions in the 12 months ance), and 2012 (occupational risks). before the expected date of childbirth. Type of program: Social insurance system.
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Coverage Workers’ Medical Benefits Public- and private-sector employees and household Benefits include complete medical and maternity care, hos- workers. pitalization, medicine, auxiliary services for diagnosis and Voluntary coverage for self-employed persons. treatment, and dental care (except for cosmetic reasons). Exclusions: Casual and rural workers. Survivor Benefits Source of Funds Survivor pension (Pensión de Sobrevivientes) Insured person: See source of funds under Sickness and Spouse’s pension: 60% of the permanent disability pension Maternity. the deceased received or was entitled to receive is paid to a widow(er). Self-employed person: See source of funds under Sick- ness and Maternity. Orphan’s pension: 30% of the permanent disability pension the deceased received or was entitled to receive is paid for Employer: See source of funds under Sickness and each child younger than age 16 (age 22 if a student); 40% Maternity. is paid to a full orphan who was not receiving a survivor Government: An annual subsidy; contributes as an pension before. employer. Other eligible survivors’ pension: If there are no eligible widow(er) or orphan, 60% of the permanent disability Qualifying Conditions the deceased received or was entitled to receive is paid to Must be assessed with a work injury or occupational parents who have reached the normal retirement age; 40% disease. if there is only one eligible parent. The maximum combined survivor pension is 100% of the Temporary Disability Benefits permanent disability pension the deceased received or was Temporary disability benefit (Subsidio Diario por Inca- entitled to receive. pacidad Temporal): 75% of the insured’s average monthly Funeral grant: A lump sum of up to $937.86 is paid to the base earnings in the first three of the last four months person who paid for the funeral (2018). is paid from the day after the disability began for up to 52 weeks. Administrative Organization Permanent Disability Benefits Salvadorian Social Insurance Institute (http://www.isss .gob.sv/), supervised by a board of directors, administers Permanent disability pension (Pensión por Incapacidad the program and collects contributions. Permanente): For an assessed degree of disability greater Social Insurance Institute operates its own clinics and than 66%, 70% of the insured’s average monthly earnings hospitals. in the 12 months before the disability began is paid. The minimum monthly permanent disability pension is Unemployment $119.70. Constant-attendance supplement (Aumento por ayuda de Regulatory Framework tercera persona): Up to 50% of the permanent disability Labor law (1972) requires employers to provide severance pension is paid if the insured requires the constant atten- pay in cases of unfair dismissal. For an employee with a dance of others to perform daily functions. permanent contract, the payment amount is 30 days of Child supplement (Asignación por hijo): 20% of the mini- the employee’s pay for each continuous year of service. mum disability pension is paid for each child younger than The payment is proportionately reduced for fractions of a age 16 (age 22 if a student; no limit if disabled). year. For an employee with a fixed-term contract, the pay- Partial disability: For an assessed degree of disability ment amount is 100% of the employee’s outstanding basic greater than 35% and up to 66%, a percentage of the full earnings agreed to in the work contract, or the equivalent permanent disability pension is paid based on the assessed amount the employee would receive under a permanent degree of disability. For an assessed degree of disability of contract, whichever is less. at least 21% and up to 35%, two times the amount of the The minimum severance pay for an employee with a per- permanent disability pension based on the assessed degree manent contract is 15 days of pay. of disability and is paid for up to three years. The maximum daily earnings used to calculate the sever- ance pay for an employee with a permanent contract is four times the legal daily minimum wage.
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The legal monthly minimum wage ranges from $202.88 Health cash transfer (Bono Salud): Paid to families with (agriculture and cotton sector) to $304.17 (commerce and children younger than age 5 who comply with vaccination service sector), depending on the economic sector. and medical service requirements. Education cash transfer (Bono Educación): Paid to families Family Allowances with at least one child younger than age 18 who has not completed the sixth grade. Eligible children must register Regulatory Framework for school and comply with attendance requirements. First law: 2005 (Red Solidaria cash transfer). Family Allowance Benefits Current law: 2009 (Solidarity cash transfer). Solidarity cash transfers (Comunidades Solidarias Type of program: Social assistance system. Urbanas y Rurales, means tested) Note: In June 2017, new enrolments in the solidarity cash Health cash transfer (Bono Salud): $30 is paid every two transfer program ceased; persons enrolled in the program months. before this date continue to receive benefits. Education cash transfer (Bono Educación): $30 is paid Coverage every two months. Needy citizens of El Salvador. The maximum combined solidarity cash transfer for fami- lies who qualify for both types of transfers is $40 every two Source of Funds months. Insured person: None. Administrative Organization Self-employed person: None. Social Investment Fund for Local Development (http:// www.fisdl.gob.sv/) administers the solidarity cash transfer Employer: None. program for rural areas. Government: The total cost. Ministry of Education (http://www.mined.gob.sv/), Minis- try of Health (http://www.salud.gob.sv/), and National Fund Qualifying Conditions for Popular Housing (http://www.fonavipo.gob.sv/) admin- Solidarity cash transfers (Comunidades Solidarias ister the different components of the solidarity cash transfer Urbanas y Rurales, means tested): Must be assessed as program for urban areas, as per their areas of authority. living in extreme poverty and residing in one of the regions classified as having high rates of severe, high, or moderate poverty.
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Qualifying Conditions Old-age pension (Age Pension): Age 60 with at least Grenada 500 weeks of paid or credited contributions, including at Exchange rate: US$1.00 = least 150 weeks of paid contributions. 2.70 East Caribbean dollars (EC$). Contributions are credited for periods of sickness, mater- nity, and temporary or permanent work injury. The old-age pension is payable abroad. Old Age, Disability, and Survivors Old-age grant (Age Grant): Age 60 with at least 50 weeks Regulatory Framework but less than 500 weeks of paid or credited contributions. First law: 1969 (provident fund). Contributions are credited for periods of sickness, mater- nity, and temporary or permanent work injury. Current law: 1983 (social insurance). The old-age grant is payable abroad. Type of program: Social insurance system. Disability pension (Invalidity Pension): Must be younger Coverage than the normal retirement age, be assessed with a perma- nent incapacity for work, and have at least 150 weeks of Public- and private-sector employees, including appren- paid contributions and. tices, part-time workers, and seasonal workers; and self- employed persons. A registered medical doctor assesses the disability. Voluntary coverage is available. The disability pension is payable abroad. Disability grant (Invalidity Grant): Must be younger than Source of Funds the normal retirement age, be assessed with a permanent incapacity for work, and have at least 50 weeks but less Insured person: 4% of gross monthly covered earnings; than 150 weeks of paid contributions. 6.75% for the voluntarily insured (old-age, disability, and survivors benefits); none if younger than age 16 or aged 60 The disability grant is payable abroad. or older. Survivor pension: The deceased received or was entitled There are no minimum earnings used to calculate to receive an old-age or disability pension at the time of contributions. death. The maximum monthly earnings used to calculate contribu- Eligible survivors include a widow(er) (including a com- tions are EC$5,000. mon-law spouse) who was married to the deceased for at The mandatorily insured person’s contributions also finance least three years, orphans younger than age 16 (age 21 if cash sickness and maternity benefits. a full-time student, no limit if disabled), and dependent parents. Self-employed person: 8% of gross monthly covered The widow(er)’s pension ceases upon remarriage or earnings. cohabitation. There are no minimum earnings used to calculate The survivor pension is payable abroad. contributions. The maximum monthly earnings used to calculate contribu- Survivor grant: The deceased received or was entitled to tions are EC$5,000. receive an old-age or disability grant at the time of death. The self-employed person’s contributions also finance cash Eligible survivors include a widow(er) (including a com- sickness and maternity benefits. mon-law spouse) who was married to the deceased for at least three years, orphans younger than age 16 (age 21 if Employer: 4% of gross monthly covered payroll for a full-time student, no limit if disabled), and dependent employees aged 16 to 59. parents. There are no minimum earnings used to calculate The survivor grant is payable abroad. contributions. Funeral grant: Paid to the person who paid for the funeral The maximum monthly earnings used to calculate contribu- when the insured person, the insured’s spouse, or the tions are EC$5,000. insured’s child younger than age 16 (age 21 if a full-time The employer’s contributions also finance cash sickness and student) dies. The insured must have received or been enti- maternity benefits. tled to receive an old-age, disability, sickness, maternity, or work injury benefit at the time of the death. The grant must Government: None; contributes as an employer. be claimed within six months of the date of death.
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The funeral grant is not payable abroad. The maximum weekly spouse’s pension is EC$493.28. If the widow(er) is entitled to receive an old-age or dis- Old-Age Benefits ability pension and a spouse’s pension, the total amount Old-age pension (Age Pension): 30% of the insured’s received is 100% of the old-age or disability pension plus average weekly earnings plus 1% of average weekly 50% of the spouse’s pension. earnings for every 50 weeks of contributions exceeding Orphan’s pension: 25% of the old-age or disability pension 500 weeks is paid. the deceased received or was entitled to receive is paid for Average weekly earnings are the insured’s average annual each eligible orphan; 50% for an orphan with a disability or covered earnings in his or her best five years of earnings a full orphan. divided by 52. The minimum weekly orphan’s pension is EC$19.70. The minimum weekly old-age pension is EC$46.40. Dependent parent’s pension: Up to 25% of the old-age or The maximum weekly old-age pension is EC$657.70. disability pension the deceased received or was entitled to Schedule of payments: The pension is paid monthly. receive is paid for a dependent parent. Benefit adjustment: Benefits are reviewed periodically. The maximum combined survivor pension is 100% of the old-age or disability pension the deceased received or was Old-age grant (Age Grant): A lump sum of five times the entitled to receive. insured’s average weekly earnings for every 50 weeks of paid or credited contributions is paid. Schedule of payments: The pensions are paid monthly. Average weekly earnings are the sum of the insured’s Benefit adjustment: Benefits are reviewed periodically. weekly covered earnings for the relevant period divided by Survivor grant: A lump sum of five times the insured’s the number of weeks. average weekly earnings for every 50 weeks of paid or credited contributions is paid. Permanent Disability Benefits Average weekly earnings are the sum of the insured’s Disability pension (Invalidity Pension): 30% of the weekly covered earnings for the relevant period divided by insured’s average weekly earnings plus 1% of average the number of weeks. weekly earnings for every 50 weeks of contributions Funeral grant: EC$2,320 is paid for the insured’s funeral; exceeding 500 weeks is paid. EC$1,740 for the funeral of the insured’s spouse; and Average weekly earnings are the insured’s average annual EC$870 for the funeral of the insured’s child. covered earnings in his or her best five years of earnings divided by 52. Administrative Organization The minimum weekly disability pension is EC$46.40. Ministry of Health and Social Security (http://health.gov The maximum weekly disability pension is 60% of the .gd/) provides general supervision. insured’s average weekly earnings. National Insurance Scheme (http://www.nisgrenada.org/) Schedule of payments: The pension is paid monthly. collects contributions and administers the program. Benefit adjustment: Benefits are reviewed periodically. Sickness and Maternity Disability grant (Invalidity Grant): A lump sum of five times the insured’s average weekly earnings for every Regulatory Framework 50 weeks of paid or credited contributions is paid. First law: 1980 (maternity leave). Average weekly earnings are the sum of the insured’s weekly covered earnings for the relevant period divided by Current laws: 1983 (social insurance) and 1999 (employ- the number of weeks. ment act). Type of program: Social insurance and employer-liability Survivor Benefits system. Cash benefits only. Survivor pension Note: Government health facilities and public hospitals Spouse’s pension: 75% of the old-age or disability pen- provide free primary health care. sion the deceased received or was entitled to receive is paid for life to a widow(er) aged 50 or older; for one year to a Coverage widow(er) younger than age 50; for as long as the disability Social insurance: Public- and private-sector employees, lasts to a widow(er) with a disability. including apprentices, part-time workers, and seasonal The minimum weekly spouse’s pension is EC$46.40. workers; and self-employed persons.
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Employer liability: Public- and private-sector employees. Sickness and Maternity Benefits Exclusions: Self-employed persons. Sickness benefit (social insurance): 65% of the insured’s average weekly covered earnings in the 13 weeks before Source of Funds the incapacity began is paid from the first day of incapac- Insured person ity for up to 26 weeks; for up to 52 weeks with at least 150 weeks of paid or credited contributions, including at Social insurance: See source of funds under Old Age, Dis- least 75 weeks in the last three years. ability, and Survivors. There is no minimum sickness benefit. Employer liability: None. The maximum daily sickness benefit is EC$125. Self-employed person Sickness benefit (employer liability): 100% (35% Social insurance: See source of funds under Old Age, Dis- if receiving a social insurance sickness benefit) of the ability, and Survivors. employee’s wages is paid for up to two months. Benefits may be extended based on a medical report of a medical Employer liability: Not applicable. practitioner. Employer Maternity benefit (Maternity Allowance, social insur- Social insurance: See source of funds under Old Age, Dis- ance): 65% of the insured’s average weekly covered earn- ability, and Survivors. ings in the 30 weeks before the start of the benefit is paid for up to 12 weeks, beginning up to six weeks before the Employer liability: The total cost. expected date of childbirth. Government The minimum weekly maternity benefit is EC$522. Social insurance: None; contributes as an employer. The maximum weekly maternity benefit is EC$750 Employer liability: None; contributes as an employer. Maternity benefit (employer liability): Up to 40% of the employee’s average covered earnings for two months of the Qualifying Conditions three-month maternity leave period is paid. The benefit is Cash sickness benefit (social insurance): Must be paid once every two years, up to a total of three times. aged 16 to 59, have been employed on the day before Maternity grant (social insurance): A lump sum of the incapacity began, and have at least 13 weeks of con- EC$522 is paid. tributions, including eight weeks of contributions as an employee in the 13 weeks before the incapacity began. The Benefit adjustment: Benefits are reviewed periodically. incapacity for work must last at least four consecutive days. Workers’ Medical Benefits Cash sickness benefit (employer liability): Must have Public hospitals and community health facilities provide been employed for at least 12 consecutive months with free public health care. Fees may be charged for X-rays and the same employer and provide a medical certificate from laboratory tests. a registered medical practitioner stating the nature and expected duration of incapacity. The employee is eligible for sickness benefits up to five times a year. Dependents’ Medical Benefits Limited benefits, including free primary health care, are Cash maternity benefit (Maternity Allowance, social provided to the general population (see Workers’ Medical insurance): Paid to an insured woman aged 16 to 59 with at Benefits). least 30 weeks of contributions, including 20 weeks of paid contributions in the 30 weeks immediately preceding the week that is six weeks before the expected date of child- Administrative Organization birth or the week in which the claim is made, whichever is National Insurance Scheme (http://www.nisgrenada.org/) later. collects contributions and administers the social insurance program. Cash maternity benefit (employer liability): Must have worked at least 18 months with the same employer Ministry of Labour (http://labour.gov.gd/) provides general (105 days in the last 18 months for an employee who is paid supervision of the employer-liability program. daily). Ministry of Health and Social Security (http://health.gov .gd/) provides general supervision and administers the Maternity grant (social insurance): Paid to an insured public health system. woman or the insured husband of an uninsured woman. The insured must be aged 16 to 59 and have at least 50 weeks of paid contributions.
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Work Injury (100%) disability and requires the constant attendance of others to perform daily functions. Regulatory Framework Partial disability: For an assessed degree of disability of First law: 1982 (workmen’s compensation) at least 30% but less than 100%, a percentage of the full permanent disability benefit is paid based on the assessed Current law: 1983 (social insurance). degree of disability; for an assessed degree of disability of Type of program: Social insurance system. less than 30%, a lump sum is paid. A registered medical doctor assesses the degree of Coverage disability. Public- and private-sector employees, including appren- Benefit adjustment: Benefits are reviewed periodically. tices, part-time workers, and seasonal workers; and self- employed persons. Workers’ Medical Benefits Benefits include medical, surgical, dental, and hospital Source of Funds treatment; skilled nursing services; medicine; prostheses; Insured person: None. overseas treatment; and the cost of transportation for medi- cal services. Self-employed person: 1% of gross monthly covered earnings. The cost of medical treatment abroad is fully reimbursed with prior approval from the National Insurance Board or There are no minimum earnings used to calculate up to EC$1,000 without approval. contributions. The maximum monthly earnings used to calculate contribu- Survivor Benefits tions are EC$5,000. Survivor pension 1% of gross monthly covered payroll. Employer: Spouse’s pension: 75% of the permanent disability benefit There are no minimum earnings used to calculate the deceased received or was entitled to receive is paid to a contributions. widow(er) (including a common-law spouse). The maximum monthly earnings used to calculate contribu- The minimum weekly spouse’s pension is EC$46.40. tions are EC$5,000. The maximum weekly spouse’s pension is EC$493.28. Government: None; contributes as an employer. The spouse’s pension ceases upon remarriage or cohabitation. Qualifying Conditions Orphan’s pension: 25% of the permanent disability benefit Must be assessed with a work injury or occupational dis- the deceased received or was entitled to receive is paid ease. There is no minimum qualifying period. for each orphan younger than age 16 (age 21 if a full-time student); 50% for a disabled or full orphan. Temporary Disability Benefits The minimum weekly orphan’s pension is EC$19.70. 70% of the insured’s average weekly covered earnings in the last 13 weeks is paid from the day of the work injury or Other dependent’s pension: 50% of the permanent disabil- certified onset of the occupational disease until recovery or ity pension the deceased received or was entitled to receive for 52 weeks, whichever occurs first. is paid if the survivor was totally dependent on the insured or 25% if partially dependent, up to the difference of the There is no minimum or maximum temporary disability combined survivor pension paid to a spouse or orphan and benefit. the maximum combined survivor pension. The pension is A registered medical doctor assesses the degree of paid for up to 52 weeks from the insured’s date of death. disability. The minimum weekly dependent’s pension is EC$19.70. Benefit adjustment: Benefits are reviewed periodically. The maximum combined survivor pension is 100% of the permanent disability benefit the deceased received or was Permanent Disability Benefits entitled to receive. For a total (100%) disability, 70% of the insured’s average Benefit adjustment: Benefits are reviewed periodically. weekly covered earnings in the last 13 weeks is paid. There is no minimum or maximum permanent disability Funeral grant: A lump sum of EC$2,320 is paid to the benefit. person who paid for the insured’s funeral. Constant-attendance allowance: 50% of the permanent dis- Benefit adjustment: Benefits are reviewed periodically. ability benefit is paid if the insured is assessed with a total
172 ♦ SSPTW: The Americas, 2019 Grenada
Administrative Organization Ministry of Health and Social Security (http://health.gov .gd/) provides general supervision. National Insurance Scheme (http://www.nisgrenada.org/) collects contributions and administers the program.
Unemployment
Regulatory Framework Under the 1999 Employment Act, employers are required to provide severance pay to dismissed employees who have completed at least one year of continuous employment. The payment amount is at least one week of an employee’s wages for each completed year of service.
SSPTW: The Americas, 2019 ♦ 173 Guatemala
Employer Guatemala Social insurance: 3.67% of gross monthly covered payroll. The minimum daily earnings used to calculate contribu- Exchange rate: US$1.00 = 7.69 quetzales. tions are the legal daily minimum wage. The legal daily minimum wage ranges from 82.46 quetza- les (export and maquila industry) to 90.16 quetzales (other Old Age, Disability, and Survivors sectors). There are no maximum earnings used to calculate Regulatory Framework contributions. First laws: 1969 (social insurance), implemented on a Social assistance: None with net annual income up to national level in 1977; and 2005 (social pension). 25,000 quetzales; a fixed yearly amount, which varies Current laws: 2003 (social insurance) and 2005 (social depending on income, for individuals with annual net pension). income greater than 25,000 quetzales or legal entities with annual net income greater than 100,000 quetzales. Type of program: Social insurance and social assistance system. Government Social insurance: 25% of total contributions paid; contrib- Coverage utes as an employer. Social insurance: Employees of firms with at least three Social assistance: Provides subsidies as needed. workers, persons employed in freight or passenger trans- port enterprises with at least one worker, and public-sector Qualifying Conditions employees not covered by a special system. Old-age pension (Pensión por vejez, social insurance): Voluntary coverage for persons with at least 12 months of Age 60 with at least 240 months of contributions. contributions in the last 36 months who join the program up to three months after ceasing covered employment. Dependent’s supplement: Paid for a spouse or cohabiting partner, children younger than age 18 (no limit if disabled), Exclusions: Self-employed persons. and dependent parents with no work capacity. Special systems for military personnel and most public- The old-age pension is not payable abroad. sector employees. Old-age settlement (Asignación única, social insur- Social assistance: Needy resident citizens of Guatemala. ance): Age 60 with at least 12 months but less than 240 months of contributions. Source of Funds Employment must cease. Insured person The old-age settlement is not payable abroad. Social insurance: 1.83% of gross monthly covered earnings; Old-age social pension (Programa de Aporte 5.5% of covered earnings in the last month of mandatory Económico del Adulto Mayor, social assistance, means coverage for the voluntarily insured. tested): Age 65, living in conditions of extreme poverty or The minimum daily earnings used to calculate contribu- with a disability, not working, and not receiving any other tions are the legal daily minimum wage. pension. The legal daily minimum wage ranges from 82.46 quetza- Means test: Personal income and assets must not exceed les (export and maquila industry) to 90.16 quetzales (other certain limits. sectors). The old-age social pension is not payable abroad. There are no maximum earnings used to calculate Disability pension (Pensión de invalidez, social insur- contributions. ance): Must be assessed with a total disability (more than Social assistance: None with net annual income up to a 33% loss of earning capacity) and have at least 36 months 25,000 quetzales; a fixed yearly amount, which varies of contributions in the six years before the disability began. depending on income, with annual net income greater than A medical board of the Social Security Institute assesses 25,000 quetzales. and reviews the degree of disability every year. Self-employed person Dependent’s supplement: Paid for a spouse or cohabiting partner, children younger than age 18 (no limit if disabled), Social insurance: Not applicable. a dependent mother not receiving any other pension, and a Social assistance: None. disabled dependent father not receiving any other pension.
174 ♦ SSPTW: The Americas, 2019 Guatemala
Constant-attendance supplement (Gran invalidez): Paid if Old-age social pension (Programa de Aporte the insured requires the constant attendance of others to Económico del Adulto Mayor, social assistance, means perform daily functions. tested): 400 quetzales a month is paid. The disability pension ceases at the normal retirement age and is replaced by an old-age pension. Permanent Disability Benefits The disability pension is not payable abroad. Disability pension (Pensión de invalidez, social insur- ance): 50% of the insured’s average monthly earnings in Survivor pension (Pensión de sobrevivientes, social the last 60 months plus 0.5% for every six months of contri- insurance): The deceased received or was entitled to butions exceeding 120 months is paid. receive an old-age or disability pension at the time of death, Dependent’s supplement: 10% of the disability pension is or had at least 36 months of contributions in the last six paid for each eligible dependent. years Constant-attendance supplement: 25% of the disability pen- Eligible survivors include a widow, a widower with no work sion is paid. capacity, orphans younger than age 18 (no limit if disabled), a dependent mother not receiving any other pension, and a The maximum monthly earnings used to calculate benefits disabled dependent father not receiving any other pension. are 9,000 quetzales. The widow(er)’s pension ceases upon remarriage. The minimum monthly disability pension, including supplements, is 340 quetzales. The survivor pension is not payable abroad. The maximum monthly old-age pension, including supple- Funeral grant (Cuota mortuaria, social insurance): The ments, is 7,200 quetzales (80% of the maximum monthly deceased received or was entitled to receive an old-age or earnings used to calculate benefits). disability pension, or was receiving a survivor pension at the time of death. Schedule of payments: 13 payments a year plus a July bonus of 300 quetzales and a December bonus of 500 quetzales. The funeral grant cannot be combined with the death grant under Work Injury. Benefit adjustment: Benefits are adjusted periodically depending on financial resources. Old-Age Benefits Survivor Benefits Old-age pension (Pensión por vejez, social insurance): 50% of the insured’s average monthly earnings in the last Survivor’s pension (Pensión de sobrevivientes, social 60 months plus 0.5% for every six months of contributions insurance) exceeding 120 months is paid. Spouse’s pension: 50% of the old-age or disability pension Dependent’s supplement: 10% of the old-age pension is paid the deceased received or was entitled to receive is paid to a for each eligible dependent. widow or a widower with a disability. The maximum monthly earnings used to calculate benefits The minimum monthly spouse’s pension is 170 quetzales. are 9,000 quetzales. Orphan’s pension: 25% of the old-age or disability pension The minimum monthly old-age pension, including supple- the deceased received or was entitled to receive is paid for ments, is 340 quetzales. each eligible orphan; 50% for each full orphan. The maximum monthly old-age pension, including supple- The minimum monthly orphan’s pension is 85 quetzales; ments, is 7,200 quetzales (80% of the maximum monthly 170 quetzales for a full orphan. earnings used to calculate benefits). Dependent parent’s pension: 25% of the old-age or disabil- Schedule of payments: 13 payments a year plus a July bonus ity pension the deceased received or was entitled to receive of 300 quetzales and a December bonus of 500 quetzales. is paid to each dependent parent. Benefit adjustment: Benefits are adjusted periodically based The minimum monthly dependent parent’s pension is on actuarial reviews. 85 quetzales. Old-age settlement (Asignación única, social insur- The minimum combined monthly survivor pension is ance): A lump sum of 70% of the insured’s social insur- 340 quetzales. ance contributions is paid, up to three times the maximum The maximum combined survivor pension is 100% of the monthly earnings used to calculate benefits. old-age or disability pension the deceased received or was The maximum monthly earnings used to calculate benefits entitled to receive. are 9,000 quetzales. Schedule of payments: 13 payments a year plus a July bonus of 300 quetzales and a December bonus of 500 quetzales.
SSPTW: The Americas, 2019 ♦ 175 Guatemala
The July and December bonuses are split among the eligible Employer: 4% of gross monthly payroll. survivors: the widow receives two-thirds, and the remain- There are no minimum or maximum earnings used to cal- ing one-third is split equally among other eligible survivors. culate contributions. Benefit adjustment: Benefits are adjusted periodically based Government: 2% of gross monthly payroll; finances medi- on actuarial reviews. cal benefits for former public-sector employees receiving a Funeral grant (Cuota mortuoria, social insurance): A pension under a special system; contributes as an employer. lump sum of up to 1,237.50 quetzales is paid. There are no minimum or maximum earnings used to cal- Benefit adjustment: Benefits are adjusted periodically based culate contributions. on actuarial reviews. Qualifying Conditions Administrative Organization Cash sickness and maternity benefits: Must have at Ministry of Labor and Social Welfare (http://www least four months (three months for those who joined the .mintrabajo.gob.gt/) provides general supervision. program before August 5, 2005) of contributions in the six Social Security Institute (http://www.igssgt.org/) collects months before the incapacity began. contributions and administers the social insurance program. Funeral grant (Cuota mortuoria por enfermedad): Paid Ministry of Labor and Social Welfare (http://www when an insured person or a dependent wife entitled to .mintrabajo.gob.gt/) administers the social assistance maternity medical benefits dies. The insured must have at program. least four months of contributions in the six months before death.
Sickness and Maternity Medical benefits: Must have at least four months of con- tributions in the last six months; there is no minimum con- Regulatory Framework tribution period for persons first insured before August 5, First law: 1952 (maternity and children). 2005. Eligible dependents include a dependent wife or cohabiting Current laws: 1964 (sickness, maternity, and medical benefits), 2009 (household workers), and 2010 (dependent’s partner and children younger than age 7. medical benefits). Maternity medical benefits: Provided to an insured women and the dependent wife or cohabiting partner of an Type of program: Social insurance system. insured man. Coverage Sickness and Maternity Benefits Cash benefits: Public- and private-sector employees working in firms with at least three workers, and persons Sickness benefit: 66.7% of the insured’s average daily employed in freight or passenger transport enterprises with earnings in the month before the incapacity began is paid at least one worker. after a three-day waiting period for up to 26 weeks; may be extended to 39 weeks. The maximum combined benefit for Medical benefits: Public- and private-sector employ- multiple periods of incapacity is 52 weeks in a 24-month ees working in firms with at least three workers; persons period. employed in freight or passenger transport enterprises The minimum daily sickness benefit is 12 quetzales. with at least one worker; pensioners, including former public-sector employees receiving a pension under a special The maximum daily sickness benefit 120 quetzales. system; and certain unemployed persons. Maternity benefit: 100% of the insured’s average daily Exclusions: Self-employed persons and certain high-rank- earnings in the month before childbirth is paid for 30 days ing elected or appointed officials. before and 54 days after the expected date of childbirth. Special systems for military personnel and household The benefit is paid for up to 27 days in case of miscarriage. workers. Nursing mothers are permitted one hour a day at work to nurse their children, for up 10 months.
Source of Funds Funeral grant (Cuota mortuoria por enfermedad): A Insured person: 2% of gross monthly earnings. lump sum of up to 1,237.50 quetzales is paid. There are no minimum or maximum earnings used to cal- culate contributions. Workers’ Medical Benefits Medical benefits: Benefits include general, specialist, Self-employed person: Not applicable. and dental care; maternity care; surgery; hospitalization;
176 ♦ SSPTW: The Americas, 2019 Guatemala medicine; laboratory services; X-rays; appliances; transpor- Source of Funds tation; rehabilitation; and retraining. Unemployed persons may receive medical benefits for up to two months after Insured person: 1% of gross monthly earnings. ceasing employment. There are no minimum or maximum earnings used to cal- Free medical benefits are provided to uninsured persons in culate contributions. an emergency and until the condition stabilizes. Self-employed person: Not applicable. Maternity medical benefits: Benefits include prenatal Employer: 3% of gross monthly payroll. consultations, family planning, gynecology, obstetrics, and There are no minimum or maximum earnings used to cal- postnatal care. culate contributions. Dependents’ Medical Benefits Government: 1.5% of gross monthly earnings; contributes as an employer. Medical benefits: The wife or partner of an insured man receives the same accident benefits as an insured person in There are no minimum or maximum earnings used to cal- all parts of the country, and sickness benefits in 21 of the 22 culate contributions. administrative departments. Qualifying Conditions Children younger than age 7 receive general and specialist medical care, hospitalization, dental care, vaccinations, and Benefits are provided for work-related and nonwork-related cochlear implants. accidents or occupational diseases. For cash benefits, the insured must have at least three months of contributions Free medical benefits are provided to uninsured persons in before the work injury or occupational disease began. For an emergency and until the condition stabilizes. medical benefits, there is no minimum qualifying period if Maternity medical benefits: Benefits are the same for the the insured is in covered employment; unemployed persons wife or partner of an insured man.. must have at least three months of contributions in the last six months before the work injury or occupational disease Administrative Organization began. Ministry of Labor and Social Welfare (http://www .mintrabajo.gob.gt/) provides general supervision. Temporary Disability Benefits Social Security Institute (http://www.igssgt.org/) admin- 66.7% of the insured’s average daily earnings in the three isters contributions and benefits and provides medical months before the disability began is paid from the second benefits through its hospitals, clinics, and other medical day of incapacity until recovery. services. The minimum daily temporary disability benefit is 12 quetzales. Work Injury The maximum daily temporary disability benefit is 120 quetzales. Regulatory Framework Benefit adjustment: Benefits are adjusted periodically First law: 1947. depending on financial resources.
Current laws: 1964 (medical benefits); 1994 (work-related Permanent Disability Benefits and nonwork-related accidents), implemented in 1995; and 2009 (household workers). A lump sum of 495 to 4,950 quetzales is paid based on the assessed degree of disability. Type of program: Social insurance system. A medical board of the Social Security Institute assesses the degree of disability. Coverage Benefit adjustment: Benefits are adjusted periodically Public- and private-sector employees in firms with at least depending on financial resources. three workers, and persons employed in freight or pas- senger transport enterprises with at least one worker; and Work injury benefits can be combined with the disability certain unemployed persons. pension under Old Age, Disability, and Survivors. Exclusions: Self-employed persons and certain high-rank- ing elected or appointed officials . Workers’ Medical Benefits Benefits include medical treatment, surgery, hospitaliza- Special systems military personnel and household workers. tion, medicine, appliances, transportation, rehabilitation services, X-rays, laboratory tests, and retraining.
SSPTW: The Americas, 2019 ♦ 177 Guatemala
Survivor Benefits Unemployment Death grant (Cuota mortuoria por accidente): A lump sum of up to 1,237.50 quetzales is paid. Regulatory Framework The labor law requires employers to provide severance pay Benefit adjustment: Benefits are adjusted periodically in cases of unfair dismissal to workers with permanent depending on financial resources. contracts who have passed a probation period. The payment amount is one month of the employee’s earnings for each Administrative Organization year of continuous employment and is reduced proportion- Ministry of Labor and Social Welfare (http://www ately for fractions of a year. .mintrabajo.gob.gt/) provides general supervision. Social Security Institute (http://www.igssgt.org/) admin- isters contributions and benefits and provides medical benefits through its hospitals, clinics, and other medical services.
178 ♦ SSPTW: The Americas, 2019 Guyana
The maximum earnings used to calculate contributions are G$59,262 a week or G$256,800 a month (adjusted Guyana annually). Exchange rate: US$1.00 = Contributions are paid weekly, biweekly, or monthly, 215.00 Guyana dollars (G$). depending on the type of employment. The self-employed person’s contributions also finance cash sickness and maternity benefits, and medical benefits. Old Age, Disability, and Survivors Social assistance: None. Regulatory Framework Employer First and current laws: 1903 (poor relief), 1944 (old-age Universal: None. assistance), and 1969 (social security). Social insurance: 8.4% of covered weekly, biweekly, or Type of program: Universal, social insurance, and social monthly payroll; 1.5% for persons younger than age 16 or assistance system. aged 60 or older. There are no minimum earnings used to calculate Coverage contributions. Universal: Resident citizens of Guyana. The maximum earnings used to calculate contributions are G$59,262 a week or G$256,800 a month (adjusted Social insurance: Public- and private-sector employees annually). with weekly earnings of at least G$7.50; and self-employed persons with weekly earnings of at least G$5.00. The employer’s contributions also finance cash sickness and maternity benefits, medical benefits, and work injury Voluntary coverage until age 60 for persons who previously benefits. had mandatory coverage. Social assistance: None. Exclusions: Casual employees and family labor. Government Social assistance: Needy persons. Universal: The total cost. Source of Funds Social insurance: Covers any deficit; contributes as an Insured person employer. Universal: None. Social assistance: The total cost. Social insurance: 5.6% of covered earnings; 9.3% of average weekly earnings in the two years before covered Qualifying Conditions employment ceased for the voluntarily insured. Old-age pension (universal): Age 65 with at least 10 years There are no minimum earnings used to calculate of citizenship, at least 20 years of residence, and no more contributions. than two years of temporary absences from Guyana. The maximum earnings used to calculate contributions The universal old-age pension is not payable abroad. are G$59,262 a week or G$256,800 a month (adjusted Old-age pension (social insurance): Age 60 with at least annually). 750 weeks of paid or credited contributions, including at Contributions are paid weekly, biweekly, or monthly, least 150 weeks of paid contributions. depending on the type of employment. Twenty-five weeks of contributions are credited for each The insured person’s contributions also finance cash sick- year that the insured was older than age 35 in 1969, up to ness and maternity benefits, medical benefits, and work 600 weeks. In addition, contributions are credited for each injury benefits. complete contributory week the insured received cash sick- ness, maternity, or work injury benefits. Social assistance: None. Employment may continue. Self-employed person The social insurance old-age pension is payable abroad. Universal: None. Old-age grant (social insurance): Age 60 with less than Social insurance: 12.5% of covered declared income. 750 weeks of paid or credited contributions, including at The minimum monthly earnings used to calculate contribu- least 50 weeks of paid contributions before age 60. tions are G$68,750. Twenty-five weeks of contributions are credited for each year that the insured was older than age 35 in 1969, up to
SSPTW: The Americas, 2019 ♦ 179 Guyana
600 weeks. In addition, contributions are credited for each and assessed as permanently incapable of work, and full complete contributory week the insured received cash sick- orphans younger than age 18 who were dependent on the ness, maternity, or work injury benefits. deceased. The old-age grant is payable abroad. The widow(er)’s pension ceases upon remarriage.
Disability pension (social insurance): Must be aged 16 to Remarriage settlement: Paid when the widow(er) remarries. 59; be assessed with an incapacity for work that is not the Child’s supplement: A supplement is paid. result of a work injury and is likely to remain permanent; The child’s supplement continues upon remarriage or have at least 250 weeks of paid or credited contributions, cohabitation. including at least 150 weeks of paid contributions; have been incapable of work for at least 26 weeks; and not be The survivor pension is payable abroad. receiving a cash sickness benefit. Survivor grant (social insurance): The deceased received Twenty-five weeks of contributions are credited for each or was entitled to receive a social insurance old-age or dis- year that the insured was older than age 35 in 1969, up to ability grant. 600 weeks, and for each year the insured is younger than Eligible survivors include a widow who is aged 45 or older, age 60 when the disability began. In addition, contribu- who is assessed as permanently incapable of work, or who tions are credited for each complete contributory week the is pregnant with or caring for the deceased’s children up to insured received cash sickness, maternity, or work injury age 16 and resided with or received financial support from benefits. the deceased; a dependent widower older than age 45 who The National Insurance Medical Board assesses the inca- is assessed as permanently incapable of work; full orphans pacity for work. younger than age 18 who were dependent on the deceased; The disability pension ceases at age 60 and is replaced by and other dependent family members. the social insurance old-age pension. The survivor grant is payable abroad.
Constant-attendance allowance: Paid if the insured Funeral grant (social insurance): Paid to the person who requires the constant attendance of others to perform daily paid for the funeral. The deceased or his or her spouse had functions. at least 50 weeks of paid contributions at the time of death. The disability pension is not payable abroad. The funeral grant is not payable abroad. Disability grant (social insurance): Must be aged 16 to 59; be assessed with an incapacity for work that is likely Old-Age Benefits to remain permanent; have at least 50 weeks but less than Old-age pension (universal): G$20,500 a month is paid. 150 weeks of paid contributions; and have been incapable of work for at least 26 weeks. Old-age pension (social insurance): 40% of the insured’s average weekly earnings plus 1% of average weekly earn- The disability grant is not payable abroad. ings for every 50 weeks of paid or credited contributions Disability public assistance (social assistance, means exceeding 750 weeks is paid. tested): Must have a permanent incapacity for work or a Average weekly earnings are based on the insured’s best temporary medical condition that results in an incapacity three years of covered earnings in the last five years before for work, and have little or no means of support. age 60 divided by the number of contribution weeks. Survivor pension (social insurance): The deceased The minimum monthly old-age pension is 50% of the legal received or was entitled to receive a social insurance monthly minimum wage for public-sector workers. old-age or disability pension at the time of death; or was The legal monthly minimum wage for public-sector work- aged 16 to 59 with at least 250 weeks of paid or credited ers is G$64,200. contributions, including at least 150 weeks of paid contribu- tions, at the time of death. The maximum weekly old-age pension is 60% of the insured’s average weekly earnings. Twenty-five weeks of contributions are credited for each year that the deceased was older than age 35 in 1969, up to Schedule of payments: The old-age pension is paid monthly. 600 weeks. In addition, contributions are credited for each Old-age grant (social insurance): A lump sum of 8.33% complete contributory week the deceased received cash (one twelfth) of the insured’s average annual earnings mul- sickness, maternity, or work injury benefits. tiplied by the number of 50-week periods of paid or credited Eligible survivors include a widow who is aged 45 or older, contributions is paid. who is assessed as permanently incapable of work, or who Average annual earnings are based on the insured’s best is pregnant with or caring for the deceased’s children up to three years of covered earnings in the last five years before age 16 and resided with or received financial support from age 60 divided by the number of contribution years. the deceased; a dependent widower who is aged 45 or older,
180 ♦ SSPTW: The Americas, 2019 Guyana
Permanent Disability Benefits Full orphan’s pension: 33.33% of the social insurance old-age or disability pension the deceased received or was Disability pension (social insurance): The pension is entitled to receive is paid to each full orphan, up to three 30% of the insured’s average weekly earnings, plus 1% orphans. of average weekly earnings for every 50 weeks of paid or credited contributions exceeding 250 weeks. The minimum full orphan’s pension is 16.5% of the legal monthly minimum wage for public-sector workers. Average weekly earnings are based on the insured’s best three years of covered earnings in the last five years before The maximum combined survivor pension is 100% of the the disability began divided by the number of contribution social insurance old-age or disability pension the deceased weeks. received or was entitled to receive. The minimum monthly disability pension is 50% of the Survivor grant (social insurance): A lump sum equal to legal monthly minimum wage for public-sector workers. the old-age grant the deceased would have been entitled to receive is paid. If the lump sum exceeds 60 times the mini- The legal monthly minimum wage for public-sector work- mum old-age or disability minimum pension, the benefit is ers is G$64,200. paid as an annuity. The maximum weekly disability pension is 60% of the The minimum monthly old-age or disability pension is insured’s average weekly earnings. 50% of the legal monthly minimum wage for public-sector Schedule of payments: The disability pension is paid workers. monthly. The legal monthly minimum wage for public-sector work- Constant-attendance allowance: G$200 a day is paid for up ers is G$64,200. to 26 weeks. Funeral grant (social insurance): A lump sum of Disability grant (social insurance): A lump sum of 8.33% G$48,882 is paid to the person who pays for the funeral. of the insured’s average annual earnings multiplied by the number of 50-week periods of paid or credited contribu- Administrative Organization tions is paid. Ministry of Finance provides general supervision. Average annual earnings are based on the insured’s best three years of covered earnings in the last five years before National Insurance Scheme (http://www.nis.org.gy/), under the disability began divided by the number of contribution the direction of the National Insurance Board, collects con- years. tributions and administers the social insurance program. Department of Social Services, under the direction of the Disability public assistance (social assistance, means Ministry of Social Protection (https://dpi.gov.gy/category tested): Up to G$7,500 a month is paid for one year to /news/government/ministry-of-social-protection/), adminis- needy individuals with a permanent incapacity for work ters the universal and social assistance programs. (six months for a temporary medical condition that results in an incapacity for work). The benefit may be extended upon review. Sickness and Maternity
Survivor Benefits Regulatory Framework Survivor pension (social insurance) First and current law: 1969 (social security). Spouse’s pension: 50% of the social insurance old-age or Type of program: Universal (medical benefits) and social disability pension the deceased received or was entitled to insurance system. receive is paid to a widow(er). The minimum monthly spouse’s pension is 25% of the legal Coverage monthly minimum wage for public-sector workers. Universal: Residents of Guyana. The legal monthly minimum wage for public-sector work- Social insurance: Public- and private-sector employees ers is G$64,200. with weekly earnings of at least G$7.50; self-employed per- Remarriage settlement: A lump sum of 52 times the weekly sons with weekly earnings of at least G$5.00; and pension- spouse’s pension is paid. ers (medical benefits only). Child’s supplement: 16.67% of the social insurance old- Exclusions: Casual employees and family labor. age or disability pension the deceased received or was entitled to receive is paid for each eligible child, up to three children.
SSPTW: The Americas, 2019 ♦ 181 Guyana
Source of Funds Maternity benefit (social insurance): 70% of the insured’s average weekly earnings is paid for 13 weeks, including Insured person the week of childbirth plus six weeks before and six weeks Universal: None. after; may be extended for an additional 13 weeks if there are complications arising from childbirth. Social insurance: See source of funds under Old Age, Dis- ability, and Survivors. Average weekly earnings are based on the insured’s best seven weeks of covered earnings in the 26 weeks before the Self-employed person start of the benefit divided by the number of contribution Universal: None. weeks. Social insurance: See source of funds under Old Age, Dis- Maternity grant (social insurance): A lump sum of ability, and Survivors. G$2,000 is paid. Employer Workers’ Medical Benefits Universal: None. Medical benefits (Package of Essential Health Services, Social insurance: See source of funds under Old Age, Dis- universal): Public hospitals and health centers provide ability, and Survivors. essential health care services free of charge. Other medical care is income tested and requires cost sharing. Government Medical benefits (social insurance): Benefits include Universal: The total cost. reimbursement of medical expenses incurred in Guyana or Social insurance: Covers any deficit; contributes as an abroad. Rates vary depending on the type of treatment. employer. Old-age or disability pensioners receive free dental care, medicine, and eyeglasses. Qualifying Conditions Cash sickness and medical benefits (social insurance): Dependents’ Medical Benefits Must be younger than age 60, have been in covered employ- Medical benefits (Package of Essential Health Services, ment for at least eight of the 13 weeks before the incapacity universal): Public hospitals and health centers provide began, and have at least 50 weeks of paid contributions. essential health care services free of charge. Other medical Pensioners must prove that the medical condition began care is income tested and requires cost sharing. prior to receiving the old-age or disability pension (medical benefits only). Medical benefits (social insurance): No benefits are provided. Cash maternity benefit (social insurance): Must have at least 15 weeks of paid contributions, including at least Administrative Organization seven in the 26-week period ending six weeks before the week in which the benefit is claimed. Ministry of Finance provides general supervision of the social insurance program. Paid to an Cash maternity grant (social insurance): National Insurance Scheme (http://www.nis.org.gy/), under insured woman or the wife of an insured man with at least the direction of the National Insurance Board, collects con- 15 weeks of paid contributions, including at least seven in tributions and administers the program. the 26-week period ending six weeks before the week in which the benefit is claimed. Ministry of Public Health (http://www.health.gov.gy/) pro- vides general supervision of medical benefits. Medical benefits (Package of Essential Health Services, universal): There is no minimum qualifying period. Ten regional democratic councils and the Georgetown Pub- lic Hospital Corporation deliver public medical services. Sickness and Maternity Benefits Work Injury Sickness benefit (social insurance): 70% of the insured’s average weekly earnings is paid from the fourth day of Regulatory Framework incapacity for up to 26 weeks. Average weekly earnings are based on the insured’s best First law: 1916 (work injury). eight weeks of covered earnings in the 13 weeks before the Current law: 1969 (social security). incapacity began divided by the number of contribution weeks. Type of program: Social insurance system.
182 ♦ SSPTW: The Americas, 2019 Guyana
Coverage Survivor Benefits Public- and private-sector employees earning more than Survivor pension G$7.50 a week. Spouse’s and dependent parents’ pension: 35% of the Exclusions: Casual workers, family labor, and self- deceased’s average weekly earnings is paid. employed persons. Eligible survivors include a widow who is aged 45 or older, who is assessed as permanently incapable of work, or who Source of Funds is pregnant with or caring for the deceased’s child(ren) Insured person: See source of funds under Old Age, Dis- up to age 18 and who resided with or received financial ability, and Survivors. support from the deceased at the time of death; a depen- dent widow(er) older than age 45, who is assessed as Self-employed person: Not applicable. permanently incapable of work and not receiving any other Employer: See source of funds under Old Age, Disability, allowances, or who is caring for the deceased’s child(ren) and Survivors. up to age 16; or, if there is no eligible widow(er) or orphan, a parent who is assessed as permanently incapable of work Government: Covers any deficit; contributes as an and was totally or partially dependent on the deceased. employer. Average weekly earnings are based on the deceased’s best Qualifying Conditions three years of covered earnings in the last five years of con- tributions divided by the number of contribution weeks. Must be assessed with a work injury or an occupational disease. The minimum monthly spouse or dependent parents’ pen- sion is 50% of the minimum monthly old-age or disability Temporary Disability Benefits pension. 70% of the insured’s average weekly earnings is paid retro- The minimum monthly old-age or disability pension is actively after the first day if the injury lasts for more than 50% of the legal monthly minimum wage for public-sector three days, for up to 26 weeks. workers. Average weekly earnings are based on the insured’s best The legal monthly minimum wage for public-sector work- eight weeks of covered earnings in the 13 weeks before ers is G$64,200. the disability began divided by the number of contribution Orphan’s pension: 11.67% of the deceased’s average weekly weeks. earnings is paid for each orphan younger than age 18 who was dependent on the deceased, up to 70% of the Permanent Disability Benefits deceased’s weekly earnings; 23.33% for each full orphan. Permanent disability pension: For a total (100%) disabil- Average weekly earnings are based on the deceased’s best ity, 70% of the insured’s average weekly earnings is paid. three years of covered earnings in the last five years of con- Average weekly earnings are based on the insured’s best tributions divided by the number of contribution weeks. eight weeks of covered earnings in the 13 weeks before The minimum monthly orphan’s pension is 16.67% of the the disability began divided by the number of contribution minimum monthly old-age or disability pension; 33.33% for weeks. a full orphan. Constant-attendance allowance: G$200 a day is paid for up The maximum combined survivor pension is 70% of the to 26 weeks if the insured requires the constant attendance deceased’s average weekly earnings. of others to perform daily functions. Schedule of payments: Survivor pensions are paid monthly. Partial disability: For an assessed degree of disability of at least 15% but less than 100%, a reduced pension is Other dependents’ settlement: If there is no eligible paid depending on the assessed degree of disability. If the widow(er), orphan, or dependent parent, a lump sum of up assessed degree of disability is less than 15%, a lump sum to 100 times the deceased’s weekly earnings is split among of 260 times the weekly disability benefit multiplied by the other family members who are assessed as permanently assessed degree of disability is paid. incapable of work and who were totally or partially depen- dent on the deceased. The National Insurance Medical Board reviews the assessed degree of disability. The minimum dependents’ settlement is G$2,700. If the lump sum exceeds 60 times the minimum monthly Workers’ Medical Benefits old-age or disability pension, the benefit is paid as an Benefits include hospitalization, general and specialist care, annuity. medicine, and transportation.
SSPTW: The Americas, 2019 ♦ 183 Guyana
The minimum monthly old-age or disability pension is Coverage 50% of the legal monthly minimum wage for public-sector Individuals and families assessed as needy. workers. The legal monthly minimum wage for public-sector work- Source of Funds ers is G$64,200. Insured person: None. Death benefit: If there are no dependents, up to G$250 is paid to the deceased’s creditors or estate. Self-employed person: None. Employer: None. Administrative Organization Government: The total cost. Ministry of Finance provides general supervision. National Insurance Scheme (http://www.nis.org.gy/), under Qualifying Conditions the direction of the National Insurance Board, collects con- Public assistance (means tested): Paid to needy per- tributions and administers the program. sons and families with little or no means of support. The payment is conditional on children’s regular attendance at Unemployment school and at medical appointments.
Regulatory Framework Family Allowance Benefits The Termination of Employment and Severance Pay Act Public assistance (means tested): Up to G$7,500 a (1997) requires employers to provide severance pay in cases month is paid for six months. The benefit may be extended of redundancy or termination of employment by mutual upon review. consent of the parties or by notice of one party, to employ- ees who have at least one year of continuous service. The Administrative Organization payment amount is one week of the employee’s wages for each of the first five years of service, plus two weeks for Department of Social Services, under the direction of the each year of service from six to 10 years, plus three weeks Ministry of Social Protection (https://dpi.gov.gy/category for each year of service exceeding 10 years, up to a total of /news/government/ministry-of-social-protection/), adminis- 52 weeks of wages. ters the program.
Family Allowances
Regulatory Framework First and current law: 1903 (poor relief). Type of program: Social assistance system.
184 ♦ SSPTW: The Americas, 2019 Haiti
Qualifying Conditions Old-age pension (social insurance): Age 55 with at least Haiti 20 years of contributions. Exchange rate: US$1.00 = 93.157 gourdes. Partial pension: Age 55 with at least 10 years but less than 20 years of contributions. Old-age social pension (Kore Ti GranMoun, social Old Age, Disability, and Survivors assistance, income tested): Age 66, living in conditions of extreme poverty, not working, and not receiving any Regulatory Framework other pension. First law: 1965 (old-age insurance). Old-age settlement (social insurance): Age 55 with less than 10 years of contributions. Current laws: 1967 (social insurance), 1971 (social assis- tance), 1976 (pensions), and 1990 (social assistance). Disability pension (social insurance): Must be assessed with a total incapacity for work and have at least 10 years Type of program: Social insurance and social assistance but less than 20 years of contributions. The disability must system. not have been caused by a work injury. Coverage Disability social pension (KoreAndikape, social assis- tance, income tested): Must be aged 18 to 65, be inca- Private-sector employees. Social insurance: pable of any work, living at home in conditions of extreme Voluntary coverage is available. poverty, and not receiving any other pension.
Special system for public-sector employees. Survivor pension (social insurance): The deceased Social assistance: Needy residents of Haiti. received or was entitled to receive a social insurance old- age or disability pension at the time of death. Source of Funds Eligible survivors include the widow(er) and orphans Insured person younger than age 18 (no limit if a post-secondary student). The widow(er)’s pension ceases upon remarriage or Social insurance: 6% of monthly covered earnings; 12% for cohabitation. the voluntarily insured. The minimum daily earnings used to calculate contribu- Survivor settlement (social insurance): The deceased did tions are the legal daily minimum wage. not qualify for a social insurance old-age or disability pen- sion at the time of death. The legal daily minimum wage ranges from 250 gourdes (household workers) to 550 gourdes (finance, telecommuni- Eligible survivors include the widow(er) and orphans cations, commerce, etc.). younger than age 18 (no limit if a post-secondary student). Social assistance: None. Old-Age Benefits Self-employed person Old-age pension (social insurance): 33.3% of the Social insurance: 12% of monthly declared earnings. insured’s average monthly earnings in the last 10 years is paid. Social assistance: None. Partial pension: 25% of the insured’s average monthly Employer earnings in the last 10 years is paid with at least 15 years Social insurance: 6% of monthly covered payroll. but less than 20 years of contributions; 20% with at least 10 years but less than 15 years of contributions. The minimum daily earnings used to calculate contribu- tions are the legal daily minimum wage. Average earnings are not adjusted based on inflation. The legal daily minimum wage ranges from 250 gourdes Benefit adjustment: Benefits are adjusted on an ad hoc (household workers) to 550 gourdes (finance, telecommuni- basis. cations, commerce, etc.). Old-age social pension (Kore Ti GranMoun, social Social assistance: None. assistance, income tested): A benefit is paid. Government Old-age settlement (social insurance): A lump sum of total employer and employee contributions without accrued Social insurance: Provides subsidies as needed. interest is paid. Social assistance: The total cost.
SSPTW: The Americas, 2019 ♦ 185 Haiti
Permanent Disability Benefits Self-employed person: Pays contributions based on an individual agreement with the Office of Work Accidents Disability pension (social insurance): 20% of the and Sickness and Maternity Insurance. insured’s average monthly earnings in the last 10 years before the disability began is paid. Employer: 3% of monthly earnings. Average earnings are not adjusted based on inflation. Government: Provides subsidies as needed. Benefit adjustment: Benefits are adjusted on an ad hoc basis. Qualifying Conditions Disability social pension (KoreAndikape, social assis- Cash sickness and maternity benefits: Must provide a tance, income tested): A benefit is paid. medical certificate from a registered medical practitioner.
Survivor Benefits Sickness and Maternity Benefits Survivor pension (social insurance): 50% of the social Sickness benefit: 100% of the employee’s earnings is paid insurance old-age or disability pension the deceased for up 15 days for employees with at least one year of ser- received or was entitled to receive is paid. The pension is vice. The benefit is proportionately reduced for employees split among eligible survivors. with less than one year of service. Benefit adjustment: Benefits are adjusted on an ad hoc Maternity benefit: 100% of the employee’s earnings is paid basis. for twelve weeks. Survivor settlement (social insurance): A lump sum of total employer and employee contributions without accrued Administrative Organization interest is paid. Ministry of Social Affairs and Labor (MAST) provides general supervision. Administrative Organization Social Insurance Institute, managed by a tripartite board Ministry of Social Affairs and Labor (MAST) provides and a director general, administers the program through general supervision of the social insurance and social assis- its Office of Work Accidents and Sickness and Maternity tance programs. Insurance (OFATMA). National Office of Old-Age Insurance (ONA; http://www .ona.ht/) of the Social Insurance Institute, managed by a tri- Work Injury partite board and a director general, administers the social insurance program and collects contributions. Regulatory Framework Social Assistance Fund (CAS) and Economic and Social First law: 1961 (labor code). Assistance Fund (FAES) administers the social assistance Current law: 1967 (social insurance). program. Type of program: Social insurance system. Sickness and Maternity Coverage Regulatory Framework Public-sector employees and employees of industrial, com- mercial, or agricultural firms in specified districts. First law: 1949 (sickness and maternity), never implemented. Voluntary coverage for self-employed persons.
Current laws: 1967 (social insurance), implemented in 2016 Source of Funds (maternity and sickness); and 1984 (labor code). Insured person: None. Type of program: Social insurance system. Cash benefits only. Self-employed person: Pays contributions based on an individual agreement with the Office of Work Accidents Coverage and Sickness and Maternity Insurance. Public- and private-sector employees. Employer: 2% of total payroll (commerce), 3% of total Voluntary coverage for self-employed persons. payroll (industry, construction, and agriculture), or 6% of total payroll (mining).
Source of Funds Government: None; contributes 2% of payroll as an Insured person: 3% of monthly earnings. employer.
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Qualifying Conditions receive is paid to a widow or to a dependent widower with a disability. There is no minimum qualifying period. Must be younger than age 55 for temporary and permanent disability Orphan’s pension: 30% of the permanent disability pension benefits. for a total disability the deceased received or was entitled to receive is paid for each orphan younger than age 21. Temporary Disability Benefits Dependent parent’s or grandparent’s pension: If there are 66.7% of the insured’s monthly earnings is paid after a no other eligible survivors, 40% of the permanent dis- three-day waiting period for the duration of the incapacity. ability pension for a total disability the deceased received (The employer pays benefits during the waiting period.) or was entitled to receive is paid to dependent parents or grandparents. Permanent Disability Benefits The maximum combined survivor pension is 80% of the Permanent disability pension: For a total disability, permanent disability pension for a total disability the 66.7% of the insured’s monthly earnings is paid. deceased received or was entitled to receive. Partial disability: For at least a 10% assessed degree of Benefit adjustment: Benefits are not regularly adjusted. disability but less than a total disability, a percentage of the A lump sum of 100% of the deceased’s total disability pension is paid based on the assessed degree Funeral grant: monthly earnings is paid. of disability. For an assessed degree of disability of less than 10%, a lump sum is paid. Administrative Organization All disability pensions may be paid as a lump sum. Ministry of Social Affairs and Labor (MAST) provides Benefit adjustment: Benefits are not regularly adjusted. general supervision. Social Insurance Institute, managed by a tripartite board Workers’ Medical Benefits and a director general, administers the program through Benefits include medical and dental care, surgery, hospi- its Office of Work Accidents and Sickness and Maternity talization, medicine, and appliances. Benefits are provided Insurance (OFATMA). until the disability stabilizes or the insured makes a full The Social Insurance Institute operates its own clinics and recovery. hospital in Port-au-Prince, and contracts with accredited clinics and hospitals to provide medical benefits. Survivor Benefits Survivor pension Spouse’s pension: 50% of the permanent disability pension for a total disability the deceased received or was entitled to
SSPTW: The Americas, 2019 ♦ 187 Honduras
Self-employed person Honduras Social insurance: 4% of estimated monthly earnings. The maximum monthly earnings used to calculate contribu- Exchange rate: US$1.00 = 25.00 lempiras. tions are 9,326.42 lempiras. Mandatory individual account: A contribution is paid. The minimum monthly earnings used to calculate contribu- Old Age, Disability, and Survivors tions are 9,326.43 lempiras. Regulatory Framework Employer First and current laws: 1957 (constitution); 1959 (social Social insurance: 3.5% of monthly covered payroll. security), implemented in 1971; and 2015 (social protection The maximum monthly earnings used to calculate contribu- system). tions are 9,326.42 lempiras. Type of program: Social insurance and mandatory indi- Mandatory individual account: 1.5% of monthly covered vidual account system. payroll. The minimum monthly earnings used to calculate contribu- Coverage tions are 9,326.43 lempiras. Social insurance: Salaried workers in public- and private- Government sector enterprises, civil servants, forestry workers, most agricultural workers, and apprentices. Social insurance: At least 0.5% of the total insured person and employer contributions; contributes as an employer. Voluntary coverage for self-employed persons; household workers; employers and agricultural workers without Mandatory individual account: None; contributes as an mandatory coverage; cooperative members, and recognized employer. workers and farmers’ associations; and occasional and temporary workers. Qualifying Conditions Special systems for military personnel, executive branch Old-age pension (Pensión por Vejez, Régimen del employees, teachers and professors, and National Autono- Seguro de Previsión Social, social insurance): Age 65 mous University of Honduras employees. (men) or age 60 (women) with at least 180 months of contributions. Mandatory individual account: Salaried workers in pub- lic- and private-sector enterprises, civil servants, forestry Employment must cease. workers, most agricultural workers, and apprentices, with Deferred pension: The pension may be deferred. There is monthly earnings exceeding 9,326.42 lempiras. no age limit. Voluntary coverage for persons with monthly earnings up Constant-attendance supplement: Paid if the insured to 9,326.42 lempiras. requires the constant attendance of others to perform daily functions. Source of Funds Old-age settlement (Régimen del Seguro de Pre- Insured person visión Social, social insurance): Age 65 (men) or age 60 Social insurance: 2.5% of monthly covered earnings. (women) with less than 180 months of contributions. The minimum monthly earnings used to contributions are Old-age benefit (Cuentas Individuales de Capital- the legal monthly minimum wage. ización, mandatory individual account): At any age with at least five years of contributions. The legal monthly minimum wage ranges from 6,440.66 lempiras to 11,549 lempiras, depending on the Early withdrawal: At any age with less than five years of economic sector. contributions. The maximum monthly earnings used to calculate contribu- Disability pension (Pensión por Invalidez, Régimen del tions are 9,326.42 lempiras. Seguro de Previsión Social, social insurance): Must have at least a 65% assessed loss of earning capacity for the Mandatory individual account: 1.5% of monthly covered usual occupation and at least 36 months of contributions in earnings. the last six years; eight months of contributions in the last The minimum monthly earnings used to calculate contribu- 24 months for a nonwork-related accident. tions are 9,326.43 lempiras. Constant-attendance supplement: Must have at least a 51% assessed degree of disability and require the constant atten- dance of others to perform daily functions.
188 ♦ SSPTW: The Americas, 2019 Honduras
Disability settlement (Régimen del Seguro de Previsión Old-age benefit (Cuentas Individuales de Capital- Social, social insurance): Must be assessed with a disabil- ización, mandatory individual account): Up to the total ity and not qualify for the disability pension. account balance may be paid as programmed withdrawals or a lump sum. Survivor pension (Pensión por Sobrevivencia, Régimen del Seguro de Previsión Social, social insurance): For Early withdrawal: Up to the total account balance, minus an a death resulting from an illness, the deceased must have early withdrawal fee, may be paid as programmed with- at least 36 months of contributions in the last six years; for drawals or a lump sum. a death resulting from a nonwork-related accident, must have eight months of contributions in the 24 months before Permanent Disability Benefits death. Disability pension (Pensión por Invalidez, Régimen Eligible survivors include a widow(er) or partner aged 65 del Seguro de Previsión Social, social insurance): 40% or older or with a disability, and orphans younger than of the insured’s basic monthly earnings plus 1% of basic age 14 (age 18 if a student; no limit if disabled); if there is monthly earnings for every 12 months of contributions no widow(er), partner, or orphan, a mother of any age and a exceeding 60 months multiplied by the loss of earning is father older than age 65 or with a disability. paid. The widow(er)’s or partner’s pension ceases upon (re) Basic monthly earnings are the insured’s average monthly marriage. earnings in the 180 months before the month of entitle- Remarriage settlement: Paid to a widow(er) or partner upon ment (or over the total contribution period if less than (re)marriage. 180 months). The minimum monthly disability pension is 50% of the Survivor settlement (Cuentas Individuales de Capi- insured’s basic monthly earnings or 1,500 lempiras, which- talización, mandatory individual account): Paid if an insured person dies. There is no minimum contribution ever is greater. period. The maximum monthly disability pension is 80% of the Eligible survivors include designated beneficiaries or, in insured’s basic monthly earnings. their absence, the deceased’s legal heirs. Constant-attendance supplement: Up to 50% of the disabil- ity pension is paid. Funeral grant (Ayuda Funeral Única, Régimen del Seguro de Previsión Social, social insurance): The Disability settlement (Régimen del Seguro de Previsión deceased must have been employed or receiving an old-age Social, social insurance): A lump sum of total employee or disability pension at the time of death, or had at least one contributions is paid. month of contributions in the six months before death. Survivor Benefits Old-Age Benefits Survivor pension (Pensión por Sobrevivencia, Régimen Old-age pension (Pensión por Vejez, Régimen del del Seguro de Previsión Social, social insurance) Seguro de Previsión Social, social insurance): 40% Spouse’s pension (Pensión por viudez): 40% of the social of the insured’s basic monthly earnings plus 1% of basic insurance old-age or disability pension the deceased monthly earnings for every 12 months of contributions received or was entitled to receive is paid to an eligible exceeding 60 months is paid. widow(er) or partner. Basic monthly earnings are the insured’s average monthly The minimum monthly spouse’s pension is 600 lempiras. earnings in the 180 months before the month of entitlement. Remarriage settlement: A lump sum of 12 months of the Deferred pension: An additional 3% of the insured’s basic spouse’s pension is paid to an eligible widow(er) or partner. monthly earnings is paid for each year of contributions after the normal retirement age. Orphan’s pension (Pensión por orfandad): 20% of the social insurance old-age or disability pension the deceased The minimum monthly old-age pension is 50% of the received or was entitled to receive is paid to each eligible insured’s basic monthly earnings or 1,500 lempiras, which- orphan; 40% for a full orphan. ever is greater. The minimum monthly orphan’s pension is 300 lempiras. The maximum monthly old-age pension is 80% of the insured’s basic monthly earnings. Dependent parent’s pension: If there is no eligible Constant-attendance supplement: Up to 50% of the old-age widow(er), partner, or orphan, 20% of the social insurance pension is paid. old-age or disability pension the deceased received or was entitled to receive is paid to each eligible parent. Old-age settlement (Régimen del Seguro de Previsión The minimum monthly dependent parent’s pension is Social, social insurance): A lump sum of total employee contributions is paid. 300 lempiras.
SSPTW: The Americas, 2019 ♦ 189 Honduras
The maximum combined survivor pension is 100% of the Cash sickness and maternity benefits (employer liabil- social insurance old-age or disability pension the deceased ity): Public- and private-sector employees. received or was entitled to receive. Exclusion: Self-employed persons. Survivor settlement (Cuentas Individuales de Capital- Medical benefits (social insurance): Public-sector ización, mandatory individual account): A lump sum of employees, employees of firms in industry and commerce the deceased’s total account balance is split among eligible with one or more workers, old-age and disability pension- survivors. ers, unemployed persons, self-employed persons, and Funeral grant (Ayuda Funeral Única, Régimen del household workers. Seguro de Previsión Social, social insurance): A lump Exclusions: Agricultural and temporary workers. sum of two times the lowest legal monthly minimum wage is paid. Coverage is gradually being extended to all regions of the country. The lowest legal monthly minimum wage is 6,440.66 lempiras. Source of Funds Administrative Organization Insured person Secretariat of Labor and Social Security (http://www Social insurance: 2.5% of monthly covered earnings. .trabajo.gob.hn/) provides general supervision. The monthly earnings used to calculate contributions are National Commission on Banking and Insurance (CNBS) subject to a minimum. (http://www.cnbs.gob.hn/) provides financial supervision. The maximum monthly earnings used to calculate contribu- Social Security Institute (http://ihss.hn/), managed by a tions are 8,933.97 lempiras. board of directors and director general, administers and The insured person’s contributions also finance work injury collects contributions for the social insurance program. benefits. Pension Fund Administrators (Administradoras de Fondo Employer liability: None. de Pensiones) administer the mandatory individual account program. Self-employed person Social insurance: 7% of estimated monthly earnings; 2% of Sickness and Maternity estimated monthly earnings for persons assessed as needy. The monthly earnings used to calculate contributions are Regulatory Framework subject to a minimum and a maximum. First and current laws: 1957 (social insurance); 1959 Employer liability: Not applicable. (social security), implemented in 1971; and 2015 (social pro- tection system). Employer
Type of program: Social insurance (cash and medical ben- Social insurance: 5% of covered monthly payroll. efits) and employer-liability (cash benefits) system. The monthly earnings used to calculate contributions are subject to a minimum. Coverage The maximum monthly earnings used to calculate contribu- Cash sickness benefit (social insurance): Public-sector tions are 8,933.97 lempiras. employees, employees of firms in industry and commerce Employer liability: The total cost. with one or more workers, old-age and disability pension- ers, and unemployed persons. Government Exclusions: Self-employed persons; and household, agricul- Social insurance: 0.5% of the total insured person and tural, family, and temporary workers. employer contributions from the previous year; subsidizes contributions for needy self-employed persons; contributes Cash maternity benefit (social insurance): Public-sector as an employer. employees, employees of firms in industry and commerce with one or more workers, self-employed persons, and dis- The monthly earnings used to calculate contributions are ability pensioners. subject to a minimum. Exclusions: Unemployed persons; and agricultural, family, The maximum monthly earnings used to calculate contribu- and temporary workers. tions are 8,933.97 lempiras. Employer liability: None; contributes as an employer.
190 ♦ SSPTW: The Americas, 2019 Honduras
Qualifying Conditions surgery, hospitalization, necessary medicine, labora- tory services, appliances, dental care, and maternity care Cash sickness benefit (Subsidio por Enfermedad o (including postpartum care for up to 45 days; may be Accidente Común, Régimen del Seguro de Atención de extended up to a total of 26 weeks). la Salud, social insurance): Must have at least two months of contributions in the four months before the incapacity The duration of benefits is dependent on continuing to meet began. Unemployed persons must have at least 35 days of the contribution requirements. If the insured is unem- contributions in the three months before unemployment ployed, benefits are limited to 30 days. began. Dependents’ Medical Benefits Cash maternity benefit (Subsidio en Maternidad, Régi- men del Seguro de Atención de la Salud, social insur- Medical benefits (Régimen del Seguro de Atención de ance and employer liability): Must have at least 10 months la Salud, social insurance): Benefits include general care, of contributions immediately before the start of the mater- minor surgeries, necessary medicine, laboratory services, nity leave. appliances, dental care, and maternity care (including post- Medical benefits (Régimen del Seguro de Atención de partum care for up to 45 days). la Salud, social insurance): Must be in covered employ- ment or unemployed with at least 35 days of coverage in the Administrative Organization three months before unemployment began. For maternity Secretariat of Labor and Social Security (http://www medical benefits, must have at least 10 months of contribu- .trabajo.gob.hn/) provides general supervision. tions immediately before the expected date of childbirth or Social Security Institute (http://ihss.hn/), managed by a at least 12 months of contributions in the last 18 months. board of directors and director general, administers the For children’s medical benefits, the insured must have at social insurance program. least 35 days of contributions in the three months before the incapacity began. Employers pay cash benefits directly to employees. Eligible dependents include a dependent spouse or partner Social Security Institute operates its own hospitals and out- and children up to age 18 (including children of a previ- patient clinics and contracts with private clinics, including ously insured person for up to two months after covered in cities without public facilities. employment ceased). There is a 10-month waiting period for dependent partners. Work Injury
Sickness and Maternity Benefits Regulatory Framework Sickness benefit (Subsidio por Enfermedad o Acci- First and current laws: 1959 (social security), imple- dente Común, Régimen del Seguro de Atención de la mented in 1971; and 2015 (social protection system). Salud, social insurance; and employer liability): 66% Employer-liability system through a of the insured’s earnings in the last three months (100% if Type of program: public or private carrier. hospitalized and without dependents, split equally between the Social Security Institute and the employer) is paid after a three-day waiting period for up to 26 weeks; may be Coverage extended to 52 weeks. Public-sector employees, employees of firms in indus- The labor code requires employers to provide sick leave to try and commerce with one or more workers in specified employees not covered by social insurance. regions, and certain self-employed persons. Voluntary coverage is available. Maternity benefit (Régimen del Seguro de Atención de la Salud, social insurance; and employer liability): 100% Exclusions: Most self-employed persons and agricultural, of the insured’s earnings in the last three months is paid household, family, and temporary workers. for 42 days before and 42 days after the expected date of childbirth. (The Social Security Institute pays 66% of the Source of Funds cost and the employer pays the remaining 34%.) Insured person: None. The labor code requires employers to provide maternity The total cost (pays insurance leave to employees not covered by social insurance. Self-employed person: premiums). Workers’ Medical Benefits Employer: The total cost (pays insurance premiums). Medical benefits (Régimen del Seguro de Atención Government: None, contributes as an employer. de la Salud, social insurance): Social Security Insti- tute health facilities provide medical services directly to patients. Benefits include general and specialist care,
SSPTW: The Americas, 2019 ♦ 191 Honduras
Qualifying Conditions entitled to receive is paid to each orphan younger than age 14 (age 18 if a student; no limit if disabled); 40% for a Work injury benefits: Must have at least two months of full orphan. contributions in the last four months to qualify for a tem- porary disability benefit; there is no minimum qualifying Dependent parent’s pension (Pensión de padres a cargo): period for the permanent disability pension. An insured If there is no eligible widow(er), partner, or orphan, 20% of person who becomes unemployed must prove that the ill- the permanent disability pension the deceased received or ness or incapacity is work-related and began no more than was entitled to receive is paid to a mother of any age or a two months after employment ceased. father older than age 65 or with a disability.
Survivor benefits: The deceased must have at least one The maximum combined survivor pension is 100% of the month of covered employment. permanent disability pension the deceased received or was entitled to receive. Temporary Disability Benefits Funeral grant (Ayuda Funeral Única, Régimen del Temporary disability benefit (Subsidio por Incapacidad Seguro de Riesgos Profesionales): A lump sum of two Temporal, Régimen del Seguro de Riesgos Profesion- times the lowest legal monthly minimum wage is paid. ales): For an assessed degree of disability up to 15%, 66% The lowest legal monthly minimum wage is of the insured’s daily wage is paid after a three-day waiting 6,440.66 lempiras. period for up to 26 weeks until recovery, certification of permanent disability, or death. The benefit may be extended Administrative Organization for up to 52 weeks. Secretariat of Labor and Social Security (http://www For an assessed degree of disability above 15%, a perma- .trabajo.gob.hn/) provides general supervision. nent disability pension is paid. Social Security Institute (http://ihss.hn/), managed by a The daily wage used to calculate benefits is subject to a board of directors and director general, administers the maximum. program. Social Security Institute operates its own outpatient clinics Permanent Disability Benefits and hospitals. Permanent disability pension (Pensión por Incapacidad Permanente, Régimen del Seguro de Riesgos Profesio- Unemployment nales): For an assessed degree of disability of at least 65%, 70% of the insured’s basic monthly earnings is paid. Regulatory Framework Basic monthly earnings are the insured’s average monthly 2015 (social protection system). earnings in the month before the disability began. First and current law: Constant-attendance supplement: Up to 50% of the perma- Type of program: Mandatory individual account and nent disability pension is paid if the insured requires the employer-liability system. constant attendance of others to perform daily functions. Coverage Partial disability: For an assessed degree of disability above 15% but less than 65%, a percentage of the full permanent Private-sector employees. disability pension is paid based on the assessed degree of Exclusions: Self-employed persons and public-sector disability. employees.
Workers’ Medical Benefits Source of Funds Benefits include medical, surgical, and hospital care; medi- Insured person cine; and appliances. Mandatory individual account: None. Survivor Benefits Employer liability: None. Survivor pension (Pensión por Sobrevivencia, Régimen Self-employed person del Seguro de Riesgos Profesionales) Mandatory individual account: Not applicable. Spouse’s pension (Pensión por viudez): 40% of the per- manent disability pension the deceased received or was Employer liability: Not applicable. entitled to receive is paid to a widow(er) or partner older Employer than age 65 or with a disability. Mandatory individual account: 1.98% (increasing to 4% Orphan’s pension (Pensión por orfandad): 20% of the by 2021) of monthly covered payroll for employers with permanent disability pension the deceased received or was at least 10 employees; 1.32% (increasing to 4% by 2023)
192 ♦ SSPTW: The Americas, 2019 Honduras of monthly covered payroll for employers with fewer than Administrative Organization 10 employees. National Commission of Banks and Insurance (CNBS) The monthly earnings used to calculate contributions are (http://www.cnbs.gob.hn/) provides general supervision. subject to a minimum. Individual pension and severance fund administra- The maximum monthly earnings used to calculate contribu- tors administer the individual accounts and collect tions are three times the highest legal monthly minimum contributions. wage. The legal monthly minimum wage varies depending on the Family Allowances industry and the size of the company. The employer’s contributions cease when the individual Regulatory Framework account balance reaches 50% of the maximum severance First and current law: 2010 (family cash transfer). payable (25 months of the insured’s salary). Type of program: Social assistance system. Employer liability: The total cost. Government Coverage Needy resident of Honduras. Mandatory individual account: None. Employer liability: None. Source of Funds
Qualifying Conditions Insured person: None. Severance benefit (Auxilio de Cesantía, Régimen de Self-employed person: None. Cobertura Laboral, mandatory individual account and Employer: None. employer liability): Must have at least three months of continuous employment with the same employer and have Government: The total cost. been involuntarily terminated or unfairly dismissed by the employer. Qualifying Conditions Loan program: The insured may take loans against his or Cash transfer for families in urban areas (Bono Vida her account balance to pay for housing and certain other Mejor, means tested): Paid to households in urban areas expenses. with children up to age 18 or pregnant women. Children aged 7 to 18 must be enrolled in school and attend at least Unemployment Benefits 80% of classes. Severance benefit (Auxilio de Cesantía, Régimen de Means test: Must be assessed as living in extreme poverty Cobertura Laboral, mandatory individual account and based on the Unique Socioeconomic Survey (Ficha Socio- employer liability): The benefit is 10 days of the insured’s económica Única [FSU]) and be registered in the Unified salary with three to six months of continuous employment; Registry of Participants (RUP). 20 days of salary with at least six but less than 12 months The FSU is a survey used to identify poor and vulnerable of continuous employment; or one month of pay with at households based on their incomes, consumption patterns, least one year of continuous employment and for every geographic locations, and housing conditions. 12 months of continuous employment exceeding one year. The RUP is a national registry that compiles information The maximum severance benefit is 25 months of the collected through the FSU. insured’s salary; 15 months if the insured was employed at a firm with fewer than 10 employees. Cash transfer for families in rural areas (Bono Vida Mejor, means tested): Paid to households in rural areas The individual account balance finances 50% of the sever- with children up to age 18 or pregnant women. Children ance benefit and the employer finances the remaining 50%. up to age 5 must comply with regular medical check-ups; Loan program: Up to 80% of the account balance may be children aged 7 to 18 must be enrolled in school and attend used as collateral against a loan from an approved lending at least 80% of classes. institution. Means test: Must be assessed as living in poverty or extreme poverty based on the Unique Socioeconomic Sur- vey (Ficha Socioeconómica Única [FSU]) and be registered in the Unified Registry of Participants (RUP).
SSPTW: The Americas, 2019 ♦ 193 Honduras
The FSU is a survey used to identify poor and vulnerable Schedule of payments: The benefit is paid every three or households based on their incomes, consumption patterns, four months, depending on the location (except under spe- geographic locations, and housing conditions. cial arrangements). The RUP is a national registry that compiles information Cash transfer for families in rural areas (Bono Vida collected through the FSU. Mejor, means tested): A basic annual benefit of 4,020 lem- Disabled child cash transfer (Bono Vida Mejor para piras is paid. An additional 1,320 lempiras a year is paid Personas con Discapacidad, means tested): Paid to for one child up to age 5; 1,500 lempiras a year for two or households that include a person with a disability. more children up to age 5; 1,320 lempiras a year for a child in primary or secondary education; 1,500 lempiras a year Means test: Must be assessed as living in vulnerable condi- for two or more children in primary or secondary educa- tions based on the Unique Socioeconomic Survey (Ficha tion; 2,520 lempiras a year for one child in tertiary educa- Socioeconómica Única [FSU]) and be registered in the Uni- tion; and 3,480 lempiras a year for two or more children in fied Registry of Participants (RUP). tertiary education. The FSU is a survey used to identify poor and vulnerable Schedule of payments: The benefit is paid every three or households based on their incomes, consumption patterns, four months, depending on the location (except under spe- geographic locations, and housing conditions. cial arrangements). The RUP is a national registry that compiles information Disabled child cash transfer (Bono Vida Mejor para Per- collected through the FSU. sonas con Discapacidad, means tested): 600 lempiras a month is paid to a household living in extreme poverty; Family Allowance Benefits 400 lempiras a month to a household living in relative Cash transfer for families in urban areas (Bono Vida poverty; or 250 lempiras a month to a household not living Mejor, means tested): A basic annual benefit of 3,480 lem- in poverty. piras is paid. An additional 2,520 lempiras a year is paid for one child in primary or secondary education; 3,000 lempi- Administrative Organization ras a year for two or more children in primary or secondary Secretariat of Development and Social Inclusion (SEDIS) education; 3,000 lempiras a year for one child in tertiary (https://sedis.gob.hn/) administers the program. education; and 3,480 lempiras a year for two or more chil- dren in tertiary education.
194 ♦ SSPTW: The Americas, 2019 Jamaica
There are no minimum earnings used to calculate contributions. Jamaica The maximum annual earnings used to calculate contribu- Exchange rate: US$1.00 = tions are J$1,500,000. (There are no maximum earnings 132.00 Jamaican dollars (J$). used to calculate contributions for household workers.) The employer’s contributions also finance cash maternity benefits (household workers only), medical benefits, and Old Age, Disability, and Survivors work injury benefits. Government: None; contributes as an employer. Regulatory Framework First and current law: 1965 (national insurance), imple- Qualifying Conditions mented in 1966. Old-age pension (Retirement Pension): Age 65 with at Type of program: Social insurance system. least 520 weeks of paid contributions and an annual average of 10 weeks of paid or credited contributions during the Note: Noncontributory (social assistance) old-age and dis- working life. ability benefits exist under the PATH cash transfer program (see Family Allowances). Contributions are credited for each contributory week the insured received disability or work injury benefits. Coverage Contributions can be made up to age 70. Employed and self-employed persons. Spouse’s supplement (Spouse Allowance): Paid for a depen- Voluntary coverage is available. dent spouse aged 55 or older (women) or aged 60 or older (men) who has been married to the insured for at least three Exclusions: Casual workers and unpaid family labor. years and does not receive any social insurance benefit. Special complementary system for civil servants, teachers, The old-age pension is payable abroad upon request if the employees of local governments, and certain other public- insured resides abroad. sector employees. Old-age grant (Retirement Grant): Age 65 with at least Source of Funds 52 weeks of paid contributions but does not meet the contri- bution requirements for an old-age pension. Insured person: 2.75% (3% as of April 2020) of gross covered earnings; J$150 (J$200 as of April 2020) a week for The old-age grant is payable abroad upon request if the household workers and the voluntarily insured. insured resides abroad. There are no minimum earnings used to calculate Disability pension (Invalidity Benefit): Must be assessed contributions. with a permanent incapacity for work of at least 10%, have The maximum annual earnings used to calculate contribu- at least 156 weeks of paid contributions, and have an annual tions are J$1,500,000. (There are no maximum earnings average of 10 weeks of paid or credited contributions dur- used to calculate contributions for household workers.) ing the working life. The insured person’s contributions also finance cash mater- Contributions are credited for each contributory week the nity benefits (household workers only) and medical benefits. insured received disability or work injury benefits. Contributions are paid weekly, monthly, or quarterly, Spouse’s supplement (Spouse Allowance): Paid for a depen- depending on the category of employment. dent spouse aged 55 or older (women) or aged 60 or older (men) who has been married to the insured for at least three Self-employed person: 5.5% (6% as of April 2020) of years and does not receive any social insurance benefit. annual covered earnings. An independent medical advisor appointed by the Min- The minimum weekly contribution is J$150. istry of Labor and Social Security assesses the disability The maximum annual earnings used to calculate contribu- and recommends the frequency of any reassessment of the tions are J$1,500,000. disability. The self-employed person’s contributions also finance The disability pension ceases at the normal retirement age medical benefits. and is replaced by the old-age pension.
Employer: 2.75% (3% as of April 2020) of gross covered The disability pension is payable abroad. payroll; J$150 (J$200 as of April 2020) a week for house- Disability grant (Invalidity Grant): Must be assessed with hold workers. a permanent incapacity for work of at least 10% and have less than 156 weeks of paid contributions.
SSPTW: The Americas, 2019 ♦ 195 Jamaica
An independent medical advisor appointed by the Ministry contributions; J$2,550 a week with 26 to 38 weeks; or of Labor and Social Security assesses the disability. J$1,700 a week with 10 to 25 weeks. The disability grant is payable abroad. Earnings-related benefit: J$0.06 a week is paid for every J$13 of employee or employer contributions paid during the Survivor pension: The deceased received or was entitled working life. to receive an old-age or disability pension or had at least 156 weeks of paid contributions and an annual average of at Spouse’s supplement (Spouse Allowance): J$900 a week is least 10 weeks of paid or credited contributions at the time paid. of death. Benefit adjustment: The basic benefit component and the Eligible survivors include a widow(er) (married or in a spouse’s supplement are adjusted periodically based on common-law relationship) and full orphans younger than actuarial evaluations. age 18. Widow(er)s may also receive benefits based on Old-age grant (Retirement Grant): A lump sum of their own earnings record. The widow(er) must have been J$50,000 is paid. married to the deceased for at least three years or cohabited with the deceased for at least five years at the time of death. Permanent Disability Benefits The widow(er)’s pension ceases upon remarriage or enter- J$320 to J$3,200 a ing into a new common-law relationship. Disability pension (Invalidity Benefit): week is paid for an assessed degree of disability of 10% to Remarriage settlement: Paid when the widow(er) remarries 100%, depending on the degree of disability. or enters into a new common-law relationship. Spouse’s supplement (Spouse Allowance): J$900 a week is The survivor pension is payable abroad upon request if the paid. survivor resides abroad. Benefit adjustment: Benefits are adjusted periodically based Survivor grant: The deceased did not meet the contribution on actuarial evaluations. requirements for an old-age or disability pension but had at A lump sum of least 52 weeks of paid contributions. Disability grant (Invalidity Grant): J$50,000 is paid. Eligible survivors include a widow(er) (married or in a common-law relationship) aged 55 or older, permanently Survivor Benefits incapable of work, or caring for children younger than age 18; a widow who is pregnant with the deceased’s child; Survivor pension and full orphans younger than age 18. The widow(er) must Spouse’s pension: The old-age pension the deceased have been married to the deceased for at least three years received or was entitled to receive is paid. or cohabited with the deceased for at least five years at the The pension is paid for life to a widow(er) aged 55 or older time of death. or permanently incapable of work; until the youngest child Special child’s benefit: Paid to a guardian caring for an reaches age 18 to a widow(er) caring for children younger extramarital child younger than age 18 who is orphaned than age 18 or a widow pregnant with the deceased’s child; if the child’s deceased mother received or was entitled to or for one year to a widow(er) younger than age 55 without receive an old-age or disability pension and the child’s children or with children aged 18 or older. father is deceased, cannot be identified, or his whereabouts Remarriage settlement: A lump sum of 12 months of the are unknown; a lump sum is paid if the child’s deceased spouse’s pension is paid. mother was not entitled to receive an old-age or disability pension but had at least 52 weeks of paid contributions. Orphan’s pension: J$4,900 a week is paid. The special child’s benefit is payable abroad. Survivor grant
Funeral grant: The deceased or the deceased’s spouse Spouse’s grant: A lump sum of J$50,000 is paid. received or was entitled to receive an old-age or disability Orphan’s grant: A lump sum of J$55,000 is paid. pension at the time of death. Special child’s benefit: J$4,900 a week is paid; a lump The funeral grant is payable abroad. sum of J$55,000 is paid if the child’s deceased mother was not entitled to receive an old-age or disability pension. Old-Age Benefits Funeral grant: A lump sum of J$90,000 is paid to the per- The pension con- Old-age pension (Retirement Pension): son who paid for the funeral. sists of a basic benefit and an earnings-related benefit. Basic benefit: J$3,400 a week is paid if the insured had an annual average of 39 weeks of paid or credited
196 ♦ SSPTW: The Americas, 2019 Jamaica
Administrative Organization Government Ministry of Labour and Social Security (http://www.mlss Universal and social insurance: Contributes as an employer; .gov.jm/) administers the program through its National the universal medical benefits are also partially financed by Insurance Division and local offices. earmarked taxes on tobacco and alcohol. Tax Administration Jamaica (https://www.jamaicatax.gov Employer liability: None; contributes as an employer. .jm/) collects contributions. Qualifying Conditions Sickness and Maternity Cash sickness benefit (employer liability): Must have at least 110 days of employment. Regulatory Framework Cash maternity benefit for household workers (social First and current laws: 1947 (sick leave), implemented in insurance): Must have at least 26 weeks of paid contribu- 1973; 1965 (national insurance); 1979 (maternity leave); and tions in the 52 weeks before the expected date of childbirth. 2003 (medical benefits). Cash maternity benefit (employer liability): Must have Type of program: Universal (medical benefits), social at least 52 weeks of continuous employment before the insurance (cash maternity and medical benefits), and expected date of childbirth and provide employer notice employer-liability (cash benefits) system. of intention to take maternity leave. The employer may Note: The public health care system, which is financed request a medical certificate. through general taxation, provides limited medical services Medical benefits for chronic diseases (National Health for free or at a nominal cost in public dispensaries and hos- Fund, universal): Must be diagnosed with one of 17 pitals. Further information regarding the legal basis of this chronic diseases. There is no minimum qualifying period. program is not available. Medical benefits (National Insurance Gold, social insur- Coverage ance): Must be receiving a social insurance pension. There is no minimum qualifying period. Universal (medical benefits): Residents of Jamaica. Social insurance (cash maternity benefit): Household Sickness and Maternity Benefits workers who reside in Jamaica. Sickness benefit (employer liability): 100% of the Exclusions: Self-employed and salaried women. employee’s normal wages is paid for up to 10 days a year (pro-rated for casual workers). Social insurance (medical benefits): Social insurance pensioners. Maternity benefit for household workers (social insur- ance): 100% of the national legal weekly minimum wage Employed persons, Employer liability (cash benefits): is paid for eight weeks from the time the claim was made including casual workers. or from the date of childbirth, whichever is later. The claim Exclusions: Certain company managers (cash sickness ben- can be made from 11 weeks before the expected date of efits only) and self-employed persons. childbirth to six months after childbirth. The national legal weekly minimum wage is J$7,000.00. Source of Funds Schedule of payments: The maternity benefit for household Insured person workers is paid as a lump sum. Universal and social insurance: See source of funds under Maternity benefit (employer liability): 100% of the Old Age, Disability, and Survivors. employee’s normal wages is paid for at least eight weeks. Employer liability: None. Workers’ Medical Benefits Self-employed person Medical benefits for chronic diseases (National Health Universal and social insurance: See source of funds under Fund, universal): Partial subsidy for approved prescribed Old Age, Disability, and Survivors. medicine for specified chronic illnesses. Employer liability: Not applicable. Medical benefits (National Insurance Gold, social insur- Employer ance): Benefits include medical treatment, surgery, hospi- talization, prescribed medicine, and laboratory services, up Universal and social insurance: See source of funds under to a maximum according to a schedule. Old Age, Disability, and Survivors. Employer liability: The total cost.
SSPTW: The Americas, 2019 ♦ 197 Jamaica
Dependents’ Medical Benefits Permanent Disability Benefits Medical benefits for chronic diseases (National Health Permanent disability pension (Employment Injury Fund, universal): Dependents are covered in their own Disablement Benefit): For an assessed degree of disability right. of 10% to 100%, J$320 to J$3,200 a week is paid depending on the degree of disability. Medical benefits (National Insurance Gold, social insur- ance): Not applicable. A medical board assesses the disability. The permanent disability pension is payable abroad. Administrative Organization Benefit adjustment: Benefits are adjusted periodically based Ministry of Labour and Social Security (https://www.mlss on actuarial evaluations. .gov.jm/) provides general supervision for cash sickness and maternity benefits and administers social insurance cash Workers’ Medical Benefits maternity benefits through its National Insurance Division and local offices. Benefits include necessary medical and surgical treatment, rehabilitation, appliances, hospitalization, and medicine. Tax Administration Jamaica (https://www.jamaicatax.gov .jm/) collects contributions. Survivor Benefits National Health Fund (https://www.nhf.org.jm/) adminis- Survivor benefit: J$4,900 a week is paid for 52 weeks to a ters the medical benefits. widow(er) of any age; if there is no widow(er), to the guard- ian of the deceased’s children younger than age 18. Work Injury The survivor benefit is payable abroad. Regulatory Framework Benefit adjustment: Benefits are adjusted periodically based on actuarial evaluations. First law: 1938 (workmen’s compensation). Funeral grant: See Old Age, Disability, and Survivors. Current law: 1965 (national insurance), implemented in 1970. The funeral grant is payable abroad. Benefit adjustment: Benefits are adjusted periodically based Type of program: Social insurance system. on actuarial evaluations. Coverage Administrative Organization Employed persons. Ministry of Labour and Social Security (https://www.mlss Exclusions: Household workers, self-employed persons, and .gov.jm/) administers the program through its National military personnel. Insurance Division and local offices. Tax Administration Jamaica (https://www.jamaicatax.gov Source of Funds .jm/) collects contributions. Insured person: None. Self-employed person: Not applicable. Unemployment Employer: See source of funds under Old Age, Disability, Regulatory Framework and Survivors. Under the 1974 Employment (Termination and Redundancy Government: None; contributes as an employer. Payments) Act, employers must provide severance pay in cases of redundancy to employees with at least 104 weeks Qualifying Conditions of continuous employment. The payment amount is two Must be assessed with a work injury or occupational dis- weeks of the employee’s pay for each year of continuous ease. Occupational diseases are specified by law. employment up to 10 years plus three weeks of pay for each year of continuous employment exceeding 10 years. Temporary Disability Benefits J$3,200 a week is paid for any continuous period of work Family Allowances incapacity lasting at least four days, for up to 52 weeks. Regulatory Framework First and current law: 1886 (poor relief). Type of program: Social assistance system.
198 ♦ SSPTW: The Americas, 2019 Jamaica
Coverage The BIS is a targeting system used to identify poor and vulnerable families based on their incomes, consumption Low-income and vulnerable persons. patterns, housing conditions, and access to public services. Source of Funds Family Allowance Benefits Insured person: None. Family cash transfer (Programme for Advancement Self-employed person: None. through Health and Education [PATH], means tested): J$1,300 a month is paid for each eligible child younger than None. Employer: age 6; J$1,350 to J$2,100 a month for each school-age child, Government: The total cost. depending on grade level; J$1,600 a month for a pregnant woman, nursing mother, person with disabilities, or poor Qualifying Conditions adult; and J$2,250 for a person aged 60 or older. Family cash transfer (Programme for Advancement Partial benefit: At least J$600 a month is paid for each through Health and Education [PATH], means tested): beneficiary not meeting the school attendance or medical Paid for children from birth to completion of secondary requirements. education, pregnant women and nursing mothers, persons Schedule of payments: Benefits are paid every two months. with disabilities, poor adults aged 18 to 59, and persons Eligible persons are also entitled to receive in-kind benefits, aged 60 or older who are not receiving any pension. including free school lunches, exemption from secondary School-age children must maintain an 85% attendance level school tuition fees, and free medical care at public health at school. centers and hospitals. Pregnant and lactating women and children younger Eligibility is reviewed every four years. than age 6 (72 months) must make regular visits to health centers. Administrative Organization Partial benefit: A reduced benefit is paid if a benefi- Public Assistance Division of the Ministry of Labor and ciary does not meet the school attendance or medical Social Security (https://www.mlss.gov.jm/pub/index.php) requirements. assesses eligibility and administers the program. Means test: The household must be classified as poor based on the Beneficiary Identification System (BIS).
SSPTW: The Americas, 2019 ♦ 199 Mexico
The maximum monthly earnings used to calculate contri- butions are 25 times the daily UMA (Unidad de Medida y Mexico Actualización). Exchange rate: US$1.00 = 19.175 pesos. The daily UMA is 84.49 pesos (February 2019). The insured person’s contributions also finance the mar- riage grant under Family Allowances. Old Age, Disability, and Survivors Self-employed person Universal and social assistance: None. Regulatory Framework Mandatory individual account and social insurance: 6.275% First law: 1943 (social insurance). of daily covered earnings (old age) plus 2.375% of daily Current laws: 1973 (social insurance); 1995 (individual covered earnings (disability and survivors). accounts), implemented in 1997; 2004 (social development). The minimum monthly earnings used to calculate contribu- tions are the legal monthly minimum wage. Type of program: Universal, social insurance, mandatory individual account, and social assistance system. The legal daily minimum wage is 102.68 pesos; Note: The pay-as-you-go social insurance program was 176.72 pesos in municipalities by the northern country closed to new entrants on July 1, 1997, and is being phased border (January 2019). out. At retirement or in case of disability, private-sector The maximum monthly earnings used to calculate contri- employees covered by the social insurance program before butions are 25 times the daily UMA (Unidad de Medida y July 1, 1997, can choose to receive benefits from either Actualización). the social insurance program or the mandatory individual The daily UMA is 84.49 pesos (February 2019). account program. (The government receives the account balances and pays benefits for workers who opt for social The self-employed person’s contributions also finance the insurance benefits.) marriage grant under Family Allowances. Employer Coverage Universal and social assistance: None. Universal and social assistance: Resident citizens of Mandatory individual account and social insurance: 5.15% Mexico. of daily covered payroll (old age) plus 1.75% of daily cov- Mandatory individual account and social insurance: ered earnings (disability and survivors). Private-sector employees and members of cooperatives. The minimum monthly earnings used to calculate contribu- Voluntary coverage for family workers, certain self- tions are the legal monthly minimum wage. employed persons and unpaid workers, household workers, The legal daily minimum wage is 102.68 pesos; employers, tenant and community farmers, small landown- 176.72 pesos in municipalities by the northern country ers, and public-sector employees who are not covered under border (January 2019). any other program. The maximum monthly earnings used to calculate contri- Special social insurance systems for petroleum workers, butions are 25 times the daily UMA (Unidad de Medida y certain public-sector employees, and military personnel. Actualización). Source of Funds The daily UMA is 84.49 pesos (February 2019). The employer’s contributions also finance the marriage Insured person grant under Family Allowances. Universal and social assistance: None. Government Mandatory individual account and social insurance: 1.125% Universal and social assistance: The total cost. of daily covered earnings (old age) plus 0.625% of daily covered earnings (disability and survivors). Mandatory individual account and social insurance: 0.225% The minimum monthly earnings used to calculate contribu- of daily covered earnings plus an average flat-rate daily tions are the legal monthly minimum wage. amount of 5.17 pesos (2018) to the individual account for insured persons with earnings up to 15 times the UMA The legal daily minimum wage is 102.68 pesos; (Unidad de Medida y Actualización) (old age); 0.125% of 176.72 pesos in municipalities by the northern country daily covered earnings (disability and survivors); the total border (January 2019). cost of the guaranteed minimum pension. The daily UMA is 84.49 pesos (February 2019).
200 ♦ SSPTW: The Americas, 2019 Mexico
Qualifying Conditions unable to find suitable paid employment) with less than 1,250 weeks of contributions. Old-age pension (Pensión para el Bienestar de las Personas Adultas Mayores, universal): Age 68 (age 65 Disability pension (Pensión de invalidez, mandatory for indigenous persons and persons who were receiving the individual account): Must have at least a 75% assessed old-age social pension as of December 2018). loss of earning capacity based on normal earnings in the last year of work and at least 150 weeks of contributions; or Old-age pension (Pensión de vejez, mandatory indi- a 50% to 74% assessed loss of earning capacity and at least vidual account): Age 65 with at least 1,250 weeks of 250 weeks. contributions. Dependent’s supplement (Ayuda por carga familiar): Paid If the insured has less than 1,250 weeks of contributions, for a female spouse or partner, children up to age 16 (age 25 he or she can continue contributing or claim an old-age if a student; no limit if disabled), or dependent parents (if settlement. the insured has no spouse, partner, or child). Early pension (Pensión anticipada): Paid at any age if the Constant-attendance allowance (Ayuda asistencial): Paid account balance is sufficient to finance a monthly pension if the insured requires the constant attendance of others to of at least 30% of the legal monthly minimum pension and perform daily functions. any survivor pensions. Guaranteed minimum pension (Pensión mínima garan- The legal monthly minimum pension is 3,123.18 pesos. tizada): Must meet the contribution requirements for an Unemployed worker’s old-age pension (Pensión de cesantía individual account disability pension and have an account en edad avanzada): Age 60 with at least 1,250 weeks of balance that is insufficient to finance the legal monthly contributions and unable to find suitable paid employment. minimum pension. Guaranteed minimum pension (Pensión mínima garan- The legal monthly minimum pension is 3,123.18 pesos. tizada): Age 65 (age 60 if unemployed and unable to find Mexican Social Security Institute assesses the loss of earn- suitable paid employment) with at least 1,250 weeks of con- ing capacity. tributions, and the individual account balance is insufficient to finance the legal monthly minimum pension. Benefits are payable abroad under reciprocal agreement. The insured must pay the corresponding administrative Dependent’s supplement (Ayuda por carga familiar): Paid costs. If leaving Mexico permanently, the pensioner may for a female spouse or partner, children up to age 16 (age 25 request a lump sum of two years of the pension. if a student; no limit if disabled), or dependent parents (if the pensioner has no spouse, partner, or child). Disability pension (Pensión de invalidez, social insur- Must have at least a 50% assessed loss of earning Benefits are payable abroad under reciprocal agreement. ance): capacity based on normal earnings in the last year of work The insured must pay the corresponding administrative and have at least 150 weeks of contributions. costs. If leaving Mexico permanently, the pensioner may request a lump sum of two years of the pension. The insured may continue to work in a different job and with a different employer after a six-month waiting period. Old-age pension (Pensión de vejez, social insurance): Age 65 with at least 500 weeks of contributions. Dependent’s supplement (Ayuda por carga familiar): Paid for a female spouse or partner, children up to age 16 (age 25 Employment must cease. if a student; no limit if disabled), or dependent parents (if Unemployed worker’s old-age pension (Pensión de cesantía the pensioner has no spouse, partner, or child). en edad avanzada): Age 60 with at least 500 weeks of con- Constant-attendance allowance (Ayuda por carga familiar): tributions and unable to find suitable paid employment. Paid if the insured requires the constant attendance of oth- Dependent’s supplement (Ayuda por carga familiar): Paid ers to perform daily functions. for a female spouse or partner, children up to age 16 (age 25 Mexican Social Security Institute assesses the loss of earn- if a student; no limit if disabled), or dependent parents (if ing capacity. the insured has no spouse, partner, or child). Benefits are payable abroad under reciprocal agreement. Constant-attendance allowance (Ayuda asistencial): Paid The insured must pay the corresponding administrative if the insured requires the constant attendance of others to costs. If leaving Mexico permanently, the pensioner may perform daily functions. request a lump sum of two years of the pension. Benefits are payable abroad under reciprocal agreement. Survivor pension (Pensión de sobrevivientes, manda- The insured must pay the corresponding administrative tory individual account and social insurance): The costs. If leaving Mexico permanently, the pensioner may deceased received or was entitled to receive an old-age or request a lump sum of two years of the pension. disability pension or had at least 150 weeks of contributions Old-age settlement (Retiro del saldo, mandatory at the time of death. The death must not be the result of an individual account): Age 65 (age 60 if unemployed and occupational injury.
SSPTW: The Americas, 2019 ♦ 201 Mexico
Eligible survivors include a widow(er) or cohabiting partner Unemployed worker’s old-age pension (Pensión de cesantía with children; a widow(er) without children who was mar- en edad avanzada): Calculated in the same way as the indi- ried to the deceased for at least six months if the deceased vidual account old-age pension. was younger than age 55 at the time of marriage (at least Guaranteed minimum pension (Pensión mínima garan- 12 months if the deceased was aged 55 or older at the time tizada): The difference between the monthly old-age pen- of marriage or if the deceased received or was entitled sion financed by the account balance and the legal monthly to receive an old-age or disability pension); a cohabiting minimum pension is paid. partner without children who lived with the deceased for at least five years; orphans up to age 16 (age 25 if a student; The legal monthly minimum pension is 3,123.18 pesos. no limit if disabled); and dependent parents if there are no Dependent’s supplement (Ayuda por carga familiar): 15% of other eligible survivors. The widower or male partner must the old-age pension is paid for a female spouse or partner; be economically dependent on the deceased. 10% for each eligible child; and 10% for each dependent Constant-attendance allowance (Ayuda asistencial): Paid if parent. a widow(er) receiving a survivor pension requires the con- Schedule of payments: Twelve monthly payments a years stant attendance of others to perform daily functions. plus a 13th payment for Christmas (one month of the old- The widower(er) or partner’s pension ceases upon remar- age pension without supplements). riage or cohabitation. Benefit adjustment: Benefits are adjusted annually in Febru- Remarriage settlement (Asignación por nuevo matrimonio): ary based on changes in the consumer price index. Paid to a widow(er) or partner receiving a survivor pension Old-age pension (Pensión de vejez, social insurance): upon remarriage or cohabitation. A variable percentage (inversely proportional to earnings) Benefits are payable abroad under reciprocal agreement. of the insured’s average earnings used to calculate the last The insured must pay the corresponding administrative 250 weeks of contributions is paid plus an increment for costs. If leaving Mexico permanently, the pensioner may each year of contributions exceeding 500 weeks. request a lump sum of two years of the pension. Unemployed worker’s pension (Pensión de cesantía en edad Funeral grant (Ayuda para gastos de funeral, social avanzada): Calculated in the same way as the social insur- insurance): The deceased had at least 12 weeks of contri- ance old-age pension. butions in the last nine months or received or was entitled The legal monthly minimum pension is 3,123.18 pesos. to receive an old-age or disability pension at the time of Dependent’s supplement (Ayuda por carga familiar): 15% of death. the old-age pension is paid for a female spouse or partner; Survivor grant (Apoyo Económico de Pago de Marcha, 10% for each eligible child; and 10% for each dependent Pensión para el Bienestar de las Personas Adultas parent. Paid to a Mayores, social assistance, income tested): Constant-attendance allowance (Ayuda asistencial): Up to beneficiary named by a deceased person who was receiving 20% of the old-age pension is paid. a universal old-age pension. If there is no named benefi- ciary, no survivor grant is paid. Schedule of payments: Twelve monthly payments a years plus a 13th payment for Christmas (one month of the old- The named beneficiary must not have received or be receiv- age pension without supplements). ing a survivor pension or funeral grant. Benefit adjustment: Benefits are adjusted annually in Febru- Old-Age Benefits ary based on changes in the consumer price index. Old-age pension (Pensión para el Bienestar de las Per- Old-age settlement (Retiro del saldo, mandatory indi- sonas Adultas Mayores, universal): 1,275 pesos a month vidual account): A lump sum of the insured’s total account is paid. balance is paid. Schedule of payments: The old-age pension is paid every Permanent Disability Benefits two months. Disability pension (Pensión de invalidez, mandatory Old-age pension (Pensión de vejez, mandatory indi- individual account): 35% of the insured’s average adjusted The insured has two different pay- vidual account): earnings used to calculate the last 500 weeks of contribu- ment options: purchase an annuity or make programmed tions is paid. withdrawals. If the account balance exceeds the amount needed to Early pension (Pensión anticipada): The insured has two finance the legal monthly minimum pension, the insured different payment options: purchase an annuity or make may withdraw the excess amount and use it to purchase an programmed withdrawals. annuity or apply it to survivor benefits. The legal monthly minimum pension is 3,123.18 pesos.
202 ♦ SSPTW: The Americas, 2019 Mexico
Dependent’s supplement (Ayuda por carga familiar): 15% of Dependent parent’s pension (Pensión de ascendientes): If the disability pension is paid for a female spouse or partner; there is no eligible widow(er), partner, or orphan, 20% of 10% for each eligible child; and 10% for each dependent the old-age or disability pension the deceased received or parent. was entitled to receive is paid for each dependent parent. Constant-attendance allowance (Ayuda asistencial): Up to The maximum combined survivor pension is 100% of the 20% of the disability pension is paid. disability pension the deceased received or was entitled to Guaranteed minimum pension (Pensión mínima garan- receive. tizada): The difference between the monthly disability pen- The amount paid may be recalculated if the number of sion financed by the account balance and the legal monthly eligible survivors changes. minimum pension is paid. Funeral grant (Ayuda para gastos de funeral, social Schedule of payments: Twelve monthly payments a years insurance): A lump sum of 60.8 days of the daily UMA plus a 13th payment for Christmas (one month of the dis- (Unidad de Medida y Actualización) is paid. ability pension without supplements). The daily UMA is 84.49 pesos (February 2019). Benefit adjustment: Benefits are adjusted annually in Febru- Benefit adjustment: Benefits are adjusted annually in Febru- ary based on changes in the consumer price index. ary based on changes in the consumer price index. Disability pension (Pensión de invalidez, social insur- Survivor grant (Apoyo Económico de Pago de Marcha, ance): A variable percentage (inversely proportional to Pensión para el Bienestar de las Personas Adultas earnings) of the insured’s average earnings used to calculate Mayores, social assistance, income tested): A lump sum the last 250 weeks of contributions is paid plus an incre- of 1,275 pesos is paid. ment for each year of contributions exceeding 500 weeks. Dependent’s supplement (Ayuda por carga familiar): 15% of Administrative Organization the social insurance disability pension is paid for a female Secretariat for Welfare (https://www.gob.mx/bienestar) spouse or partner, 10% for each eligible, and 10% for each oversees and coordinates the universal and social assistance dependent parent. programs. The legal monthly minimum pension is 3,123.18 pesos. Mexican Social Security Institute (http://www.imss.gob Constant-attendance allowance (Ayuda asistencial): Up to .mx), managed by a general assembly, technical council, 20% of the disability pension is paid. oversight commission, and director general, administers the Schedule of payments: Twelve monthly payments a years universal, social insurance, and social assistance programs, plus a 13th payment for Christmas (one month of the dis- collects contributions, and oversees the mandatory indi- ability pension without supplements). vidual account program. Benefit adjustment: Benefits are adjusted annually in Febru- National Commission for the Retirement Savings System ary based on changes in the consumer price index. (https://www.gob.mx/consar) supervises the pension fund management companies. Survivor Benefits Individual pension fund management companies administer the individual accounts. Survivor pension (Pensión de sobrevivientes, manda- tory individual account and social insurance) Sickness and Maternity Spouse’s pension (Pensión de viudez): 90% of the old-age or disability pension the deceased received or was entitled Regulatory Framework to receive is paid. 1943 (social insurance). Constant-attendance allowance (Ayuda asistencial): Up to First law: 20% of the spouse’s pension may be paid to a widow(er) or Current laws: 1973 (social insurance); 1995 (social insur- a partner. ance), implemented in 1997; and 2004 (social development).
Remarriage settlement (Asignación por nuevo matrimonio): Type of program: Social insurance and social assistance A lump sum of three years of the spouse’s pension is paid. (medical benefits only) system. Orphan’s pension (Pensión de orfandad): 20% of the old-age or disability pension the deceased received or was Coverage entitled to receive is paid for each eligible orphan; 30% for Social insurance (cash benefits): Private-sector employ- a full orphan. When the eligibility of an orphan ceases, ees, members of cooperatives, tenant and community farm- he or she receives a final benefit of three months of the ers, and certain small landowners. deceased’s pension. Social insurance (medical benefits): Private-sector employees and members of cooperatives.
SSPTW: The Americas, 2019 ♦ 203 Mexico
Voluntary coverage for family workers, certain self- Employer employed persons and unpaid workers, household workers, Social insurance (cash benefits): 0.70% of monthly covered employers, tenant and community farmers, certain small payroll. landowners, and public-sector employees who are not cov- ered under any other program. Social insurance (medical benefits): 20.40% of the UMA (Unidad de Medida y Actualización) per employee, plus Needy residents of Mexico. Social assistance: 1.1% of covered earnings exceeding three times the UMA (pensioners’ medical benefits). Source of Funds The minimum monthly earnings used to calculate contribu- Insured person tions are the legal monthly minimum wage. Social insurance (cash benefits): 0.25% of monthly covered The legal daily minimum wage is 102.68 pesos; earnings. 176.72 pesos in municipalities by the northern country The minimum monthly earnings used to calculate contribu- border (January 2019). tions are the legal monthly minimum wage. The maximum monthly earnings used to calculate contribu- The legal daily minimum wage is 102.68 pesos; tions are 25 times the daily UMA. 176.72 pesos in municipalities by the northern country The daily UMA is 84.49 pesos (January 2019). border (January 2019). Social assistance: None. The maximum monthly earnings used to calculate contribu- tions are 25 times the daily UMA. Government The daily UMA is 84.49 pesos (January 2019). Social insurance (cash benefits): 0.05% of monthly covered earnings. Social insurance (medical benefits): 0.40% of monthly cov- ered earnings exceeding three times the UMA (Unidad de Social insurance (medical benefits): A flat-rate contribution Medida y Actualización) plus 0.375% of monthly covered of 11.82 pesos a month per covered day and per insured earnings (pensioners’ medical benefits). person, plus 0.075% of monthly covered earnings (pension- The voluntarily insured pay 20.40% of the UMA (Unidad ers’ medical benefits). de Medida y Actualización) (of covered earnings for public- The minimum monthly earnings used to calculate contribu- sector and household workers). tions are the legal monthly minimum wage. The minimum monthly earnings used to calculate contribu- The maximum monthly earnings used to calculate contri- tions are the legal monthly minimum wage. butions are 25 times the daily UMA (Unidad de Medida y The legal daily minimum wage is 102.68 pesos; Actualización). 176.72 pesos in municipalities by the northern country The legal daily minimum wage is 102.68 pesos; border (January 2019). 176.72 pesos in municipalities by the northern country The maximum monthly earnings used to calculate contribu- border (January 2019). tions are 25 times the daily UMA. The daily UMA is 84.49 pesos (February 2019). The daily UMA is 84.49 pesos (January 2019). Social assistance: The total cost. Social assistance: None. Qualifying Conditions Self-employed person Cash sickness benefit (Subsidio por enfermedad o Social insurance (cash benefits): Not applicable. accidente general, social insurance): Must have at Social insurance (medical benefits): 20.40% of the UMA least four weeks of contributions immediately before the (Unidad de Medida y Actualización) plus 1.425% of incapacity began; for casual workers, at least six weeks of covered earnings exceeding three times the legal monthly contributions in the last four months. minimum wage (pensioners’ medical benefits). Cash maternity benefit (Subsidio por maternidad, The legal daily minimum wage is 102.68 pesos; social insurance): Must have at least 30 weeks of contribu- 176.72 pesos in municipalities by the northern country tions in the 12 months before the benefit is first paid and not border (January 2019). work for 42 days before and 42 days after childbirth. The Social Security Institute must confirm the expected date of The daily UMA is 84.49 pesos (January 2019). childbirth. Social assistance: None. Nursing allowance (Subsidio por lactancia, social insurance): Paid to the wife or partner of an insured person for the birth of a child.
204 ♦ SSPTW: The Americas, 2019 Mexico
Medical benefits (social insurance): Must be currently Medical benefits (Programa Pensión para el Bienestar insured, a pensioner, or an eligible dependent. Pensioners de las Personas Adultas Mayores, social assistance): must have at least 750 weeks of contributions. Coverage is Benefits for dependents are the same as those for the pri- extended for unemployed persons and their eligible depen- mary beneficiary. dents for up to eight weeks if the insured has at least eight weeks of continuous contributions immediately before Administrative Organization covered employment ceases. Secretariat of Welfare (https://www.gob.mx/bienestar), Eligible dependents include a wife, a dependent husband, through the Undersecretary of Social and Human Develop- a cohabiting partner who has lived with the insured for ment, oversees and coordinates the administration of the the five years immediately before the illness began or who social assistance medical benefits. has children with the insured (as long as both partners Mexican Social Security Institute (http://www.imss.gob are unmarried), children younger than age 16 (age 25 if a .mx), managed by a general assembly, technical council, student; no limit if disabled or chronically ill and unable to oversight commission, and director general, administers the work), and dependent parents. social insurance program and collects contributions. Medical benefits (Programa Pensión para el Bienestar Mexican Social Security Institute operates its own hospi- de las Personas Adultas Mayores, social assistance): tals, clinics, pharmacies, and other medical facilities and Provided to needy persons without access to other medical contracts for the use of some facilities. benefits, especially in rural and underserved urban areas. Work Injury Sickness and Maternity Benefits Sickness benefit (Subsidio por enfermedad o accidente Regulatory Framework general, social insurance): 60% of the insured’s last 1943 (social insurance). monthly covered earnings is paid after a three-day waiting First law: period for up to 52 weeks; may be extended to 78 weeks Current law: 1995 (social insurance), implemented in 1997. under certain conditions. Type of program: Social insurance system. Maternity benefit (Subsidio por maternidad, social insurance): 100% of the insured’s last monthly covered Coverage earnings is paid for 42 days before and 42 days after the Private-sector employees and members of cooperatives. expected date of childbirth. Voluntary coverage for family workers, certain self- Nursing allowance (Subsidio por lactancia, social employed persons and unpaid workers, household workers, In-kind assistance is provided for up to six insurance): employers, tenant and community farmers, certain small months after childbirth. landowners, and public-sector employees who are not cov- ered under any other program. Workers’ Medical Benefits Medical benefits (social insurance): The health facilities Source of Funds of the Mexican Social Security Institute (IMSS) normally Insured person: None. provide medical services directly to patients; IMSS reim- burses the cost of services when it cannot provide them Self-employed person: None. directly. Benefits include general, maternity, dental, and Employer: 0.5% to 15% of covered payroll, depending on specialist care; surgery; hospitalization or care in a con- the assessed degree of risk. valescent home; medicine; laboratory services; and dental care. Benefits are paid for up to 52 weeks; may be extended The minimum monthly earnings used to calculate contribu- for an additional 52 weeks. tions are the legal monthly minimum wage. Medical benefits (Programa Pensión para el Bienestar The legal daily minimum wage is 102.68 pesos; de las Personas Adultas Mayores, social assistance): 176.72 pesos in municipalities by the northern country Certain medical benefits are provided through rural hospi- border (January 2019). tals, rural and urban medical units, obstetric care centers, The maximum monthly earnings used to calculate contribu- and health brigades. tions are 25 times the daily UMA. The daily UMA is 84.49 pesos (February 2019). Dependents’ Medical Benefits Government: None. Medical benefits (social insurance): Benefits for depen- dents are the same as those for the insured.
SSPTW: The Americas, 2019 ♦ 205 Mexico
Qualifying Conditions Survivor Benefits Must be assessed with a work injury or occupational dis- Survivor pension ease. Accidents that occur while commuting to and from Spouse’s pension: 40% of the permanent disability pension work are covered. the deceased received or would have received for a total disability is paid to a widow(er) or surviving partner. The Temporary Disability Benefits widower or male partner must be economically dependent 100% of the insured’s monthly covered earnings at the time on the deceased. the disability began is paid from the first day of the disabil- The pension ceases if the widow(er) or partner (re)marries ity until certification of permanent disability (which should or cohabits with a new partner. take place within 52 weeks). Remarriage settlement: A lump sum of three years of the Permanent Disability Benefits pension is paid to a widow(er) or surviving partner upon (re)marriage or cohabitation. Permanent disability pension (Pensión por incapaci- dad permanente): For a total (100%) disability, 70% of Orphan’s pension: 20% of the permanent disability pension the insured’s average monthly covered earnings in the last the deceased received or would have received for a total dis- 52 weeks (or over the whole contribution period, if shorter) ability is paid for each orphan younger than age 16 (age 25 before the disability began is paid. if a student; no limit if disabled); 30% for a full orphan. Constant-attendance allowance (Ayuda asistencial): Up When the eligibility of an orphan ceases, he or she receives to 20% of the permanent disability pension is paid if the a final benefit of three months of the deceased’s pension. insured requires the constant attendance of others to per- Dependent parent’s pension (Pensión de ascendientes): form daily functions. If there is no widow(er) or orphan, 20% of the permanent Dependent’s supplement (Ayuda por carga familiar): 15% disability pension the deceased received or would have of the permanent disability pension is paid for a wife or received for a total disability is paid to each eligible depen- partner; 10% for each child younger than age 16 (age 25 if dent parent. a student; no limit if disabled); and 10% for each dependent The amount paid may be recalculated if the number of parent. eligible survivors changes. Partial disability: For an assessed degree of disability Christmas bonus (Aguinaldo anual): A supplement of greater than 50% but less than 100%, a percentage of the 15 days of the permanent disability pension for a total dis- full permanent disability pension is paid depending on the ability is paid. assessed degree of disability. For an assessed degree of Benefits are payable abroad under reciprocal agreement. disability of 26% to 50%, the insured has two different pay- The insured must pay the corresponding administrative ment options: a percentage of the full permanent disability costs. If leaving Mexico permanently, the pensioner may pension paid based on the assessed degree of disability or request a lump sum of two years of the pension. a lump sum of five years of the insured’s pension. For an assessed degree of disability of 25% or less, a lump sum of Benefit adjustment: Benefits are adjusted annually in Febru- five years of the permanent disability pension is paid. ary based on changes in the consumer price index. Christmas bonus (Aguinaldo anual): A supplement of Funeral grant (Ayuda para gastos de funeral): A lump 15 days of the insured’s pension is paid for an assessed sum of sixty times the daily UMA (Unidad de Medida y degree of disability of more than 50%. Actualización) effective on the date of the insured’s death is The degree of disability may be assessed and revised dur- paid. ing the first two years; thereafter, a permanent pension is The daily UMA is 84.49 pesos (January 2019). paid based on the assessed the degree of disability. Benefits are payable abroad under reciprocal agreement. Administrative Organization The insured must pay the corresponding administrative Mexican Social Security Institute (http://www.imss.gob costs. If leaving Mexico permanently, the pensioner may .mx), managed by a general assembly, technical council, request a lump sum of two years of the pension. oversight commission, and director general, administers the Benefit adjustment: Benefits are adjusted annually in Febru- program and collects contributions. ary based on changes in the consumer price index. Unemployment Workers’ Medical Benefits Benefits include medical and surgical care, hospitalization, Regulatory Framework medicine, rehabilitation, appliances, and orthopedics. Federal labor law (1970) requires employers to provide sev- erance pay to dismissed employees. The payment amount
206 ♦ SSPTW: The Americas, 2019 Mexico is three months plus 20 days of an employee’s earnings for Source of Funds each year of service, up to 12 months of earnings. Insured person Unemployed persons with at least five years of contribu- tions to an individual account may withdraw an amount Social insurance: None. equal to 90 days of their average earnings used to calculate Mandatory individual account: See source of funds under the last 250 weeks of contributions or 11.5% of the individ- Old Age, Disability, and Survivors. ual account balance (see Old Age, Disability, and Survi- vors), whichever is lower. Social assistance: None. Unemployed persons with three to five years of contribu- Self-employed person tions and at least 12 bimonthly contributions may withdraw Social insurance: Not applicable. an amount equal to 30 days of their covered earnings used to calculate contributions, up to 10 times the legal monthly Mandatory individual account: See source of funds under minimum wage. Old Age, Disability, and Survivors. The legal daily minimum wage is 102.68 pesos; Social assistance: None. 176.72 pesos in municipalities by the northern country Employer border (January 2019). Social insurance: 1% of covered payroll. One withdrawal is permitted every five years. The minimum monthly earnings used to calculate contribu- After the insured returns to work, he or she may replace tions are the legal monthly minimum wage. the amount withdrawn from the individual account during unemployment and the number of paid contribution weeks The maximum monthly earnings used to calculate contri- will be restored. If the amount is not replaced, the number butions are 25 times the daily UMA (Unidad de Medida y of paid contribution weeks will be reduced. Actualización). The legal daily minimum wage is 102.68 pesos; Family Allowances 176.72 pesos in municipalities by the northern country border (January 2019). Regulatory Framework The daily UMA is 84.49 pesos (February 2019). First law: 1973 (social insurance). Mandatory individual account: See source of funds under Current laws: 1995 (social security), implemented in 1997; Old Age, Disability, and Survivors. and 2004 (social developments). Social assistance: None. Type of program: Social insurance, mandatory individual Government account, and social assistance system. Social insurance: None. Coverage Mandatory individual account: None. Social insurance: Employed persons who are mothers, Social assistance: The total cost. divorced fathers or widow(er)s with children, or legal guardians. Qualifying Conditions Exclusions: Self-employed persons. Day care center (Guarderías infantiles, social insur- Mandatory individual account: Private-sector employees ance): Paid for children aged 43 days to 4 years who are and members of cooperatives. enrolled in day care. A mother or father must have legal custody of a child. Voluntary coverage for family workers, certain self- employed persons and unpaid workers, household workers, Marriage grant (Ayuda para gastos de matrimonio, employers, tenant and community farmers, small landown- mandatory individual account): Must not be previously ers, and public-sector employees who are not covered under married and have at least 150 weeks of contributions to the any other program. individual account. Special social insurance systems for petroleum workers, School allowance (Programa Nacional de Becas para certain public-sector employees, and military personnel. el Bienestar Benito Juárez, social assistance, means tested) Social assistance: Needy residents of Mexico. Basic education allowance (Beca Bienestar para las Famil- ias de Educación Básica): Paid to families living in extreme poverty with children younger than age 18 in nursery, preschool, primary school, or secondary school.
SSPTW: The Americas, 2019 ♦ 207 Mexico
High school allowance (Beca Universal para Estudiantes de High school allowance (Beca Universal para Estudiantes de Educación Media Superior): Paid to families with children Educación Media Superior): 800 pesos a month is paid for attending public high school. The program prioritizes indig- each eligible child. enous families living in poverty or vulnerable situations. Schedule of payments: The high school allowance is paid Higher education allowance (Beca Jóvenes Escribiendo every two months. el Futuro de Educación Superior): Paid to students up to Higher education allowance (Beca Jóvenes Escribiendo el age 29 enrolled in public higher education. The program Futuro de Educación Superior): 2,400 pesos a month is paid prioritizes persons studying at public institutions in areas for each eligible student. with a majority population of indigenous background or African descent, and areas with an increased incidence of Schedule of payments: The higher education allowance is violence or marginalization. paid every two months.
Family Allowance Benefits Administrative Organization National Coordination of Benito Juárez Scholarships for Day care center (Guarderías infantiles, social insur- Welfare (https://www.gob.mx/becasbenitojuarez/) oversees ance): The total cost of the child care at selected institu- tions is paid. and coordinates the administration of the school allowances program. Marriage grant (Ayuda para gastos de matrimonio, Mexican Social Security Institute (http://www.imss.gob mandatory individual account): A lump sum of 30 times .mx/), managed by a general assembly, technical council, the daily UMA (Unidad de Medida y Actualización) is paid oversight commission, and director general, administers the from the insured’s individual account. day care program through contracted day care providers, The daily UMA is 84.49 pesos (February 2019). oversees the mandatory individual account program, and School allowance (Programa Nacional de Becas para collects contributions. el Bienestar Benito Juárez, social assistance, means National Commission for the Retirement Savings System tested) (https://www.gob.mx/consar) supervises the pension fund Basic education allowance (Beca Bienestar para las management companies. Familias de Educación Básica): 800 pesos a month is paid Individual pension fund management companies administer for each family. the individual accounts. Schedule of payments: The basic school allowance is paid every two months.
208 ♦ SSPTW: The Americas, 2019 Nicaragua
There are no maximum earnings used to calculate contributions.
Nicaragua Employer: 12.50% of monthly covered payroll (firms with Exchange rate: US$1.00 = 33.05 córdobas. fewer than 50 workers); 13.50% of monthly covered payroll (firms with at least 50 workers). The minimum monthly earnings used to calculate contribu- Old Age, Disability, and Survivors tions are the legal monthly minimum wage. The legal monthly minimum wage ranges from Regulatory Framework 4,176.49 córdobas (agriculture) to 9,346.59 córdobas (construction, finance, and insurance), depending on the First law: 1956 (social security), implemented in 1957. economic sector. Current laws: 1982 (social security) and 1982 (social secu- There are no maximum earnings used to calculate rity regulations). contributions. Type of program: Social insurance system. The employer’s contributions also finance family allowances. Coverage Government: None; contributes as an employer. Employed persons, farmers who benefited from the Agrar- ian Reform, members of professional associations, certain Qualifying Conditions members of the clergy, and members of cooperatives. Old-age pension (Pensión de vejez): Age 60 with at Voluntary coverage for self-employed persons, persons least 750 weeks of contributions. Those who enrolled after who previously had mandatory coverage, certain members age 45 must have contributions for half the weeks from the of the clergy, citizens of Nicaragua working at diplomatic date coverage began until the normal retirement age, with missions or for international organizations in Nicaragua, at least 250 weeks of contributions. and family labor. Age 55 for miners and those in arduous work with at least Exclusions: Seasonal agricultural workers. 15 years of contributions. Age 55 for teachers with at least Special systems for employees of the Ministry of Interior, 1,500 weeks of contributions (men) or 750 weeks of contri- including firefighters, police and correctional personnel; butions (women). and for military personnel. Partial pension: Age 60 with at least 250 weeks but less than 750 weeks of contributions. Source of Funds Deferred pension: The pension may be deferred until Insured person: 4.75% of monthly covered earnings. age 70. The minimum monthly earnings used to calculate contribu- Constant-attendance allowance: Paid if the insured tions are the legal monthly minimum wage. requires the constant attendance of others to perform daily The legal monthly minimum wage ranges from functions. 4,176.49 córdobas (agriculture) to 9,346.59 córdobas Dependent’s supplement: Paid for a dependent wife or (construction, finance, and insurance), depending on the disabled husband, children younger than age 15 (age 21 if economic sector. a student, no limit if disabled), and dependent parents or There are no maximum earnings used to calculate grandparents older than age 60 or with disabilities. contributions. A pensioner who works must pay contributions; the pen- The insured person’s contributions also finance family sioner’s salary must not exceed the amount of his or her allowances. pension.
Self-employed person: 14% of monthly covered declared The old-age pension is not payable abroad. earnings (old-age, disability, and survivor benefits and Disability pension (Pensión de invalidez): Must have at dependent supplements); 11.6% of monthly covered least a 67% assessed loss of earning capacity and at least declared earnings for the clergy (old-age, disability, and 150 weeks of contributions in the six years immediately survivor benefits). before the disability began or at least 250 total weeks of The minimum monthly earnings used to calculate contribu- contributions. tions are the legal monthly minimum wage for agricultural Partial pension: Must have at least a 50% but less than workers. a 67% assessed loss of earning capacity and at least The legal monthly minimum wage for agricultural workers 150 weeks of contributions in the six years immediately is 4,176.49 córdobas.
SSPTW: The Americas, 2019 ♦ 209 Nicaragua before the disability began or at least 250 total weeks of Partial pension: With 250 to 349 weeks of contributions, contributions. 1,910 córdobas a month is paid; with 350 to 449 weeks, Constant-attendance allowance: Paid if the insured 2,356 córdobas a month; with 450 to 549 weeks, 2,884 cór- requires the constant attendance of others to perform daily dobas a month; with 550 to 649 weeks, 3,290 córdobas a functions. month; and with 650 to 749 weeks, 3,656 córdobas a month. Dependent’s supplement: Paid for a dependent wife or Deferred pension: The pension is increased by 1% for every disabled husband, children younger than age 15 (age 21 if 52 weeks of contributions after age 60, up to 10%. a student, no limit if disabled), and dependent parents or The maximum monthly old-age pension is 70% of the grandparents older than age 60 or with disabilities. insured’s average monthly earnings in the last 375 weeks of The disability pension ceases at the normal retirement age contributions. and is replaced by the old-age pension. If the insured is not Constant-attendance allowance: 20% of the old-age pension entitled to receive an old-age pension, a partial disability is paid. pension is increased to the value of the total disability ben- Dependent’s supplement: 13.5% of the old-age pension is efit at the normal retirement age if the beneficiary retires paid for a dependent wife or disabled husband; 9% for each from all gainful employment. eligible child); and 9% for eligible parents or grandparents. A medical board appointed by the Nicaraguan Institute The maximum monthly old-age pension and dependent’s of Social Security assesses and review the loss of earning supplement is 100% of the insured’s average monthly earn- capacity every three years. ings in the last 375 weeks of contributions or US$1,500 a The disability pension is not payable abroad. month, whichever is lower.
Survivor pension: The deceased received or was entitled Schedule of payments: Benefits are paid monthly, with an to receive an old-age or disability pension at the time of additional payment made each Christmas. death. Benefit adjustment: Benefits are adjusted annually on Eligible survivors include a widow or a dependent, disabled November 30 based on changes in the consumer price widower who has lived with the deceased for at least six index. months (except if there are common children; the widow is pregnant; or if the deceased died from an accident), and Permanent Disability Benefits orphans younger than age 15 (age 21 if a student, no limit if Disability pension (Pensión de invalidez): 20% of the disabled). insured’s average monthly earnings in the last 375 weeks of Depending on the number of other eligible survivors, contributions plus 1% for every 52 weeks of contributions dependent parents or grandparents older than age 60 or exceeding 150 weeks is paid. disabled may also receive benefits. The minimum monthly disability pension is the legal The widow(er)’s pension ceases upon remarriage or monthly minimum wage in the insured’s occupation. cohabitation. The legal monthly minimum wage ranges from Remarriage and cohabitation grant: Paid to a widow(er) 4,873.29 córdobas (agriculture) to 9,346.59 córdobas upon remarriage or cohabitation. (construction, finance, and insurance), depending on the Survivor pensions are not payable abroad. economic sector. The maximum monthly disability pension is 70% of the Funeral grant (Subsidio de funeral): The deceased was insured’s average monthly earnings in the last 375 weeks of in covered employment or was a pensioner at the time of contributions. death. If the insured has a spouse and children, the total disability Old-Age Benefits pension must not be less than 50% of the insured’s average monthly earnings. Old-age pension (Pensión de vejez): 20% of the insured’s average monthly earnings in the last 375 weeks of contribu- Partial pension: 50% of the full disability pension is paid. tions plus 1% for every 52 weeks of contributions exceeding The partial pension must be greater than 33% but less than 150 weeks is paid. 50% (depending on the degree of disability) of the legal The minimum monthly old-age pension is the legal monthly monthly minimum wage in the insured’s occupation. minimum wage in the insured’s occupation. Constant-attendance allowance: 20% of the full disability The legal monthly minimum wage ranges from pension is paid. 4,062.79 córdobas (agriculture) to 9,346.59 córdobas Dependent’s supplement: 13.5% of the old-age pension is (construction, finance, and insurance), depending on the paid for a dependent wife or disabled husband; 9% for each economic sector. eligible child; and 9% for eligible parents or grandparents.
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The maximum monthly disability pension and dependent’s Sickness and Maternity supplement is 100% of the insured’s average monthly earn- ings in the last 375 weeks of contributions or US$1,500 a Regulatory Framework month, whichever is lower. First law: 1956 (social security), implemented in 1957. Schedule of payments: Benefits are paid monthly, with an additional payment made each Christmas. Current laws: 1982 (social security), 1982 (social security regulations), and 2002 (health). Benefit adjustment: Benefits are adjusted annually on November 30 based on changes in the consumer price Type of program: Social insurance (cash and medical ben- index. efits) and social assistance (medical benefits) system. Note: The 2014 Family Code introduced a five-day pater- Survivor Benefits nity benefit. Survivor pension Coverage Spouse’s pension (Pensión de viudedad): 50% of the old-age or disability pension the deceased received or was Social insurance (cash and medical benefits): Employed entitled to receive is paid for life to a widow aged 45 or persons, farmers who benefited from the Agrarian Reform, older (any age if disabled) or a dependent widower aged 60 members of professional associations, certain members of or older (any age if disabled); for up to two years to a the clergy, members of cooperatives, and old-age pension- widow younger than age 45 (temporary survivor pension) ers (medical benefits only). or without maximum duration if she is caring for a child Voluntary coverage for self-employed persons, persons receiving an orphan’s pension. who previously had mandatory coverage, certain members A widow who previously received a temporary survivor of the clergy, citizens of Nicaragua working at diplomatic pension may be entitled to receive a spouse’s pension for missions or for international organizations in Nicaragua, life upon reaching age 60 if she has not remarried, is unem- and family labor. ployed, and is not receiving any other pension. Exclusions: Seasonal agricultural workers. Remarriage and cohabitation grant: A lump sum of Special systems for employees of the Ministry of Interior, 12 months of the spouse’s pension is paid. including firefighters, police and correctional personnel; Orphan’s pension (Pensión de orfandad): 25% of the old- and for military personnel. age or disability pension the deceased received or was Social assistance (medical benefits): Needy persons, entitled to receive is paid to each eligible orphan; 50% for a including elderly and persons with disabilities. full orphan. Other dependent’s pension (Pensión de ascendientes): Source of Funds Depending on the number of other eligible survivors, up Insured person to 50% of the old-age or disability pension the deceased received or was entitled to receive is paid to other depen- Social insurance: 2.25% of monthly covered earnings. dent relatives. The minimum monthly earnings used to calculate contribu- The maximum combined survivor pension is 100% of the tions are the legal monthly minimum wage. old-age or disability pension the deceased received or was The legal monthly minimum wage ranges from entitled to receive. 4,176.49 córdobas (agriculture) to 9,346.59 córdobas Benefit adjustment: Benefits are adjusted annually on (construction, finance, and insurance), depending on the November 30 based on changes in the consumer price economic sector. index. Social assistance: None. Funeral grant (Subsidio de funeral): A lump sum of the Self-employed person cost of the funeral or 50% of the deceased’s last monthly covered earnings in the 26 weeks before death, whichever is Social insurance: 8.25% of monthly covered earnings. lower, is paid to the person who paid for the funeral. The minimum monthly earnings used to calculate contribu- tions are 6,400 córdobas. Administrative Organization Social assistance: None. Nicaraguan Institute of Social Security (https://www Employer .inss.gob.ni/) administers the programs and collects contributions. Social insurance: 6% of monthly covered payroll. The minimum monthly earnings used to calculate contribu- tions are the legal monthly minimum wage.
SSPTW: The Americas, 2019 ♦ 211 Nicaragua
The legal monthly minimum wage ranges from Maternity benefit (Subsidio de maternidad, social insur- 4,176.49 córdobas (agriculture) to 9,346.59 córdobas ance): 60% of the insured’s average weekly earnings in (construction, finance, and insurance), depending on the the last eight weeks before childbirth is paid for four weeks economic sector. before and eight weeks after the expected date of childbirth; may be extended for an additional two weeks for each addi- Social assistance: None. tional child resulting from a multiple birth. Government Nursing allowance (Subsidio de lactancia): Breastfeeding Social insurance: 1.75% of monthly covered earnings support is provided for the first six months of the child’s for insured and self-employed persons; contributes as life; if the child is not breastfed, formula is provided. employer. Equivalent benefits may be provided in cash under certain conditions. The government’s contributions also finance family allowances. Workers’ Medical Benefits Social assistance: The total cost. Medical benefits (Prestaciones de salud, social insur- ance): Public hospitals and private clinics under contract Qualifying Conditions with the Nicaraguan Institute of Social Security provide Cash sickness benefit (Subsidio de enfermedad, social medical benefits. Benefits include general and specialist insurance): Must have at least eight weeks of contribu- care, hospitalization, laboratory services, and maternity tions in the last 22 weeks. Unemployed persons with at least care. Old-age pensioners are entitled to medical services for eight weeks of contributions in the last 22 weeks are cov- certain illnesses and surgical treatments. ered for eight weeks after employment ceases. Voluntarily There is no limit to duration. insured persons must have at least one year of continuous contributions. Medical benefits (Prestaciones médicas, social assis- tance): Public health facilities provide free health care No benefits are paid if the insured is caring for a sick family including hospitalization and outpatient services, diagnos- member. tics, and medicines, in accordance with a basic list defined Cash maternity benefits (Subsidio de maternidad, by the Ministry of Health. social insurance): Must have at least 16 weeks of contribu- tions in the 39 weeks before the expected date of childbirth. Dependents’ Medical Benefits Unemployed women with at least eight weeks of contribu- Medical benefits (Prestaciones de salud, social insur- tions in the last 22 weeks are covered for 14 weeks after ance): Benefits for dependents are the same as those for the employment ceased. Voluntarily insured persons must have insured. at least one year of continuous contributions. Nursing allowance (Subsidio de lactancia): Paid to an Medical benefits (Prestaciones médicas, social assis- No information available. insured woman or the wife of an insured man for each child tance): younger than age seven months. Administrative Organization Medical benefits (Prestaciones de salud, social insur- Nicaraguan Institute of Social Security (https://www.inss ance): Must have at least eight weeks of contributions in .gob.ni/) administers the social insurance program and col- the last 22 weeks; there is no minimum qualifying period lects contributions. for old-age pensioners. Ministry of Health (http://www.minsa.gob.ni/) administers Eligible dependents include a spouse and children up to the social assistance program. age 12. Public and private institutions provide medical care. Medical benefits (Prestaciones médicas, social assis- tance): Must not be entitled to receive social insurance medical benefits and be assessed as unable to pay contribu- Work Injury tions for voluntary social insurance coverage. Regulatory Framework Sickness and Maternity Benefits First law: 1945 (labor code). Sickness benefit (Subsidio de enfermedad, social Current laws: 1982 (social security) and 1982 (social secu- insurance): 60% of the insured’s average weekly earnings rity regulations). in the last eight weeks before the incapacity began is paid after a three-day waiting period (waived if hospitalized) for Type of program: Social insurance system. up to 52 weeks.
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Coverage (construction, finance, and insurance), depending on the economic sector. Employed persons, farmers who benefited from the Agrar- ian Reform, members of professional associations and the Constant-attendance allowance: 20% of the permanent dis- clergy, and members of cooperatives. ability pension is paid if the insured is assessed with a total disability and requires the constant attendance of others to Exclusions: Self-employed persons, seasonal agricultural perform daily functions. workers, citizens of Nicaragua working at diplomatic mis- sions or for international organizations in Nicaragua, and Dependent’s supplement: 13.5% of the permanent disability family labor. pension is paid for a wife or disabled husband; 9% for each child younger than age 15 (age 21 if a student, no limit if Special systems for employees of the Ministry of Interior, disabled); and 9% for dependent relatives older than age 60 including firefighters, police and correctional personnel; or disabled. and for military personnel. Partial disability: For an assessed loss of earning capacity Source of Funds of at least 20% but less than 67%, a percentage of the full permanent disability pension is paid based on the assessed Insured person: None. degree of disability. Self-employed person: Not applicable. The partial disability pension must be greater than 20% but Employer: 1.5% of monthly covered payroll plus 1.5% for less than 67% (depending on the degree of disability) of the war victims’ pensions. legal monthly minimum wage in the insured’s occupation. A lump sum of five times the insured’s annual salary is paid The minimum monthly earnings used to calculate contribu- for an assessed loss of earning capacity of less than 20%. tions are the legal monthly minimum wage. The legal monthly minimum wage ranges from The legal monthly minimum wage ranges from 4,176.49 córdobas (agriculture) to 9,346.59 córdobas 4,176.49 córdobas (agriculture) to 9,346.59 córdobas (construction, finance, and insurance), depending on the (construction, finance, and insurance), depending on the economic sector. economic sector. Schedule of payments: The permanent disability pension Government: None; contributes as an employer. is paid monthly, with an additional payment made each Christmas. Qualifying Conditions Benefit adjustment: Benefits are adjusted annually on Must be assessed with a work injury or an occupational November 30 based on changes in the consumer price disease. Accidents that occur while commuting to and from index. work are covered. There is no minimum qualifying period. Workers’ Medical Benefits Temporary Disability Benefits Medical benefits are provided for work injuries and occupa- 60% of the insured’s weekly earnings in the last eight tional diseases. Benefits include general and specialist care, weeks of contributions is paid from the day after the dis- medicine, dental care, laboratory services, X-rays, hospital- ability began until medical care ceases or the insured is ization, prostheses, appliances, and rehabilitation. certified with a permanent disability. (The employer pays the benefit for the first day.) Survivor Benefits Permanent Disability Benefits Survivor pension Permanent disability pension (Pensión por incapacidad Spouse’s pension (Pensión de viudedad): 50% of the permanente): For a total (at least a 67% assessed loss of permanent disability pension the deceased received or was earning capacity) disability, 20% of the insured’s average entitled to receive is paid for life to a widow aged 45 or monthly earnings plus 1% for every 52 weeks of contribu- older (any age if disabled) or a dependent widower aged 60 tions exceeding 150 weeks is paid. or older (any age if disabled); a temporary survivor pension is paid for up to two years to a widow younger than age 45 Average monthly earnings are based on the insured’s earn- (temporary survivor pension) or without maximum duration ings in the last 150 weeks of contributions. if caring for a child receiving an orphan’s pension). The minimum monthly permanent disability pension is A widow who previously received a temporary survivor 60% of the insured’s average monthly earnings or the pension may be entitled to receive a spouse’s pension for legal monthly minimum wage in the insured’s occupation, life upon reaching age 60 if she has not remarried, is unem- whichever is lower. ployed and is not receiving any other pension. The legal monthly minimum wage ranges from 4,176.49 córdobas (agriculture) to 9,346.59 córdobas
SSPTW: The Americas, 2019 ♦ 213 Nicaragua
Orphan’s pension (Pensión de orfandad): 25% of the Coverage permanent disability pension the deceased received or was Employed persons, farmers who benefited from the Agrar- entitled to receive is paid to each child younger than age 15 ian Reform, members of professional associations and the (age 21 if a student, no limit if disabled); 50% for a full clergy, and members of cooperatives. orphan. Exclusions: Self-employed persons, seasonal agricultural Other dependent’s pension (Pensión de ascendientes): If workers, military personnel, citizens of Nicaragua working there are no other eligible survivors, 25% of the permanent at diplomatic missions or for international organizations in disability pension the deceased received or was entitled to Nicaragua, and family labor. receive is paid to each dependent survivor. Special system for employees of the Ministry of Interior, The maximum combined survivor pension is 100% of the including firefighters, police and correctional personnel. permanent disability pension the deceased received or was entitled to receive. Source of Funds Funeral grant (Subsidio de Funeral): See Old Age, Dis- Insured person: See source of funds under Old Age, Dis- ability, and Survivors. ability, and Survivors. Administrative Organization Self-employed person: Not applicable. Nicaraguan Institute of Social Security (https://www.inss Employer: See source of funds under Old Age, Disability, .gob.ni/) administers the program and collects and Survivors. contributions. Government: None; contributes as an employer.
Unemployment Qualifying Conditions Regulatory Framework Marriage grant (Ayuda para gastos de matrimonio): Must have at least three years of contributions. The labor code requires employers to provide employ- ees with severance pay in cases of unfair dismissal. An Family Allowance Benefits employee with a permanent contract who is unfairly dismissed receives 100% of his or her monthly earnings for Marriage grant (Ayuda para gastos de matrimonio): A each year of the first three continuous service plus 20 days lump sum of one month of the insured’s monthly earnings of monthly earnings for each additional year of continu- is paid. ous service. Employees with fixed-term contracts receive The benefit is paid for only one marriage. 100% of their outstanding salaries agreed to in their work contracts. Administrative Organization Nicaraguan Institute of Social Security (https://www.inss Family Allowances .gob.ni/) administers the program and collects contributions. Regulatory Framework First law: 1956 (social security), implemented in 1957. Current laws: 1982 (social security) and 1982 (social secu- rity regulations).
Type of program: Social insurance system.
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There are no maximum earnings used to calculate contributions. Panama Social insurance and mandatory individual account: 9.25% Exchange rate: US$1.00 = 1.00 balboa. of the first 500 balboas of gross monthly earnings to social insurance (7.25% of the 13th monthly salary each year) plus 9.25% of gross monthly earnings exceeding 500 balboas to the individual account (7.25% of the 13th monthly salary Old Age, Disability, and Survivors each year). There are no maximum earnings used to calculate Regulatory Framework contributions. First laws: 1941 (social insurance fund) and 2009 (social Of the combined insured person and employer mandatory assistance). individual account contributions, 10% is allocated to the Current laws: 2005 (social insurance and individual individual account, 2.5% to a solidarity contribution, 0.93% accounts) and 2010 (noncontributory pension). to collective old-age insurance, and 0.07% to collective dis- ability insurance. Type of program: Social insurance, mandatory individual account, and social assistance system. Mandatory individual account only: Not applicable. Social assistance: None. Coverage Self-employed person Social insurance only: Public- and private-sector employ- ees and self-employed persons who were insured and were Social insurance only: 13.5% of gross monthly declared older than age 35 on January 1, 2006; public- and private- earnings. sector employees who were insured and younger than Social insurance and mandatory individual account: Not age 35 or who started working from January 1, 2006, to applicable. December 31, 2007, and did not choose to participate in the mixed social insurance and mandatory individual account Mandatory individual account only: 13.5% of 52% of gross system; and public- and private-sector employees who annual earnings. started working from January 1, 2006, to December 31, There are no maximum earnings used to calculate 2007, and who chose not to participate in the mixed system. contributions. Social insurance and mandatory individual account Of the self-employed person’s contribution, 10% is allo- (mixed): Public- and private-sector employees who were cated to the individual account, 2.5% to a solidarity contri- insured and aged 35 or younger on January 1, 2006, and bution, 0.93% to collective old-age insurance, and 0.07% to who chose to participate in the mixed system before collective disability insurance. December 31, 2007; public- and private-sector employees Social assistance: None. who started working from January 1, 2006, to Decem- ber 31, 2007, and who chose to participate in the mixed sys- Employer tem; and public- and private-sector employees who started Social insurance only: 4.25% of gross monthly earnings working after December 31, 2007. (10.75% of the 13th monthly salary each year). Exclusions: Self-employed persons. There are no maximum earnings used to calculate Voluntary coverage for persons not subject to mandatory contributions. coverage, including employees of international organiza- tions and foreign diplomatic missions working in Panama. Social insurance and individual account: 4.25% of the first 500 balboas of gross monthly earnings to social insurance Mandatory individual account only: Self-employed (10.75% of the 13th monthly salary each year) plus 4.25% persons aged 35 or younger on January 1, 2007, with gross of gross monthly earnings exceeding 500 balboas to the annual earnings greater than 9,600 balboas. individual account (10.75% of the 13th monthly salary each year). Social assistance: Needy citizens of Panama. Of the combined insured person and employer mandatory Source of Funds individual account contributions, 10% is allocated to the individual account, 2,5% to a solidarity contribution, 0.93% Insured person to collective old-age insurance, and 0.07% to collective dis- Social insurance only: 9.25% of gross monthly earnings ability insurance. (7.25% of the 13th monthly salary each year). Individual account only: None. Social assistance: None.
SSPTW: The Americas, 2019 ♦ 215 Panama
Government Old-age settlement (Indemnización por Vejez, social insurance and mandatory individual account): Age 62 Social insurance only: Provides subsidies as needed. (men) or age 57 (women) and does not meet the contribution Social insurance and individual account: 0.8% of all insured requirements for an old-age pension. persons’ earnings and designated taxes partially fund the Old-age social pension (Pensión 120 a los 65, social administrative costs; an annual subsidy of 20.5 million assistance, means tested): Age 65, assessed as needy, balboas. and not receiving any other pension. The government’s contributions to social insurance also Beneficiaries must undergo periodic medical examinations. finance the administrative costs of cash sickness and mater- nity benefits. Disability pension (Pensión de Invalidez, social insur- ance and mandatory individual account): Must be Individual account only: None. younger than the normal retirement age, be assessed with at Social assistance: The total cost. least a 66.7% loss of work capacity, and have at least three years of contributions, including at least 18 months in the Qualifying Conditions last three years, if aged 30 or younger; at least four years of contributions, including at least two years in the last four Old-age pension (Pensión por Vejez, social insurance): years, if aged 31 to 40; at least five years of contributions, Age 62 (men) or age 57 (women) with at least 240 months including at least 30 months in the last five years, if aged 41 of contributions (at least 120 months of contributions for to the normal retirement age; or at least 20 years of contri- seasonal agricultural and construction workers; no contri- butions at any age. bution requirement for self-employed persons). The assessed degree of disability may be reviewed at any Partial pension (Pensión por Vejez Proporcional): Age 62 time at the request of the insured or the Social Insurance (men) or age 57 (women) with 180 months to 239 months of Fund. The Medical Qualification Commission assesses the contributions. degree of disability. Early pension (Pensión por Vejez Anticipada): Age 60 Dependent’s supplement (Asignación Familiar, social insur- (men) or age 55 (women) with at least 240 months of ance): Paid for a wife; a female partner who is pregnant, contributions. has children with the insured, or has lived with the insured Early partial pension (Pensión por Vejez Proporcio- for at least five years; a disabled husband, and children nal Anticipada): Age 60 (men) or age 55 (women) with younger than age 14 (age 18 if a full-time student; no limit 180 months to 239 months of contributions. if disabled). Deferred pension: The pension may be deferred. There is The disability pension is payable abroad. no age limit. Disability grant (Indemnización por Invalidez, social Dependent’s supplement (Asignación Familiar): Age 62 insurance and mandatory individual account): Must (men) or age 57 (women) with eligible dependents. be younger than the normal retirement age; be assessed Eligible dependents include a wife; a female partner who is with at least a 66.7% loss of work capacity; have at least pregnant, has children with the insured, or has lived with 12 months of contributions, including at least six months in the insured for at least five years; a disabled husband, and the 12 months before the disability began; and not meet the children younger than age 14 (age 18 if a full-time student; contribution requirements for a disability pension. no limit if disabled). Survivor pension (Pensión de Sobrevivientes, social The social insurance old-age pension is payable abroad. insurance): The deceased received or was entitled to receive a social insurance old-age or disability pension or Old-age pension (Pensión por Vejez, mandatory indi- had at least three years of contributions, including at least vidual account): Age 62 (men) or age 57 (women) with at 18 months in the last three years before the death. least 240 months of contributions (at least 120 months of contributions for seasonal agricultural and construction Eligible survivors include a widow(er); a female partner workers; no contribution requirement for self-employed who is pregnant, had children with the deceased, or had persons). lived with the deceased for at least five years; and orphans younger than age 18 (no limit if disabled); if there are no Top-up benefit: Must have voluntarily enrolled in the mixed other eligible survivors, the deceased’s dependent mother, system from 2006 to 2007 with contributions on monthly or his or her aged or disabled dependent father. earnings exceeding 500 balboas in the 12 months before enrolling in the mixed system. The social insurance survivor pension is payable abroad. The individual account old-age pension is payable abroad. Survivor pension (Pensión de Sobrevivientes, manda- tory individual account): The deceased has an account balance.
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Eligible survivors include a widow(er) and orphans younger Deferred pension: The old-age pension (as calculated than age 18 (no limit if disabled); if there are no other eli- above) plus 2% of the insured’s average monthly earnings gible survivors, the mother and father; if there is no eligible in the best 10 years of earnings for each year of contribu- family member, the designated heir. tions after the normal retirement age is paid. The individual account survivor pension is payable abroad. Dependent’s supplement (Asignación Familiar): 20 balboas a month is paid for an eligible wife, female partner, or a Survivor grant (Indemnización de Sobrevivientes, husband with a disability; 10 balboas a month for each social insurance): The insured deceased did not receive or was not entitled to receive a social insurance old-age or eligible child. disability pension at the time of death. The maximum monthly dependent’s supplement is 100 balboas. Funeral grant (Auxilio de Funeral, social insurance): The deceased received or was entitled to receive a social Benefit adjustment: Benefits are adjusted on an ad hoc basis insurance old-age or disability pension at the time of death, based on economic conditions. or had at least six months of contributions in the 12 months Old-age pension (Pensión por Vejez, mandatory indi- before death. vidual account): The insured’s account balance divided by an actuarial value linked to life expectancy is paid as Old-Age Benefits programmed withdrawals. If the pensioner lives beyond the estimated life expectancy and the individual account is Old-age pension (Pensión por Vejez, social insurance): 60% of the insured’s average monthly earnings in the depleted, collective old-age insurance tops up the account best 10 years of earnings plus 1.25% of average monthly balance. earnings for every 12 months of contributions exceeding Top-up benefit: A monthly benefit is paid based on the 20 years is paid. amount the insured contributed on monthly earnings For seasonal agricultural and construction workers, 60% of exceeding 500 balboas before switching to the mixed the insured’s average monthly earnings in the best 10 years system. of earnings multiplied by the number of months of contri- Old-age settlement (Indemnización por Vejez, social butions divided by 180 is paid. The maximum annual earn- insurance): A lump sum of one month of the old-age pen- ings used to calculate benefits for seasonal agricultural and sion is paid for every six months of contributions. construction workers is 3,500 balboas. Old-age settlement (Indemnización por Vejez, manda- The minimum monthly old-age pension is 255 balboas. tory individual account): A lump sum of the account There is no minimum old-age pension for seasonal agricul- balance is paid. tural and construction workers. Old-age social pension (Pensión 120 a los 65, social The maximum monthly old-age pension for social insur- assistance, means tested): 120 balboas a month is paid. ance only is 1,500 balboas (2,000 balboas with at least 25 years of contributions and average monthly earnings of Permanent Disability Benefits at least 2,000 balboas in the last 15 years of contributions, or 2,500 balboas with at least 30 years of contributions and Disability pension (Pensión de Invalidez, social insur- average monthly earnings of at least 2,500 balboas in the 20 ance): 60% of the insured’s average monthly earnings in best years of earnings). the best 10 years of earnings (or over the total contribution period if less than 10 years) plus 1.25% of average monthly The maximum monthly old-age pension for the social earnings for every year of contributions exceeding 20 years insurance component of the mixed system is 500 balboas. is paid for two years. If the pension is extended beyond two Partial pension (Pensión por Vejez Proporcional): 60% of years, it is paid for life. the insured’s average monthly earnings in the best 10 years The minimum monthly disability pension is 255 balboas. of earnings multiplied by the number of months of contri- butions divided by 240 is paid. The maximum monthly disability pension for social insur- ance only is 1,500 balboas (2,000 balboas with at least Early pension (Pensión por Vejez Anticipada): The old-age 25 years of contributions and average monthly earnings of pension is reduced by 8.72% if it is claimed one year before at least 2,000 balboas in the last 15 years of contributions, the normal retirement age or by 16.58% if it is claimed two or 2,500 balboas with at least 30 years of contributions and years before the normal retirement age. average monthly earnings of at least 2,500 balboas in the 20 Early partial pension (Pensión por Vejez Proporcional best years of earnings). Anticipada): The partial pension is reduced by 8.72% if it The maximum monthly disability pension for the social is claimed one year before the normal retirement age or by insurance component of the mixed system is 500 balboas. 16.58% if it claimed two years before the normal retirement age. Dependent’s supplement (Asignación Familiar, social insurance): 20 balboas a month is paid for an eligible wife,
SSPTW: The Americas, 2019 ♦ 217 Panama female partner, or a husband with a disability; 10 balboas a Funeral grant (Auxilio de Funeral, social insurance): A month for each eligible child. lump sum of 300 balboas is paid to the person who paid for The maximum monthly dependent’s supplement is the funeral. 100 balboas. Administrative Organization Benefit adjustment: Benefits are adjusted on an ad hoc basis based on economic conditions. Social Insurance Fund (http://www.css.org.pa/), managed by a director general with an advisory board, supervises, Disability pension (Pensión de Invalidez, manda- administers, and collects contributions to the social insur- tory individual account): The insured’s account balance ance and individual account programs. divided by an actuarial value linked to life expectancy is paid in programmed withdrawals. Ministry for Social Development (MIDES) (http://www .mides.gob.pa/) administers the noncontributory pension. If the combined social insurance and individual account disability pension is less than what the insured would have been entitled to under the old social insurance system, col- Sickness and Maternity lective insurance pays the difference. Regulatory Framework Disability grant (Indemnización por Invalidez, social First law: 1941 (social insurance fund). insurance): A lump sum of one month of the disability pension is paid for every six months of contributions. Current law: 2005 (social insurance). Disability grant (Indemnización por Invalidez, manda- Type of program: Social insurance system. tory individual account): A lump sum of the account balance is paid. Coverage Public- and private-sector employees, including household Survivor Benefits workers; and pensioners. Survivor pension (Pensión de Sobrevivientes, social Voluntary coverage for persons not subject to manda- insurance) tory coverage, employees of international organizations Spouse’s pension (Pensión de viudez): 50% of the social and foreign diplomatic missions working in Panama, and insurance old-age or disability pension the deceased caregivers. received or was entitled to receive is paid to a widow(er). Orphan’s pension (Pensión de orfandad): 20% of the Source of Funds social insurance old-age or disability pension the deceased Insured person received or was entitled to receive is paid for each eligible Cash benefits: 0.5% of gross monthly earnings; 0.5% of orphan; 50% for a full orphan. monthly declared earnings for the voluntarily insured. Other dependent’s pension (Otras pensiones de sobrevivi- Medical benefits: None for employees; 6.75% of the monthly entes): 30% of the social insurance old-age or disability pension the deceased received or was entitled to receive is pension for pensioners; 8% of gross monthly earnings for paid to an eligible parent. the voluntarily insured. The minimum monthly survivor pension is 120 balboas. The minimum monthly earnings used to calculate contribu- tions are the legal monthly minimum wage; 100 balboas a The maximum combined survivor pension is 100% of the month for household workers; 300 balboas a month for the social insurance old-age or disability pension the deceased voluntarily insured. received or was entitled to receive. The legal monthly minimum wage varies depending on Benefit adjustment: Benefits are adjusted on an ad hoc basis industry, region, and company size. based on economic conditions. There are no maximum earnings used to calculate Survivor pension (Pensión de Sobrevivientes, manda- contributions. tory individual account): The total account balance is paid to eligible survivors as programmed withdrawals. Self-employed person Survivor grant (Indemnización de Sobrevivientes, Cash benefits: 0.5% of monthly declared earnings. social insurance): A lump sum of one month of the Medical benefits: 8% of monthly declared earnings. social insurance old-age or disability pension the deceased The minimum monthly earnings used to calculate contribu- received or was entitled to receive is paid for every six tions are the legal monthly minimum wage. months of contributions. The legal monthly minimum wage varies depending on industry, region, and company size.
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There are no maximum earnings used to calculate months is paid for up to six weeks before and eight weeks contributions. after the expected date of childbirth. Employer Workers’ Medical Benefits Cash benefits: None. Medical benefits (Atención Médica): Benefits include Medical benefits: 8% of gross monthly payroll. general and specialist care, surgery, hospitalization, labora- The minimum monthly earnings used to calculate contribu- tory and X-ray services, medicine, maternity care, dental tions are the legal monthly minimum wage; 100 balboas a care, dental prosthesis, and appliances. month for household workers; 300 balboas a month for the voluntarily insured. Dependents’ Medical Benefits The legal monthly minimum wage varies depending on Medical benefits (Atención Médica): Benefits for depen- industry, region, and company size. dents are the same as those for the insured. There are no maximum earnings used to calculate contributions. Administrative Organization Social Insurance Fund (http://www.css.gob.pa/), managed Government by a director general with an advisory board, administers Cash benefits: See Source of Funds under Old Age, Dis- and collects contributions to the program. ability, and Survivors. Social Insurance Fund operates its own hospitals and other Medical benefits: None; contributes as an employer. (A pro- medical facilities in larger cities. vision in the law to contribute 10% of the income received from the sale of rights to fiber optic business operations has Work Injury not yet been implemented.) Regulatory Framework Qualifying Conditions First law: 1916 (work injury). Cash sickness benefit (Subsidio por Enfermedad): Must have at least six months of contributions in the last nine Current law: 1970 (occupational risks). months before the incapacity began. Type of program: Employer-liability system through a public carrier. Cash maternity benefit (Subsidio por Maternidad): Must have at least nine months of contributions in the year before the seventh month of pregnancy. Coverage Public- and private-sector employees, including civil Must be currently Medical benefits (Atención Médica): servants, employees of local governments, and unpaid insured or a pensioner; there is no minimum qualifying apprentices. period. If the insured becomes unemployed, coverage con- tinues for three months after employment ceases (two years Exclusions: Self-employed persons and household workers. if the insured has at least 20 years of contributions). Source of Funds Eligible dependents include the insured’s wife or partner who has lived with the insured for at least nine months and Insured person: None. is economically dependent on him or her; children younger Self-employed person: Not applicable. than age 18 (age 25 if a student, no limit if disabled); a dependent father aged 60 or older (at any age if disabled); Employer: The total cost (pays insurance premiums that and a dependent mother aged 50 or older (at any age if vary depending on the assessed degree of risk). disabled). Government: None; contributes as an employer. Sickness and Maternity Benefits Qualifying Conditions Sickness benefit (Subsidio por Enfermedad): 70% of the Must be assessed with a work injury or occupational dis- insured’s average daily earnings in the two months before ease. There is no minimum qualifying period. Accidents the incapacity began is paid from the fourth day of incapac- that occur while commuting to and from work are covered. ity for up to 26 weeks for the same illness. There is no minimum or maximum sickness benefit. Temporary Disability Benefits Maternity benefit (Subsidio por Maternidad): 100% 100% of the insured’s average monthly earnings in the last of the insured’s average weekly earnings in the last nine two months before the disability began is paid for the first
SSPTW: The Americas, 2019 ♦ 219 Panama two months; thereafter, 60% is paid until recovery or certi- Funeral grant: A lump sum of 300 balboas is paid. fication of permanent disability. Administrative Organization Permanent Disability Benefits Social Insurance Fund (http://www.css.gob.pa/), managed For a total (100%) disability, 60% of the insured’s average by a director general with an advisory board, administers monthly earnings in the 12 months before the disability the program. began is paid for two years. If the pension is extended Social Insurance Fund operates its own hospitals and other beyond two years or the insured reaches age 60 (men) or medical facilities in larger cities. age 55 (women) while receiving the permanent disability pension, the pension is paid for life. Unemployment The minimum monthly permanent disability pension for is 255 balboas. Regulatory Framework The maximum monthly permanent disability pension is First and current law: 1995 (labor code). 1,500 balboas. Mandatory individual account system. Partial disability: For an assessed degree of disability of Type of program: at least 35% but less than 100%, a percentage of the full permanent disability pension is paid based on the assessed Coverage degree of disability. For an assessed degree of disability of Private-sector employees with permanent contracts work- less than 35%, a lump sum of three years of the full perma- ing in firms with at least five workers. nent disability pension is paid. Exclusions: Public-sector employees and self-employed The Medical Assessment Commission assesses the persons. disability. The permanent disability pension is payable abroad. Source of Funds Insured person: None; voluntary contributions are Workers’ Medical Benefits possible.
Benefits include general and specialist care, surgery, medi- Self-employed person: Not applicable. cine, hospitalization, and appliances. Employer: 2.25% of quarterly payroll. Contributions are Survivor Benefits paid every three months. Survivor pension Government: None.
Spouse’s pension: 25% of the deceased’s average monthly Qualifying Conditions earnings in the last 12 months is paid to a widow or female partner; 30% if the widow or female partner is the sole Paid if the insured’s service with an employer ceases. beneficiary or disabled. Loan program: The insured can take loans against his or her account balance to purchase housing or property, Orphan’s pension: 15% of the deceased’s average monthly regardless of the employment status. earnings in the last 12 months is paid for one orphan younger than age 18 (no age limit if disabled); 25% for two orphans; 35% for three orphans; or 40% for four or more Unemployment Benefits orphans. If there is no widow(er), 20% of the deceased’s The total account balance is paid. average monthly earnings is paid for one orphan; 15% each Loan program: A portion of the account balance may be for two or more full orphans. If there is more than one eli- used as collateral against a loan from an approved lending gible orphan, the pension is split equally among them. institution. Other dependent’s pension: If there are no other eligible If the insured dies, a portion of the account balance may be survivors, 20% to 30% of the deceased’s average monthly paid to his or her eligible survivor(s). earnings in the last 12 months is paid to a mother for up Eligible survivors include, in order of priority, orphans to 10 years; 10% to a father who is aged 60 or older or younger than age 18, a widow(er) or common-law spouse disabled. The deceased’s dependent sibling(s) younger than who was living with the deceased at the time of death, and age 18 (no limit if disabled) receive the same amount as an the deceased’s parents. orphan would receive for up to six years. The maximum combined survivor pension is 75% of the deceased’s earnings. The survivor pension is payable abroad.
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Administrative Organization Family cash transfer (Red de Oportunidades, social Paid to families with children Superintendent of Banks of Panama (https://www assistance, means tested): younger than age 18 who meet certain health and educa- .superbancos.gob.pa/) provides general and regulatory tion-related conditions or have family members aged 60 to supervision. 64 or with disabilities. Banks, private insurers, and investment companies admin- Children younger than age 5 and pregnant and nursing ister the individual accounts. women must undergo prescribed medical examinations and meet the vaccination requirements. Children aged 5 to 17 Family Allowances must be enrolled in school and have at least an 85% regis- tered attendance rate. Regulatory Framework Means test: Monthly family income must be below the cost First and current laws: 2007 (social assistance), 2010 (edu- of the basic food basket (308.25 balboas a month in Panama cation allowances), and 2012 (social assistance for disabled City and San Miguelito or 286.23 balboas a month in the people). rest of the country in August 2019). Must be assessed as Type of program: Universal and social assistance system. needy based on the Social Vulnerability Survey (Encuesta de Vulnerabilidad Social–EVS). Coverage The EVS is a targeting system used to identify poor and vulnerable households based on their income, consumption Citizens of Panama. Universal: patterns, housing conditions, geographical location. Social assistance (disability cash transfer): Citizens of Panama and their children. Family Allowance Benefits Social assistance (family cash transfer): Needy families. School cash transfer (Beca Universal, universal): 30 balboas a month (270 balboas a year) is paid for an eli- Source of Funds gible student aged 6 to 11 attending primary school; 40 bal- boas a month (360 balboas a year) for a student aged 12 to None. Insured person: 15 attending lower secondary school; 50 balboas a month Self-employed person: None. (450 balboas a year) for a student aged 15 to 18 attending upper secondary school. Employer: None. Disability cash transfer (Ángel Guardián, social assis- Government: The total cost. tance, income tested): 80 balboas a month is paid. Qualifying Conditions Schedule of payments: The benefit is paid every two months to the head of the family. School cash transfer (Beca Universal, universal): Paid for children attending primary, lower secondary, and upper Family cash transfer (Red de Oportunidades, social secondary school. Students in primary school must have assistance, means tested): 50 balboas a month is paid. passed the previous school year. Students in lower second- Schedule of payments: The benefit is paid every two ary school (ages 12 to 15) must pass all subjects to receive months. the monthly benefit. Students at all levels must have a grade point average of at least 3.0, undergo medical check-ups; Administrative Organization and receive all required vaccinations. Institute for Training and Human Resources (IFARHU) Disability cash transfer (Ángel Guardián, social assis- (https://www.ifarhu.gob.pa/) administers the school cash tance, income tested): Paid to persons with severe disabil- transfer program. ities who need constant attendance and live in conditions of Ministry for Social Development (MIDES) (http://www extreme poverty. The beneficiary and his or her family must .mides.gob.pa/) administers the disability and family cash meet certain requirements related to health, education, and transfer programs. psychological support. Income test: Monthly family income must be below the cost of the basic food basket (308.25 balboas a month in Panama City and San Miguelito or 286.42 balboas a month in the rest of the country as of August 2019).
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There are no maximum earnings used to calculate contributions. Paraguay The mandatorily insured person’s contributions also finance Exchange rate: US$1.00 = 6,184.35 guaraníes. cash sickness and maternity benefits, medical benefits, and work injury benefits. Social assistance: None. Old Age, Disability, and Survivors Self-employed person Social insurance: 12.5% of the legal monthly minimum Regulatory Framework wage plus 0.5% for administrative fees. First laws: 1943 (social insurance) and 2009 (noncontribu- The legal monthly minimum wage is 2,192,839 guaraníes. tory old-age pension). The self-employed person’s contributions also finance work Current laws: 1950 (social insurance), 1992 (unified pen- injury benefits. sion scheme), 2005 (retirement), 2009 (noncontributory old-age pension), 2011 (partial pension), 2011 (teachers), Social assistance: None. 2011 (minimum pension), 2013 (self-employed persons), and Employer 2015 (household workers). Social insurance: 14% of gross monthly covered payroll Type of program: Social insurance and social assistance (excluding benefits paid under Family Allowances). system. The minimum monthly earnings used to calculate con- tributions are the legal monthly minimum wage; 60% Coverage of the legal monthly minimum wage for apprentices; Social insurance: Employed persons, including employ- 1,518,120 guaraníes for daily workers and certain agricul- ees of decentralized state entities and enterprises partially tural workers. owned by the state, municipal workers, part-time and daily The legal monthly minimum wage is 2,192,839 guaraníes. workers, household workers, and apprentices. There are no maximum earnings used to calculate Voluntary coverage for self-employed persons, housewives; contributions. and for persons who previously had mandatory coverage The employer’s contributions also finance cash sickness (old-age and survivor benefits only). and maternity benefits, medical benefits, and work injury Special systems for public-sector employees, teachers in benefits. the public school system, police and military personnel, railroad employees, dockworkers, bank employees, and Social assistance: None. microentrepreneurs. Government Social assistance: Needy resident citizens of Paraguay. Social insurance: 1.5% of gross monthly covered earnings; Special system for certain war veterans and their contributes as an employer. dependents. The minimum monthly earnings used to calculate con- tributions are the legal monthly minimum wage; 60% Source of Funds of the legal monthly minimum wage for apprentices; Insured person 1,518,120 guaraníes for daily workers and certain agricul- tural workers. Social insurance: 9% of gross monthly covered earn- The legal monthly minimum wage is 2,192,839 guaraníes. ings (excluding benefits paid under Family Allowances); 12.5% of the insured’s average monthly earnings in the last There are no maximum earnings used to calculate 36 months of contributions for the voluntarily insured who contributions. previously had mandatory coverage (old-age and survivor Government contributions also finance cash sickness and benefits only). maternity benefits, medical benefits, and work injury ben- The minimum monthly earnings used to calculate con- efits, and cover administrative costs. tributions are the legal monthly minimum wage; 60% Social assistance: The total cost. of the legal monthly minimum wage for apprentices; 1,518,120 guaraníes for daily workers and certain agricul- Qualifying Conditions tural workers. Old-age pension (Jubilación ordinaria, social insur- The legal monthly minimum wage is 2,192,839 guaraníes. ance): Age 60 with at least 1,250 weeks of contributions.
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Partial pension (Jubilación proporcional): Age 65 with at there are no eligible survivors who qualify for a survivor least 750 weeks of contributions. pension or a survivor grant. Early pension (Jubilación anticipada): Age 55 with at least 1,500 weeks of contributions. Old-Age Benefits The old-age pension is payable abroad under bilateral or Old-age pension (Jubilación ordinaria, social insur- multilateral agreement. ance): 100% of the insured’s average monthly earnings is paid. Old-age social pension (Pensión Alimentaria para Adul- tos Mayores, social assistance, means tested): Age 65 Average monthly earnings are based on the insured’s and not receiving any other pension or salary. monthly earnings in the last 36 months (excluding the last month) before retirement; last 120 months for self-employed Means test: Must be assessed as needy based on the Quality persons. of Life Index for Older Persons (Indice de Calidad de Vida para Adultos Mayores, ICV-AM). Partial pension (Jubilación proporcional): 60% of the insured’s average monthly earnings plus 4% of average The ICV-AM is a targeting system used to identify poor monthly earnings for each year of contributions exceeding and vulnerable older persons based on their income, con- 15 years, up to 100% of earnings, is paid. sumption patterns, and housing conditions. Early pension (Jubilación anticipada): 80% of the insured’s Disability pension (Jubilación de invalidez por enfer- average monthly earnings is paid plus 4% of average medad o accidente común, social insurance): Must be monthly earnings for each year the insured is older than younger than age 65, have at least a 30% assessed loss of age 55 at the time the claim is made, up to age 59. earning capacity in the usual occupation due to a nonwork related disability and at least 150 weeks of contributions if The minimum monthly old-age pension is 33% of the legal younger than age 55; 150 weeks to 250 weeks if aged 55 to monthly minimum wage. 59; or 250 weeks to 400 weeks if aged 60 to 64. The legal monthly minimum wage is 2,192,839 guaraníes. A medical commission of three Social Security Institute The maximum monthly old-age pension is 300 times the doctors assesses the loss of earning capacity. The disability legal daily minimum wage. is considered permanent after five years of pension receipt. The legal daily minimum wage is 84,340 guaraníes. The disability pension is payable abroad under bilateral or Schedule of payments: The old-age pension is paid monthly multilateral agreement. plus a December bonus of one month of the pension. Survivor pension (Pensión de sobrevivientes, social Benefit adjustment: Benefits are adjusted annually based on insurance): The deceased received or was entitled to changes in the consumer price index. receive an old-age or disability pension; or was insured, younger than age 60, and had at least 750 weeks of contri- Old-age social pension (Pensión Alimentaria para Adul- butions at the time of death. tos Mayores, social assistance, means tested): At least 25% of the legal monthly minimum wage is paid. Eligible survivors include a widow(er) or partner who lived with the deceased for at least five years (two years if they The legal monthly minimum wage is 2,192,839 guaraníes. had children); orphans younger than age 18 (no limit if dis- abled). If there is no widow(er), partner, or eligible orphan, Permanent Disability Benefits the pension is paid to the deceased’s dependent parents. Disability pension (Jubilación de invalidez por enferme- The widow(er)’s or partner’s pension ceases upon remar- dad o accidente común, social insurance): 50% of the riage or cohabitation. insured’s average monthly earnings in the 36 months before the disability began plus 1.5% of average monthly earnings Remarriage settlement: Paid to a widow(er) or partner upon for every 50 weeks of contributions exceeding 150 weeks, remarriage or cohabitation. up to 100%, is paid. The survivor pension is payable abroad under bilateral or The minimum monthly disability pension is 33% of the multilateral agreement. legal monthly minimum wage. Survivor grant (Subsidio de sobrevivientes, social The legal monthly minimum wage is 2,192,839 guaraníes. insurance): The deceased was insured but had less than 750 weeks of contributions the time of death. The maximum monthly disability pension is 300 times the legal daily minimum wage. The survivor grant is payable abroad under bilateral or multilateral agreement. The legal daily minimum wage is 84,340 guaraníes. Schedule of payments: The disability pension is paid Funeral grant (Reembolso de gastos funerarios, social monthly plus a December bonus of one month of the insurance): Paid to the person who pays for the funeral if pension.
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Benefit adjustment: Benefits are adjusted annually based on and enterprises partially owned by the state, municipal changes in the consumer price index. workers, part-time and daily workers, household workers, and apprentices. Survivor Benefits Exclusions: Self-employed persons. Survivor pension (Pensión de sobrevivientes, social Special systems for public-sector employees, teachers in the insurance): 60% of the old-age or disability pension the public school system, police and military personnel, rail- deceased received or was entitled to receive is split equally road employees, dockworkers, bank employees, pensioners, among a widow(er) or partner older than age 40 and eligible war veterans, microentrepreneurs, and certain artists. orphans. Social assistance (medical care subsidy): Citizens of A lump sum of three times the annual old-age or disability Paraguay suffering from chronic diseases or requiring pension the deceased received or was entitled to receive is prolonged treatment. paid to a widow(er) or partner younger than age 40. If there is no widow(er), partner, or eligible orphan, the Source of Funds survivor pension is paid to the deceased’s parents. Insured person Schedule of payments: The pension is paid monthly plus a December bonus of one month of pension. Social insurance: See source of funds under Old Age, Dis- ability, and Survivors. Remarriage settlement: A lump sum of two times the indi- vidual annual survivor pension is paid. Social assistance: None. Benefit adjustment: Benefits are adjusted annually based on Self-employed person changes in the consumer price index. Social insurance: Not applicable. Survivor grant (Subsidio de sobrevivientes, social Social assistance: None. insurance): A lump sum of one month of the legal monthly minimum wage is paid for each year of contributions. Employer The legal monthly minimum wage is 2,192,839 guaraníes. Social insurance: See source of funds under Old Age, Funeral grant (Reembolso de gastos funerarios, social Disability, and Survivors. 2.5% of gross payroll for public insurance): A lump sum of up to 75 times the legal daily health programs through the National Service for Malaria minimum wage is paid. Eradication and job training and placement programs through the National Service for Professional Promotion The legal daily minimum wage is 84,340 guaraníes. (see Unemployment). Administrative Organization Social assistance: None. Social Insurance Institute (https://portal.ips.gov.py/) admin- Government isters and collects contributions for the social insurance Social insurance: See source of funds under Old Age, Dis- program. ability, and Survivors. Directorate for Noncontributory Pensions (DPNC, http:// Social assistance: The total cost. www.hacienda.gov.py/), under the Ministry of the Interior, administers the old-age social pension. Qualifying Conditions Sickness and Maternity Cash sickness and maternity benefits (social insur- ance): Must have at least four consecutive months of Regulatory Framework contributions and provide a medical certificate. (Insured women may not receive cash sickness and maternity ben- First law: 1943 (social insurance). efits at the same time.)
Current laws: 1950 (social insurance), 1992 (unified pen- Nursing allowance (social insurance): Must have at least sion scheme), 1996 (medical benefits), and 2015 (household one month of contributions. workers and medical care subsidy). Medical benefits (Atención médica, social insurance): Type of program: Social insurance (cash and medical ben- The minimum contribution period varies depending on the efits) and social assistance (medical benefits) system. type of medical procedure or service. There is no minimum qualifying period for maternity medical benefits. Coverage Eligible dependents include a spouse or cohabiting partner, Social insurance (cash and medical benefits): Employed dependent unmarried children up to age 18 (no limit if dis- persons, including employees of decentralized state entities abled), and dependent parents aged 60 or older.
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Medical care subsidy (Subsidio de ayuda social, social Dependents’ Medical Benefits assistance): Must incur travel costs for receiving treatment in a medical institution that is linked to the Ministry of Medical benefits (Atención médica, social insurance): Public Health and Social Welfare. Beneficiaries are selected Benefits for dependents are the same as those for the based on the type of illness and required care, socioeco- insured. nomic status, and the distance travelled to access medical Medical care subsidy (Subsidio de ayuda social, social services. assistance): No benefits are provided.
Sickness and Maternity Benefits Administrative Organization Sickness benefit (Subsidio por enfermedad común, Social Insurance Institute (https://portal.ips.gov.py/) social insurance): 50% of the insured’s average daily earn- administers the social insurance program and collects ings in the four months immediately before the incapacity contributions. began is paid from the day after the incapacity began for up Social Insurance Institute operates its own clinics and to 26 weeks; may be extended for 24 weeks in special cases. hospitals. The benefit is reduced by half during periods of hospitaliza- tion if there are no dependents. Ministry of Public Health and Social Welfare (https:// www.mspbs.gov.py/) administers the medical care subsidy Maternity benefit (Subsidio por maternidad, social program, public health care and the National Service for insurance): 100% of the insured’s last earnings is paid for Malaria Eradication programs. 18 weeks, beginning up to two weeks before the expected date of childbirth (may be extended to 24 weeks if there are Work Injury complications during childbirth). For multiple births, an extra month of leave is paid for each additional child. Regulatory Framework Nursing allowance (social insurance): Milk vouchers are First law: 1943 (social insurance). provided for up to eight months if the mother is unable to nurse the child. Current laws: 1950 (social insurance), 1992 (unified pension scheme), 2013 (self-employed persons), and 2015 Workers’ Medical Benefits (household workers). Medical benefits (Atención médica, social insurance): Type of program: Social insurance system. The Social Insurance Institute provides medical services directly to patients. Benefits include general and specialist Coverage care, hospitalization, laboratory services, medicine, pros- Employed persons, including employees of decentralized theses, dental care, and maternity care. state entities and enterprises partially owned by the state, Benefits are paid for 26 weeks for any one illness; may be municipal workers, part-time and daily workers, household extended to up to 52 weeks in certain cases. workers, and apprentices. Public hospitals and clinics provide free essential health Voluntary coverage for self-employed persons and care to the general population, including poor and unem- housewives. ployed persons and their families. Benefits include Special systems for public-sector employees, teachers in reproductive health, maternity care, pediatric services, the public school system, police and military personnel, laboratory services, immunizations, and essential medicine. railroad employees, dockworkers, bank employees, micro- Cost sharing: Social Insurance Institute facilities and public entrepreneurs, and certain artists. hospitals and clinics may require copayments. The National Service for Malaria Eradication provides Source of Funds prevention and treatment for certain tropical diseases, Insured person: See source of funds under Old Age, Dis- including malaria, snail fever, dengue, chagas disease, and ability, and Survivors. black fever. Self-employed person: See source of funds under Old Medical care subsidy (Subsidio de ayuda social, social Age, Disability, and Survivors. assistance): A periodic subsidy of up to 10 times the legal daily minimum wage is paid to cover travel costs for the Employer: See source of funds under Old Age, Disability, duration of treatment. and Survivors. The legal daily minimum wage is 84,340 guaraníes. Government: See source of funds under Old Age, Disabil- ity, and Survivors.
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Qualifying Conditions A lump sum of three times the annual permanent disability pension the deceased received or was entitled to receive is Must have a work injury or occupational diseases that paid to a widow(er) or partner younger than age 40. results in an incapacity for work lasting at least three days. Accidents that occur while commuting to and from work The pension ceases upon remarriage or cohabitation and are covered. Occupational diseases are specified by law. a lump sum of two times the annual permanent disability pension the deceased received or was entitled to receive is Temporary Disability Benefits paid. Temporary disability benefit (Subsidio por accidente Orphan’s pension: 30% of the permanent disability pension de trabajo): 75% of the insured’s average earnings is paid the deceased received or was entitled to receive is paid to from the first day of incapacity for up to 52 weeks or certifi- each orphan younger than age 18 (no limit if disabled); 60% cation of permanent incapacity for work, whichever occurs if there is no eligible widow(er) or partner. earlier. Other eligible survivors pension: If there is no eligible Average earnings are the insured’s average daily earn- widow(er), partner, or orphan, the pension is paid to the ings in the four months before the incapacity began. If the deceased’s parents. employee has been employed for less than four months, The maximum combined survivor pension is 60% of the average daily earnings are based on the minimum earnings permanent disability pension the deceased received or was used to calculate contributions. entitled to receive. The minimum monthly earnings used to calculate con- Survivor pensions are payable abroad under bilateral or tributions are the legal monthly minimum wage; 60% multilateral agreement. of the legal monthly minimum wage for apprentices; 1,518,120 guaraníes for daily workers and certain agricul- Benefit adjustment: Benefits are adjusted annually based on tural workers. changes in the consumer price index. The legal monthly minimum wage is 2,192,839 guaraníes. Funeral grant (Reembolso de gastos funerarios): See The maximum daily temporary disability benefit is five Old Age, Disability, and Survivors. times the legal daily minimum wage. Administrative Organization Permanent Disability Benefits Social Insurance Institute (https://portal.ips.gov.py/) admin- isters the program. Permanent disability pension (Jubilación de invalidez): For an assessed degree of disability of at least 30%, 22.5% Social Insurance Institute operates its own clinics and to 100% of the insured’s average monthly earnings in the hospitals. 36 months before the disability began is paid, depending on the number of contributions and the assessed degree of Unemployment disability. Partial disability: For an assessed degree of disability of up Regulatory Framework to 29%, 60% of the insured’s lost earnings is paid for five The 1993 labor code regulates severance pay for unjustified years. dismissal. A lump sum of 15 times the employee’s daily A medical commission of three Social Security Institute wage for each year or fraction of a year of service above six doctors assesses the degree of disability. The degree of dis- months is paid. ability is reviewed at least once every five years. Law No. 253 (1971) requires the National Service for Employment Promotion (SNPP), under the Ministry of Workers’ Medical Benefits Labor, Employment, and Social Security, to provide job Benefits include general and specialist care, hospitalization, training and placement programs. medicine, and prostheses. Family Allowances Survivor Benefits Regulatory Framework Survivor pension (Pensión de sobrevivientes) First law: 1961 (labor code). Spouse’s pension: 30% of the permanent disability pension the deceased received or was entitled to receive is paid to a Current law: 1993 (labor code). widow(er) or partner aged 40 or older; 60% if there are no Type of program: Employer-liability system. eligible orphans.
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Coverage Income test: The employee’s monthly earnings, including family allowances, must not exceed two times the legal Employed persons covered by the labor code. monthly minimum wage. Exclusion: Self-employed persons. The legal monthly minimum wage is 2,192,839 guaraníes. Special systems for civil servants, employees of decentral- ized state entities and enterprises owned by the state, and Family Allowance Benefits teachers. Family allowance (Asignación familiar, income tested): Source of Funds 5% of the legal monthly minimum wage is paid for each eligible child. Insured person: None. The legal monthly minimum wage is 2,192,839 guaraníes. Self-employed person: Not applicable. Employer: The total cost. Administrative Organization Ministry of Labor, Employment, and Social Security None. Government: (http://www.mtess.gov.py/) provides general supervision. Qualifying Conditions Employers pay the family allowance directly to employees. Family allowance (Asignación familiar, income tested): Paid for dependent children aged 3 to 16 (no age limit if assessed with a disability) who reside in Paraguay. There is no minimum qualifying period.
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There are no maximum earnings used to calculate contributions. Peru Mandatory individual account (SPP): 10% of gross monthly Exchange rate: US$1.00 = 3.289 soles. earnings (8% for fishermen; 11% for construction work- ers; 2% for miners) (old-age benefits]) plus an average of 1.5775% of gross monthly earnings for persons insured before February 2013, or an average of 0.3075% of gross Old Age, Disability, and Survivors monthly earnings plus 0.82% to 1.25% of the annual account balance for persons insured since February 2013 Regulatory Framework (administrative fees), and 1.35% of gross monthly covered First laws: 1936 (wage earners) and 1962 (salaried earnings (disability and survivor insurance). Voluntary employees). contributions are possible. There are no maximum earnings used to calculate contribu- Current laws: 1973 (national pension system); 1992 tions for old-age benefits or administrative fees. (individual account), implemented in 1993; 2000 (early retirement); 2007 (early retirement for the unemployed); The maximum monthly earnings used to calculate contribu- 2009 (early retirement in the private sector); 2011 (noncon- tions for disability and survivor insurance are 9,639 soles. tributory old-age pension); 2012 (individual account); 2012 Social assistance: None. (persons with disabilities); and 2015 (persons with severe disabilities). Self-employed person
Type of program: Social insurance, mandatory individual Social insurance (SNP): 13% of gross monthly covered account, and social assistance system. declared earnings. Note: When public- and private-sector employees enter the The minimum monthly earnings used to calculate contribu- workforce, they can choose between the mandatory indi- tions are the legal monthly minimum wage. vidual account program (SPP) and the public social insur- The legal monthly minimum wage is 930 soles. ance program (SNP). Insured persons who do not make a There are no maximum earnings used to calculate choice become SPP members by default. SNP members can contributions. later switch to the SPP, but SPP members can only switch to the SNP under certain conditions. Mandatory individual account (SPP): 10% of gross monthly earnings (old-age benefits) plus a percentage of gross Coverage monthly earnings (administrative fees) and 1.35% of gross monthly covered earnings (disability and survivor insur- Private-sector employees and Social insurance (SNP): ance). The percentage of contributions for old-age benefits public-sector employees not covered by a special system, is regulated by law; the percentages of administrative fees including employees of worker-owned and cooperative and contributions to disability and survivor insurance are enterprises, teachers, artists, household workers, seamen, determined by the AFPs. journalists, and tannery workers. There are no maximum earnings used to calculate contribu- Voluntary coverage for self-employed person and tions for old-age benefits or administrative fees. housewives. The maximum monthly earnings used to calculate contribu- Special systems for fishermen, diplomats, certain public- tions for disability and survivor insurance are 9,639 soles. sector employees, and military and police personnel. Social assistance: None. Mandatory individual account (SPP): Public- and private- sector employees. Employer Voluntary coverage for self-employed persons. Social insurance (SNP): None.
Social assistance: Needy resident citizens of Peru. Mandatory individual account (SPP): None; 5% of gross payroll for fishermen; 1% for construction workers; 2% for Source of Funds miners. Insured person Social assistance: None. Social insurance (SNP): 13% of gross monthly covered Government earnings. Social insurance (SNP): Provides special subsidies as The minimum monthly earnings used to calculate contribu- needed. tions are the legal monthly minimum wage. The legal monthly minimum wage is 930 soles.
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Mandatory individual account (SPP): Finances the value of The individual account old-age pension is payable abroad accrued rights under the SNP. under bilateral or multilateral agreement. Social assistance: The total cost. Noncontributory old-age pension (Pensión 65, social assistance, means tested): Age 65 and not receiving any Qualifying Conditions other pension or any benefits administered by the social security health insurance program (EsSalud). Old-age pension (Pensión de Jubilación, SNP, social insurance): Age 65 with at least 20 years of contributions. Means test: Must be classified as extremely poor based on the Sistema de Focalización de Hogares (SISFOH). Employment may continue if the insured’s total monthly income does not exceed half of the tax reference unit (Uni- The SISFOH is a national system to target needy house- dad Impositiva Tributaria, UIT). holds based on earnings, expenditures, and a quality-of-life index. The UIT is 4,200 soles a year. The noncontributory old-age pension is not payable abroad. Early pension (Jubilación anticipada): Age 55 with at least 30 years of contributions (men) or age 50 with at least Disability pension (Pensión de Invalidez, SNP, social 25 years of contributions (women); age 55 (men) or age 50 insurance): Must have at least a 66.7% assessed loss of (women) with at least 20 years of contributions in cases of a earning capacity and at least 15 years of contributions; collective lay-off from employment. or at least 36 months of contributions, including at least 12 months of contributions in the 36 months before the dis- Dependent’s supplement: Paid for a dependent spouse or a ability began, if the insured has at least three but less than child younger than age 18 (no limit if a student or disabled). 15 years of contributions; or have paid contributions in the The social insurance old-age pension is payable abroad month before the disability began if it is due to a nonwork- under bilateral or multilateral agreement. related accident Must have been paying contributions when Old-age family pension (Pensión Especial de Jubilación the disability began unless the insured has at least 15 years para la Sociedad Conyugal y las Uniones de Hecho, of contributions or at least 18 months of contributions in the SNP, social insurance): Paid to a couple whose members 36 months before the disability began. are aged 65 or older, have been married or in a recognized Dependent’s supplement: Paid for a dependent spouse or a partnership for at least 10 years, and have at least 20 years child younger than age 18 (no limit if a student or disabled). of combined social insurance contributions but do not qualify for the social insurance old-age pension. Constant-attendance supplement (Bonificación por cui- dado permanente de otra persona): Paid if the insured The old-age family pension ceases upon divorce, remar- requires the constant attendance of others to perform daily riage, or termination of a recognized partnership. functions. The old-age family pension is payable abroad under bilat- Disability pension (Pensión de Invalidez, SPP, man- eral or multilateral agreement. datory individual account): Must have at least a 50% Old-age pension (Pensión de Jubilación, SPP, manda- assessed loss of earning capacity and not be receiving an tory individual account): Age 65. individual account old-age pension. Early pension (Jubilación anticipada): Age 55 (men) or A medical committee assesses the degree of disability. age 50 (women) with at least 72 months of contributions Guaranteed minimum disability pension: Paid if the in the last 120 months before the claim is made and an account balance is insufficient to finance the disability pen- account balance that is sufficient to finance a benefit of at sion the insured is entitled to receive. least 40% of the insured’s average indexed earnings in the last 120 months (Jubilación anticipada ordinaria); age 55 Noncontributory disability pension (Pensión para (men) or age 50 (women) with at least 12 continuous months Personas con Discapacidad Severa y Situación de Pobreza, Programa CONTIGO, social assistance, means of unemployment (Jubilación anticipada por desempleo); or tested): Must be assessed with a severe and permanent dis- age 40 to 50 for persons working under hazardous condi- ability and not qualify for any other pension. tions, depending on the occupation, subject to further requirements (Jubilación anticipada por labores de riesgo). Means test: Must be classified as poor based on the Sistema de Focalización de Hogares (SISFOH). Guaranteed minimum old-age pension: Must be born before January 1, 1946, have at least 20 years of contributions paid The SISFOH is a national system to target needy house- on earnings equal to or greater than the legal monthly mini- holds based on earnings, expenditures, and a quality-of-life mum wage, and have an account balance that is insufficient index. to finance the minimum monthly pension set by law. Survivor pension (SNP, social insurance): The deceased The legal monthly minimum wage is 930 soles. received or was entitled to receive a social insurance old- The minimum monthly old-age pension is 500 soles. age or disability pension at the time of death.
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Eligible survivors include a widow or female partner, a 50% of the reference salary plus 2% (men) or 2.5% (women) dependent widower older than age 60 or disabled, orphans of the reference salary for each year of contributions younger than age 18 (no limit if a student or disabled), exceeding 15 years (men) or 13 years (women) is paid to a dependent father older than age 60 or disabled, and a men born up to December 18, 1932, and women born up to dependent mother older than age 55 or disabled. December 18, 1937. The widow(er)’s pension ceases upon remarriage or if a The reference salary is the insured’s average monthly earn- disabled widower is assessed as capable of working. ings in the last 12, 36, or 60 months, whichever is greater. Remarriage settlement: Paid to a widow(er) receiving a Early pension (Jubilación anticipada): The pension is social insurance spouse’s pension upon remarriage. reduced by 4% for each year it is claimed before the normal Constant-attendance supplement: The survivor requires the retirement age. constant attendance of others to perform daily functions. Dependent’s supplement: 2% to 10% of the insured’s refer- The social insurance survivor pension is payable abroad ence salary is paid for an eligible spouse and 2% to 5% is under bilateral or multilateral agreement. paid for each eligible child. The minimum monthly old-age pension is 500 soles. Survivor pension (Pensión de Sobrevivencia, SPP, mandatory individual account): The deceased received an The maximum monthly old-age pension is 893 soles or individual account old-age or disability pension or had at 100% of the insured’s average monthly earnings in the last least four months of contributions in the last eight months 60 months, whichever is less. before death. Benefit adjustment: Benefits are adjusted periodically Eligible survivors include a widow(er) or partner, orphans depending on financial resources. younger than age 18 (no limit if disabled), a dependent Old-age family pension (Pensión Especial de Jubi- mother older than age 50 and a dependent father older than lación para la Sociedad Conyugal y las Uniones de age 60. Hecho, SNP, social insurance): Calculated in the same Guaranteed minimum survivor pension: Paid if the way as the old-age pension, based on a common reference deceased’s account balance is insufficient to finance the salary for the couple. survivor pension the survivors are entitled to receive. The full amount of the joint monthly old-age family pen- Death grant (Capital de Defunción, SNP, social insur- sion continues to be paid to a surviving beneficiary upon ance): The deceased received or was entitled to receive a the death of his or her partner. social insurance old-age or disability pension and his or her Old-age pension (Pensión de Jubilación, SPP, manda- legal heirs are not entitled to receive a survivor pension. tory individual account): The insured has five different Funeral grant (Gastos de Sepelio, SPP, mandatory indi- payment options: make programmed withdrawals, purchase vidual account): The deceased received or was entitled to a personal annuity, purchase a joint and survivor annu- receive an individual account old-age or disability pension. ity, purchase a deferred annuity combined with temporary programmed withdrawals, or make a lump-sum withdrawal Old-Age Benefits of 95.5% of the total account balance. Old-age pension (Pensión de Jubilación, SNP, social Early pension (Jubilación anticipada): The payment options insurance): 30% to 45% of the insured’s average monthly are the same as those for the old-age pension paid at the earnings in the last 60 months, depending on the insured’s normal retirement age. age on June 14, 2002 (30% if younger than age 31, 35% if Guaranteed minimum pension: The difference between the aged 31 to 39, 40% if aged 40 to 49, or 45% if older than monthly pension financed by the account balance and the age 49), plus 2% of average monthly earnings for each year minimum monthly old-age pension is paid. of contributions exceeding 20 years is paid to persons born The minimum monthly old-age pension is 500 soles. after December 31, 1946. If the insured chooses the lump-sum withdrawal, the 50% of the insured’s reference salary plus 4% of the remaining 4.5% finances medical benefits (see source of reference salary for each year of contributions exceeding funds under Sickness and Maternity). 20 years is paid to men born after December 18, 1932, and women born after December 18, 1937, but before January 1, Noncontributory old-age pension (Pensión 65, social 1947. assistance, means tested): 250 soles is paid every two months. The reference salary for persons with 20 to 24 years of contributions is the insured’s average monthly earnings in the last five years; with 25 to 30 years of contributions, Permanent Disability Benefits average monthly earnings in the last four years; with more Disability pension (Pensión de Invalidez, SNP, social than 30 years of contributions, average monthly earnings in insurance): 50% of the insured’s reference salary plus the last three years. 1% of the reference salary for each year of contributions
230 ♦ SSPTW: The Americas, 2019 Peru exceeding three years is paid. For a contribution period of received or was entitled to receive is paid to each dependent one to three years, 16.7% of the insured’s reference salary is parent. paid for each year of contributions. The maximum combined survivor pension is 100% of the The reference salary is the insured’s average monthly earn- social insurance old-age or disability pension the deceased ings in the last 12 months; for self-employed persons, the received or was entitled to receive or 893 soles a month, reference salary is the insured’s average monthly earnings whichever is less. in the last 60 months. Constant-attendance supplement: The legal monthly mini- The minimum monthly disability pension is 500 soles. mum wage is paid. The maximum monthly disability pension is 893 soles. The legal monthly minimum wage is 930 soles. Dependent’s supplement: 2% to 10% of the insured’s refer- Benefit adjustment: Benefits are adjusted periodically ence salary is paid for an eligible spouse and 2% to 5% depending on financial resources. for each eligible child. The amount is reduced if earnings Survivor pension (Pensión de Sobrevivencia, SPP, man- plus pension income exceed the insured’s former average datory individual account): The pension is based on the earnings. deceased’s average monthly earnings in the last 48 months Constant-attendance supplement (Bonificación por cuidado before death, according to a schedule in law. permanente de otra persona): The legal monthly minimum Guaranteed minimum survivor pension: Life insurance wage is paid. pays the difference between the survivor pension financed The legal monthly minimum wage is 930 soles. by the deceased’s account balance and the survivor pension Benefit adjustment: Benefits are adjusted periodically the survivors are entitled to receive. depending on financial resources. Death grant (Capital de Defunción, SNP, social insur- Disability pension (Pensión de Invalidez, SPP, manda- ance): A lump sum of up to six times the deceased’s aver- tory individual account): The pension is calculated based age monthly income in the last 60 months before death is on the insured’s average monthly earnings and the assessed paid. degree of disability. The maximum monthly earnings used to calculate the death Guaranteed minimum disability pension: Disability insur- grant are 893 soles. ance pays the difference between the disability pension Funeral grant (Gastos de Sepelio, SPP, mandatory financed by the account balance and the disability pension individual account): A lump sum of up to 4,370.97 soles is the insured is entitled to receive. paid. Noncontributory disability pension (Pensión para Benefit adjustment: Benefits are adjusted quarterly based on Personas con Discapacidad Severa y Situación de changes in the consumer price index. Pobreza, Programa CONTIGO, social assistance): 150 soles a month is paid. Administrative Organization Schedule of payments: The pension is paid every two Comptroller General of the Republic (http://www months. .contraloria.gob.pe/) provides general supervision for the social insurance program. Survivor Benefits Superintendent of Banks, Insurance, and AFPs (http:// Survivor pension (SNP, social insurance) www.sbs.gob.pe/) is responsible for licensing and super- vising pension fund administrators (AFPs) and insurance Spouse’s pension (Pensión de viudez): 50% of the social insurance old-age or disability pension the deceased companies. received or was entitled to receive is paid to an eligible Ministry of Development and Social Inclusion (http://www widow(er). .midis.gob.pe/) provides general supervision for the social Remarriage settlement: A lump sum of 12 times the assistance program. spouse’s pension is paid to the widow(er). Office of Social Security Normalization (https://www.onp .gob.pe/) administers the social insurance program and Orphan’s pension (Pensión de orfandad): 50% of the some special programs. social insurance old-age or disability pension the deceased received or was entitled to receive is paid for eligible AFPs administer the individual accounts and contract with orphans. insurance companies for disability and survivor insurance. National Solidarity Assistance Program–Pensión 65 pro- Dependent parent’s pension (Pensión de ascendiente): If there is no eligible widow(er) or orphan, 20% of the gram office (http://www.pension65.gob.pe/) administers the social insurance old-age or disability pension the deceased Pensión 65 program.
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Ministry of Development and Social Inclusion (www.midis program (see Old Age, Disability, and Survivors) pay a one- .gob.pe/) administers the noncontributory disability time contribution of 4.5% of their total account balance for pension. medical benefits.
National Superintendent of Tax Administration (http:// Self-employed person: A premium of 64 soles a month, www.sunat.gob.pe/) collects contributions. plus an additional flat-rate contribution for each depen- dent for insured persons covered before 2016, and 137 to Sickness and Maternity 215 soles a month for persons covered since 2016, depend- ing on the age of the insured (medical benefits only); 9% Regulatory Framework of the sales value for self-employed fishermen and fish processors; 4% of the legal monthly minimum wage for 1936 (wage earners), 1948 (salaried employees), First laws: agricultural workers. and 1979 (maternity and medical benefits). The minimum monthly earnings used to calculate contribu- Current laws: 1996 (maternity leave), 1997 (healthcare tions for self-employed fishermen and fish processors are modernization); 1999 (health insurance EsSalud); 1999 the legal monthly minimum wage. (self-employed fishermen and fish processors); 2000 (agri- cultural workers), implemented in 2002; 2001 (aquacultural The legal monthly minimum wage is 930 soles. workers); 2002 (integrated health system); 2003 (social Employer: 9% of monthly covered payroll; 4% for agri- security health insurance administration); 2003 (household cultural workers. (Employers providing health services workers); 2004 (maternity benefits); 2006 (pensioners); directly to their employees or who use services provided 2009 (universal health insurance); 2011 (dock workers); under contract by a private health care provider (EPS) 2011 (maternity benefits). receive a 2.5% credit toward the cost of contributions.) Type of program: Social insurance (cash and medical The minimum monthly earnings used to calculate contribu- benefits), mandatory private insurance (medical benefits), tions are the legal monthly minimum wage. and social assistance (medical benefits and funeral grant) The legal monthly minimum wage is 930 soles. system. There are no maximum earnings used to calculate Note: Insured persons and their dependents can choose to contributions. receive basic health care from a private health care provider (EPS) if it offers equivalent or more generous benefits than Government: None; contributes as an employer. the minimum health care plan established by law (Plan Esencial de Aseguramiento en Salud). Under this option, Qualifying Conditions the insured persons remain covered by the public health Sickness, medical, and funeral benefits (social insur- insurance program (EsSalud) for more serious conditions ance): Must have at least three consecutive months of and specialized care. contributions or at least four months of contributions in the six months before the incapacity began. There is no Coverage qualifying period for pensioners or in the case of accidents. Social insurance and mandatory private insurance: Agricultural and dock workers must have at least three Public- and private-sector employees; employees of worker- consecutive months or four months of contributions in the owned and cooperative enterprises; household workers; 12 months before the incapacity began; fishermen and fish agricultural workers; self-employed fishermen and fish processors must have at least three consecutive months of processors; pensioners; and spouses, partners, and children contributions. or dependents of insured persons. Cash maternity benefit and nursing allowance (social Pensioners are covered for medical benefits, the nursing insurance): Must have at least three consecutive months allowance, and the funeral grant only. of contributions or at least four months of contributions in the six months before becoming pregnant. Agricultural and Voluntary coverage for self-employed persons (medical dock workers must have at least three consecutive months benefits only), housewives, and other persons without a of contributions or at least four months of contributions in dependent work relation. the 12 months before becoming pregnant and must have Special systems for military and police personnel. contributed during the month in which the child is born. Social assistance: Needy residents of Peru. Funeral grant and medical benefits (Seguro Integrado de Salud [SIS] Gratuito, social assistance, means Source of Funds tested): Must not be covered by health insurance. Insured person: None; pensioners contribute 4% of the pension; pensioners who opt for a lump-sum payment at retirement under the mandatory individual account (SPP)
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Means test: Must be classified as poor or extremely poor Medical benefits (Seguro Integrado de Salud [SIS] Gra- based on the Sistema de Focalización de Hogares (SIS- tuito, social assistance, means tested): Benefits include FOH), except in case of pregnant women or children general and maternity care, medical examinations, surgery, younger than age 5. hospitalization, and medicine.
Sickness and Maternity Benefits Dependents’ Medical Benefits Sickness benefit (Subsidio por Incapacidad Temporal, Medical benefits (social insurance and mandatory pri- social insurance): 100% of the insured’s average daily vate insurance): Benefits for dependents are the same as earnings in the last four months is paid after a one-day those for the insured. waiting period for up to 11 months and 10 days or for up Eligible dependents include the insured’s spouse or partner to 540 nonconsecutive days in a three-year period. The and children younger than age 17 (no limit if disabled). employer pays the benefit in the first 20 days; afterwards the benefit is paid by health insurance. Medical benefits (Seguro Integrado de Salud [SIS] Gratuito, social assistance, means tested): Benefits Maternity benefit (Subsidio por Maternidad, social for dependents are the same as those for the primary insurance): 100% of the insured’s average daily earnings beneficiary. in the last four months is paid, up to a maximum earnings level, for 98 days. The benefit may be extended for up to Administrative Organization 30 additional days for multiple births or the birth of a child with a disability. Social Security Health Insurance (EsSalud) (http://www .essalud.gob.pe/) administers the program. Nursing allowance (Subsidio por Lactancia, social National Superintendent of Health (SUSALUD) authorizes insurance): A lump sum of 820 soles is paid for each eligible child. and supervises private health providers (EPS). National Superintendent of Customs and Tax Admin-
Funeral grant (Gastos de Sepelio, social insurance): istration (SUNAT) (http://www.sunat.gob.pe/) collects A lump sum of up to 2,070 soles is paid to the person who contributions. paid for the funeral; up to 1,000 soles if the deceased was covered for medical benefits through voluntary insurance. Work Injury The benefit cannot be combined with the funeral or death grant paid under Old Age, Disability, and Survivors, and is Regulatory Framework not paid if death is the result of a work injury. First laws: 1911 (work injury) and 1935 (occupational Funeral grant (Gastos de Sepelio, social assistance, diseases). means tested): A lump sum of up to 1,000 soles is paid for the person who paid for the funeral. Current laws: 1997 (health), 1998 (work injury), 2009 (health insurance), and 2011 (workplace health and safety). The benefit cannot be combined with the funeral or death grant paid under Old Age, Disability, and Survivors, and is Type of program: Social insurance system. not paid if death is the result of a work injury. Coverage Workers’ Medical Benefits Persons working in high-risk activities who are public- Medical benefits (social insurance and mandatory and private-sector employees, self-employed persons, or private insurance): Benefits are paid for prevention, health employees of worker-owned and cooperative enterprises. promotion, and health recovery. They include general, spe- Voluntary coverage for persons without mandatory cialist, maternity, and dental care; hospitalization; labora- coverage. tory services; appliances; medicine; rehabilitation; health education; preventive care; and immunization. Source of Funds Employees have the option of receiving medical benefits None. from EsSalud or from an EPS provider. To opt for an EPS Insured person: provider, 51% of the company’s employees must agree to Self-employed person: A flat-rate monthly contribution of the change. 13 to 38 soles, depending on the sector and associated risk.
A copayment of 2% to 10% of monthly income is required Employer: 0.63% to 1.83% of monthly covered payroll, for medical benefits offered by an EPS provider. depending on the sector and associated risk. The program for the voluntarily insured covers ambulatory care and hospitalization, emergency care, maternity care, and medicines and medical supplies.
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The maximum monthly earnings used to calculate contribu- The legal monthly minimum orphan’s pension is 500 soles. tions are six times the legal monthly minimum wage. Dependent parent’s pension: If there is no eligible The legal monthly minimum wage is 930 soles. widow(er) or orphan, 14% of the permanent disability pen- Government: None; contributes as an employer. sion the deceased received or was entitled to receive is paid to each dependent parent. Qualifying Conditions The maximum combined survivor pension is 100% of the Must be assessed with a work injury or occupational permanent disability pension the deceased received or was disease. Accidents that occur while commuting to or from entitled to receive or 893 soles a month, whichever is less. work are not covered. Funeral grant (Gastos de Sepelio): A lump sum of up to 2,070 soles is paid to the person who paid for the funeral. Temporary Disability Benefits See the sickness benefit paid under Sickness and Maternity. Administrative Organization Comptroller General of the Republic (http://www Permanent Disability Benefits .contraloria.gob.pe/) provides general supervision. Permanent disability pension (Pensión por Invalidez Office of Social Security Normalization (http://www.onp Permanente): For an assessed degree of disability of at .gob.pe/) administers the program. least 66.67%, at least 70% of the insured’s average earnings is paid. Unemployment Constant-attendance benefit: 100% of the insured’s average earnings is paid if the insured requires constant attendance Regulatory Framework of others to perform daily functions. First and current law: 1991 (severance account). The minimum monthly constant-attendance benefit is the legal monthly minimum wage. Type of program: Mandatory individual account system. The legal monthly minimum wage is 930 soles. Coverage Partial disability: For an assessed degree of disability of Private-sector employees and certain public-sector 50% to 66.66%, a reduced permanent disability pension employees. is paid based on the assessed degree of disability. For an assessed degree of disability of at least 20% but less than Special systems for civil construction workers, fishermen, 50%, a lump sum of two years of the permanent disability artists, household workers, farm workers, and employees of pension is paid. microenterprises and small businesses.
Workers’ Medical Benefits Source of Funds Benefits include necessary medical, surgical, rehabilita- Insured person: None. tion, and hospital care and appliances until full recovery or Self-employed person: None. certification of permanent disability. Employer: 8.33% of monthly payroll is paid every six Survivor Benefits months. Survivor pension (Pensión de Sobrevivencia) Government: None; contributes as an employer.
Spouse’s pension: 42% of the permanent disability pension Qualifying Conditions the deceased received or was entitled to receive is paid to a widow or a dependent widower aged 60 or older (any age if Must have at least one month of continuous employment disabled); 35% if there are eligible orphans. with the same employer with at least four working hours a day or 20 working hours a week. The spouse’s pension ceases if the widow(er) remarries or if a disabled widower is assessed as capable of working. Unemployment Benefits Orphan’s pension: 14% of the permanent disability pension The total account balance, minus any previous withdraw- the deceased received or was entitled to receive is paid for als, is paid. (The employee may withdraw funds from the each orphan younger than age 18 (age 21 if a student; no account balance exceeding four times his or her monthly limit if disabled); an additional 42% of the permanent dis- earnings at any time.) ability pension is split equally among full orphans.
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Administrative Organization Employer: The total cost. Superintendent of Banks and Insurance (http://www.sbs Government: None. .gob.pe/) regulates and supervises financial entities. Financial entities manage the mandatory individual sever- Qualifying Conditions ance accounts. Must be currently employed and have at least one child younger than 18 (age 24 if a student). Family Allowances If a qualifying employee has multiple employers, the family allowance is paid by each employer. Regulatory Framework First and current law: 1989 (family benefit), implemented Family Allowance Benefits in 1990. A monthly allowance of 10% of the legal monthly mini- mum wage is paid. Type of program: Employer-liability system. The legal monthly minimum wage is 930 soles. Coverage Private-sector employees with salaries that are not regu- Administrative Organization lated by collective agreement. Employers pay the family allowance directly to employees. Exclusions: Self-employed persons. National Labor Superintendence (SUNAFIL) (https://www .sunafil.gob.pe/) provides general supervision. Source of Funds Insured person: None. Self-employed person: Not applicable.
SSPTW: The Americas, 2019 ♦ 235 Saint Kitts and Nevis
There are no minimum earnings used to calculate contributions. Saint Kitts and Nevis The maximum monthly earnings used to calculate contribu- Exchange rate: US$1.00 = tions are EC$6,500. 2.70 East Caribbean dollars (EC$). The employer’s contributions also finance cash sickness and maternity benefits. Social assistance: None. Old Age, Disability, and Survivors Government Regulatory Framework Social insurance: None; contributes as an employer. First law: 1968 (provident fund). Social assistance: The total cost. Current laws: 1977 (social security), implemented in 1978; and 1998 (social assistance). Qualifying Conditions
Type of program: Social insurance and social assistance Old-age pension (social insurance): Age 62 with at least system. 500 weeks of paid or credited contributions, including at least 150 weeks of paid contributions. Coverage Contributions are credited for each complete contributory week the insured received disability, sickness, maternity, or Social insurance: Employed and self-employed persons, and apprentices. work injury benefits. Voluntary coverage for previously insured persons with at The old-age pension is payable abroad under certain least two years of contributions. conditions. Exclusions: Unpaid family labor. Old-age grant (social insurance): Age 62 with less than 500 weeks of paid or credited contributions. Special system for civil servants. Contributions are credited for each complete contributory Social assistance: Needy residents of Saint Kitts and week the insured received disability, sickness, maternity, or Nevis. work injury benefits. The old-age grant is payable abroad under certain Source of Funds conditions. Insured person Old-age social pension (social assistance, means Social insurance: 5% of weekly or monthly covered earn- tested): Age 62, not in gainful employment, and does not ings if aged 16 to 62 (including voluntarily insured per- meet the contribution requirements for the old-age pension sons); none if younger than age 16 or older than age 62. or old-age grant. There are no minimum earnings used to calculate The old-age social pension is not payable abroad. contributions. Disability pension (social insurance): Must be aged 16 The maximum monthly earnings used to calculate contribu- to 61, assessed with a disability that has lasted for at least tions are EC$6,500. 26 weeks and is likely to remain permanent, and have at The insured person’s contributions, except if voluntarily least 150 weeks of paid contributions. insured, also finance cash sickness and maternity benefits. The Social Security Medical Board assesses the degree of Social assistance: None. disability at least every three years or at any period based on the advice of a medical practitioner. Self-employed person The disability pension is payable abroad under certain Social insurance: 10% of monthly earnings, based on earn- conditions. ings categories ranging from EC$200 to EC$1,500 a week. Disability social pension (social assistance, means The self-employed person’s contributions also finance cash tested): Must be aged 16 to 61, be assessed with a disability sickness and maternity benefits. that have lasted for at least 26 weeks and is likely to remain Social assistance: None. permanent, be unable to work, have less than 150 weeks of paid contributions, and have no secure source of income or Employer other support. Social insurance: 5% of monthly covered payroll for employees aged 16 to 62; none for employees younger than age 16 or older than age 62.
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The Social Security Medical Board assesses the degree of Average weekly earnings are based on the insured’s best disability at least every three years or at any period based three years of earnings in the last 15 years of contributions. on the advice of a medical practitioner. Old-age social pension (social assistance, means The disability social pension is not payable abroad. tested): EC$255 a month is paid. Survivor pension (social insurance): The deceased had at least 150 weeks of paid contributions or received or was Permanent Disability Benefits entitled to receive a social insurance old-age or disability Disability pension (social insurance): The monthly pen- pension at the time of death. sion is 30% of the insured’s average annual earnings plus Eligible survivors include a widow(er), orphans younger 2% for every 50 weeks of paid or credited contributions than age 16 (age 18 if a full-time student, no limit if dis- exceeding 500, up to 799, and 1% for every 50 weeks of abled), and dependent parents. contributions exceeding 799; the sum is divided by 12. The widow(er)’s pension ceases upon remarriage or Average annual earnings are based on the insured’s best cohabitation. three years of earnings in the last 15 years of contributions. The survivor pension is payable abroad under certain The disability pension is paid after the 26 weeks of cash conditions. sickness benefits have been exhausted or after the disability has lasted for at least 26 weeks. Survivor grant (social insurance): The deceased did not meet the contribution requirements for an old-age or dis- The minimum monthly disability pension is EC$430. ability pension at the time of death. The maximum monthly disability pension is 60% of the Contributions are credited for each complete contributory insured’s monthly earnings or EC$3,900, whichever is less. week the deceased received disability, sickness, maternity, Disability social pension (social assistance, means- or work injury benefits. tested): EC$255 a month is paid. Eligible survivors include a widow(er) aged 45 or older who was married to or cohabited with the deceased for at least Survivor Benefits three years, and orphans younger than age 16 (age 18 if a Survivor pension (social insurance) full-time student, no limit if disabled). Spouse’s pension: 50% of the old-age or disability pension The survivor grant is payable abroad under certain the deceased received or was entitled to receive is paid for conditions. one year; for life if the widow(er) is aged 45 or older and Funeral grant (social insurance): The deceased had at was married or cohabited with the ceased for at least three least 26 weeks of paid contributions at the time of death. years. The funeral grant is payable abroad. The minimum monthly spouse’s pension is EC$215. The maximum monthly spouse’s pension is EC$1,950. Old-Age Benefits Orphan’s pension: 16.7% of the old-age or disability pension Old-age pension (social insurance): The weekly pension the deceased received or was entitled to receive is paid to is 30% of the insured’s average annual earnings plus 2% for each eligible orphan; 33.3% to an orphan with a disability. every 50 weeks of paid or credited contributions exceeding The minimum monthly orphan’s pension is EC$206.40. 500, up to 799, and 1% for every 50 weeks of contributions exceeding 799; the sum is divided by 52. The maximum monthly orphan’s pension is EC$650. Average annual earnings are based on the insured’s best Dependent parent’s pension: Up to 16.7% of the old-age or three years of earnings in the last 15 years of contributions. disability pension the deceased received or was entitled to receive is paid. The minimum monthly old-age pension is EC$430. The pension is paid for a year if the dependent parent is The maximum monthly old-age pension is 60% of the unemployed and younger than age 62; for life if the depen- insured’s monthly earnings or EC$3,900, whichever is less. dent parent is disabled, or aged 62 or older and not receiv- Schedule of payments: The old-age pension is paid monthly. ing any other allowance. Old-age grant (social insurance): If the insured has at The minimum monthly dependent parent’s pension is least 50 weeks of contributions, a lump sum of six times EC$103.20. the insured’s average weekly earnings for every 50 weeks The maximum monthly dependent parent’s pension is of paid or credited contributions is paid; with less than EC$650. 50 weeks of contributions, a lump sum of the insured’s contributions is paid.
SSPTW: The Americas, 2019 ♦ 237 Saint Kitts and Nevis
The maximum combined survivor pension is 100% of the Employer: See source of funds under Old Age, Disability, old-age or disability pension the deceased received or was and Survivors. entitled to receive. Government: None; contributes as an employer. Survivor grant (social insurance) Spouse’s grant: If the deceased had at least 50 weeks Qualifying Conditions of contributions, 50% of the old-age grant the deceased Cash sickness benefit: Must be younger than the normal received or was entitled to receive is paid to a widow(er) or retirement age, be employed the day before the incapacity cohabiting partner. began, and have at least 26 weeks of paid contributions, including at least eight weeks in the 13 weeks before the Orphan’s grant: If the deceased had at least 50 weeks of contributions, 16.7% of the old-age grant the deceased incapacity began. received or was entitled to receive is paid to each eligible Cash maternity benefit: Must have at least 39 weeks orphan; 33.3% to an orphan with a disability. of paid contributions, including at least 20 weeks in the The maximum combined survivor grant is 100% of the old- 39 weeks preceding the six weeks before the expected age grant the deceased received or was entitled to receive. date of childbirth or the week in which the claim is made, whichever is later. If the deceased had less than 50 weeks of contributions, a lump sum of the deceased’s contributions is paid. Maternity grant: Paid to an insured woman or the wife of an insured man with at least 39 weeks of paid contributions, A lump sum of up to Funeral grant (social insurance): including at least 20 weeks in the 39 weeks preceding the EC$2,500 is paid for the funeral of the insured or his or her six weeks before the expected date of childbirth or the week spouse; up to EC$1,600 for a dependent child. The grant is in which the claim is made, whichever is later. paid to the person who pays for the funeral. A lower sum will only be paid if the funeral costs are lower than the Sickness and Maternity Benefits grant. Sickness benefit: The daily benefit is 65% of the insured’s Administrative Organization average weekly covered earnings for all contributory weeks Ministry of Nevis Affairs, Labour, Social Security, and in the last 13 weeks divided by six and is paid for up to Ecclesiastical Affairs provides general supervision of the 26 weeks. The benefit is paid retroactively from the first social insurance program. day if the incapacity lasts for at least four days. Social Security Board (https://www.socialsecurity.kn/) Maternity benefit: The daily benefit is 65% of the insured’s administers the social insurance program and collects average weekly covered earnings in the last 39 weeks contributions. divided by six and is paid for 13 weeks, beginning up to six weeks before the expected date of childbirth. Social Development Assistance Board administers the social assistance program. Maternity grant: A lump sum of EC$450 is paid for each birth. Sickness and Maternity Workers’ Medical Benefits Regulatory Framework No social insurance statutory benefits are provided. First and current law: 1977 (social security). Free or subsidized medical care is provided at public hospi- tals and health centers. Type of program: Social insurance system. Cash benefits only. Dependents’ Medical Benefits Coverage Benefits for dependents are the same as those for the insured. Employed and self-employed persons. Voluntary coverage is not available. Administrative Organization Ministry of Nevis Affairs, Labour, Social Security, and Source of Funds Ecclesiastical Affairs provides general supervision. Insured person: See source of funds under Old Age, Dis- Social Security Board (https://www.socialsecurity.kn/) ability, and Survivors. administers the program and collects contributions. Self-employed person: See source of funds under Old Age, Disability, and Survivors.
238 ♦ SSPTW: The Americas, 2019 Saint Kitts and Nevis
Work Injury Workers’ Medical Benefits Benefits for the treatment of work injuries and occupational Regulatory Framework diseases include the reimbursement of reasonable expenses First law: 1955 (workmen’s compensation). for medical, surgical, dental, hospital, and nursing care; medicine; appliances; and transportation. Current law: 1985 (social security), implemented in 1986. Type of program: Social insurance system. Survivor Benefits Survivor pension Coverage Spouse’s pension: 50% of the permanent total disability Employed persons. pension the deceased received or was entitled to receive is Voluntary coverage is not available. paid to the widow(er). Exclusions: Unpaid family labor and self-employed persons. The minimum monthly spouse’s pension is EC$215. The maximum monthly spouse’s pension is EC$1950. Source of Funds Orphan’s pension: Up to 16.7% of the permanent total Insured person: None. disability pension the deceased received or was entitled to Self-employed person: Not applicable. receive is paid to each orphan younger than age 16 (age 18 if a full-time student, no limit if disabled). Employer: 1% of monthly covered payroll. Dependent parent’s pension: Up to 16.7% of the perma- There are no minimum earnings used to calculate nent total disability pension the deceased received or was contributions. entitled to receive is paid to each parent. The maximum monthly earnings used to calculate contribu- The minimum monthly dependent parent’s pension is tions are EC$6,500. EC$103.20. Government: None; contributes as an employer. The maximum monthly dependent parent’s pension is EC$650. Qualifying Conditions The maximum combined survivor pension is 100% of the Must be assessed with a work injury or occupational permanent total disability pension the deceased received or disease. was entitled to receive. Temporary Disability Benefits Funeral grant: If the insured’s death was the result of a work-related injury or occupational disease, a lump sum of 75% of the insured’s average weekly covered earnings is EC$4,000 is paid to the person who paid for the funeral. paid retroactively from the first day of incapacity if the dis- ability lasts for at least four days. The benefit is paid for up Administrative Organization to 26 weeks. Ministry of Nevis Affairs, Labour, Social Security, and There is no minimum temporary disability benefit. Ecclesiastical Affairs provides general supervision. The maximum daily temporary disability benefit is Social Security Board (https://www.socialsecurity.kn/) EC$187.50. administers the program and collects contributions. Permanent Disability Benefits Unemployment For a total (100%) disability, 75% of the insured’s average weekly covered earnings is paid. Regulatory Framework Constant-attendance supplement: Paid if the insured is The 1986 Protection of Employment Act requires employ- assessed with a total disability and requires the constant ers to contribute 1% of the employee’s monthly wage to the attendance of others to perform daily functions. The Severance Payment Fund to finance a mandatory severance supplement should meet the reasonable cost of care. pay program for employees with at least one year of con- Partial disability: For an assessed degree of disability of tinuous service and to certain seasonal workers. Severance at least 20% but less than 100%, a percentage of the full pay is provided in cases of certified illness or disability permanent disability pension is paid based on the assessed that has lasted for at least three months and is likely to be degree of disability. For an assessed degree of disability of permanent, redundancy, death of the employer that results less than 20%, a lump sum is paid. in cessation of business operations, and liquidation or bank- The Social Security Medical Board assesses and periodi- ruptcy. For employees with at least 10 years of continuous cally reviews the degree of disability. employment with the same employer, severance pay is also
SSPTW: The Americas, 2019 ♦ 239 Saint Kitts and Nevis provided in cases of death due to work-related causes or Medical assistance (means tested): Paid to cover the upon retirement after age 62. The payment amount varies cost of medical procedures provided locally, regionally, or depending on the years of continuous service: two weeks of internationally. the employee’s pay for each year of service from one year to Note: Additional social assistance benefits may be provided four years of service, plus three weeks for each year of ser- on a discretionary basis. vice from five years to ten years of service, plus four weeks for each year of service exceeding 10 years of service, up to Family Allowance Benefits a total of 52 weeks of pay. Food voucher assistance (means tested): EC$200 to Family Allowances EC$400 a month is paid, depending on household size. The duration of benefits is determined on an ad hoc basis and Regulatory Framework depends on a household’s circumstances. The cost of a First and current laws: 1998 (social assistance). School uniform assistance (means tested): school uniform is paid for each eligible child. Type of program: Social assistance system. Medical assistance (means tested): The costs of medical Coverage procedures, up to a lifetime total of US$5,000, may be paid. Needy residents of Saint Kitts and Nevis. Administrative Organization Source of Funds The Ministry of Community Development, Gender Affairs and Social Services provides general supervision. None. Insured person: The Department of Social Services and Community admin- Self-employed person: None. isters the program. Employer: None. Government: The total cost.
Qualifying Conditions Food voucher assistance (means tested): Paid to assist needy households with the cost of food.
School uniform assistance (means tested): Paid to assist needy household with the cost of school uniforms for children enrolled in public education institutions from the primary to the tertiary level.
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The employer’s contributions also finance cash sickness and maternity benefits, medical benefits, and work injury Saint Lucia benefits. Exchange rate: US$1.00 = Government: None; contributes as an employer. 2.70 East Caribbean dollars (EC$). Qualifying Conditions Old-age pension: Age 65 with at least 180 months of Old Age, Disability, and Survivors contributions. Early pension: Age 60 with at least 180 months of Regulatory Framework contributions. First laws: 1970 (provident fund) and 1978 (social insur- Employment must cease. ance), implemented in 1979. The old-age pension is payable abroad under bilateral and Current laws: 2000 (national insurance corporation) and multilateral agreements. 2003 (national insurance). Old-age grant: Age 65 with less than 180 months of Type of program: Social insurance system. contributions. The old-age grant is payable abroad under bilateral and Coverage multilateral agreements. Employed and self-employed persons, and apprentices. Disability pension: Must be younger than the normal Voluntary coverage (old-age benefits only) for nonemployed retirement age; be assessed with at least a 30% permanent persons. loss of work capacity that is not the result of a work injury; Special system for civil servants employed before Febru- have at least 60 months of contributions, including at least ary 1, 2003. 36 consecutive months before the disability began, or at least 180 months of contributions; and not receive a cash Source of Funds sickness benefit. Insured person: 5% of monthly covered earnings; 10% of A registered medical doctor assesses the loss of work reference earnings, based on stipulated wage categories, for capacity at least every two years. the voluntarily insured. The disability pension is payable abroad under bilateral and There are no minimum earnings used to calculate multilateral agreements. contributions. Disability grant: Must be younger than the normal retire- The maximum annual earnings used to calculate contribu- ment age; be assessed with less than a 30% permanent loss tions are EC$60,000. of work capacity that is not the result of a work injury; not The insured person’s contributions also finance cash sick- receive a cash sickness benefit; and not meet the contribu- ness and maternity benefits, medical benefits, and work tion requirements for a disability pension. injury benefits. A registered medical doctor assesses the loss of work capacity. Self-employed person: 10% of reference earnings, based on stipulated wage categories. The disability grant is payable abroad under bilateral and multilateral agreements. The minimum monthly earnings used to calculate contribu- tions are EC$50. Survivor pension: The deceased received or was entitled The maximum annual earnings used to calculate contribu- to receive an old-age or disability pension at the time of tions are EC$60,000. death. The self-employed person’s contributions also finance cash Eligible survivors include a widow(er) married to the sickness and maternity benefits, and medical benefits. insured for at least three years, or a common-law spouse; dependent orphans younger than age 16 (age 18 if a full- Employer: 5% of monthly covered payroll. time student, no limit if disabled); and aged, dependent There are no minimum earnings used to calculate parents or grandparents if there are no other survivors. contributions. The widow(er)’s pension ceases upon remarriage or The maximum annual earnings used to calculate contribu- cohabitation. tions are EC$60,000. The survivor pension is payable abroad under bilateral and multilateral agreements.
SSPTW: The Americas, 2019 ♦ 241 Saint Lucia
Survivor grant: The deceased did not meet the contribution The minimum monthly disability pension is EC$300. requirements for an old-age or disability pension at the time The maximum monthly disability pension is 60% of the of death. insured’s average earnings. The survivor grant is payable abroad under bilateral and The disability pension ceases at the normal retirement age multilateral agreements. and is replaced by the old-age pension. Funeral grant: The deceased received or was entitled Benefit adjustment: Benefits are adjusted on an ad hoc basis to receive an old-age or disability pension at the time of based on changes to the consumer price index. death, had at least six months (12 months for self-employed persons) of contributions in the 12 months before death, or Disability grant: 0.67% of the insured’s average annual had paid contributions in the amount of the benefit (up to earnings is paid for each month of contributions after EC$2,500). Paid to the person who pays for the funeral on March 1979. Persons insured under the old provident fund the death of the deceased or his or her spouse or dependent system also receive a lump sum of 100% of the balance of child. the provident fund account plus accrued interest. The funeral grant is payable abroad under bilateral and Average annual earnings are based on the insured’s covered multilateral agreements. earnings in the best five years, up to an annual maximum of EC$60,000. Old-Age Benefits Note: Effective April 1979, Saint Lucia replaced their provi- dent fund system with a social insurance system. Old-age pension: 40% of the insured’s average earnings plus 0.1% of average earnings for each month of contribu- tions exceeding 180 months is paid. Survivor Benefits Average earnings are based on the insured’s covered earn- Survivor pension ings in the best five years, up to an annual maximum of Spouse’s pension: If there are no other survivors, 75% of EC$60,000. the old-age or disability pension the deceased received or The minimum monthly old-age pension is EC$300. was entitled to receive is paid to a widow(er) for a year (for life if aged 55 or older or disabled); 50% if there are other The maximum monthly old-age pension is 60% of the dependent survivors for a year (for life if aged 55 or older insured’s average earnings. or disabled) or until the youngest orphan reaches age 16 Early pension: The pension is reduced by 0.5% for each (age 18 if a full-time student). month it is claimed before the normal retirement age. Orphan’s pension: 50% of the old-age or disability pension Benefit adjustment: Benefits are adjusted on an ad hoc basis the deceased received or was entitled to receive is paid to based on changes to the consumer price index. an eligible orphan; 50% of the old-age or disability pen- Old-age grant: 0.67% of the insured’s average annual sion each insured parent was entitled to receive for a full earnings is paid for each month of contributions after orphan. March 1979. Persons insured under the old provident fund Other dependent’s pension: If there are no other survi- system also receive a lump sum of 100% of the balance of vors, 50% of the old-age or disability pension the deceased the provident fund account plus accrued interest. received or was entitled to receive is paid to an aged, Average annual earnings are based on the insured’s covered dependent parent or grandparent, for a year (for life if they earnings in the best five years, up to an annual maximum of have reached the early retirement age). EC$60,000. The maximum combined survivor pension is 100% of the Note: Effective April 1979, Saint Lucia replaced their provi- old-age or disability pension the deceased received or was dent fund program with a social insurance program. entitled to receive. Benefit adjustment: Benefits are adjusted on an ad hoc basis Permanent Disability Benefits based on changes to the consumer price index.
Disability pension: With at least 60 months but less than Survivor grant: A lump sum at least equal to the value 180 months of contributions, 35% of the insured’s average of the old-age or disability grant the deceased would have earnings is paid. With at least 180 months of contributions, been entitled to receive is paid. 40% of the insured’s average earnings plus 0.1% of aver- age earnings for each month of contributions exceeding Funeral grant: The cost of the funeral is paid, up to 180 months is paid. EC$2,500 for an insured person, EC$2,150 for a spouse, or EC$200 to EC$2,150 for a dependent child, depending on Average earnings are based on the insured’s covered earn- the child’s age. ings in the best five years, up to an annual maximum of EC$60,000.
242 ♦ SSPTW: The Americas, 2019 Saint Lucia
Administrative Organization least 12 months immediately before the expected month of childbirth for self-employed persons). Ministry of Finance, Economic Growth, Job Creation, External Affairs and the Public Service (http://finance.govt .lc/) provides general supervision. Sickness and Maternity Benefits National Insurance Corporation (http://www.stlucianic Sickness benefit: 65% of the insured’s average earnings in .org/), under the supervision of the National Insurance the best two of the last four months is paid after a three-day Board, administers the program and collects contributions. waiting period for up to 26 weeks. Maternity benefit: 65% of the insured’s average earnings is Sickness and Maternity paid for up to three months. Average earnings are based on the insured’s covered earn- Regulatory Framework ings in the best seven of the 10 months immediately preced- First law: 1978 (social insurance), implemented in 1979. ing the month before the expected month of childbirth. Current laws: 1992 (hospital fees regulations), 2000 Maternity grant: A lump sum of EC$600 is paid. (national insurance corporation), and 2003 (national insurance). Workers’ Medical Benefits
Type of program: Social insurance system. The National Insurance Corporation provides hospitaliza- tion and medical treatment at approved hospitals for insured Coverage persons who meet the requirements for a cash sickness benefit. Employed and self-employed persons, and apprentices. The Ministry of Health and Wellness provides hospital- Special system for civil servants employed before Febru- ization and medical treatment for pensioners with annual ary 1, 2003. income of less than EC$6,000.
Source of Funds Dependents’ Medical Benefits Insured person: See source of funds under Old Age, Dis- No statutory benefits are provided. ability, and Survivors.
Self-employed person: See source of funds under Old Administrative Organization Age, Disability, and Survivors. Ministry of Finance, Economic Growth, Job Creation, External Affairs and the Public Service (http://finance.govt Employer: See source of funds under Old Age, Disability, .lc/) provides general supervision. and Survivors. National Insurance Corporation (http://www.stlucianic Government: None; contributes as an employer. .org/), under the supervision of the National Insurance Board, administers the program and collects contributions. Qualifying Conditions Ministry of Health and Wellness (http://health.govt.lc/) Cash sickness and medical benefits: Must have been delivers medical benefits. employed on the day before the incapacity began and have at least six months of contributions, including at least two Work Injury of the four months immediately before the incapacity began (at least 12 months immediately before the incapacity began Regulatory Framework for self-employed persons). The incapacity must not be the result of a work injury. First laws: 1964 (employer liability) and 1978 (social insur- ance), implemented in 1979. Cash maternity benefit: Must have at least seven months of contributions in the 10 months immediately before the Current laws: 2000 (national insurance corporation) and expected month of childbirth (at least 12 months imme- 2003 (national insurance). diately before the incapacity began for self-employed Type of program: Social insurance system. persons).
Maternity grant: The insured woman or the spouse (or Coverage cohabiting partner who has continuously lived with her Employed persons and apprentices. for at least five years) of an uninsured woman must have at least seven months of contributions in the 10 months Exclusions: Self-employed persons. immediately before the expected month of childbirth (at Special system for civil servants employed before Febru- ary 1, 2003.
SSPTW: The Americas, 2019 ♦ 243 Saint Lucia
Source of Funds Workers’ Medical Benefits Insured person: See source of funds under Old Age, Dis- All medical expenses, including surgical, dental, and hospi- ability, and Survivors. tal treatment and medicine, are paid, up to EC$20,000 per work injury or occupational disease. Self-employed person: Not applicable. Employer: See source of funds under Old Age, Disability, Survivor Benefits and Survivors. Survivor pension Government: None; contributes as an employer. Spouse’s pension: If there are no other survivors, 75% of the old-age or disability pension the deceased received or Qualifying Conditions was entitled to receive is paid to a widow(er), including a Must be assessed with a work injury or occupational dis- common-law spouse, who has reached the early retirement ease. There are no minimum contribution requirements. age or has an incapacity for work; 50% if there are other dependent survivors. Temporary Disability Benefits Orphan’s pension: 50% of the deceased’s pension is paid to 65% of the insured’s average covered earnings in the month a dependent orphan younger than age 16 (age 18 if a full- the injury occurred or occupational disease began or the time student); 50% of the old-age or disability pension each insured’s average covered earnings in the best two of the insured parent was entitled to receive for a full orphan. last four months of contributions is paid for up to 12 months Other dependent’s pension: If there are no other survivors, or until certification of permanent disability or full recov- 50% of the deceased’s pension is paid to an aged, dependent ery (whichever is earlier). parent or grandparent. Permanent Disability Benefits If the spouse, parent, or grandparent has reached the early retirement age, the benefit is paid for life. If the spouse is Permanent disability pension: For an assessed degree of younger than the early retirement age, the benefit is paid for disability of at least 30% and with at least 60 months but a year or until the youngest orphan reaches age 16 (age 18 if less than 180 months of contributions, 35% of the insured’s a full-time student). If a survivor has a disability, the benefit average earnings is paid; with at least 180 months of contri- is paid for the duration of the disability. butions, 40% of the insured’s average earnings plus 0.1% of average earnings for each month of contributions exceeding The widow(er)’s pension ceases upon remarriage or 180 months is paid. cohabitation. Average earnings are based on the insured’s covered earn- The maximum combined survivor pension is 100% of the ings in the best five years, up to an annual maximum of old-age or disability pension the deceased received or was EC$60,000. entitled to receive. The minimum permanent disability pension for an assessed Survivor pensions are payable abroad under bilateral and degree of disability of at least 30% is 65% of covered multilateral agreements. earnings in the month the injury occurred or occupational Benefit adjustment: Benefits are adjusted on an ad hoc basis disease began or EC$300, whichever is greater. based on changes to the consumer price index.
Partial disability: For an assessed degree of disability less Funeral grant: The cost of the funeral is paid, up to than 30%, a lump sum of 60 months of the permanent dis- EC$2,500. ability pension is paid. The funeral grant is not payable abroad. An appointed medical board assesses the disability every six months. Administrative Organization The permanent disability pension is payable abroad under Ministry of Finance, Economic Growth, Job Creation, bilateral and multilateral agreements. External Affairs and the Public Service (http://finance.govt Benefit adjustment: Benefits are adjusted on an ad hoc basis .lc/) provides general supervision. based on changes to the consumer price index. National Insurance Corporation (http://www.stlucianic .org/), under the supervision of the National Insurance Board, administers the program and collects contributions.
244 ♦ SSPTW: The Americas, 2019 Saint Lucia
Unemployment
Regulatory Framework Labor law (2006) requires employers to provide severance pay in cases of redundancy to employees with at least two years of continuous employment. The payment amount is one week of basic pay for each completed year of continu- ous employment up to three years, plus two weeks of basic pay for each completed year of continuous employment from four to seven years, plus three weeks of basic pay for each completed year of continuous employment exceeding seven years.
SSPTW: The Americas, 2019 ♦ 245 Saint Vincent and the Grenadines
The self-employed person’s contributions also finance cash Saint Vincent and sickness and maternity benefits. the Grenadines Social assistance: None. Employer Exchange rate: US$1.00 = 2.70 East Caribbean dollars (EC$). Social insurance: 5.5% of weekly or monthly covered payroll for private-sector employees; 5.25% or 5.50% for public-sector employees, depending on the category of Old Age, Disability, and Survivors work; 0.5% for employees younger than age 16 or older than the normal retirement age (work injury only). Regulatory Framework The minimum weekly earnings used to calculate contribu- tions are EC$15 (EC$60 a month). First law: 1970 (provident fund). The maximum weekly earnings used to calculate contribu- Current law: 1986 (social insurance), implemented in 1987. tions are EC$1,000 (EC$4,333 a month). Type of program: Social insurance and social assistance The employer’s contributions also finance cash sickness and system. maternity benefits, and work injury benefits. Note: Needy elderly persons, persons with disabilities, and Social assistance: None. orphans may be eligible for social assistance cash benefits under Family Allowances. Government Social insurance: None; contributes as an employer. Coverage Social assistance: The total cost. Social insurance: Employed and self-employed persons. Voluntary coverage for citizens of Saint Vincent and the Qualifying Conditions Grenadines who are no longer in covered employment or Old-age pension (social insurance): Age 62 (gradu- live abroad. ally rising by one year every three years until reaching Social assistance: Needy residents of Saint Vincent and age 65 by 2028) with at least 600 weeks (gradually rising the Grenadines. by 50 weeks every three years until reaching 750 weeks by 2028) of paid or credited contributions. Source of Funds Contributions are credited for each complete contributory Insured person week the insured received sickness, maternity, or work injury benefits. Social insurance: 4.5% of weekly or monthly covered earn- Partial pension: Must have reached the normal retirement ings; 4.29% of weekly or monthly covered earnings for age with at least 500 weeks but less than 600 weeks (gradu- certain public-sector employees; 8.84% of declared income ally rising by 50 weeks every three years until reaching for the voluntarily insured based on five income categories. 750 weeks by 2028) of paid or credited contributions. The The minimum weekly earnings used to calculate contribu- partial pension will be eliminated in 2028. tions are EC$15 (EC$60 a month). Early pension: Age 60 with at least 600 weeks (gradu- The maximum weekly earnings used to calculate contribu- ally rising by 50 weeks every three years until reaching tions are EC$1,000 (EC$4,333 a month). 750 weeks by 2028) of paid or credited contributions. The insured person’s contributions also finance cash sick- The old-age pension is payable abroad (extra fees may ness and maternity benefits. apply).
Social assistance: None. Old-age grant (social insurance): Age 62 (gradually Self-employed person rising by one year every three years until reaching age 65 by 2028) with at least 50 weeks but less than 600 weeks Social insurance: 9.5% of weekly or monthly reference (gradually rising by 50 weeks every three years until reach- income based on eight income categories. ing 750 weeks by 2028) of paid or credited contributions. The minimum weekly reference income used to calculate Contributions are credited for each complete contributory contributions is EC$120 (EC$520 a month). week the insured received sickness, maternity, or work The maximum weekly reference income used to calculate injury benefits. contributions is EC$1,000 (EC$4,333 a month). The old-age grant is payable abroad (extra fees may apply).
246 ♦ SSPTW: The Americas, 2019 Saint Vincent and the Grenadines
Noncontributory assistance age pension (social Eligible survivors include a widow(er) who was married to assistance, income tested): Must have been aged 57 or or lived with the deceased for at least three years, depen- older on January 5, 1987, have been continuously employed dent orphans younger than age 18 (age 21 if a full-time before that date for a significant period (no specific period student, no age limit if disabled), and dependent parents has been defined), and not currently be in paid employ- aged 60 or older. ment. Must have been a resident of Saint Vincent and the The survivor grant is payable abroad (extra fees may apply). Grenadines for at least 25 years since age 20, including at least five of the last eight years, and on the date the claim is Funeral grant (social insurance): The insured had at least made. 26 weeks of paid contributions. Paid when the insured, the insured’s spouse, or the insured’s dependent child younger Income test: Monthly income must be less than EC$37.50. than age 18 (age 21 if a full-time student, no age limit if Must not receive regular income from any other source or disabled) dies. any pension from the National Insurance Scheme. Paid when a noncon- Elderly assistance pension (social assistance, income Funeral grant (social assistance): tributory old-age pensioner, the pensioner’s spouse, or the tested): Must have been aged 45 or older on January 5, 1987, have been continuously employed before that date for pensioner’s dependent child younger than age 18 (age 21 if a a significant period (no specific period has been defined) full-time student, no age limit if disabled) dies. in informal or seasonal work, and not currently be in paid employment. Must have been a resident of Saint Vincent Old-Age Benefits and the Grenadines for at least 25 years since age 20, Old-age pension (social insurance): 30% of the insured’s including at least four of the last five years immediately average annual earnings plus 0.5% of average annual before the claim is made. earnings for every 25 weeks of contributions exceeding Income test: Monthly income must be less than EC$37.50. 600 weeks (gradually rising by 50 weeks every three years Must not receive regular income from any other source or until reaching 750 weeks by 2028) is paid. any pension from the National Insurance Scheme. Average annual earnings are based on the insured’s covered earnings in the best five years of the entire working career Disability pension (social insurance): Must be younger than the normal retirement age, be assessed with a disabil- before the year in which the insured reached the normal ity, and have at least 150 weeks of paid contributions. retirement age. The annual amount is then divided by 52 to determine the weekly pension. The disability pension is payable abroad (extra fees may apply). The minimum weekly old-age pension is EC$70. The maximum annual old-age pension is 60% of the Must be younger than Disability grant (social insurance): insured’s average annual earnings. the normal retirement age, be assessed with a disability, and have at least 50 weeks but less than 150 weeks of paid Partial pension: The pension is proportionally reduced for contributions. each week of contributions less than the weeks required for a full pension. The disability grant is payable abroad (extra fees may apply). Early pension: The pension is reduced by 6% for each year (0.5% for each month) it is claimed before the normal retire- Survivor pension (social insurance): The deceased ment age. received or was entitled to receive a social insurance old- age or disability pension at the time of death. Schedule of payments: The National Insurance Board deter- mines the schedule of payment. (The pension is currently Eligible survivors include a widow(er) who was married to paid monthly.) or lived with the deceased for at least three years, depen- dent orphans younger than age 18 (age 21 if a student, no Benefit adjustment: Benefits may be adjusted based on age limit if disabled), and dependent parents aged 60 or inflation every three years, subject to an actuarial review. older. Old-age grant (social insurance): A lump sum of six The widow(er)’s pension ceases upon remarriage or times the insured’s average weekly earnings is paid for cohabitation. every 50 weeks of contributions. The survivor pension is payable abroad (extra fees may Average weekly earnings are based on the insured’s cov- apply). ered earnings in the last 50 weeks before reaching age 60.
Survivor grant (social insurance): The deceased did not Noncontributory assistance age pension (social assis- meet the contribution requirements for a social insurance tance, income tested): EC$75 is paid every two weeks. old-age or disability pension but had at least 50 weeks of Elderly assistance pension (social assistance, income paid contributions. tested): EC$75 is paid every two weeks.
SSPTW: The Americas, 2019 ♦ 247 Saint Vincent and the Grenadines
Permanent Disability Benefits The minimum weekly dependent parent’s pension is EC$35.00. Disability pension (social insurance): 30% of the insured’s average annual earnings plus 0.5% of average There is no maximum dependent parent’s pension. annual earnings for every 25 weeks of paid or credited The maximum combined survivor pension is 100% of the contributions exceeding 600 weeks (gradually rising by old-age or disability pension the deceased received or was 50 weeks every three years until reaching 750 weeks by entitled to receive. 2028) is paid. Schedule of payments: The National Insurance Board deter- Contributions are credited for each complete contributory mines the schedule of payment. (The pension is currently week the insured received sickness, maternity, or work paid monthly.) injury benefits. Benefit adjustment: Benefits may be adjusted based on Average annual earnings are based on the insured’s covered inflation every three years, subject to recommendations earnings in the best five years of the entire working career. from an actuarial review. The annual amount is then divided by 52 to determine the A lump sum of 75% of weekly pension. Survivor grant (social insurance): the old-age or disability grant the deceased received or was The minimum weekly disability pension is EC$70. entitled to receive is paid to a widow(er); 25% to an orphan The maximum annual disability pension is 60% of the (50% to a full orphan); if there are no other eligible survi- insured’s average annual earnings. vors, 50% is paid to each eligible dependent parent. Schedule of payments: The National Insurance Board deter- The maximum combined survivor grant is 100% of the old- mines the schedule of payment. (The pension is currently age or disability grant the deceased received or was entitled paid monthly.) to receive. Benefit adjustment: Benefits may be adjusted based on Funeral grant (social insurance): A lump sum of inflation every three years, subject to an actuarial review. EC$4,525 is paid to the person who pays for all or part of the insured’s funeral; EC$2,262.50 is paid for the funeral of Disability grant (social insurance): A lump sum of six the insured’s spouse; and up to EC$2,262.50 is paid for the times the insured’s average weekly earnings is paid for funeral of the insured’s child, depending on the child’s age. every 50 weeks of contributions. Benefit adjustment: Benefits may be adjusted based on Average weekly earnings are based on the insured’s inflation every three years, subject to recommendations covered earnings in the last 50 weeks before the disability from an actuarial review. began. Funeral grant (social assistance): A lump sum of Survivor Benefits EC$2,262.50 is paid to the person who pays for all or Survivor pension (social insurance) part of the a noncontributory old-age pensioner’s funeral; EC$1,131.25 is paid for the funeral of the insured’s spouse; Spouse’s pension: 75% of the social insurance old-age or and up to EC$1,131.25 is paid for the funeral of the disability pension the deceased received or was entitled to insured’s child, depending on the child’s age. receive at the time of death is paid to the widow(er). Benefit adjustment: Benefits may be adjusted based on The spouse’s pension is paid for a year to a widow(er) inflation every three years, subject to recommendations younger than age 55 with no dependent children or to a from an actuarial review. disabled widow(er) younger than age 55. The minimum weekly spouse’s pension is EC$52.50. Administrative Organization There is no maximum spouse’s pension. National Insurance Services (https://www.nissvg.org/) col- lects contributions and administers the programs. Orphan’s pension: 25% of the social insurance old-age or disability pension the deceased received or was entitled to receive is paid to each eligible orphan; 50% to a full Sickness and Maternity orphan. Regulatory Framework The minimum weekly orphan’s pension is EC$17.50 (EC$35.00 for full orphans). First and current laws: 1986 (social insurance), imple- mented in 1987, and 1995 (hospital fees). There is no maximum orphan’s pension. Type of program: Universal (medical benefits) and social Dependent parent’s pension: If there are no other eligible insurance (cash benefits) system. survivors, 50% of the social insurance old-age or disability pension the deceased received or was entitled to receive is paid to each eligible dependent parent.
248 ♦ SSPTW: The Americas, 2019 Saint Vincent and the Grenadines
Coverage must have at least 20 weeks of paid contributions in the 30 weeks immediately before the week of childbirth. Universal (medical benefits): Residents of Saint Vincent and the Grenadines. Medical benefits (universal): There is no minimum quali- fying period. Social insurance (cash benefits): Employed and self- employed persons. Sickness and Maternity Benefits Voluntary coverage is not available. Sickness benefit (social insurance): 65% of the insured’s Special systems for certain categories of civil servants. average weekly covered earnings in the 13 weeks before the incapacity began is paid for up to 26 weeks after a Source of Funds three-day waiting period. No benefits are paid if the insured Insured person person is receiving a full salary from his or her employer. Universal (medical benefits): None. There is no minimum or maximum sickness benefit. Social insurance (cash benefits): See source of funds under Maternity benefit (social insurance): 65% of the insured’s Old Age, Disability, and Survivors. average weekly covered earnings in the last 30 weeks of employment is paid for 13 weeks, from up to six weeks Self-employed person before the expected date of childbirth. Universal (medical benefits): None. There is no minimum or maximum maternity benefit.
Social insurance (cash benefits): See source of funds under Maternity grant (social insurance): A lump sum of Old Age, Disability, and Survivors. EC$660 is paid. Employer Workers’ Medical Benefits Universal (medical benefits): None. Medical benefits (universal): Public hospitals, clinics, and Social insurance (cash benefits): See source of funds under health care facilities provide health care services. Benefits Old Age, Disability, and Survivors. include maternity care, reproductive and pediatric ser- Government vices, dental care, chronic disease screening, HIV/AIDS prevention and treatment, mental health services, surgery, Universal (medical benefits): The total cost. hospitalization, X-rays and imaging, orthopedic services, Social insurance (cash benefits): None; contributes as an nephrology, ophthalmology, physical therapy, and medicine. employer. Cost sharing: Primary care is provided free of charge. Fees may be required for certain secondary and tertiary health Qualifying Conditions care services. Cash sickness benefit (social insurance): Must be younger than the normal retirement age; have at least Dependents’ Medical Benefits 26 weeks of paid contributions, including at least eight Medical benefits (universal): Benefits for dependents are weeks of paid or credited contributions in the 13 weeks the same as those for workers. immediately before the incapacity began; and be currently employed. Administrative Organization Contributions are credited for each complete contributory National Insurance Services (https://www.nissvg.org/) col- week the insured received sickness, maternity, or work lects contributions and administers the cash benefits. injury benefits. Ministry of Health (http://www.health.gov.vc/) is respon- Cash maternity benefit (social insurance): Must have at sible for policy and delivers medical benefits. least 30 weeks of paid or credited contributions, including at least 20 weeks in the 30 weeks immediately preceding Work Injury the week that is six weeks before the expected date of child- birth or the week in which the claim is made, whichever is Regulatory Framework later. First law: 1939. Contributions are credited for each complete contributory week the insured received sickness, maternity, or work Current law: 1997 (work injury). injury benefits. Type of program: Social insurance system. Maternity grant (social insurance): The insured woman, the insured husband, or partner of an uninsured woman
SSPTW: The Americas, 2019 ♦ 249 Saint Vincent and the Grenadines
Coverage before the disability began (or the total number of weeks of employment before the disability began if less than Employed persons. 13 weeks). Voluntary coverage is not available. Exclusions: Self-employed persons. Workers’ Medical Benefits Benefits include medical, surgical, and dental treatment; Source of Funds hospitalization; skilled nursing services; medicine; pros- Insured person: None. thetics; and transportation costs. Self-employed person: Not applicable. Survivor Benefits Employer: See source of funds under Old Age, Disability, Survivor pension and Survivors. Spouse’s pension: 50% of the permanent disability pension Government: None; contributes as an employer. the deceased received or was entitled to receive at the time of death is paid. Qualifying Conditions Eligible survivors include a dependent widow(er) of any age Must be currently employed and assessed with a work who was married to or lived with the deceased or a cohabit- injury or occupational disease. There is no minimum quali- ing partner named by the deceased. fying period. The spouse’s pension ceases upon (re)marriage or cohabitation. Temporary Disability Benefits Remarriage settlement: A lump sum of 52 weeks of the 70% of average weekly earnings is paid after a three-day spouse’s pension is paid to a widow(er) or registered partner waiting period for up to 26 weeks. upon remarriage or cohabitation. Average weekly earnings are based on the insured’s weekly covered earnings in the last 13 weeks of employment Orphan’s pension: 16.6% of the permanent disability pen- before the disability began (or the total number of weeks sion the deceased received or was entitled to receive is paid of employment before the disability began if less than to each dependent orphan younger than age 18 (age 21 if 13 weeks). a full-time student, no limit if disabled); 33.33% if a full orphan or disabled. Permanent Disability Benefits Other eligible survivors’ pension: If there is no eligible widow(er), partner, or orphan, up to 50% of the permanent Permanent disability pension: For an assessed degree of disability greater than 30%, 70% of the insured’s average disability pension the deceased received or was entitled to weekly earnings multiplied by the assessed degree of dis- receive is paid to each eligible dependent. ability is paid. The insured must have exhausted entitlement Eligible survivors include other persons who were partially to the temporary disability benefit. or totally dependent on the deceased, as determined by the Average weekly earnings are based on the insured’s weekly National Insurance Board. covered earnings in the last 13 weeks of employment Funeral grant: A lump sum of EC$4,525 is paid to the before the disability began (or the total number of weeks person who pays for all or part of the insured’s funeral. A of employment before the disability began if less than reduced grant is paid for the funeral of a spouse or child. 13 weeks). The minimum weekly permanent disability pension is Administrative Organization EC$70.00. National Insurance Services (https://www.nissvg.org/) col- Constant-attendance allowance: 50% of the permanent lects contributions and administers the program. disability pension is paid for up to 260 weeks if the insured requires the constant attendance of others to perform daily Unemployment functions. Regulatory Framework Permanent disability settlement: For an assessed degree of disability of 1% to 30%, a lump sum of 365 times The Protection of Employment Act (2003) requires employ- the insured’s average weekly earnings multiplied by the ers to provide severance pay to employees with at least two assessed degree of disability is paid. The insured must have years of continuous employment with the same employer exhausted entitlement to a temporary disability benefit. in cases of redundancy, illnesses that last for at least six months and are likely to be permanent, unfair dismiss- Average weekly earnings are based on the insured’s weekly als, and constructive dismissals (or discharge). Employees covered earnings in the last 13 weeks of employment who are dismissed for disciplinary action may be entitled
250 ♦ SSPTW: The Americas, 2019 Saint Vincent and the Grenadines to severance pay if they have at least five years of service. Family Allowances The payment amount is two weeks of the employee’s pay for each year of continuous service from two to 10 years, Regulatory Framework plus three weeks of pay for each year of service from 11 to No known statutory benefits are provided. 25 years, plus four weeks of pay for each year of service exceeding 25 years. The Family Services Division of the Ministry of National Mobilization, Social Development, Family, Gender Affairs, Employees who have a right to a pension or gratuity pay- Persons with Disabilities and Youth (http://www ment upon termination are not entitled to severance pay but .mobilization.gov.vc/mobilization/) administers additional may request a top-up payment if the pension or gratuity is social assistance cash benefits for needy persons, includ- less than the severance pay the employee would have been ing needy elderly persons, persons with disabilities, and entitled to receive. orphans.
SSPTW: The Americas, 2019 ♦ 251 Suriname
The minimum monthly earnings used to calculate contribu- tions are 500 Surinamese dollars. Suriname The maximum monthly earnings used to calculate contribu- Exchange rate: US$1.00 = tions are 5,000 Surinamese dollars. 7.52 Surinamese dollars. Government Universal: Covers any deficit. Old Age, Disability, and Survivors Social insurance: None.
Regulatory Framework Qualifying Conditions First and current laws: 1972 (civil servants pension), 1981 Flat-rate old-age pension (Algemene Oudedagsvoorz- (flat-rate old-age pension), 2005 (pension fund administra- iening [AOV], universal): Age 60. Foreign nationals must tion), and 2014 (earnings-related old-age pension). have at least 10 years of contributions or 10 consecutive years of residence in Suriname. Type of program: Universal and social insurance system. Earnings-related old-age pension (Algemeen Pen- Coverage sioen, social insurance): Age 60 with at least five years of contributions. Universal: Residents of Suriname. Earnings-related disability pension (Invaliditeitspen- Social insurance: Employed and self-employed persons. sioen, social insurance): Must be assessed with a perma- Special system for civil servants. nent disability and have at least five years of contributions. The degree of disability is assessed by a designated medical Source of Funds committee. Insured person The earnings-related disability pension ceases at the normal retirement age and is replaced by an earnings-related old- Universal: None. age pension of the same value. Social insurance: 2.5% (gradually rising by 0.25% a year until reaching 14% by 2065) of monthly covered earnings if Earnings-related survivor pension (social insurance): The deceased must have at least five years of contributions. younger than age 60; none if aged 60 or older. Eligible survivors include a widow(er) or partner who was The minimum monthly earnings used to calculate contribu- married to or lived with the deceased for at least five years tions are 500 Surinamese dollars. before the normal retirement age, a divorced widow(er) The maximum monthly earnings used to calculate contribu- or partner who was married to or lived with the deceased tions are 5,000 Surinamese dollars. for at least five years, and unmarried orphans (including Self-employed person adopted children) younger than age 21. Universal: 4% of monthly taxable income if younger than Death grant (Uitkering bij overlijden, social insurance): age 60; none if aged 60 or older. Paid to a widow(er) or family member upon the death of an earnings-related old-age pensioner. If there is no eligible Social insurance: 5% (gradually rising by 0.5% a year family members, paid to the person who paid for the until reaching 28% by 2065) of monthly covered income if funeral. The request must be received within 90 days of the younger than age 60; none if aged 60 or older. death. The minimum monthly earnings used to calculate contribu- tions are 500 Surinamese dollars. Old-Age Benefits The maximum monthly earnings used to calculate contribu- Flat-rate old-age pension (Algemene Oudedagsvoorz- tions are 5,000 Surinamese dollars. iening [AOV], universal): 525 Surinamese dollars a month Employer is paid. Earnings-related old-age pension (Algemeen Pensioen, Universal: 4% of monthly earnings for employees younger 2% of the insured’s average monthly than age 60; none for employees aged 60 or older. social insurance): earnings in the last 60 months multiplied by the number of Social insurance: 2.5% (gradually rising by 0.25% a year years of contributions is paid. until reaching 14% by 2065) of monthly covered earnings The minimum monthly earnings-related old-age pension is for employees younger than age 60; none for employees 300 Surinamese dollars. aged 60 or older.
252 ♦ SSPTW: The Americas, 2019 Suriname
The maximum monthly earnings-related old-age pension is Flat-rate Old-age Pension Fund (Algemene Oudedagsvoorz- 5,000 Surinamese dollars. iening (AOV)-Fonds; https://aovfonds.com/) administers Benefit adjustment: Benefits are adjusted at least every the flat-rate old-age pension. three years based on changes in the national average wage. Ministry of Finance (http://finance.gov.sr/) collects contri- butions for the flat-rate old-age pension. Permanent Disability Benefits Earnings-related disability pension (Invaliditeitspen- Sickness and Maternity sioen, social insurance): 2% of the insured’s average monthly earnings in the last 60 months multiplied by the Regulatory Framework number of years of paid or credited contributions is paid. First and current laws: 1859 (sick leave), 1963 (labor Contributions are credited for each year the insured is code), 1980 (civil servants health insurance), 2005 (health younger than the normal retirement age when the disability care fees), 2014 (national health insurance), and 2019 began. (maternity leave). The minimum monthly earnings-related disability pension Type of program: Mandatory health insurance through pri- is 300 Surinamese dollars. vate carriers (medical benefits) and employer-liability (cash The maximum monthly earnings-related disability pension sickness benefit) system. is 5,000 Surinamese dollars. Note: A 2019 law introducing social insurance maternity Benefit adjustment: Benefits are adjusted at least every and paternity benefits is in the process of being imple- three years based on changes in the national average wage. mented. The benefits will be administered by the Parental Leave Provision Fund (Fonds Voorzieningen Ouderschaps- Survivor Benefits verlof) under the supervision of the Ministry of Labor. Earnings-related survivor pension (social insurance) Coverage Spouse’s pension (Partnerpensioen): 70% of the earnings- related old-age or disability pension the deceased received Employer liability (cash sickness benefit): Employed or was entitled to receive is paid to the widow(er) or surviv- persons. ing partner for life (up to 10 years if the deceased died Exclusions: Self-employed persons. before retirement). Mandatory health insurance (medical benefits): Resi- The minimum monthly spouse’s pension is 300 Surinamese dents of Suriname, including foreign nationals. dollars. Orphan’s pension (Wezenpensioen): 70% of the earnings- Source of Funds related old-age or disability pension the deceased received Insured person or was entitled to receive is paid for each eligible orphan. Employer liability: None. The minimum monthly orphan’s pension is 300 Surinamese dollars. Mandatory health insurance: 50% (100% for covered family members) of up to 75 Surinamese dollars if aged 17 to 20 or Benefit adjustment: Benefits are adjusted at least every up to 165 Surinamese dollars if aged 21 to 59. The govern- three years based on changes in the national average wage. ment pays the total cost of premiums for residents up to Death grant (Uitkering bij overlijden, social insurance): age 16 and for residents aged 60 or older. Part or all of the A lump sum of two months of the earnings-related old-age cost may be waived for low-income or unemployed persons. pension the deceased received. Self-employed person Administrative Organization Employer liability: Not applicable. Ministry of Internal Affairs (Ministerie van Binnenlandse Mandatory health insurance: Up to 75 Surinamese dollars a Zaken; http://homeaffairs.gov.sr/) provides general supervi- month if aged 17 to 20, 165 Surinamese dollars a month if sion of the earnings-related pension. aged 21 to 59. The government pays the total cost of premi- General Pension Fund (Algemeen Pensioenfonds; http:// ums for residents up to age 16 and for residents aged 60 or pensioen.sr/) collects contributions and administers the older. Part or all of the cost may be waived for low-income earnings-related pensions. or unemployed persons. Ministry of Social Affairs and Housing (Ministerie van Sociale Zaken en Volkshuisvesting; http://socialaffairs.gov .sr/) provides general supervision of the flat-rate old-age pension.
SSPTW: The Americas, 2019 ♦ 253 Suriname
Employer Coverage Employer liability: The total cost. Employed persons, including volunteers and apprentices. Mandatory health insurance: 50% of up to 75 Surinamese Exclusions: Self-employed persons, household workers, and dollars a month for employees aged 17 to 20 and up to 165 family labor. Surinamese dollars a month for employees aged 21 to 59. The government pays the total cost of premiums for resi- Source of Funds dents up to age 16 and for residents aged 60 or older. Insured person: None. Government Self-employed person: Not applicable. Employer liability: None. Employer: The total cost (pays insurance premiums). Mandatory health insurance: Pays up to 55 Surinamese Government: None; contributes as an employer. dollars a month for residents up to age 16; 240 Surinamese dollars a month for residents aged 60 or older. Subsidizes Qualifying Conditions the cost of certain needy individuals. Must be assessed with a work injury. Qualifying Conditions Temporary Disability Benefits Cash sickness benefit (employer liability): Must have at least four months of service with the same employer. For a total disability, 80% of the employee’s daily wage is paid. There Medical benefits (mandatory health insurance): Partial disability: 3% to 100% of the daily benefit for a is no minimum qualifying period. total disability is paid based on the assessed loss of earning capacity and the type of disability. Sickness and Maternity Benefits Sickness benefit (employer liability): A benefit is paid. Permanent Disability Benefits For a total disability, 80% of the employee’s daily wage is Workers’ Medical Benefits paid. Medical benefits (mandatory health insurance): Benefits Partial disability: 3% to 100% of the daily benefit for a include general, specialist, and preventive care; maternity total disability is paid based on the assessed loss of earning care; diagnostic services; surgery; hospitalization; and capacity and the type of disability. medicine, up to a maximum. Workers’ Medical Benefits Dependents’ Medical Benefits Benefits include the cost of necessary diagnosis, medical Medical benefits (mandatory health insurance): Benefits treatment, hospitalization, and appliances. for dependents are the same as those for the insured if they are also eligible residents. Survivor Benefits Survivor pension Administrative Organization Spouse’s pension: 25% of the deceased’s daily wage is paid. State Health Fund (Staatsziekenfonds (SZF); https://www .szf.sr/) provides general supervision for medical benefits. The spouse’s pension ceases upon remarriage. Authorized private insurance companies administer and Remarriage settlement: A lump sum of two years of the provide health care insurance. spouse’s pension is paid upon remarriage. Orphan’s pension: 7.5% of the deceased’s daily wage is paid Work Injury for each unmarried dependent orphan up to age 16; 12.5% for a full orphan. Regulatory Framework Dependent parent’s pension: Up to 25% of the deceased’s First and current law: 1947 (work injury). daily wage is paid to a dependent parent. Type of program: Employer-liability system. The maximum combined survivor pension is 50% of the deceased’s daily wage.
Funeral grant: A lump sum of 4000 Surinamese dollars is paid. The maximum funeral grant is 400 Surinamese dollars.
254 ♦ SSPTW: The Americas, 2019 Suriname
Administrative Organization Source of Funds Ministry of Labor (http://atm.gov.sr/) provides general Insured person: None. supervision. Self-employed person: None. Employers may insure against liability with national banks or approved private insurance companies. Employer: None. Government: The total cost. Unemployment Qualifying Conditions Regulatory Framework Child benefit (AKB): Paid to families with unemployed, The 1859 civil code requires employers to provide a notice unmarried children younger than age 18. period or severance pay equal to four weeks of the employ- ee’s wages with up to four years of service; one week of Family Allowance Benefits wages for each year of service with five to nine years of ser- vice; four months of wages with 10 to 15 years of service; Child benefit (AKB): 50 Surinamese dollars a month is or six months of wages with more than 15 years of service. paid once a year for each eligible child, up to four children.
Family Allowances Administrative Organization Department of Social Security Payment Administration Regulatory Framework (AUSV), under supervision of Ministry of Social Affairs and Housing (Ministerie Van Sociale Zaken En Volkshuis- 1973 (child benefits). First and current law: vesting; http://socialaffairs.gov.sr/), collects contributions Type of program: Universal system. and administers the program.
Coverage Resident citizens of Suriname.
SSPTW: The Americas, 2019 ♦ 255 Trinidad and Tobago
The minimum monthly earnings used to calculate contribu- tions are TT$867. Trinidad and Tobago The maximum monthly earnings used to calculate contribu- Exchange rate: US$1.00 = tions are TT$13,600. 6.71 Trinidad and Tobago dollars (TT$). The employer’s contributions also finance cash sickness and maternity benefits, and work injury benefits. Social assistance: None. Old Age, Disability, and Survivors Government Regulatory Framework Social insurance: None; contributes as an employer. First and current laws: 1934 (public-sector mandatory Social assistance: The total cost. occupational pension), 1939 (old-age social pension), 1951 (social assistance), and 1971 (social insurance). Qualifying Conditions Type of program: Social insurance and social assistance Old-age pension (social insurance): The retirement age system. is flexible, from age 60 to age 65, with at least 750 weeks of paid or credited contributions. Coverage Contributions are credited for each complete contributory Social insurance: Public- and private-sector employees, week the insured received disability, sickness, maternity, or including agricultural and household workers, and paid work injury benefits. apprentices. Employment may continue. If younger than age 65, employ- Voluntary coverage (old-age pension, survivor pension, and ment must cease at the time the claim is made, but it may funeral grant) for persons who previously had mandatory resume afterward. coverage. The old-age pension is payable abroad under reciprocal Exclusions: Self-employed persons and certain employees agreements. of international organizations. Old-age settlement (social insurance): The retire- Special complementary system for public-sector employees ment age is flexible, from age 60 to age 65, with less than (public-sector mandatory occupational pension). 750 weeks of paid or credited contributions. Social assistance: Needy residents of Trinidad and Contributions are credited for each complete contributory Tobago. week the insured received disability, sickness, maternity, or work injury benefits. Source of Funds Employment may continue. If younger than age 65, employ- Insured person ment must cease at the time the claim is made, but it may resume afterward. Social insurance: 1/3 of 13.2% of weekly or monthly refer- ence earnings based on 16 wage classes; 13.2% of weekly The old-age settlement is payable abroad under reciprocal covered earnings for the voluntarily insured. agreements. The minimum monthly earnings used to calculate contribu- Old-age social pension (Senior Citizens Pension, social tions are TT$867. assistance, income tested): Age 65 with at least 15 years of residence in Trinidad and Tobago in the 20 years imme- The maximum monthly earnings used to calculate contribu- diately before the claim is made or a total of 50 years of tions are TT$13,600. residence. The insured person’s contributions also finance cash sick- Income test: Monthly income most not exceed TT$4,500. ness and maternity benefits, and work injury benefits. The old-age social pension is not payable abroad. Social assistance: None. Disability pension (social insurance): Must be younger Self-employed person than age 60, be assessed with an incapacity for work, Social insurance: Not applicable. and have at least 150 weeks of contributions, including 50 weeks in the three years immediately before the disabil- Social assistance: None. ity began; 250 weeks in the seven years immediately before Employer the disability began; or a total of 750 weeks of contributions before the disability began. Social insurance: 2/3 of 13.2% of weekly or monthly refer- ence payroll, based on 16 wage classes.
256 ♦ SSPTW: The Americas, 2019 Trinidad and Tobago
The disability pension ceases at age 60 and is replaced by Permanent Disability Benefits the social insurance old-age pension. Disability pension (social insurance): 30% to 48% of the The social insurance disability pension is payable abroad insured’s average weekly reference earnings plus 0.56% under reciprocal agreements. to 0.71% of average weekly reference earnings for every Disability social pension (Disability Assistance Grant, 25 weeks of contributions exceeding 750 weeks is paid, social assistance, income tested): Must be aged 18 or depending on the insured’s wage class (there are 16 wage older, be a resident of Trinidad and Tobago for at least three classes). years before the claim is made, and have a medically certi- Average weekly reference earnings are based on the fied permanent disability. insured’s career earnings and his or her wage class. Income test: Monthly income most not exceed TT$1,000. There is no minimum disability pension. The social assistance disability pension is not payable Disability social pension (Disability Assistance Grant, abroad. social assistance, income tested): TT$1,800 a month is Survivor pension (social insurance): The deceased had at paid. least 50 weeks of contributions or received a social insur- ance old-age or disability pension at the time of death. Survivor Benefits Eligible survivors include a widow(er), common-law spouse Survivor pension (social insurance) who has cohabited with the deceased for at least three years Spouse’s pension: 60% of the social insurance old-age or before the date of the insured’s death, unmarried orphans disability pension the deceased received or was entitled to up to age 16 (age 19 if a full-time student; no limit if receive is paid to a widow(er). disabled) conceived before the insured’s date of death, and dependent parents. The minimum monthly spouse’s pension is TT$600. The survivor pension ceases if a survivor (re)marries; Remarriage settlement: A lump sum of 52 weeks of the dependent children continue to receive orphan’s pensions. spouse’s pension is paid. Remarriage settlement: Paid to a widow(er) upon Orphan’s pension: 30% of the social insurance old-age or remarriage. disability pension the deceased received or was entitled to receive is paid to each eligible orphan; 60% for a full The survivor pension is payable abroad under reciprocal orphan. agreements. The minimum monthly orphan’s pension is TT$600; Funeral grant (social insurance): The insured died as TT$1200 for a full orphan. a result of an occupational injury, was receiving an work injury benefit, or had at least 25 weeks of contributions. Dependent parent’s pension: 30% of the social insurance old-age or disability pension the deceased received or was The funeral grant is payable abroad. entitled to receive is paid to one dependent parent or is split Funeral grant (social assistance, income tested): Paid to equally between two dependent parents. help needy individuals and families with little or no means The minimum monthly dependent parent’s pension is of support cover the cost of a burial. TT$300 for each parent; TT$600 if only one living parent. Old-Age Benefits The maximum combined survivor pension is 100% of the social insurance old-age or disability pension the deceased Old-age pension (social insurance): TT$130.78 to received or was entitled to receive. TT$941.40 a week (TT$566.72 to TT$4,079.40 a month) plus TT$1.41 to TT$13.00 a week (TT$6.11 to TT$56.33 Funeral grant (social insurance): A lump sum of a month) for every 25 weeks of contributions exceeding TT$7,500 is paid to the person who paid for the funeral. 750 weeks is paid, depending on the insured’s wage class Benefit adjustment: The funeral grant is adjusted based on (there are 16 wage classes). changes in related costs related to the funeral.
The minimum monthly old-age pension is TT$3,000. Funeral grant (social assistance, income tested): A Old-age settlement (social insurance): A lump sum of lump sum of TT$7,000 is paid to the person who paid for three times the total employee and employer contributions the funeral. is paid. Benefit adjustment: The funeral grant is adjusted based on The minimum old-age settlement is TT$3,000. changes in related costs related to the funeral. Old-age social pension (Senior Citizens Pension, social assistance, income tested): TT$500 to TT$3,500 a month is paid, depending on the beneficiary’s monthly income.
SSPTW: The Americas, 2019 ♦ 257 Trinidad and Tobago
Administrative Organization Government Ministry of Finance (http://www.finance.gov.tt/) provides Universal: The total cost. general supervision of the social insurance program. Social insurance: None; contributes as an employer. National Insurance Board of Trinidad and Tobago (NIBTT) (https://www.nibtt.net/), a tripartite body comprising gov- Employer liability: None; contributes as an employer. ernment, labor, and employer representatives, administers the social insurance program. Qualifying Conditions Ministry of the Social Development and Family Services, Cash sickness benefit (social insurance): Must be Social Welfare Division (http://www.social.gov.tt/), admin- aged 16 to 65 with at least 10 weeks of contributions in the isters the social assistance program. 13 weeks before the incapacity began. Cash maternity benefit (social insurance): Must be Sickness and Maternity aged 16 or older with at least 10 weeks of contributions in the 13 weeks before the last six weeks before the expected Regulatory Framework date of childbirth; or receiving sickness benefits in the First and current laws: 1971 (social insurance) and 1998 13 weeks before the last six weeks before the expected date (maternity). of childbirth. The pregnancy must last at least 26 weeks or result in a live birth. Type of program: Universal (medical benefits), social insurance, and employer-liability. Maternity grant (social insurance): The insured woman or the spouse of an uninsured woman must have enough Coverage contributions to qualify for the maternity benefit. The woman must be aged 16 or older, and the pregnancy must Universal (medical benefits): Residents of Trinidad and last at least 26 weeks or result in a live birth. Tobago. Cash maternity benefit (employer liability): Must have Universal (chronic disease assistance): Citizens of been employed by the same employer for at least 12 months Trinidad and Tobago. before the expected date of childbirth, request leave in Social insurance and employer liability (cash benefits): writing at least eight weeks before the expected date of Public- and private-sector employees, including agricul- childbirth, confirm her intention to return to work after tural and household workers, and paid apprentices. maternity leave, and provide a medical certificate stating the expected date of confinement. Exclusions: Self-employed persons and certain employees of international organizations. Medical benefits (universal): There are no qualifying conditions. Source of Funds Chronic disease assistance (Chronic Disease Assis- Insured person tance Programme, universal): Must be certified by a reg- istered medical practitioner as suffering from at least one of Universal: None. the 12 listed chronic diseases. Social insurance: See source of funds under Old Age, Dis- ability, and Survivors. Sickness and Maternity Benefits Employer liability: None. Sickness benefit (social insurance): 60% of the insured’s average weekly earnings is paid after a three-day waiting Self-employed person period for up to 52 weeks. Universal: None. Average weekly earnings are based on the insured’s earn- Social insurance: Not applicable. ings in the 10 best weeks of contributions in the 13 weeks before the incapacity began. Employer liability: Not applicable. Maternity benefit (social insurance): 60% of the insured’s Employer average weekly earnings is paid for up to 14 weeks. Universal: None. Average weekly earnings are based on the insured’s earn- Social insurance: See source of funds under Old Age, Dis- ings in the 10 best weeks of contributions in the 14 weeks ability, and Survivors. before the last six weeks before the expected date of childbirth. Employer liability: The total cost.
258 ♦ SSPTW: The Americas, 2019 Trinidad and Tobago
Maternity grant (social insurance): A lump sum of Note: Employers are required to either provide lump-sum TT$3,750 is paid (for each birth in case of multiple births). work injury benefits directly to employees or pay insurance Benefit adjustment: The maternity grant is adjusted based premiums for their employees. Survivor benefits are paid to on changes in costs related to maternity. dependents who were totally dependent on the insured. Maternity benefit (employer liability): 100% of the Coverage employee’s monthly earnings is paid for one month, and Public- and private-sector employees, including agricul- 50% for two months. If the sum of the monthly benefit and tural and household workers, and paid apprentices. the social insurance maternity benefit is less than 100% of the employee’s monthly earnings during the period of Exclusions: Self-employed persons, and certain employees maternity leave, the employer pays the difference. of international organizations.
Workers’ Medical Benefits Source of Funds Medical benefits (universal): Medical services are pro- Insured person: See source of funds under Old Age, Dis- vided for free to persons receiving care in public hospitals ability, and Survivors. and health centers. Self-employed person: Not applicable. Chronic disease assistance (Chronic Disease Assis- Employer: See source of funds under Old Age, Disability, Free medicine and other tance Programme, universal): and Survivors. pharmaceutical items are provided. Government: None; contributes as an employer. Dependents’ Medical Benefits Qualifying Conditions Medical benefits (universal): Benefits for dependents are the same as those for workers. Must be assessed with a work injury or occupational dis- ease. There is no minimum qualifying period. Chronic disease assistance (Chronic Disease Assis- tance Programme, universal): Benefits for dependents are Temporary Disability Benefits the same as those for the insured. 66.6% of the insured’s average weekly earnings is paid for Administrative Organization up to 52 weeks. There is no waiting period. The disability must last at least three days. Ministry of Finance (http://www.finance.gov.tt/) provides general supervision of the social insurance program. Average weekly earnings are based on the insured’s career earnings based on 16 wage classes. National Insurance Board of Trinidad and Tobago (https:// www.nibtt.net/), a tripartite body comprising government, Permanent Disability Benefits labor, and employer representatives, collects contributions, and administers the social insurance program. Permanent disability pension: For an assessed degree of disability of at least 20%, a percentage of the temporary Ministry of Labour and Small Enterprise Development disability benefit is paid based on the assessed degree of (http://www.molsed.gov.tt/) provides general supervision of disability. the employer-liability program. There is no minimum permanent disability pension. Ministry of Health (http://www.health.gov.tt/), provides general supervision of and delivers medical benefits. The permanent disability pension is paid after the tempo- rary disability benefit ceases. National Insurance Property Development Company Ltd. (http://nipdec.com/) manages the procurement, storage and The insured’s doctor assesses the degree of disability. distribution of pharmaceuticals for the Chronic Disease The permanent disability pension is payable abroad. Assistance Programme. Disability grant: For an assessed degree of disability of less than 20%, a lump sum of half the insured’s aver- Work Injury age weekly earnings multiplied by the assessed degree of disability and multiplied by the period of disability (up to Regulatory Framework 365 weeks) is paid. For an assessed degree of disability of First and current laws: 1960 (workmen’s compensation) 3% or less, an amount corresponding to a 3% degree of dis- and 1971 (social insurance). ability is paid.
Type of program: Social insurance and employer-liability Average weekly earnings are based on the insured’s career system. earnings based on 16 wage classes.
SSPTW: The Americas, 2019 ♦ 259 Trinidad and Tobago
The disability grant is paid after the temporary disability Unemployment benefit ceases. The disability grant is payable abroad. Regulatory Framework The 1985 retrenchment and severance act requires employ- Workers’ Medical Benefits ers to provide severance pay to employees who are laid off. Benefits include medical expenses, including doctor and For employees paid weekly, two weeks of the employee’s specialist fees, hospital expenses, medicine, operations, basic earnings is paid for each of the first four years physiotherapy, appliances, and transportation costs. of employment plus three weeks of basic earnings for each additional year of employment. For employees paid Medical costs are reimbursed, up to TT$28,125 for each monthly, 50% of the employee’s monthly earnings is paid injury. for each of the first four years of employment plus 75% of monthly earnings for each additional year of employment. Survivor Benefits Survivor pension Family Allowances Spouse’s pension: 60% of the permanent disability pension the deceased received or was entitled to receive in the week Regulatory Framework before death is paid to a widow(er) or to a common-law First and current law: 1951 (social assistance). spouse who has cohabited with the deceased for at least three years before the date of death. Type of program: Social assistance system. The minimum monthly spouse’s pension is TT$600. Coverage The spouse’s pension ceases upon (re)marriage. Needy citizens and legal residents of Trinidad and Tobago. Remarriage settlement: A lump sum of 52 weeks of the spouse’s pension is paid upon remarriage. Source of Funds Orphan’s pension: 30% of the permanent disability pension Insured person: None. the deceased received or was entitled to receive in the week before death is paid to each unmarried orphan up to age 19 Self-employed person: None. (no limit if disabled before age 19 and incapable of work). Employer: None. The minimum monthly orphan’s pension is TT$600; Government: The total cost. TT$1,200 for a full orphan if both parents died as a result of a work injury or occupational disease. Qualifying Conditions Dependent parent’s pension: 30% of the permanent disabil- Public assistance (means tested): Paid to low-income ity pension the deceased received or was entitled to receive families where the adults are unable to earn an income in the week before death is paid to a dependent parent. due to ill health or disability; for children with fathers (or The minimum dependent parent’s pension is TT$300 a both parents) who are deceased, hospitalized, incarcerated, month for each parent; TT$600 if only one living parent. disabled, or whose whereabouts are unknown; and to low- Survivor pensions are payable abroad. income single parents or guardians caring for children with severe disabilities. Funeral grant: A lump sum of TT$7,500 is paid. General assistance grants (means tested): The funeral grant is payable abroad. Funeral grant: See the social assistance funeral grant under Administrative Organization Old Age, Disability and Survivors. Ministry of Finance (http://www.finance.gov.tt/) provides Clothing grant: Paid to disaster victims to help purchase general supervision of the social insurance program. clothing, including school uniforms and shoes for children. National Insurance Board of Trinidad and Tobago (https:// The grant is paid for up to four persons in a household. www.nibtt.net/), a tripartite body comprising government, Dietary grant: Paid to needy persons receiving public assis- labor, and employer representatives, collects contributions tance to help purchase prescribed foodstuffs for persons and administers the social insurance program. diagnosed with certain conditions, such as diabetes or heart Judiciary of the Republic of Trinidad and Tobago (http:// disease. www.ttlawcourts.org/) adjudicates work injury claims Education grant: Paid to families receiving public assis- under the employer liability system. tance to help meet the cost of secondary school fees, school transportation, and other essentials. The grant is paid for
260 ♦ SSPTW: The Americas, 2019 Trinidad and Tobago up to four children in a household, depending on family General assistance grants (means tested) circumstances. Funeral grant: See the social assistance funeral grant under School supplies grant: Paid to assist children whose books Old Age, Disability and Survivors. or uniforms were destroyed in a natural or man-made Clothing grant: A lump sum of up to TT$1,000 per person disaster. is paid for up to four persons in a household. The grant may Rental assistance: Paid for needy individuals, victims of only be claimed once in a two-year period. domestic violence, and disaster victims who are temporar- Dietary grant: Up to TT$600 a month is paid. ily unable to pay housing rental payments. The benefit may be extended upon review. Education grant: Up to TT$200 a month is paid for each eligible child for up to four children in a household; up to Medical equipment grant: Paid to needy persons receiving TT$500 a month for each child in secondary education. public assistance to help purchase necessary medical aids, such as wheelchairs, eyeglasses, and hearing aids. The School supplies grant: A lump sum of up to TT$700 is paid purchase of any particular item may only be approved once for each primary school student; up to TT$1,000 for each in a two-year period. secondary school student. Pharmaceutical grant: Paid to needy persons or persons Rental assistance: Up to TT$2,500 is paid directly to the receiving public assistance to help purchase up to three beneficiary’s landlord over a three-month period; up to months of prescribed medicine deemed necessary and TT$7,500 is paid over a year. useful by the Ministry of Health and not covered by other Medical equipment grant: A lump sum of up to TT$7,500 is programs. paid. Household item grant: Paid to needy individuals or disaster Pharmaceutical grant: A lump sum of up to TT$2,500 is victims to help purchase household items, such as stoves, paid once a year. refrigerators, and furniture items. The purchase of any particular item may only be approved once in a three-year Household item grant: A lump sum of up to TT$7,000 period. (TT$10,000 for victims of a disaster) is paid. The grant may only be claimed once in a three-year period. Home help grant: Paid to needy persons or persons receiv- ing public assistance to help finance short-term at-home Home help grant: TT$1,800 a month is paid to the caregiver care to persons who are temporarily unable to perform for up to six months. normal household chores and are unable to afford the cost Special child grant: TT$1,100 a month is paid for each of domestic assistance. eligible child for up to four children in a household. The Special child grant: Paid to the parents of children up to grant is paid for up to one year for each child, but may be age 18 with a mental or physical disability who are not extended under certain conditions. receiving public assistance. Benefit adjustment: Benefits are adjusted on an ad-hoc Free bus pass: Provided to social assistance beneficiaries basis, based on the cost of living, poverty rates, demo- and pensioners older than age 65. graphic changes, and other factors. Free bus pass: Free travel on public transportation is Family Allowance Benefits provided. Public assistance (means tested): TT$1,150 a month is paid for households with one person; TT$1,400 a month Administrative Organization with two persons; TT$1,600 a month with three persons; or Ministry of the Social Development and Family Services, TT$1,750 a month with four or more persons. Social Welfare Division (http://www.social.gov.tt/), admin- Benefit adjustment: Benefits are adjusted on an ad-hoc basis isters the program. based on the cost of living, poverty rates, demographic changes, and other factors.
SSPTW: The Americas, 2019 ♦ 261 United States of America
Self-employed person United States of America Social insurance: 12.4% of covered earnings. There are no minimum earnings used to calculate Exchange rate: Currency is the US dollar ($). contributions. The maximum annual earnings used to calculate contribu- tions are $132,900. (This maximum is adjusted annually Old Age, Disability, and Survivors based on changes in the national average wage.) Social assistance: None. Regulatory Framework Employer First and current laws: 1935 (social security) and 1972 (social assistance), implemented in 1974. Social insurance: 6.2% of covered payroll. There are no minimum earnings used to calculate Type of program: Social insurance and social assistance system. contributions. The maximum annual earnings used to calculate contribu- Coverage tions are $132,900. (This maximum is adjusted annually based on changes in the national average wage.) Social insurance: Employed persons, including household employees with at least $2,100 in gross annual income, Social assistance: None. federal government employees hired since January 1, 1984, Government and most state and local government employees; and self- employed persons with at least $400 in annual net income. Social insurance: A portion of the revenue from taxes on social security benefits (paid by higher income social secu- Exclusions: Members of certain religious groups, nonresi- rity beneficiaries) is allocated to the Social Security Trust dent workers who are temporarily in the United States, Fund; contributes as an employer for government employ- nonresidents employees of foreign governments and ees not covered by a special system. international organizations in the United States, and certain students who work for the educational institutions they are Social assistance: The total cost. enrolled in. Special systems for railroad employees, federal government Qualifying Conditions employees hired before January 1, 1984, and certain state Old-age pension (Social Security, social insurance): and local governments employees. Age 66 (gradually rising to age 67 by 2027) with at least Social assistance: Needy citizens and nationals of the 40 quarters of coverage. United States who reside in one of the 50 states, the District Quarters of coverage are based on the insured’s covered of Columbia, or the Northern Mariana Islands, and are not earnings in each year of contributions. The minimum absent from the country for a full calendar month or for amount of annual earnings to receive one quarter of cover- 30 consecutive days or more; and noncitizens who meet age is $1,360 in 2019. (This amount is adjusted annually certain conditions. based on changes in the national average wage.) Exclusions: Needy citizens and nationals of the United Employment may continue. States who reside in American Samoa, Guam, Puerto Rico, Early pension: Age 62 with at least 40 quarters of coverage. or the U.S. Virgin Islands. Employment may continue. Source of Funds Earnings test: If the insured is younger than the normal retirement age, the old-age pension is reduced with annual Insured person earnings exceeding $17,640 (for years before the year the Social insurance: 6.2% of covered earnings. insured reaches the normal retirement age) or $46,920 (for There are no minimum earnings used to calculate the year the insured reaches the normal retirement age). contributions. Beginning the month the insured reaches the normal retire- ment age, there is no earnings test. This earnings test also The maximum annual earnings used to calculate contribu- applies to dependents younger than the normal retirement tions are $132,900. (This maximum is adjusted annually age. based on changes in the national average wage.) Deferred pension: The pension may be deferred until Social assistance: None. age 70. Spouse’s benefit: Paid to a spouse (same sex or opposite sex) aged 62 or older who has been married to the insured
262 ♦ SSPTW: The Americas, 2019 United States of America for at least one year; any age if caring for a child younger The qualifying conditions for young and blind persons are than age 16 (no limit if the child receives disability ben- less strict. efits). Generally, a divorced spouse must have been married Employment may continue if monthly earnings do not to the insured for at least 10 years and currently be unmar- exceed the limit for substantial gainful activity. ried. A spouse or divorced spouse is ineligible if he or she receives or is entitled to receive a greater social security Spouse’s benefit: Paid to a spouse (same sex or opposite benefit based on his or her own earnings record. sex) aged 62 or older who has been married to the insured for at least one year; any age if caring for a child younger Child’s benefit: Paid for unmarried children younger than than age 16 (no limit if the child receives disability ben- age 18 (age 19 if a full-time elementary or secondary school efits). Generally, a divorced spouse must have been married student, no limit if disabled before age 22). Benefits for to the insured for at least 10 years and be currently unmar- stepchildren end upon divorce. ried. A spouse or divorced spouse is ineligible if he or she The old-age pension is payable abroad to citizens of the receives or is entitled to receive a greater social security United States residing in most countries, and to nonciti- benefit based on his or her earnings record. zens under reciprocal agreements or under certain other Child’s benefit: Paid for unmarried children younger than conditions. Noncitizen dependents who were first eligible age 18 (age 19 if a full-time elementary or secondary school for social security benefits after 1984 must meet certain student, no limit if disabled before age 22). residency requirements unless an exception applies. The disability pension ceases at the normal retirement age Old-age supplemental income benefit (Supplemental and is replaced by an old-age pension. Security Income, social assistance, means tested): Age 65. The disability pension is payable abroad to citizens of the United States residing in most countries, and to nonciti- Means test: Earned and unearned income (including other zens under reciprocal agreements or under certain other benefits) and assets (including cash, investments, land, and conditions. Noncitizen dependents who were first eligible property) must not exceed certain limits. for social security benefits after 1984 must meet certain The old-age supplemental income benefit is not payable residency requirements unless an exception applies. abroad and ceases 30 days after the beneficiary leaves the Disability supplemental income benefit (Supplemental United States. Security Income, social assistance, means tested): Disability pension (Social Security, social insurance): Must be younger than age 65 and blind or assessed with a Must be assessed as incapable of substantial gainful activ- disability. ity as the result of a physical or mental impairment that is Means test: Earned and unearned income (including other expected to last at least a year or result in death, and meet benefits) and assets (including cash, investments, land, and the recent work and duration of work requirements. property) must not exceed certain limits. Certain impair- A person is assessed as incapable of substantial gainful ment-related work expenses are deductible from income. activity if his or her monthly earnings do not exceed $1,220 The disability supplemental income benefit is not payable (if sighted) or $2,040 (if blind). abroad and ceases 30 days after the beneficiary leaves the Recent work requirement: If the disability began before United States. age 24, the insured must have at least six quarters of cover- Survivor pension (Social Security, social insurance): age in the three years before the disability began; from The deceased received an old-age or disability pension; age 24 to 30, the insured must have at least two quarters of was entitled to receive an old-age pension; or was younger coverage for each year from age 21 to the quarter in which than age 62 and had at least six quarters of coverage and the disability began; at age 31 or older, the insured must the total quarters of coverage was at least equal to the have at least 20 quarters of coverage in the 10 years before deceased’s age minus 21. the disability began. Quarters of coverage are based on the deceased’s covered Quarters of coverage are based on the insured’s annual earnings in each year of contributions. The minimum earnings in each year of contributions. The minimum amount of annual earnings to receive one quarter of cover- amount of annual earnings to receive one quarter of cover- age is $1,360 in 2019. (This amount is adjusted annually age is $1,360 in 2019. (This amount is adjusted annually based on changes in the national average wage.) based on changes in the national average wage.) If the deceased did not qualify but had at least six quar- Duration of work requirement: If the insured is younger ters of coverage in the 13-quarter period ending with the than age 62 at the time the disability began, he or she must quarter he or she died, the survivor pension is only paid to have at least six quarters of coverage and the total quarters eligible orphans and to a widow(er) caring for an eligible of coverage must be at least equal to the deceased’s age dependent child. minus 21. If the insured is aged 62 or older, he or she must have at least 40 quarters of coverage. Eligible survivors include a widow(er) (same sex or oppo- site sex) aged 60 or older and married to the insured for at
SSPTW: The Americas, 2019 ♦ 263 United States of America least nine months before the death (at least 10 years and reduced by $1 for every $3 of annual earnings exceeding did not remarry before age 60 for a divorced widow(er)); $46,9200 in the year the insured reaches the normal retire- a widow(er) at any age if caring for a child younger than ment age. Beginning the month the insured reaches the age 16 or disabled and receiving social security benefits; a normal retirement age, there is no earnings test. widow(er) with a disability or surviving divorced spouse Deferred pension: The pension is increased by 0.67% for aged 50 or older with a disability that started before or each month it is deferred until age 70. within seven years of the deceased’s death; an unmarried orphan younger than age 18 (age 19 if a full-time elemen- Spouse’s benefit: 50% of the old-age pension is paid to a tary or secondary student, no limit if disabled before spouse or divorced spouse who has reached the normal age 22); and a dependent parent aged 62 or older, not remar- retirement age or is caring for an eligible child. A reduced ried since the insured’s death, and at least 50% dependent benefit is paid if the benefit is claimed before the normal on the deceased at the time of death. retirement age. Earnings test: If the survivor is younger than the normal Child’s benefit: Up to 50% of the old-age pension is paid for retirement age, the survivor pension is reduced with annual each eligible child. earnings exceeding $17,640 (for years before the year he or The maximum combined old-age benefits for a family are she reaches the normal retirement age) or $46,920 (for the 100% to 180% of the insured’s old-age pension. A divorced year he or she reaches the normal retirement age). Begin- spouse’s benefit is not counted against the maximum. ning the month the survivor reaches the normal retirement Benefit adjustment: Benefits are adjusted annually based on age, there is no earnings test. changes in the cost of living. The widow(er)’s pension ceases if the widow(er) remarries Old-age supplemental income benefit (Supplemental before age 60. Security Income, social assistance, means tested): Up The survivor pension is payable abroad to citizens of the to $771 a month is paid for an individual; $1,157 a month United States residing in most countries, and to noncitizens for a couple. under reciprocal agreements or under certain other condi- States and territories may supplement these benefit amounts tions. Noncitizen survivors who were first eligible for social in their jurisdictions. security benefits after 1984 must meet certain residency requirements unless an exception applies. Benefit adjustment: Benefits are adjusted annually based on changes in the cost of living. Death benefit (Social Security, social insurance): The deceased had at least six quarters of coverage in the Permanent Disability Benefits 13-quarter period ending with the quarter he or she died, or had at least six quarters of coverage and the total quarters Disability pension (Social Security, social insurance): of coverage was at least equal to the deceased’s age minus The pension is based on the insured’s average covered earn- 21. ings (adjusted based on increases in the national average wage) from age 21 up to the quarter the disability began, Paid to the widow(er) (same sex or opposite sex) living with excluding up to five years of the lowest earnings. the insured when he or she died. If they were living apart, paid if the widow(er) was receiving benefits on the insured’s There is no minimum pension for insured persons whose record or became eligible in the month of the insured’s disability began after 1981. death. If there is no eligible widow(er), orphans are eligible Spouse’s benefit: 50% of the disability pension is paid to if they were receiving benefits on the insured’s record or a spouse or divorced spouse who has reached the normal became eligible in the month of the insured’s death. retirement age or is caring for an eligible child. A reduced The death benefit is payable abroad in most countries. benefit is paid if the benefit is claimed before the normal retirement age. Old-Age Benefits Child’s benefit: Up to 50% of the disability pension is paid for each eligible child. Old-age pension (Social Security, social insurance): The pension is based on the average of the insured’s 35 best The maximum combined disability benefits for a fam- years of earnings. The earnings for years before age 60 are ily are 100% to 150% of the insured’s disability pension. adjusted based on increases in the national average wage. A divorced spouse’s benefit is not counted against the maximum. The maximum monthly old-age pension is $2,861. Benefit adjustment: Benefits are adjusted annually based on Early pension: The pension is reduced for each month it is changes in the cost of living. claimed before the normal retirement age. Earnings test: The pension is reduced by $1 for every $2 Disability supplemental income benefit (Supplemental of annual earnings exceeding $17,640 until the year the Security Income, social assistance, means tested): Up insured reaches the normal retirement age. The pension is to $771 a month is paid for an individual; $1,157 a month for a couple.
264 ♦ SSPTW: The Americas, 2019 United States of America
States and territories may supplement these benefit amounts Sickness and Maternity in their jurisdictions. Benefit adjustment: Benefits are adjusted annually based on Regulatory Framework changes in the cost of living. First and current laws: 1965 (health insurance for older persons); 1965 (health insurance for low-income persons); Survivor Benefits 1972 (health insurance for the disabled); 1997 (health insur- Survivor pension (Social Security, social insurance) ance for children); 2003 (prescriptions drugs), implemented in 2006; and 2010 (Affordable Care Act), implemented in Spouse’s pension: 100% of the old-age or disability pension stages. the deceased received or was entitled to receive is paid to a widow(er) or divorced widow(er) who has reached the Type of program: Social insurance, mandatory private normal retirement age; 75% to a widow(er) or divorced insurance, and social assistance system. Medical benefits widow(er) of any age caring for an eligible child; 71.5% to only. 99% to a widow(er) or divorced widow(er) aged 60 to the Note: There are no national statutory programs for cash normal retirement age, depending on the widow(er)’s age sickness and maternity benefits. Workers in industry and when the claim is made; 71.5% to a disabled widow(er) commerce and agriculture in 11 states (Arizona, California, aged 50 to 59. Connecticut, Maryland, Massachusetts, Michigan, New Jer- Earnings test: The pension is reduced by $1 for every $2 sey, Oregon, Rhode Island, Vermont, and Washington) and of annual earnings exceeding $17,640 until the year the Puerto Rico are covered for cash sickness benefits. (There widow(er) reaches the normal retirement age. The pen- is a special federal system for railroad employees and sion is reduced by $1 for every $3 of earnings exceeding certain public-sector employees.) Private-sector workers in $46,920 in the year the widow(er) reaches the normal retire- California, New York, and Rhode Island and public- and ment age. Beginning the month the widow(er) reaches the private-sector workers in New Jersey are covered for family normal retirement age, there is no earnings test. leave insurance. Orphan’s pension: 75% of the old-age or disability pension Under the Family and Medical Leave Act of 1993, eligible the deceased received or was entitled to receive is paid for employees of covered employers may take unpaid, job- each eligible orphan. protected leave, including continuation of group health insurance coverage, for specified family and medical rea- Dependent parent’s pension: 82.5% of the old-age or dis- sons. Covered employers include all public state, local, and ability pension the deceased received or was entitled to federal agencies, including local education agencies, and receive is paid to one eligible parent; 75% to each parent if most private-sector employers with ate 50 employees. there are two eligible parents. Medicare (social insurance) consists of: Part A (hospitaliza- The maximum combined survivor pension is 100% to 180% tion); Part B (medical services); Part D (prescription drug of the old-age pension (or 100% to 150% of the disability insurance plans); and Part C (private Medicare Advantage pension) the deceased received or was entitled to receive. A plans that may be substituted for Parts A, B, and D because surviving divorced spouse’s benefit is not counted against they provide hospitalization, medical service, and prescrip- the maximum. tion drug coverage). Benefit adjustment: Benefits are adjusted annually based on changes in the cost of living. Coverage
Death benefit (Social Security, social insurance): A Cash sickness and maternity benefits: No statutory lump sum of $255 is paid. If there are multiple eligible benefits are provided. survivors, the benefit is split among them. Medical benefits Administrative Organization Medicare Part A (social insurance) and Affordable Care Act (mandatory private insurance): Citizens and legal residents Social Security Administration (https://www.ssa.gov/), an of the United States. independent agency within the executive branch of govern- ment, administers the programs through regional program Special systems for some employees of state and local centers, district offices, and branch offices. governments. Treasury Department (https://www.treasury.gov/) super- Medicare Parts B, C, and D (social insurance): Voluntary vises the collection of Social Security taxes through the coverage for persons entitled to Medicare Part A. Internal Revenue Service and supervises the payment of Medicaid and Children’s Health Insurance Program (CHIP) benefits and the management of funds. (social assistance): Needy citizens and legal residents of the United States.
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Source of Funds divorced spouse, or widow(er) aged 65 or older can qualify for premium-free coverage based on the self-employed Insured person person’s quarters of coverage.) Medicare Part A (social insurance): 1.45% of earnings plus There are no minimum or maximum earnings used to cal- 0.9% of annual earnings above $200,000 (single person) or culate contributions for Medicare Part A. $250,000 (married couple). Medicare Part A beneficiaries pay a monthly premium that varies depending on quar- The self-employed person’s contributions for Medicare ters of coverage: no premium with at least 40 quarters of Part A also finance the hospitalization benefits provided coverage, $240 with 30 to 39 quarters, or $437 with less under Medicare Part C. than 30 quarters of coverage. (A spouse, divorced spouse, Medicare Part B (social insurance): Medicare Part B ben- or widow(er) aged 65 or older can qualify for premium- eficiaries pay a monthly premium that varies depending on free coverage based on the insured person’s quarters of income level: $135.50 with an annual income up to $85,000 coverage.) (single person) or $170,000 (married couple), $189.60 to There are no minimum or maximum earnings used to cal- 460.50 with an annual income exceeding $85,000 (single culate contributions for Medicare Part A. person) or $170,000 (married couple). (There is a late enrollment penalty of 10% of the premium for each full The insured person’s contributions for Medicare Part A also 12-month period that an individual was eligible but did not finance the hospitalization benefits provided under Medi- enroll.) Low-income persons may be eligible for premium care Part C. or cost-sharing subsidies. Medicare Part B (social insurance): Medicare Part B ben- Medicare Part C (social insurance): See source of funds eficiaries pay a monthly premium that varies depending on for Medicare Part A for hospitalization benefits. Medicare income level: $134 with an annual income up to $85,000 Part C beneficiaries pay a monthly premium that varies (single person) or $170,000 (married couple), or $189.60 to depending on the plan. $460.20 with an annual income exceeding $85,000 (single person) or $170,000 (married couple). (There is a late Medicare Part D (social insurance): Medicare Part D ben- enrollment penalty of 10% of the premium for each full eficiaries pay a monthly premium that varies depending on 12-month period that an individual was eligible but did not the plan. A beneficiary with an annual income exceeding enroll.) Low-income persons may be eligible for premium $85,000 (single person) or $170,000 (married couple) pays or cost-sharing subsidies. an additional amount directly to the government that ranges from $12.40 to $77.40 a month, depending on income level. Medicare Part C (social insurance): See source of funds (There is a late enrollment penalty based on the number of for Medicare Part A for hospitalization benefits. Medicare full uncovered months of coverage.) Low-income persons Part C beneficiaries pays a monthly premium that varies may be eligible for premium or cost-sharing subsidies. depending on the plan. Affordable Care Act (mandatory private insurance): Premi- Medicare Part D (social insurance): Medicare Part D ben- ums vary depending on the plan. eficiaries pays a monthly premium that varies depending on the plan. A beneficiary with an annual income exceeding Medicaid and Children’s Health Insurance Program (CHIP) $85,000 (single person) or $170,000 (married couple) pays (social assistance): None. an additional amount directly to the government that ranges Employer from $12.40 to $77.40 a month, depending on income level. (There is a late enrollment penalty based on the number of Medicare Part A (social insurance): 1.45% of payroll. full uncovered months of coverage.) Low-income persons There are no minimum or maximum earnings used to cal- may be eligible for premium or cost-sharing subsidies. culate contributions for Medicare Part A. Affordable Care Act (mandatory private insurance): Premi- The employer’s contributions for Medicare Part A also ums vary depending on the plan. finance the hospitalization benefits provided under Medi- care Part C. Medicaid and Children’s Health Insurance Program (CHIP) (social assistance): None. Medicare Part B (social insurance): None. Self-employed person Medicare Part C (social insurance): See source of funds for Medicare Part A (social insurance): 2.9% of declared earn- Medicare Part A. ings plus 0.9% of annual earnings exceeding $200,000 Medicare Part D (social insurance): None. (single person) or $250,000 (married couple). Medicare Part A beneficiaries pay a monthly premium that varies Affordable Care Act (mandatory private insurance): None. depending on the quarters of coverage: no premium with at Medicaid and Children’s Health Insurance Program (CHIP) least 40 quarters of coverage, $240 with 30 to 39 quarters, (social assistance): None. or $437 with less than 30 quarters of coverage. (A spouse,
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Government standards. Many states have expanded coverage, particu- larly for children, above the federal minimums. Medicare Part A (social insurance): The total cost for cer- tain noninsured elderly persons; contributes as an employer Income test: Family income must not exceed a specified for government employees not covered by a special system. percentage of the federal poverty level, depending on the size of the family. Medicare Part B (social insurance): A portion of the revenue from earmarked taxes on social security benefits; and The federal poverty level is based on annual gross family subsidies. income and ranges from $12,490 for one person to $43,430 for a family of eight. (For families/households with more Medicare Part C (social insurance): Annual payments to than eight persons, the level rises by $4,420 a year for each participating companies. additional person.) Medicare Part D (social insurance): Provides subsidies Children’s Health Insurance Program (CHIP) (social assis- funded by general revenues, as needed. State governments tance, income tested): Provided for children up to age 19 pay a portion of the cost for certain workers also covered who are not covered by private health insurance and whose under certain state assistance programs. family income is too high to qualify them for Medicaid. States set their own income eligibility standards. Affordable Care Act (mandatory private insurance): Provides tax credits to small businesses and to persons with incomes from 100% to 400% of the federal poverty level; subsidizes Sickness and Maternity Benefits insurance plans for persons with income from 100% to No statutory benefits are provided. 250% of the federal poverty level. The federal poverty level is based on annual gross family Workers’ Medical Benefits income and ranges from $12,490 for one person to $43,430 Medicare Part A (social insurance): Inpatient care is for a family of eight. (For families/households with more provided for stays of up to 90 days (may be extended by up than eight persons, the level rises by $4,420 a year for each to 60 days): the beneficiary has a deductible of $1,364 and additional person.) no copay for up to 60 days; $341 a day for the 61st to the Medicaid and Children’s Health Insurance Program (CHIP) 90th day; and $682 a day for more than 90 days for up to (social assistance): Jointly funded by individual states and 60 lifetime reserve days. (The insured pays all costs once the federal government. the 60 lifetime reserve days are exhausted.) Post-hospital skilled nursing facility care is provided for an additional Qualifying Conditions 100 days (the patient pays $170.50 a day for the 21st to the 100th day), laboratory and X-ray services for inpatients, Cash sickness and maternity benefits: No statutory and post-hospital home health services. benefits are provided. Medicare Part B (social insurance): Most preventive Medical benefits care services are free. 80% of medically necessary charges Medicare Parts A and B (social insurance): Must be aged 65 above $185 a year is paid for physician’s services, outpatient or older; younger than age 65 with a disability and receiv- diagnostic and physical therapy, laboratory services, appli- ing a disability pension for at least two years (no waiting ances, and transportation. period for persons with end-stage renal disease or Amyo- Medicare Part C (social insurance): Benefits are at least trophic Lateral Sclerosis). the same as for Parts A and B and usually include a pre- Medicare Part C (social insurance): Same as for Parts A scription drug component. Copayments, deductibles, and and B. Persons with end-stage renal disease who are new to annual out-of-pocket maximums vary depending on the Medicare are usually excluded. plan. Medicare Part D (social insurance): Must be entitled to Medicare Part D (social insurance): The maximum Medicare Part A, B, or C. allowable deductible is $415 a year; some plans do not have a deductible. The plan and the insured share the cost Affordable Care Act (mandatory private insurance): Most of prescription drugs, up to a combined limit of $3,820 a citizens and legal residents of the United States must have year. The insured pays a higher percentage of the combined qualified health insurance through private insurers if they total cost of prescription drugs from $3,820 to $5,100. (That are not covered by Medicare, Medicaid, or another public percentage is gradually falling from 25% (brand-name health insurance program. There is no penalty for failing to prescription drugs) or 37% (generic) of the cost in 2019, to meet this coverage requirement. 25% (brand-name or generic) in 2020.) For the rest of the Medicaid (social assistance, income tested): States set calendar year, insured persons who have reached the limit individual eligibility criteria within federal minimum have a minimum copay that varies depending on the type of drug.
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Affordable Care Act (mandatory private insurance): Mandatory private insurance (Affordable Care Act) Individuals without employer-provided health insurance Department of Health and Human Services (https://www can choose (through health insurance marketplaces run .hhs.gov/) provides general supervision. by the federal government or certain state governments) among plans that meet certain benefit and cost stan- Private health insurance companies provide health dards. Small businesses can purchase coverage through insurance. separate marketplaces. Certain provisions are still being Social assistance (Medicaid and CHIP) implemented. Department of Health and Human Services (http://www Benefits include a basic package of free preventive health .hhs.gov/) through the Centers for Medicare and Medicaid services. Private insurance may not exclude pre-existing Services (CMS) (http://www.cms.gov/) provides general conditions or apply annual or lifetime limits on the dollar supervision. value of coverage. Companies may not rescind coverage Center for Medicaid and CHIP Services (https://www except in cases of fraud. .medicaid.gov/) oversees the programs. Medicaid and Children’s Health Insurance Program Individual states administer their own programs. (CHIP) (social assistance, income tested): States deter- mine the type, amount, duration, and scope of services within broad federal guidelines. States have the option to Work Injury charge premiums and to establish out of pocket spending (cost sharing) requirements for Medicaid. Regulatory Framework First laws: 1908 (federal employees) and 1911 (nine state Dependents’ Medical Benefits laws). Medicare (social insurance): Dependents must qualify for Current laws: Most laws were enacted before 1920. benefits in their own right. Type of program: Employer-liability system. Affordable Care Act (mandatory private insurance): Benefits for children up to age 26 are the same as those for Coverage the insured. Most public- and private-sector employees. (All states, Medicaid (social assistance, income tested): Depen- Puerto Rico, the District of Columbia, Guam, and the U.S. dents must qualify for benefits in their own right. Virgin Islands.) Children’s Health Insurance Program (CHIP) (social Exclusions: Self-employed persons, agricultural employ- assistance, income tested): Eligible children are covered ees, some small businesses, casual workers, and household in their own right. workers. Special system for coal miners who develop pneumoconio- Administrative Organization sis (black lung). Social insurance (Medicare) Source of Funds Department of Health and Human Services (https://www .hhs.gov/) provides general supervision. Insured person: Nominal contributions in a few states. Centers for Medicare and Medicaid Services (CMS) Self-employed person: Not applicable. (https://www.cms.gov/) administer the program in coop- The total cost (most states) or most of the cost is eration with the Public Health Service, the Social Security Employer: financed through either insurance premiums varying with Administration, and state health departments. the assessed degree of risk or self-insurance. (The average Treasury Department (https://www.treasury.gov/) super- cost of premiums in 2017 was 1.25% of payroll.) vises the collection of Medicare taxes through the Internal Revenue Service. Government: None; contributes as an employer. Private carriers and public agencies, under contract as Qualifying Conditions intermediary administrative agents, determine and make payments to service providers or to patients. Must be assessed with a work injury or occupational disease. Carriers either pay medical service providers directly or partially reimburse the insured. Temporary Disability Benefits CMS contracts with individual companies that provide 66.6% of the employee’s earnings is paid after a three- to prescription drugs directly to the insured. seven-day waiting period (in most states). Benefits are paid
268 ♦ SSPTW: The Americas, 2019 United States of America retroactively if the disability lasts for a specified period, First and current state laws: All states, Puerto Rico, the ranging from five days to six weeks. U.S. Virgin Islands, and the District of Columbia have Dependent’s supplement: Paid in about 20% of all states, in separate laws creating their own programs. State laws were some instances as a lump sum. first enacted between 1932 and 1937. The maximum weekly benefit varies by state. Type of program: Social insurance system. Benefit adjustment: About 80% of all states increase bene- fits automatically based on increases in state average wages. Coverage Public- and private-sector employees, including military Permanent Disability Benefits personnel, most agricultural employees, and household workers. For a total disability, 66.6% of the employee’s earnings is paid for the duration of the disability (in most states). Exclusions: Self-employed persons, some agricultural employees, employees of religious organizations, casual Partial disability: A reduced pension is paid based on the workers, and family labor. assessed loss of earning capacity, or at the full rate for fewer weeks for certain injuries. Special federal system for railroad employees. Constant-attendance supplement: Paid in some states if the employee requires the constant attendance of others to Source of Funds perform daily functions. The supplement is paid for life or Insured person: None, except in Alaska, New Jersey, and for the duration of the disability (in 80% of all states); or for Pennsylvania. 104 to 500 weeks (in some states). Self-employed person: Not applicable. Dependent’s supplement: Paid for life or the duration of the disability (in 80% of all states); or for 104 to 500 weeks (in Employer some states). Federal program: 0.6% of annual payroll. (The full amount is 6.0% of annual payroll, but there is a 5.4% credit if states Workers’ Medical Benefits meet all federal requirements.) All states require employers to provide medical care for as The maximum annual earnings used to calculate contribu- long as it is required. tions are $7,000. State programs: 5.4% of annual payroll (actual rates vary Survivor Benefits from zero to more than 10% depending on an employer’s Survivor pension: 35% to 70% of the deceased’s earn- experience of having workers claim unemployment ings is paid to the widow(er); 60% to 80% with dependent benefits.) children. The maximum annual earnings used to calculate contribu- Other eligible survivors (in some states) include dependent tions vary from $7,000 to $45,000, depending on the state. parents, brothers, and sisters. Government: Federal tax revenue finances federal and Funeral grant: A lump sum is paid. The amount varies by state administrative costs. state. Qualifying Conditions Administrative Organization Most states require minimum earnings in the base period State workers’ compensation agencies administer the equal to a specified multiple of the weekly benefit amount employer liability program in about 50% of all states, state or high-quarter wages, or a specified total amount of departments of labor administer the program in about wages in the base period. A few states require a specified 37.5% of all states, and courts administer the program in number of weeks of employment (for example, from 18 to three states. 20 weeks). One state requires a certain number of hours of Employers must insure with the state fund in four states; work. with the state fund or a private carrier in 18 states; or with Must be registered with the employment service, capable a private carrier in the remainder. In all but two states, of and available for work, and actively seeking work. certain employers may choose to self-insure. The insured will generally be disqualified for voluntarily leaving a job without good cause, being discharged from Unemployment employment for misconduct, or refusing an offer of suitable work. The insured may be disqualified for participating in a Regulatory Framework labor dispute. First and current federal law: 1935 (social security). Dependent’s supplement: A supplement is paid to depen- dents in about 25% of states.
SSPTW: The Americas, 2019 ♦ 269 United States of America
Unemployment Benefits Family Allowances About 50% of the insured’s earnings is paid after a one- week waiting period, for up to 26 weeks in most states. Regulatory Framework Dependent’s supplement: From $1 to $154 a week is paid Some 80 different means-tested programs administered and for each eligible child and sometimes for other dependents. funded by federal, state, and local governments provide cash payments, social services, educational assistance, Federal law provides for up to 20 additional weeks of ben- housing assistance, vocational training, medical assistance, efits in states with high levels of unemployment. energy and utility assistance, child care, and child develop- Some states provide income assistance to unemployed ment programs. workers who have insufficient periods of covered employ- The Earned Income Tax Credit provides a refundable tax ment or have exhausted their unemployment benefits and credit through the federal tax system to working individuals are participating in training programs. or families with low to moderate income. The refund varies depending on income, marital status, and the number of Administrative Organization children and ranges from up to $538 a year with no chil- Department of Labor (https://oui.doleta.gov/unemploy/) dren and annual income up to $15,820 (single person) or administers the program nationally through its Employment $21,710 (married couple), to up to $6,660 a year with at least and Training Administration and Office of Unemployment three children and annual income up to $50,594 (single) or Insurance. $56,844 (married). Treasury Department (https://www.treasury.gov/) super- vises the collection of federal Unemployment Insurance contributions through the Internal Revenue Service. State workforce agencies administer individual state unem- ployment programs and pay benefits.
270 ♦ SSPTW: The Americas, 2019 Uruguay
Source of Funds Uruguay Insured person Social insurance: 15% of gross monthly covered earnings. Exchange rate: US$1.00 = 35.21 pesos. There are no minimum earnings used to calculate contributions. The maximum monthly earnings used to calculate contribu- Old Age, Disability, and Survivors tions are 57,846 pesos. Regulatory Framework Insured persons with monthly earnings up to 57,846 pesos can choose to allocate 50% of their contributions to an First laws: 1829 to 1954 (various laws for specified groups individual account. of workers); 1919 (contributory and non-contributory The maximum earnings used to calculate contributions are pensions); and 1966 (national social security institution), adjusted annually based on changes in the average wage implemented in 1967. index. Current laws: 1995 (social insurance and individual The insured person’s contributions also indirectly finance accounts), implemented in 1996; 2007 (pension for persons cash sickness and parental benefits, unemployment benefits, who suffered political persecution); 2007 (noncontributory and family allowances. pensions), implemented in 2008; 2009 (flexibility of social security); 2011 (victims of domestic violence); 2012 (victims Mandatory individual account: 15% of gross monthly cov- of violent crimes); 2013 (partial pension for private work- ered earnings exceeding 57,846 pesos. ers); 2014 (severely disabled persons); and 2017 (opting-out The insured person’s contributions to the individual of individual accounts for certain persons). account include an average of 2.468% of covered earnings Type of program: Social insurance, mandatory individual for disability and survivor insurance and an average of account, and social assistance system. 1.37% of covered earnings for administrative fees (2018). Note: Self-employed persons with annual earnings below The minimum monthly earnings used to calculate manda- 737,033 pesos (one-person enterprise) or 1,228,388 pesos tory contributions are 57,846 pesos. (microenterprises with up to three partners) may enroll in The maximum monthly earnings used to calculate manda- a simplified system for small contributors. Under this pro- tory contributions are 173,539 pesos. gram (Monotributo), insured persons pay a single monthly Persons who voluntarily choose to contribute to the individ- contribution for social security, which is calculated based ual account program can allocate 50% of their contributions on an assumed monthly income of 5,497 pesos. on monthly earnings up to 57,846 pesos to the individual account and 50% to the social insurance program, and Coverage 100% of contributions on monthly earnings exceeding Social insurance: Employed and self-employed persons, 57,846 pesos and up to 86,770 pesos to the social insurance including rural and household workers. program. Special systems for bank employees, notaries, university Insured persons with monthly earnings exceeding graduates, self-employed persons registered as small con- 173,539 pesos can make voluntary contributions for the tributors (Monotributo program), and military and police monthly earnings exceeding 173,539 pesos to the individual force personnel. account program only.
Mandatory individual account: Employed and self- The minimum and maximum earnings used to calculate employed persons born after April 1, 1956, or who first contributions are adjusted annually based on changes in the entered the labor force after April 1, 1996, and have average wage index. monthly earnings exceeding 57,846 pesos. Social assistance: None. Voluntary coverage for employed and self-employed per- Self-employed person sons born on or before Apri1 1, 1956, or who have monthly earnings up to 57,846 pesos. Social insurance: 15% of gross monthly covered earnings. Special systems for bank employees, notaries, university There are no minimum earnings used to calculate graduates, and military and police force personnel. contributions. The maximum monthly earnings used to calculate contribu- Social assistance: Needy residents of Uruguay and victims of domestic violence or violent crimes. (Resident tions are 57,846 pesos. citizens of Uruguay for the special pension for persons who suffered political persecution.)
SSPTW: The Americas, 2019 ♦ 271 Uruguay
Self-employed persons with monthly earnings up to Mandatory individual account: None. 57,846 pesos can choose to allocate 50% of their contribu- Social assistance: The total cost. tions to an individual account. The self-employed person’s contributions also finance cash Qualifying Conditions sickness and parental benefits. Old-age pension (Jubilación Común, social insur- Mandatory individual account: 15% of gross monthly cov- ance): Age 60 with at least 30 years of paid or credited ered earnings exceeding 57,846 pesos. contributions. The self-employed person’s contributions to the individual Women are credited with one year of contributions for each account include an average of 2.468% of covered earnings child (biological or adopted), up to five years. Additional for disability and survivor insurance and an average of years of contributions are credited to workers in hazardous 1.37% of covered earnings for administrative fees (2018). occupations. The minimum monthly earnings used to calculate manda- Deferred pension: The pension may be deferred until tory contributions are 57,846 pesos. age 70, or until reaching 35 years of contributions, which- The maximum monthly earnings used to calculate manda- ever occurs first. tory contributions are 173,539 pesos. Old-age supplement (Prima por Edad, social insurance, Persons who voluntarily choose to contribute to the income tested): Must be aged 70 or older. individual account program can allocate 50% of their Income test: Household average monthly per capita income contributions on the monthly earnings up to 57,846 pesos must not exceed 16,288.99 pesos (16,722.98 pesos as of to the individual account and 50% to the social insurance January 2020). program, and 100% of contributions on monthly earnings The social insurance old-age pension is payable abroad. exceeding 57,846 pesos and up to 86,770 pesos to the social insurance program. Old-age pension (Jubilación Común, mandatory indi- vidual account): Age 60 with at least 30 years of contribu- Self-employed persons with monthly earnings exceeding tions; age 65 with no contribution requirement (Jubilación 173,539 pesos can make voluntary contributions for the Parcial por Ahorro). monthly earnings exceeding 173,539 pesos to the individual account program only. The individual account old-age pension is payable abroad. The minimum and maximum earnings used to calculate Advanced old-age pension (Jubilación por Edad contributions are adjusted annually based on changes in the Avanzada, social insurance and mandatory individual average wage index. account): Age 70 with at least 15 years of paid or credited contributions. The age requirement is reduced for additional Social assistance: None. years of contributions, ranging from age 69 with at least Employer 17 years of contributions to age 65 with at least 25 years of contributions. Social insurance: 7.5% of monthly covered payroll; additional contributions for employees in hazardous Women are credited with one year of contributions for each occupations. child (biological or adopted), up to five years. Additional years of contributions are credited to workers in hazardous There are no minimum earnings used to calculate occupations. contributions. Old-age supplement (Prima por Edad, social insurance, The maximum monthly earnings used to calculate contribu- income tested): Must be aged 70 or older and be receiving a tions are 173,539 pesos. social insurance advanced old-age pension. The maximum earnings used to calculate contributions are Income test: Household average monthly per capita income adjusted annually based on changes in the average wage must not exceed 16,288.99 pesos (16,722.98 pesos as of index. January 2020). The employer’s contributions also indirectly finance cash The advanced old-age pension (social insurance or manda- sickness and parental benefits, unemployment benefits, and tory individual account) is payable abroad. family allowances. Partial old-age pension (Jubilación Parcial, social Mandatory individual account: None. insurance): Paid to persons who reduce their working Social assistance: None. hours or return to work on a part-time basis after reaching the normal retirement age and who are entitled to receive a Government social insurance old-age or advanced old-age pension. Social insurance: Finances any deficit; contributes as an The partial old-age pension is payable abroad. employer.
272 ♦ SSPTW: The Americas, 2019 Uruguay
Special pension for persons who suffered political The social insurance and individual account disability pen- persecution (Jubilación Especial Reparatoria, social sions are payable abroad. insurance): Age 60 with at least 10 years of service and exiled, incarcerated, or dismissed from a job for political Noncontributory disability pension (Pensión por Must have a or union-related reasons from February 9, 1973, to Febru- Invalidez, social assistance, means tested): permanent disability or a severe disability and have at least ary 28, 1985. 15 years of residence in Uruguay. The special pension for persons who suffered political per- Means test: The beneficiary’s monthly income from work secution cannot be combined with any other contributory must not exceed 12,462 pesos; nonemployed persons must social security benefit. not have income that exceeds 11,160.29 pesos. The income Noncontributory old-age pension (Pensión por Vejez, of family members, including the beneficiary’s spouse, sib- social assistance, means tested): Age 70 and assessed as lings, parents, and children, must not exceed certain limits. needy; or aged 65 to 69 and living in a household assessed An asset test is also applied. The income and asset tests are as having a critical shortage for meeting basic needs (Asis- waived for persons with severe disabilities. tencia a la Vejez). Special allowance (Ayuda Extraordinaria): Paid to low- Means test: The beneficiary’s monthly income from work income persons based on assessed need for transporta- and other sources must not exceed 11,160.29 pesos. The tion and other costs related to attending special education income of family members, including the beneficiary’s institutions. spouse, siblings, parents, and children, must not exceed certain limits. An asset test is also applied. Disability pension for victims of violent crimes (Pen- sión a las Víctimas de Delitos Violentos, social assis- Special pension for persons who suffered political tance, income tested): Must be assessed with a total persecution (Pensión Especial Reparatoria, social disability and a total incapacity for any work resulting from assistance, income tested): Paid to persons incarcerated being a victim of a violent crime and not be receiving any for at least a year for political or union-related reasons from other social security benefit provided by a public or private February 9, 1973, to February 28, 1985. There are no mini- institution. mum age or service requirements. A medical examination by a doctor approved or designated Income test: Monthly income from work and other by the Social Insurance Bank may be required. sources must not exceed 62,310 pesos (67,785 pesos as of January 2020). Attendance allowance (Programa de Asistentes Per- sonales, social assistance, income tested): Must be The special pension for persons who suffered political per- younger than age 29 or older than age 80, be assessed with secution cannot be combined with any other social insur- a severe disability, require the attendance of others for at ance or social assistance benefit. least 70 hours a month to perform daily functions, and not Disability pension (Jubilación por Incapacidad Física be receiving residential care. Noncitizens must have at least Total, social insurance and mandatory individual 10 years of residence in Uruguay immediately before the account): Must have at least a 66% assessed degree of claim is made. disability, be incapable of any work, and have at least two Income test: Monthly per capita family income must not years (if aged 25 or older) or six months (if younger than exceed a maximum that varies depending on family situa- age 25) of covered employment immediately before the tion and the level of care needed. disability began. There is no minimum qualifying period for a disability resulting from an accident. If the disability Survivor pension (Pensión por Fallecimiento, social began after the insured ceased employment and he or she is insurance and mandatory individual account): The not receiving any other social insurance or social assistance deceased was working; received or was entitled to receive benefit, a pension may be paid with at least 10 years of cov- an old-age or disability pension, or a sickness, maternity, ered employment (a residence requirement is applied). work injury, or unemployment benefit; or died in the 12 months after an unemployment benefit ceased. Coverage Partial disability benefit (Subsidio Transitorio por Incapa- is extended for up to 12 months after employment ceases; cidad Parcial): Must have a 50% to 66% assessed degree no limit with at least 10 years of contributions. of disability, be incapable of work in the current job, and have at least two years (if aged 25 or older) or six months A survivor pension may be paid in the case of the disap- (if younger than age 25) of covered employment before the pearance of a retired, employed, or unemployed person. disability began. There is no minimum qualifying period Eligible survivors include a widow(er) or partner (same sex for a disability resulting from an accident. The benefit is or opposite sex), a dependent divorced spouse (same sex temporary and subject to reassessment of the incapacity for or opposite sex) who was receiving alimony, unmarried work. orphans younger than age 21 (age 18 with sufficient means; District medical commissions of the Social Security Bank no limit if disabled), and dependent, disabled parents. A assess the degree of disability. widow or female partner’s average monthly income must
SSPTW: The Americas, 2019 ♦ 273 Uruguay not exceed 188,359.27 pesos in the 12 months before the Deferred pension: The pension is increased by 3% for each insured’s death. A widower or male partner’s monthly year of contributions after the normal retirement age with income must not exceed 108,306.57 pesos: with an annual at least 35 years of contributions, up to 30%; 2% for each income up to 50,543.07 pesos, the pension is paid automati- year of contributions after the normal retirement age if the cally; with an annual income exceeding 50,543.07 pesos insured has less than 35 years of contributions. and up to 108,306.57 pesos, the widow or male partner must The minimum monthly old-age pension is 12,150.45 pesos prove that he was economically dependent on the deceased (13,557 pesos as of January 2020). (January 2020). The maximum monthly old-age pension is 47,723.24 pesos The survivor pension is payable abroad. (social insurance and individual account) or Pension for victims of violent crimes (Pensión a las Víc- 70,572.54 pesos (social insurance only). timas de Delitos Violentos, social assistance, income Old-age supplement (Prima por Edad, social insurance, tested): Paid to a victim of a violent crime or his or her income tested): 2,890 pesos a month is paid (January 2020). dependents. Benefit adjustment: Benefits are adjusted annually based Eligible dependents include the spouse or cohabiting part- on changes in the average wage index (Índice Medio de ners of persons who deceased as a victim of homicide, and Salarios) in the previous year. children younger than age 21 (no limit if single and with a total incapable for any work). Old-age pension (Jubilación Común, mandatory indi- vidual account): The insured must use the total account The pension for victims of violent crimes cannot be com- balance to purchase an annuity from an insurance company. bined with any other social security benefit provided by a public or private institution. The annuity benefit is calculated based on the insured’s account balance, his or her life expectancy at the time of Special allowance for victims of domestic violence first benefit receipt, and the interest rate offered by the (Pensión para Hijos de Fallecidos por Violencia insurance company. Doméstica, social assistance): The deceased died as a result of an act of domestic violence. Benefit adjustment: Benefits are adjusted annually based on changes in the average wage index (Índice Medio de Eligible dependents include an unmarried dependent child Salarios) in the previous year. younger than age 21 (at any age if assessed as incapable for any work and without insufficient means of support) at the Advanced old-age pension (Jubilación por Edad Avan- time of the deceased’s death. zada, social insurance): 50% of the insured’s reference earnings plus 1% for each year of contributions exceeding Must provide proof of enrollment and regular attendance in the respective minimum years of contributions (from 15 to an institution of learning, and of regular medical examina- 25 years), up to 14%, is paid. tions. If the dependent child has an incapacity for work, the incapacity is reviewed every three years. Reference earnings are the insured’s average indexed monthly covered earnings in the 10 years before retirement, The special allowance for victims of domestic violence is 105% of the insured’s average indexed monthly covered payable abroad. earnings in the best 20 years of earnings (or over the total Funeral grant (Subsidio por Expensas Funerarias y contributory period if less than 20 years), whichever is Gastos Complementarios, social insurance): Paid to the greater. person who pays for the funeral when an insured person or The minimum monthly advanced old-age pension is pensioner dies. 12,150.45 pesos (13,557 pesos as of January 2020). The funeral grant is payable abroad under certain The maximum monthly advanced old-age pension is conditions. 47,723.24 pesos (social insurance and individual account) or 70,572.54 pesos (social insurance only). Old-Age Benefits Old-age supplement (Prima por Edad, social insurance, Old-age pension (Jubilación Común, social insurance): income tested): 2,890 pesos a month is paid (January 2020). 45% of the insured’s reference earnings plus 1% of refer- ence earnings for each year of contributions from 31 to Benefit adjustment: Benefits are adjusted annually based 35 years plus 0.5% of reference earnings for each year of on changes in the average wage index (Índice Medio de contributions from 36 to 40 years is paid. Salarios) in the previous year. Reference earnings are the insured’s average indexed Advanced old-age pension (Jubilación por Edad Avan- monthly covered earnings in the 10 years before retirement zada, mandatory individual account): The insured must or 105% of the insured’s average indexed monthly covered use the total account balance to purchase an annuity from earnings in the best 20 years of earnings, whichever is an insurance company. greater. The annuity benefit is calculated based on the insured’s account balance, his or her life expectancy at the time of
274 ♦ SSPTW: The Americas, 2019 Uruguay first benefit receipt, and the interest rate offered by the Benefit adjustment: Benefits are adjusted annually based insurance company. on changes in the average wage index (Índice Medio de Benefit adjustment: Benefits are adjusted annually based Salarios) in the previous year. on changes in the average wage index (Índice Medio de Disability pension (Jubilación por Incapacidad Física Salarios) in the previous year. Total, mandatory individual account): 45% of the Partial old-age pension (Jubilación Parcial, social insured’s average indexed monthly covered earnings in the insurance): 50% of the social insurance old-age or 10 years before the disability began is paid. The individual advanced old-age pension the insured received or is entitled account balance is transferred to an insurance company, to receive is paid. which pays the pension. Benefit adjustment: Benefits are adjusted annually based Partial disability benefit: 45% of the insured’s average on changes in the average wage index (Índice Medio de indexed monthly covered earnings in the 10 years before Salarios) in the previous year. the disability began is paid for up to three years. Special pension for persons who suffered political Noncontributory disability pension (Pensión por Invali- persecution (Jubilación Especial Reparatoria, social dez, social assistance, means tested): 11,160.29 pesos a insurance): 20,770 pesos (22,595 pesos as of January 2020) month is paid. a month is paid. Special allowance (Ayuda Extraordinaria): 2,696.62 pesos Benefit adjustment: Benefits are adjusted annually a month is paid for transportation costs or 5,829.01 pesos a based on changes in the BPC (Base de Prestaciones y month for rehabilitation costs (January 2020). Contribuciones). Benefit adjustment: Benefits are adjusted annually based Noncontributory old-age pension (Pensión por Vejez, on changes in the average wage index (Índice Medio de social assistance, means tested): 11,160.29 pesos a Salarios) in the previous year. month is paid. Disability pension for victims of violent crimes (Pen- Benefit adjustment: Benefits are adjusted annually based sión a las Víctimas de Delitos Violentos, social assis- on changes in the average wage index (Índice Medio de tance, income tested): 24,924 pesos (27,114 pesos as of Salarios) in the previous year. January 2020) a month is paid. Benefit adjustment: Benefits are adjusted annually Special pension for persons who suffered political per- secution (Pensión Especial Reparatoria, social assis- based on changes in the BPC (Base de Prestaciones y tance, income tested): 35,309 pesos (38,411.50 pesos as of Contribuciones). January 2020) a month is paid. Attendance allowance (Programa de Asistentes Benefit adjustment: Benefits are adjusted annually Personales, social assistance, income tested): Up to based on changes in the BPC (Base de Prestaciones y 19,108.4 pesos (20,787.4 pesos as of January 2020) a month Contribuciones). is paid. Benefit adjustment: Benefits are adjusted annually Permanent Disability Benefits based on changes in the BPC (Base de Prestaciones y Disability pension (Jubilación por Incapacidad Física Contribuciones). Total, social insurance): 65% of the insured’s reference earnings is paid. Survivor Benefits The reference earnings are the insured’s average indexed Survivor pension (Pensión por Fallecimiento, social monthly covered earnings in the 10 years before the disabil- insurance and mandatory individual account): 66% ity began or 105% of the insured’s average indexed monthly to 75% of the old-age or disability pension the deceased covered earnings in the best 20 years of earnings, which- received or was entitled to receive is paid, depending on ever is greater. (If the insured has fewer than ten years of the number of survivors; 50% of the old-age or disability contributions, the total number of years worked is used to pension the deceased received or was entitled to receive is calculate the reference earnings.) paid to a divorced widow(er) or parent, if there are no other survivors. Partial disability benefit (Subsidio Transitorio por Incapaci- dad Parcial): 65% of the insured’s reference earnings is paid 100% of the old-age or disability pension the deceased for up to three years. received or was entitled to receive is split among the widow(er), divorced spouses, and partners (same sex or The minimum monthly disability pension is 12,150.45 pesos opposite sex) with at least five years of cohabitation with (13,557 pesos as of January 2020). the insured if there are no other eligible survivors; 70% The maximum monthly disability pension is if there are eligible orphans; 60% if there are other eli- 47,723.24 pesos (51,798.80 pesos as of January 2020). gible survivors but no eligible orphans. The remainder is split equally among other eligible survivors. If there is no
SSPTW: The Americas, 2019 ♦ 275 Uruguay widow(er) or a divorced spouse, 100% of the pension is split Pension savings fund administrators (Administradoras de equally among other eligible survivors. Fondos de Ahorro Previsional, AFAP) manage the indi- The survivor pension is paid for two years to a widow(er) vidual accounts. or divorced spouse younger than age 30; for five years if the widow(er) or divorced spouse is aged 30 to 39; for life Sickness and Maternity if aged 40 or older; or for the duration of the disability if disabled. A temporary survivor pension may be extended if Regulatory Framework the widow(er) or divorced spouse is raising a child younger First laws: 1955 (sickness benefit for public transport than age 21 (no limit if disabled). workers), 1958 (maternity benefits), and 1958 (sickness and The widow(er)’s or divorced spouse’s pension ceases upon medical benefits for construction workers). remarriage. Current laws: 1975 (sickness); 1980 (maternity and fam- For the survivors of a member of an individual account ily allowances), implemented in 1981; 2007 (national program, the accumulated capital in the individual account health fund); 2007 (national integrated health system), (total contributions plus accrued interest) is transferred to implemented in 2008; 2011 (incorporation schedule); 2012 an insurance company, which pays the pension. If there (coverage extension national health fund); 2012 (benefit are no eligible survivors, the total account balance may be calculation); and 2012 (social assistance medical benefits). distributed to the next of kin. Type of program: Social insurance (cash sickness and Benefit adjustment: Benefits are adjusted annually based medical benefits), employment-related (parental benefits), on changes in the average wage index (Índice Medio de employer-liability (paternity benefit), and social assistance Salarios) in the previous year. (medical benefits) system. Pension for victims of violent crimes (Pensión a las Víc- Note: A portion of the contributions to the social insur- timas de Delitos Violentos, social assistance, income ance system for old age, disability, and survivors benefits tested): 24,924 pesos (27,114 pesos as of January 2020) a finances the employment-related cash parental benefits. month is paid. However, there is no direct link between the contributions Benefit adjustment: Benefits are adjusted annually and entitlement to these benefits. based on changes in the BPC (Base de Prestaciones y Contribuciones). Coverage Special allowance for victims of domestic vio- Cash sickness benefit (social insurance): Private-sector lence (Pensión para Hijos de Fallecidos por Violen- employees; self-employed rural workers and persons work- cia Doméstica, social assistance): 11,160.29 pesos ing in companies with up to five employees; self-employed (12,113.38 pesos as of January 2020) a month is paid. persons registered as small contributors (monotributo and An additional benefit of 1,615.23 pesos (2,307.48 pesos if monotributo social) and their collaborating spouses; mem- a student or assessed as incapable of any work) a month bers of cooperatives; and persons receiving a partial old-age is either paid to a legal guardian or credited to a special pension who continue working. account that can be accessed by the beneficiary once he or Exclusions: Certain company managers and directors. she reaches age 18. Special systems for public-sector employees. Funeral grant (Subsidio por Expensas Funerarias y Gastos Complementarios, social insurance): The cost Cash parental benefits (employment related): Private- of the funeral, up to 26,866.51 pesos (29,160.91 pesos as of sector employees, including employees of diplomatic mis- January 2020), is paid. If the deceased was covered through sions, banks, and notaries; self-employed rural workers and private insurance, only the cost of complementary services persons working in companies with up to one employee, are reimbursed, up to 13,304.66 pesos (14,580.46 pesos as and their collaborating spouses; self-employed persons reg- of January 2020). istered as small contributors (monotributo and monotributo social) and their collaborating spouses (monotributo); mem- Administrative Organization bers of cooperatives; and persons receiving an unemploy- ment benefit. Ministry of Labor and Social Security (https://www.mtss .gub.uy/) provides general supervision. Voluntary coverage is available. Social Insurance Bank (http://www.bps.gub.uy/) Special systems for public-sector employees. administers the social insurance program and collects Medical benefits (social insurance): Public- and private- contributions. sector employees; self-employed persons; persons receiving Central Bank of Uruguay (http://www.bcu.gub.uy/) over- unemployment benefits; persons working in companies sees pension fund management companies and insurance with up to five employees, and their collaborating spouses; companies.
276 ♦ SSPTW: The Americas, 2019 Uruguay pensioners; and persons receiving social assistance old-age, Government disability, and survivors benefits. Must reside in Uruguay. Social insurance and employment related (cash benefits): Voluntary coverage for self-employed persons registered Finances any deficit. as small contributors (monotributo and monotributo social) and their collaborating spouses. Social insurance (medical benefits): Finances any deficit for all residents of Uruguay. Exclusions: Employees of local governments and certain ministries. Employer liability: None. Special systems for military and police personnel. Social assistance (medical benefits): The total cost.
Cash paternity benefit (employer liability): Employed Qualifying Conditions persons. Special systems for military and police force personnel, and Cash sickness benefit (Subsidio por Enfermedad, Must have at least three months of local government employees. social insurance): covered employment (at least 75 days for daily workers) in Medical benefits (social assistance): Needy residents of the last 12 months. There is no minimum qualifying period Uruguay and persons who suffered political persecution not for pregnant women. covered by social insurance medical benefits. Cash maternity benefit (Subsidio por Maternidad, employment related): Paid for the birth of a child. Source of Funds Cash paternity benefit (Subsidio por Paternidad, Insured person employment related and employer liability): Paid for the Social insurance and employment related (cash benefits): birth of a child. The benefit is not paid for a stillborn child. See source of funds for Old Age, Disability, and Survivors. Newborn care allowance (Subsidio para el Cuidado del Social insurance (medical benefits): 3% of gross earnings Recién Nacido, employment related): Paid to a mother plus a contribution of 1.5% to 5% that varies depending on who received a cash maternity benefit, or her spouse if the insured’s income and family situation. working part-time to care for a newborn child, until the child reaches six months of age. There are no minimum or maximum earnings used to cal- culate contributions. Special adoption leave (Licencia Especial por Adop- ción, employment related): Paid to a private-sector sala- Employer liability: None. ried worker who adopts a child. The claim must be made Social assistance (medical benefits): None. within 30 days after the adoption. Self-employed person Medical benefits (social insurance): There is no mini- mum qualifying period. Social insurance and employment related (cash benefits): See source of funds for Old Age, Disability, and Survivors. Eligible dependents include an uninsured spouse or cohab- iting partner and children younger than age 18 (no limit if Social insurance (medical benefits): 5,298 pesos a month disabled). with no child or spouse; 6,243 pesos a month with a child and a spouse; 5,703 pesos a month with a child and no Medical benefits (social assistance, means tested): spouse; or 5,838 pesos a month with a spouse and no child Provided to indigent persons, families receiving the social (January 2019). assistance vulnerable family allowance, and certain other vulnerable groups. There is no minimum qualifying period. Employer liability: Not applicable. Income test: The beneficiary’s income must not exceed Social assistance (medical benefits): None. certain limits. Employer Sickness and Maternity Benefits Social insurance and employment related (cash benefits): See source of funds for Old Age, Disability, and Survivors. Sickness benefit (Subsidio por Enfermedad, social insurance): 70% of the insured’s average monthly covered Social insurance (medical benefits): 5% of payroll plus addi- earnings in the six months immediately before the incapac- tional premiums. ity began is paid after a three-day waiting period (no wait- There are no minimum or maximum earnings used to cal- ing period for hospitalization). The benefit is paid for up to culate contributions. a year; may be extended for an additional 12 consecutive months or for up to 36 nonconsecutive months. Employer liability: The total cost. The maximum monthly sickness benefit is 40,909.42 pesos Social assistance (medical benefits): None. (44,606.60 pesos as of January 2020).
SSPTW: The Americas, 2019 ♦ 277 Uruguay
Maternity benefit (Subsidio por Maternidad, employ- Medical benefits (social assistance, means tested): ment related): 100% of the insured’s average monthly or Benefits for dependents are the same as those for the pri- daily earnings in the last six months (declared earnings in mary beneficiary. the last 12 months for self-employed persons) is paid on the expected date of childbirth for 14 weeks (98 days) including Administrative Organization six weeks before and eight weeks after the expected date of Ministry of Public Health (http://www.msp.gub.uy/) imple- childbirth. ments the Integrated National Health System. Schedule of benefits: The maternity benefit is paid as a Social Insurance Bank (http://www.bps.gub.uy/) collects lump sum. contributions and administers cash benefits for the social Paternity benefit (Subsidio por Paternidad, employment insurance program. related and employer liability): 100% of the insured’s National Health Board (Junta Nacional de Salud, JUNASA) average daily or monthly earnings in the last six months (http://www.msp.gub.uy/minisite/junta-nacional-de-salud/) (declared earnings in the 12 months for self-employed supervises and administers the medical benefits. persons) are paid for up to 13 days. The first three days are paid by the employer; up to 10 additional days are paid by Collective medical assistance and mutual health institutions the Social Insurance Bank (BPS). provide medical benefits. Schedule of benefits: The paternity benefit is paid as a lump State Health Services Administration (Administración de sum. los Servicios de Salud del Estado, ASSE) (http://www.asse .com.uy/home) administers the social assistance program. Newborn care allowance (Subsidio para el Cuidado del Recién Nacido, employment related): 50% of the care- Work Injury giver’s average daily earnings in the six months before the maternity leave began (declared earnings in the 12 months Regulatory Framework before the maternity leave for self-employed persons) is paid for each day the employee works reduced hours to care First law: 1914 (work injury). for a child. Current law: 1989 (work injury), implemented in 1990. Schedule of benefits: The newborn care allowance is paid monthly. Type of program: Employer-liability (through a public car- rier) system. Special adoption leave (Licencia Especial por Adop- ción, employment related): 100% of the employee’s Coverage average daily or monthly earnings in the six months before Private-sector employees, including rural workers, the leave began is paid for six weeks. Immediately after the construction workers, and household workers; certain leave ends, the insured is entitled to work half-time for up public-sector employees; members of cooperatives; and to six months, during which a subsidy of 50% of the special apprentices. adoption leave is paid. Exclusions: Self-employed persons, professional athletes, Workers’ Medical Benefits and actors. Medical benefits (social insurance): Medical services Special system for military and police personnel. are available through mutual health institutions. Medical services include medical assistance, surgery, and pharma- Source of Funds ceutical products. Insured person: None. Mutual health institutions provide grants for eyeglasses, Self-employed person: Not applicable. contact lenses, prostheses, orthopedic appliances, wheel- chairs, and psychiatric hospitalization. Employer: The total cost, which varies depending on the assessed degree of risk; 3.10% of earnings for household Medical benefits (social assistance, means tested): Free workers. public health care is provided through public hospitals and clinics. Government: None; contributes as an employer.
Dependents’ Medical Benefits Qualifying Conditions Medical benefits (social insurance): Benefits for depen- There is no minimum qualifying period. Accidents that dents are the same as those for the insured. occur while commuting to and from work are not covered. Occupational diseases are specified by law.
278 ♦ SSPTW: The Americas, 2019 Uruguay
Temporary Disability Benefits have cohabited with the deceased for at least one year. This requirement is waived if the marriage or partnership began Temporary disability pension (Indemnización Tempo- before the accident. raria): 66.67% of the insured’s average daily earnings in the six months immediately before the disability began is paid. Orphan’s pension: If there are no other eligible survivors, (For casual workers, the benefit is equal to the insured’s 50% of the deceased’s annual earnings is paid to each total adjusted daily earnings in the last six months divided orphan younger than age 18 (no age limit if disabled and by 150.) The benefit is paid after a four-day waiting period dependent on the deceased); if there is a widow(er) or for the duration of the disability. partner, 20% is paid for one orphan; 35% for two; 45% for An additional benefit of 3.607% of the insured’s earnings is three; and 55% for four or more orphans. paid under sickness benefits. Dependent parent’s pension: If there is no eligible The minimum monthly temporary disability benefit is widow(er) or partner, 20% of the deceased’s annual earn- 3,052 pesos. ings is paid to dependent parents. For an occupational disease, 100% of the insured’s earn- The maximum combined annual survivor pension is 100% ings before the disease was diagnosed is paid. There is no of the deceased’s annual earnings. waiting period. Benefit adjustment: Benefits are adjusted annually based Schedule of payments: The temporary disability benefit is on changes in the average wage index (Índice Medio de paid monthly. Salarios) in the previous year. Benefit adjustment: Benefits are adjusted annually based on changes in the average wage index (Índice Medio de Administrative Organization Salarios). Social Insurance Bank (http://www.bps.gub.uy/) supervises and collects contributions to the program. Permanent Disability Benefits National Insurance Bank (https://www.bse.com.uy/inicio/) Permanent disability pension (Renta por Incapacidad administers the program. Permanente): For an assessed degree of disability of at Hospitals and clinics under contract with the National least 20%, 100% of the insured’s monthly loss of earnings Insurance Bank provide medical benefits. is paid. Constant-attendance allowance: If the insured requires the Unemployment constant attendance of others to perform daily function, the permanent disability pension is increased up to 115% of the Regulatory Framework insured’s earnings before the disability began. First law: 1934 (unemployment subsidy). For an assessed degree of disability of at least 10% but less than 20%, a lump sum of 36 times the insured’s monthly Current laws: 1981 (industry and commerce), 2001 (rural loss of earnings is paid. workers), 2006 (household workers), 2008 (late career unemployment), and 2012 (benefits calculation). Benefit adjustment: Benefits are adjusted annually based on changes in the average wage index (Índice Medio de Type of program: Social insurance system. Salarios) in the previous year. Coverage Workers’ Medical Benefits Private-sector employees in industry and commerce, rural The National Insurance Bank provides medical services. workers, employees of diplomatic missions, construction Benefits include medical, surgical, and dental care; hos- workers, government employees with fixed-term contracts pitalization; medicine; transportation; rehabilitation; and of at least two years, professional athletes, members of appliances. cooperatives, household workers, and certain teachers. There is no limit to duration. Exclusions: Self-employed persons and certain company managers and directors. Survivor Benefits Special system for bank employees. Survivor pension Source of Funds Spouse’s pension: 50% of the deceased’s annual earnings is paid to a widow(er) or partner (same sex or opposite sex) Insured person: See source of funds under Old Age, Dis- with dependents; 66% without dependents. ability, and Survivors. The widow(er) must have been married to the deceased Self-employed person: Not applicable. for at least one year at the time of death; a partner must
SSPTW: The Americas, 2019 ♦ 279 Uruguay
Employer: See source of funds under Old Age, Disability, Special unemployment benefit (Subsidio Especial por and Survivors. Inactividad Compensada): Must be aged 58 or older, have at least 28 years of contributions to the Social Insurance Finances any deficit. Government: Bank, be involuntarily unemployed for at least one year, not be receiving any other social insurance or social assistance Qualifying Conditions benefit other than survivor benefits, and must meet certain Unemployment benefit (Subsidio por Desempleo): For residency requirements after ceasing employment. employees paid monthly, must have at least 180 days of cov- The special unemployment benefit is payable abroad. ered employment in the 12 months before unemployment began; for employees paid at irregular intervals, must have Unemployment Benefits at least 180 days of covered employment, including at least 150 days of covered employment in the 12 months before Unemployment benefit (Subsidio por Desempleo): A unemployment began; for workers with irregular income sequence of monthly payments of 66%, 57%, 50%, 45%, or piece workers, must have at least 180 days of covered 42%, and 40% of the insured’s average monthly earnings employment with earnings of at least six times the BPC in is paid to workers paid monthly or at irregular intervals; the 12 months before unemployment began. a sequence of monthly payments of 16, 14, 12, 11, 10, and nine days of the insured’s average earnings is paid to work- The BPC (Base de Prestaciones y Contribuciones), an ers who are paid daily. index that is adjusted annually to calculate taxation, income and social benefits, is 4,154 pesos (4,519 pesos as of Average earnings are based on the insured’s earnings in the January 2020). six months before unemployment began. Rural workers paid monthly must have at least 360 days Partial unemployment benefit: For worker paid monthly, months of covered employment in the 24 months before the benefit is the insured’s average monthly earnings in the unemployment began; rural workers paid at irregular inter- six months before partial unemployment minus the value vals must have at least 360 days of covered employment, of the insured’s current monthly earnings. For workers who including at least 250 days of covered employment in the are paid daily, 12 days of the employee’s earnings before 24 months before unemployment began; rural workers with unemployment is paid. irregular income must have at least 180 days of covered Benefits are paid for up to six months (up to one year for employment and earnings of at least 12 times the BPC in workers aged 50 or older; may be extended for an additional the 24 months before unemployment began. year under certain conditions). Household workers must have been employed and regis- The minimum monthly unemployment benefit is tered with the Social Insurance Bank for at least six months 5,122.30 pesos (5,574.33 pesos as of January 2020). (180 days) in the 12 months before unemployment began The maximum monthly unemployment benefit is (if paid monthly); for at least six months with 150 days of 56,246 pesos (61,329.58 pesos as of January 2020). work in the 12 months before unemployment began or, failing that, at least 360 days of covered employment with Dependent’s supplement: 20% of the unemployment benefit 250 days of work in the 24 months before unemployment is paid. began (if paid daily or hourly); or six months (180 days) Special unemployment benefit (Subsidio Especial por of covered employment with earnings of at least six BPC Inactividad Compensada): 40% of the insured’s average in the 12 months before unemployment or, failing that, gross monthly earnings in the six months before unemploy- 360 days of covered employment and earnings of at least 12 ment began is paid for up to two years. BPC in the 24 months before unemployment began (irregu- The minimum monthly special unemployment benefit is lar income and pieceworkers). 4,154 pesos (4,519 pesos as of January 2020). Unemployment must not be the result of dismissal for disci- The maximum monthly special unemployment benefit is plinary reasons. 33,232 pesos (36,152 pesos as of January 2020). Partial unemployment benefit: Paid to workers paid daily or at irregular intervals for a temporary reduction in working Administrative Organization time of at least 25% relative to the usual working time. Ministry of Labor and Social Security (https://www.mtss Dependent’s supplement: Paid for a spouse or cohabit- .gub.uy/) provides general supervision. ing partner, children younger than age 21 (no age limit if Social Insurance Bank (http://www.bps.gub.uy/) adminis- disabled), and certain other dependents with disabilities. ters the program. Eligible dependents must not have monthly income exceed- ing 4,154 pesos (4,519 pesos as of January 2020). There is a 12-month waiting period before a new claim for unemployment benefits can be made.
280 ♦ SSPTW: The Americas, 2019 Uruguay
Family Allowances Qualifying Conditions Family allowance (Asignación Familiar, employment Regulatory Framework related, income tested): Paid for children younger than First law: 1943 (family allowances). age 14 (age 18 if in secondary education, no limit if dis- abled). The allowance is paid from the day the pregnancy Current laws: 1980 (family allowances), implemented in is confirmed. Children of school age must provide proof 1981; 1995 (social security for low-income families); 2002 of school attendance. The pregnant mother must undergo (multiple pregnancies); 2007 (equity in family allowances), prescribed medical examinations. implemented in 2008; and 2012 (benefit calculation). Income test: The full benefit is paid with total monthly Type of program: Employment-related and social assis- household income up to 33,445.96 pesos. A reduced tance system. benefit is paid with monthly household income from Note: A portion of the contributions to the social insur- 33,445.97 pesos to 55,755.26 pesos (two children); ance system for old age, disability, and survivors benefits 61,330.78 pesos (three children); 66,906.31 pesos (four chil- finances the employment-related family allowance benefits. dren); or 72,481.83 pesos (five children or more). However, there is no direct link between the contributions Multiple birth allowance (Asignación Prenatal por and entitlement to these benefits. Embarazo Gemelar Múltiple, employment related, income tested): Paid to a pregnant woman expecting more Coverage than two children from the day the pregnancy is confirmed, independently of her employment status. Must provide a Employment related: Private-sector employees in indus- try and commerce, rural workers, construction workers, medical certificate. household workers, persons receiving sickness, unemploy- Income test: The full allowance is paid with total monthly ment, or maternity benefits, small rural products vendors, household income up to 33,445.96 pesos; a reduced pensioners, and persons receiving social assistance old-age, allowance is paid with monthly household income from disability, and survivors benefits. 33,445.97 pesos to 83,614.90 pesos. Exclusions: Self-employed persons. Special allowances (Ayuda Extraordinaria, employment related and social assistance): Paid for persons with dis- Social assistance: Children of vulnerable families or abilities to help meet the cost of transportation and certain children who are enrolled full time in activities organized rehabilitation services. Persons with a disability receiving a by the Institute for Children and Adolescents (INAU) or its benefit from the Ministry of Social Development (MIDES) partner organizations. who do not qualify for social insurance special allowances receive social assistance special allowances. Source of Funds Vulnerable family allowance (Plan de Equidad, social Insured person assistance, means tested): Paid for children living in Employment related: See source of funds under Old Age, a socioeconomically vulnerable households. Paid from Disability, and Survivors. the birth of each child younger than age 14 if in primary school, age 16 if the child could not finish primary school Social assistance: None. for justified reasons, or age 18 if in secondary education Self-employed person (no limit if disabled). Children younger than age 4 must undergo regular medical examinations; children aged 4 or Employment related: Not applicable. older must provide proof of enrolment in a learning institu- Social assistance: None. tion and regular attendance (the education requirements are Employer waived for children with disabilities). The benefit cannot be combined with other family benefits. Employment related: See source of funds under Old Age, Disability, and Survivors. Family Allowance Benefits Social assistance: None. Family allowance (Asignación Familiar, employment Government related, income tested): The monthly allowance amount varies depending on household income and family com- Employment related: Finances any deficit. position. 74% of the UR is paid for each eligible child to Social assistance: The total cost. families with monthly earnings below 33,445.96 pesos; 37% of the UR for each child to families with monthly earnings from 33,445.96 pesos to 72,481.83 pesos. The UR (Unidad Rejustable), an index that is adjusted monthly based on changes in the average wage index
SSPTW: The Americas, 2019 ♦ 281 Uruguay
(Índice Medio de Salarios) in the previous year, is Vulnerable family allowance (Plan de Equidad, social 1,198.59 pesos (1,198.78 pesos as of January 2020). assistance, means tested): A monthly benefit is paid The family allowance is doubled for children with depending on the number of beneficiaries per family, their disabilities. age, and disability status. Schedule of payments: The family allowance is paid every A fixed monthly benefit of 1,615.23 pesos is paid for each two months. child enrolled full time in INAU activities (1,757.21 pesos as of January 2020); and 2,536.12 pesos for each beneficiary Multiple birth allowance (Asignación Prenatal por with a physical or mental disability (2,510.32 pesos as of Embarazo Gemelar Múltiple, employment related, January 2020). income tested): For a multiple birth, the family allowance is paid at three times the standard rate until the eligible In-kind benefits include pediatric care for children up to children reach age 5, at twice the standard rate until age 12, age 6, dental care for children up to age 9, and medical and at the standard rate until age 18. Multiple-birth children specialist care and transportation for children up to age 14. are also entitled to receive routine medical care at home Free medical examinations and medicine for children are until age 3, and have priority in accessing medical care provided. until age 9. Benefit adjustment: Benefits are adjusted annually based Schedule of payments: The multiple-birth allowance is paid on changes in the consumer price index and an adjustable every two months. reference unit (Unidad Reajustable) set by decree. Special allowances (Ayuda Extraordinaria, employ- Administrative Organization ment related and social assistance): A monthly allow- ance of 2,696.62 pesos is paid for transportation costs and Social Insurance Bank (http://www.bps.gub.uy/) adminis- 5,829.01 pesos for rehabilitation costs (January 2020). ters the programs. Benefits are paid directly to the organizations providing Ministry of Social Development (http://www.mides.gub transportation and rehabilitation services. .uy/) jointly administers the special allowances and vulner- Benefit adjustment: Benefits are adjusted every six months; able family allowances. the special allowance for rehabilitation annually.
282 ♦ SSPTW: The Americas, 2019 Venezuela
Employer Social insurance: From 9% to 11% of monthly covered pay- Venezuela roll for private-sector workers, depending on the assessed Exchange rate: US$1.00 = degree of risk; 4% of monthly covered payroll for public- 6,346.65 bolívares soberanos. sector workers. The maximum monthly earnings used to calculate contribu- tions are five times the legal monthly minimum wage. Old Age, Disability, and Survivors The legal monthly minimum wage is 40,000 bolívares soberanos (April 2019, increasing to 150,000 bolívares Regulatory Framework soberanos as of October 2019). First law: 1940 (social insurance). The employer’s contributions also finance cash sickness and Current laws: 1995 (minimum pension), 2002 (social secu- maternity benefits, and medical benefits. rity system), 2011 (social assistance), 2012 (social security), Contributions are paid weekly. 2012 (social insurance), and 2014 (public-sector employees). Social assistance: None. Type of program: Social insurance and social assistance Government system. Social insurance: At least 1.5% of total monthly covered Coverage earnings for administrative costs; finances any deficit; con- tributes as an employer. Social insurance: Public- and private-sector employees; members of cooperatives; and household, seasonal, and The government’s contributions also finance cash sickness casual workers. and maternity benefits, and medical benefits. Voluntary coverage for self-employed persons. Social assistance: The total cost. Special system for military personnel. Qualifying Conditions Social assistance: Needy residents of Venezuela. Old-age pension (Pensión por Vejez, social insurance): Age 60 (men) or age 55 (women) with at least 750 weeks of Source of Funds contributions (250 weeks in the last 10 years for the volun- Insured person tarily insured). The normal retirement age is lower for those Social insurance: 4% of monthly covered earnings. who perform unhealthy and arduous work. The minimum monthly earnings used to calculate contribu- If the insured has less than 750 weeks of contributions, he tions are the legal monthly minimum wage. or she may continue to contribute until reaching 750 weeks or claim an old-age settlement. The maximum monthly earnings used to calculate contribu- tions are five times the legal monthly minimum wage. Deferred pension: The pension may be deferred. The legal monthly minimum wage is 40,000 bolívares The old-age pension is payable abroad. soberanos (April 2019, increasing to 150,000 bolívares Old-age settlement (Indemnización Única por Vejez, soberanos as of October 2019). social insurance): Age 60 (men) or age 55 (women) with The insured person’s contributions also finance cash sick- less than 750 weeks of contributions. ness and maternity benefits, and medical benefits. Old-age social pension (Gran Misión en Amor Mayor, Contributions are paid weekly. social assistance, income tested): Age 60 (men) or age 55 (women) and a resident of Venezuela for the last Social assistance: None. 10 years. Self-employed person Income test: Monthly household income must be below the Social insurance: 13% of monthly declared earnings. legal monthly minimum wage. The self-employed person’s contributions also finance cash The legal monthly minimum wage is 40,000 bolívares sickness and maternity benefits, and medical benefits. soberanos (April 2019, increasing to 150,000 bolívares soberanos as of October 2019). Contributions are paid weekly. Disability pension (Pensión por Invalidez, social insur- Social assistance: None. ance): Must be assessed with at least a 66.7% permanent or prolonged loss of work capacity and have at least 250 weeks of contributions (reduced by 20 weeks of contributions for each year the insured is younger than age 35), including
SSPTW: The Americas, 2019 ♦ 283 Venezuela at least 100 weeks in the three years before the disability Old-age settlement (Indemnización Única por Vejez, began. social insurance): A lump sum of 10% of the insured’s Constant-attendance supplement (Gran invalidez): Paid if total covered earnings is paid. the insured requires the constant attendance of others to Old-age social pension (Gran Misión en Amor Mayor, perform daily functions. social assistance, income tested): The legal monthly Partial disability: Must be assessed with a 25% to 66.6% minimum wage is paid. permanent or prolonged loss of work capacity and meet the The legal monthly minimum wage is 40,000 bolívares contribution requirements for the total disability pension. soberanos (April 2019, increasing to 150,000 bolívares The disability pension cannot be combined with a cash soberanos as of October 2019). sickness benefit (see Sickness and Maternity). Benefit adjustment: Benefits are adjusted periodically based on changes in the legal monthly minimum wage. Disability grant (Indemnización Única por Invalidez, social insurance): Must be assessed with at least a 66.7% permanent or prolonged loss of work capacity, and have at Permanent Disability Benefits least 100 weeks of contributions in the last four years before Disability pension (Pensión por Invalidez, social insur- the disability began but not meet the contribution require- ance): 100% of the legal monthly minimum wage is paid. ments for the disability pension. The legal monthly minimum wage is 40,000 bolívares Survivor pension (Pensión por Sobreviviente, social soberanos (April 2019, increasing to 150,000 bolívares insurance): The deceased received or was entitled to soberanos as of October 2019). receive a social insurance old-age or disability pension or Constant-attendance supplement (Gran invalidez): Up to was a pensioner at the time of death. There is no minimum 50% of the disability pension is paid. qualifying period if the death was caused by an accident. Partial disability: A percentage of the full disability pension Eligible survivors include a widow older than age 45 or a is paid based on the assessed loss of work capacity. female partner older than age 45 who cohabited with the deceased for at least two years; a widow or partner with Benefit adjustment: Benefits are adjusted periodically based dependent children; a dependent widower aged 60 or older on changes in the legal monthly minimum wage. (any age if disabled); and unmarried orphans younger than Disability grant (Indemnización Única por Invalidez, age 14 (age 18 if a student, no limit if disabled). If there are social insurance): A lump sum of 10% of the insured’s no other survivors, siblings younger than age 14 and depen- total covered earnings is paid. dent parents are eligible. Survivor settlement (Indemnización Única por Sobre- Survivor Benefits viviente, social insurance): The deceased did not meet the Survivor pension (Pensión por Sobreviviente, social contribution requirements for a social insurance old-age or insurance): The minimum monthly survivor pension is the disability pension but had at least 100 weeks of contribu- legal monthly minimum wage. If there is more than one eli- tions in the four years before death. gible survivor, the monthly survivor pension is split equally Funeral grant (Asignación Funeraria de Sepelio, social among all eligible survivors. insurance): Paid to the person who paid for the funeral of The amounts paid are recalculated if the number of eligible the insured or old-age or disability pensioner. survivors changes. If there is no eligible widow(er), partner, or orphan, a lump Old-Age Benefits sum of 10% of the deceased’s total covered earnings may be Old-age pension (Pensión por Vejez, social insurance): paid to eligible siblings and parents as a lump sum. 100% of the legal monthly minimum wage is paid. The legal monthly minimum wage is 40,000 bolívares The legal monthly minimum wage is 40,000 bolívares soberanos (April 2019, increasing to 150,000 bolívares soberanos (April 2019, increasing to 150,000 bolívares soberanos as of October 2019). soberanos as of October 2019). Benefit adjustment: Benefits are adjusted periodically based Deferred pension: The old-age pension is increased by 5% on changes in the legal monthly minimum wage. for each year of deferral after the normal retirement age. Survivor settlement (Indemnización Única por Sobre- The legal monthly minimum wage is 40,000 bolívares viviente, social insurance): A lump sum of 10% of the soberanos (April 2019, increasing to 150,000 bolívares deceased’s total covered earnings is paid. soberanos as of October 2019). Funeral grant (Asignación Funeraria de Sepelio, social Benefit adjustment: Benefits are adjusted periodically based insurance): A lump sum is paid. on changes in the legal monthly minimum wage.
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Administrative Organization Government Ministry of the People’s Power for the Social Process Universal: The total cost. of Labor (http://www.mpppst.gob.ve/) provides general Social insurance: See source of funds under Old Age, Dis- supervision. ability, and Survivors. Venezuelan Social Insurance Institute (http://www.ivss.gov .ve/), managed by a tripartite board and president, collects Qualifying Conditions contributions and administers the programs. Cash sickness, maternity, and paternity benefits (social insurance): There is no minimum qualifying period. Sickness and Maternity Birth grant (Bono Parto Humanizado, Plan Nacional Regulatory Framework Parto Humanizado, universal): Paid to a mother upon the birth of a child. First law: 1940 (social insurance). Medical benefits (Plan Nacional Parto Humanizado, Current laws: 1998 (health care), 2007 (protection of chil- universal): There is no minimum qualifying period. dren and adolescents), 2007 (family, maternity, and pater- nity protection), 2011 (household workers), 2012 (social Medical benefits (social insurance): There is no mini- insurance), 2012 (labor law), 2012 (social security), and mum qualifying period. 2018 (universal maternity protection). Eligible dependents include a wife or female partner who has lived in the same household with the primary insured Type of program: Universal (birth grant and medical for at least one year, is pregnant, or has a common child benefits) and social insurance (cash and medical benefits) with the primary insured; a disabled husband; unmarried system. children or orphaned siblings up to age 18 (no limit if dis- abled); and a dependent mother or dependent and disabled Coverage father. Universal: Pregnant women who are citizens of Venezuela. Sickness and Maternity Benefits Social insurance: Public- and private-sector employees; members of cooperatives; household, seasonal, and casual Sickness benefit (Indemnizacion Diaria por Incapaci- workers; persons receiving old-age, disability, or survivor dad Temporal, social insurance): 66.7% of the insured’s benefits, and certain unemployed persons and their depen- average daily earnings is paid after a three-day waiting dents (medical benefits only). period for up to 52 weeks; may be extended under certain conditions. The benefit is reduced by 50% if the insured is Source of Funds not hospitalized. Insured person Maternity benefit (Permiso de Maternidad, social insur- ance): 100% of the insured’s last monthly earnings is paid Universal: None. for up to six weeks before and 20 weeks after the date of Social insurance: See source of funds under Old Age, Dis- childbirth (may be extended under certain conditions) or for ability, and Survivors (cash and medical benefits) and under 26 weeks from the date of placement for the adoption of a Unemployment (medical benefits for unemployed persons). child younger than age 3. Self-employed person Paternity benefit (Licencia de Paternidad, social insur- ance): 100% of the insured’s last earnings is paid for Universal: None. 14 days immediately after the date of childbirth or the date Social insurance: See source of funds under Old Age, Dis- of placement for the adoption of a child younger than age 3. ability, and Survivors (cash and medical benefits) and under Birth grant (Bono Parto Humanizado, Plan Nacio- Unemployment (medical benefits for unemployed persons). nal Parto Humanizado, universal): A lump sum of Employer 100,000 bolívares soberanos is paid (October 2019). Universal: None. Workers’ Medical Benefits Social insurance: See source of funds under Old Age, Dis- Medical benefits (Plan Nacional Parto Humanizado, ability, and Survivors (cash and medical benefits) and under universal): Benefits include free pre-natal, natal, and post- Unemployment (medical benefits for unemployed persons). natal care.
Medical benefits (social insurance): The Social Security Institute’s medical facilities normally provide free medi- cal services directly to patients for up to 52 weeks; may
SSPTW: The Americas, 2019 ♦ 285 Venezuela be extended for another 52 weeks for convalescent care. Qualifying Conditions Benefits include general and specialist care, hospitalization, Must be assessed with a work injury or occupational laboratory services, medicine, dental care, maternity care, disease. appliances, and transportation. Unemployed insured persons and their dependents are Temporary Disability Benefits covered for medical benefits for up to 52 weeks; may be 100% of the insured’s last monthly earnings is paid after a extended for another 52 weeks. Benefits include general three-day waiting period until the insured is rehabilitated, and specialist care, hospitalization, laboratory services, recovered, or certified with a permanent disability. medicine, dental care, maternity care, appliances, and transportation. Permanent Disability Benefits Dependents’ Medical Benefits Permanent disability pension (Pensión por Invalidez): 100% of the legal monthly minimum wage is paid. Medical benefits (Plan Nacional Parto Humanizado, universal): Dependents are covered in their own right. The legal monthly minimum wage is 40,000 bolívares soberanos (April 2019, increasing to 150,000 bolívares Medical benefits (social insurance): Benefits for depen- soberanos as of October 2019). dents (and survivors) are the same as those for the insured. Pensioners’ dependents receive medical benefits for up to Constant-attendance supplement (Gran invalidez): Up to 26 weeks. 50% of the insured’s disability pension is paid if the insured requires the constant attendance of others to perform daily Administrative Organization functions. Ministry of the People’s Power for the Social Process of Partial disability: For an assessed permanent or prolonged Labor (http://www.mpppst.gob.ve/mpppstweb/) provides loss of work capacity of 26% to 66.6%, a percentage of general supervision. the full permanent disability pension is paid based on the assessed loss of working capacity. For an assessed perma- Venezuelan Social Insurance Institute (http://www.ivss.gob nent or prolonged loss of work capacity of 5% to 25%, a .ve/), managed by a tripartite board and director general, lump sum is paid. administers the programs. Schedule of payments: 14 payments a year. Work Injury Workers’ Medical Benefits Regulatory Framework Benefits include free general, specialist, and dental care; hospitalization; medicine; laboratory services; appliances; First law: 1940 (social insurance). and rehabilitation services. Current laws: 1991 (social insurance), 2005 (prevention and working conditions), and 2012 (social security). Survivor Benefits
Type of program: Social insurance system. Survivor pension (Pensión por Sobreviviente): The minimum monthly survivor pension is the legal monthly Coverage minimum wage. If there is more than one eligible survivor, the monthly survivor pension is split equally among all Public- and private-sector employees; members of coopera- eligible survivors. tives; and household and custodial workers. The amount paid is recalculated if the number of eligible Voluntary coverage for self-employed persons. survivors changes. Special system for military personnel. If there is no eligible widow(er), partner, or orphan, a lump sum of 10% of the deceased’s total covered earnings may be Source of Funds paid to eligible siblings and parents as a lump sum. Insured person: None. The legal monthly minimum wage is 40,000 bolívares Self-employed person: No information available. soberanos (April 2019, increasing to 150,000 bolívares soberanos as of October 2019). Employer: 0.75% to 10% of covered payroll, depending on the assessed degree of risk. Funeral grant (Asignación Funeraria de Sepelio): A lump sum is paid. Government: None; contributes as an employer.
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Administrative Organization The legal monthly minimum wage is 40,000 bolívares soberanos (April 2019, increasing to 150,000 bolívares Ministry of the People’s Power for the Social Process of soberanos as of October 2019). Labor (http://www.minpppst.gob.ve/) provides general supervision. The employer’s contributions also finance medical benefits for unemployed persons under Sickness and Maternity. National Institute for Prevention, Health, and Security at Work (INPSASEL) administers the program and collects Government: Finances any deficit; contributes as an contributions. employer; may subsidize up to 50% of contributions for low-income insured persons. Unemployment Qualifying Conditions Regulatory Framework Unemployment benefit (Prestación Dineraria por First law: 1940. Pérdida Involuntaria del Empleo): Must have at least 12 months of contributions in the 24 months before unem- Current laws: 2005 (unemployment) and 2012 (social ployment began, be involuntarily unemployed or have an security). involuntarily loss of income, and be available for training or Type of program: Social insurance system. suitable employment.
Coverage Unemployment Benefits Public- and private-sector employees, members of coop- Unemployment benefit (Prestación Dineraria por eratives, household and custodial workers, self-employed Pérdida Involuntaria del Empleo): 60% of the insured’s persons, and apprentices. average monthly earnings in the last 12 months is paid for up to five months. Source of Funds Unemployment beneficiaries and their dependents receive Insured: 0.5% of monthly covered earnings. medical benefits for up to 52 weeks (see Sickness and Maternity). The minimum monthly earnings used to calculate contribu- tions are the legal monthly minimum wage. Administrative Organization The maximum monthly earnings used to calculate contribu- Ministry of the People’s Power for the Social Process of tions are 10 times the legal monthly minimum wage. Labor (http://www.mpppst.gob.ve/mpppstweb/) provides The legal monthly minimum wage is 40,000 bolívares general supervision. soberanos (April 2019, increasing to 150,000 bolívares Employment services administer training and guidance. soberanos as of October 2019). Venezuelan Social Insurance Institute (http://www.ivss.gob The insured person’s contributions also finance medi- .ve/), managed by a tripartite board and director general, cal benefits for unemployed persons under Sickness and administers the program and collects contributions. Maternity. Self-employed person: 2.5% of monthly covered earnings. Family Allowances The minimum monthly earnings used to calculate contribu- tions are the legal monthly minimum wage. Regulatory Framework The maximum monthly earnings used to calculate contribu- First and current law: 2015 (food basket). tions are five times the legal monthly minimum wage. Type of program: Employer-liability system. The legal monthly minimum wage is 40,000 bolívares soberanos (April 2019, increasing to 150,000 bolívares Coverage soberanos as of October 2019). Public- and private-sector employees. The self-employed person’s contributions also finance Exclusion: Self-employed persons. medical benefits for unemployed persons under Sickness and Maternity. Source of Funds Employer: 2% of monthly covered payroll. Insured person: None. The minimum monthly earnings used to calculate contribu- tions are the legal monthly minimum wage. Self-employed person: Not applicable. The maximum monthly earnings used to calculate contribu- Employer: The total cost. tions are 10 times the legal monthly minimum wage. Government: None; contributes as an employer.
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Qualifying Conditions Food cash transfer (Cestaticket Socialista): There is no minimum qualifying period.
Family Allowance Benefits Food cash transfer (Cestaticket Socialista): 100% of the legal monthly minimum wage is paid a month. The legal monthly minimum wage is 40,000 bolívares soberanos (April 2019, increasing to 150,000 bolívares soberanos as of October 2019).
Administrative Organization Ministry of the People’s Power for the Social Process of Labor (http://www.mpppst.gob.ve/) provides general supervision. Employers pay the food cash transfer directly to employees.
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