World Trends in Social Security Benefits, 1955 to 1957 by CARL H. FARMAN*

Most yearsfrom the 1880’s to thepresent have seen the enact- 1956 enacted a new Social Security ment of laws establishing new social security programs or Code that introduced old-age insur- expanding existing ones. Programs established before 19.55 ance for the flrst time and consoli- have been reported in earlier issues of the Bulletin and in special dated it with health and maternity reports by the Social Security Administration. New legislation insurance and workmen’s compensa- affecting the various programs is summarized in the first part tion, as well as with other related of the article; some of the details of the most important changes programs. Iraq in 1956 adopted and are given, country by country, in the supplement. put into effective operation a new program providing both long- and short-term benefits, which may not, however, exceed the balance in the MONG the more notable changes United States, all of which added new individual’s own social security ac- A in social security programs dur- groups of self-employed persons to count at the time he claims benefits. ing 1955, 1956, and early 1957 those covered by one or more pro- In effect, therefore, the program sets were the widespread increases in grams. Argentina extended the pro- up what is essentially a compulsory cash benefits, the enactment in three tection of old-age, survivors and dis- savings or provident fund. countries of laws establishing entire- ability insurance to domestic serv- The following tabulation shows the ly new programs, and the adoption ants, and Austria covered female number of countries with various of new techniques developed in the domestic servants under unemploy- types of programs as of January 1955 search for ways of providing adequate ment insurance. Cuban retirement and, according to the latest available benefits.1 The benefit increases were programs began to operate in several information, as of March 1957.2 pronounced in industrialized coun- new occupational fields. In Uruguay, tries with long-established social se- agricultural employers came under curity programs. The new legislation the family allowances program. has naturally appeared in less in- Another type of coverage expan- I Countries with pro- i gl%IllSin opers- dustrialized nations-specifically Boli- sion-to additional areas in countries tion via, Iraq, and Nicaragua. The new where the social security system did Type of progrsm !------developments in theory and methods not originally operate throughout a ! January March have arisen in Western Europe, most nation’s territory-occurred in Colom- i 1955 1957 notably in Denmark, France, and bia, India, Mexico, Panama, and Ven- Old-age, invalidity, and Germany. ezuela. .SUWiVOrS hlsurancc i (or p+miOns).~~.. ___._-/ Major Program Developments In Finland, Germany, Mexico, the Health and maternity in- 1 Netherlands, and Spain, protection surance+ ______I 45 I 47 Workmen’s compensation. ! 72 74 Expansion of coverage continued, of more persons has resulted from Unemployment insurance. _ 20 as in former years, with various the adoption of higher income limits Family allowances______., F4 34 methods being used. Countries where for coverage. the program was expanded to cover Legislative activity was most pro- lIncludes Iraq (omitted from the count in the 1956 Rzcllelin article) Iwhose Labor Code of 1936 new occupational groups include Bel- nounced in old-age, invalidity, and provided for workmen’s compensation. gium, Germany, Norway, and the survivors insurance programs; it Under legislation adopted in 1956* f Division of Program Research, OfiCe was least apparent in unemployment of the Commissioner. insurance and family allowances. new programs of old-age, invalidity, 1 For reports on legislation enacted be- There were few marked changes dur- and survivors insurance became op- fore 1955, see (1) Old-Age, Survivors, and ing the period 1955-57 in health and erative in January 1957 in Bolivia Invalidity Programs Throughout the World, and Nicaragua. New health and ma- 1954 (Report No. 19, Division of Research maternity protection and workmen’s and Statistics), June 1954; (2) Health and compensation proDrams.D ternity insurance programs are now Maternity Insurance ThToughoutthe World, Three new laws of a general char- operating in Burma (act of 1955, 1954-Principal Legislative Provisions in 48 acter are noteworthy. Nicaragua effective 1956) and Nicaragua. Ghana Countries (extracted from part 8 of the and Tunisia are listed for the first Hearings before the House Committee on adopted in 1955 a unified system Interstate and Foreign Commerce. 1954), under which insurance against sick- time among the independent nations 1954; and (3) Social Security Legislation ness, old-age, permanent disability, with workmen’s compensation pro- Throughout the World-Five Charts SUm- death, and work injuries became op- marlzing the Principal Legislative Pro- s See Carl H. Farman, “World Trends in visions (Report No. 16, Division of Re- erative in the national capital in Social Security Benefits, 1936-55,” Social search and Statistics), 1949. January 1957. Bolivia in December Security Bulletin, May 1956.

Bulletin, August 1957 3 grams, but the legislation dates from ting beneflts was discarded for a Denmark now offers a more favor. 1941 for Ghana and from 1921 for formula using a percentage of aver- able provision than before for persons Tunisia. age wages, plus increments. The av- who defer receipt of their pension erage pension determined under the beyond the age when they might Old-Age, Invalidity, and new formula is estimated at 790 receive it. The “waiting allowance” Survivors Insurance crowns a month: the average wage is 10 percent of the basic pension for Pension reform, fundamental in in industry is 1,300 crowns. Existing men who delay their claim until they nature and widespread in effect, has pensions were increased an average are aged 70 and for women who wait been the leading social security de- of 10 percent, but the rise did not until they attain age 65. It is 15 velopment in the period 1955-57. bring them to the level of those percent if the man waits until age Amending laws made extensive computed under the new formula. 72, and the woman until age 67. changes in the benefit structure of In adjusting the beneflt formula Funds to finance the old-age pen- most European programs and of sev- to favor workers in certain occupa- sions, which for more than 65 years eral systems elsewhere. The higher tions, Czechoslovakia followed the had been paid in full by the Govern- benefits thus provided reflect, at typical Eastern European approach ment, are now met in part by an ear- least in part, increases in living costs under which retirement age, qualify- marked income tax of 1 percent. and in national output and produc- ing period, method of computing Persons with low incomes are ex- tivity. benefits, and other elements affecting empted: the tax is not collected if Several countries passed legislation the status of the claim are related the contributions by a person with making other types of change. to the kind of employment. Under- dependents would amount to less Amendments adopted in the United ground miners and aviation (flight) than 40 crowns a year or by a single States in 1956 3 introduced perman- personnel, for example, make up the person to less than 25 crowns. In ent disability insurance for persons first of three groups or categories; disability insurance, which has al- aged 50-64 and thus expanded sig- they may receive an old-age benefit ways had separate financing, the nificantly its old-age and survivors 5 years earlier than the other groups; amount of the flat-rate contributions insurance program. Coverage was their basic benefit is higher than that is increased. extended on a contributory basis to received by other workers; and the In Finland an act of June 8, 1956- the Armed Forces and to practically annual increments are also greater. effective January 1957-provided for every occupation except self-employed Europe’s oldest noncontributory increased benefits and for abandon- physicians, and the minimum retire- pension program is that of Denmark, ing the principle of a large old-age ment age for women was lowered which had built up an elaborate sys- reserve fund. The dual nature of the from 65 to 62. tem of special allowances; fuel and pension-part being paid subject to In Belgium, which has a large clothing allowances and additional an income test and part as a right- number of aged persons in relation payments for very advanced age and is continued. The basic pension paid to the total population, the emphasis other special causes supplemented the to all covered workers was raised has been on long-range pension plan- basic pension. By the act of Oc- from about 4,000 marks a year to ning. The present system for wage tober 2, 1956, most of these supple- 24,000 marks. The supplements for workers, established by a 1955 law, ments were merged with the “basic persons without other income vary- is an insurance program with a pension,” which was raised to a level according to cost-of-living area--from rather high minimum for all bene- some 13 percent higher than the 54,000 marks to 72,000 marks (pre- ficiaries. The “normal” benefit is amount of the former basic pension viously they varied from 28,000 to based on the assumption of 45 years’ and supplements combined. The full 42,000). No part of the pension is re- coverage. payments are subject to an income lated to previous contributions, be- Provision is made for automatic test, which is, however, more liberal cause the basic pension has now changes in the benefit level if speci- than the previous requirements. A become universal. fied variations occur in the cost-of- new universal pension is paid without A bonus for deferring the receipt living index. an income test. Changes in pension of the pension appears in Finnish The law of June 30, 1956, effective amounts will continue to follow law for the tist time. The pension July 4, expanded coverage by includ- changes in the cost-of-living index- is raised by 12.5 percent of the basic ing self-employed persons. a technique originated by Denmark benefit for each year the aged per- In Czechoslovakia significant pen- after the first World War and now son postpones making his claim, so sion adjustments took effect in 1957. widely copied. that those who wait as long as 5 The minimum pensionable age was The minimum age for pensioners years beyond the minimum pension. reduced 5 years for men (to age 60 was raised 2 years; the change will able age will have their pensions in- for most workers) and 10 years for be made in two stages, and by April creased by an amount equal to 62.5 women-from 65 to 55. The fixed 1, 1961, the minimum ages for re- percent of their basic pension. basic sum formerly used in compu- ceipt of the basic pension will be 67 In 1956, France increased by 31,200 for men and 62 for women. To re- francs annually the amount paid to sSee Charles I. Schottland, “Social Se- curity Amendments of 1956: A Legislative eeive the new universal pension, how. pensioners with low incomes. The History,” Social Security Bulletin, Sep- ever, women as well as men must addition raised the lowest pensions tember 1956. be aged 67. by 100 percent but meant a smaller

“4 Social Security increase, proportionately, for persons pensionable age have been made. the old-age and permanent disability with retirement income above the This age is normally 65, as before, benefits in Spain was increased by minimum. but a woman of 60 may be entitled one-third, to 400 pesetas monthly for The funds necessary to make these to the pension if she has worked in former wage earners in agriculture higher payments to more than 4 covered employment for at least 10 and for those former workers in in- million pensioners are being raised of the 20 years preceding her claim. dustry and commerce who were not by methods that depart radically A provision formerly applicable only entitled to insurance benefits from a from those formerly used. Instead of to salaried employees is now extended mutual benefit society. For those en- depending on the payroll tax, which to wage earners also; at age 60 an titled to such benefits there was a has traditionally been France’s main insured worker becomes entitled to a lo-percent increase, to 250 pesetas source of revenue for social insurance pension if he has been out of work monthly. purposes, the law of June 30, 1956, 1 year. Survivor benefits-available previ- provides for 11 distinct sources of In Great Britain, benefits and the ously under the family allowances funds-some of them new taxes and contribution rates were raised about program-were made part of the pen- some increases in existing taxes. The one-fourth in 1955 under legislation sion system through a provision that measure accordingly creates what is of December 1954. The increases ap- a widow aged 65 who had been mar- designated as a “National Solidarity plied not only to retirement and other ried 10 years would get half the bene- Fund,” through which the whole pensions but also to other social se- fit received by her husband or to Nation contributes to raise the in- curity payments. A 1956 liberalization which he would have been entitled. comes of aged persons of small in the retirement test permits pen- Soon after the pension changes means. sioners to earn more money than took effect, a general wage and salary The world’s oldest general old-age formerly without having their bene- increase of slightly more than one- insurance system, that of Germany, fits suspended or the amount reduced. fourth was decreed; the rises were to was transformed early in 1957 by Unlike many recently adopted laws, be made in two steps-in April and adoption of the new “dynamic pen- that of the Netherlands makes many October 1956. In order that the salary sion” program. The main change lay fundamental changes without pro- increase should not encourage higher in the new method of computing viding for substantial benefit in- prices, the total social security con- benefits, which increased pensions an creases. It is the first comprehensive, tributions of the employers, who were estimated 50-60 percent. At the same public old-age pension law to be en- obliged to meet the increased wage time, the wage workers’ system and acted by the Netherlands and in- costs, were reduced sharply. The em- the system for salaried employees cludes many departures from tradi- ployee’s contribution was also cut, were made identical as to substantive tional protection of this type. but only 1.2 percent.4 The Govern- provisions, although the administra- The act, dated May 31, 1956, and ment assumed responsibility for meet- tion remains separate. elective January 1, 1957, creates a ing the difference between the old Benefits continue to be related to universal contributory pension sys- and the new revenue through a spe- wages and the number of years tem that applies to persons who work cial credit to the Ministry of Labor worked. The former basic amount for another, to the self-employed, and of more than 1 billion pesetas for was the same for all beneficiaries to the nonemployed. There is no social insurance financing. The ar- within a program and was supple- exemption for persons with large rangement lasted only until October, mented by increments based on earnings. At age 65 every resident of when amending measures increased wages and years worked. Under the the country will be eligible for bene- the employer’s total contribution by new law the benefit is based on cur- fits except those who could have paid 10 percent of payroll. During the first rent wage levels and varies according contributions and did not do so. and last quarters of 1956, workers to the average level of the claimant’s The amount of the benefit is about contributed 1.0 percent of earnings lifetime earnings in relation to past the same as under the Emergency for old-age and disability insurance; general wage levels. The existing Old Age Pension Act of 1947 but is from April through September they benefits of Germans already pen- free of income test. The benefit contributed 1.5 percent. The em- sioned are adjusted by amounts spe- amounts are to vary with changes ployer contribution for these two cified in the law. in both the wage index and the cost- benefits was 5.0 percent at the begin- Contributions are raised immedi- of-living index. Private pension plans, ning of the year, dropped to 0.5 per- ately to 14 percent of wages or salary, which became compulsory under a cent, and was then raised to the paid half by the insured person and 1949 law, must be harmonized with present 3.0 percent. half by the employer. Although the the newly enacted universal old-age The most significant lasting de- increase means that both employer pensions. velopments in Spain in the field of and employee pay 1% percent more Recent Spanish action affecting old-age and invalidity insurance seem for the pension program, they pay old-age and invalidity insurance has only 1 percent more for the total in- been an explicit counterattack on in- 4 The unified contribution covered health surance program since unemploy- flation. It has involved benefit in- and pensions insurance, family allowances, ment insurance contributions were creases and some entirely new- union dues, and occupational training and included (before April 1, 1956) 0.35 percent reduced YZ percent. though temporary-financing devices. of payroll from the employer for tech- Some changes in the minimum In January 1956 the amount of nological unemployment benefits.

Bulletin, August 1957 5 to be the benefit increase-which was surance program. Operations were fifths of the cost of medical care the flrst in 5 years-and the provi- restricted to specified population ccn- would in fact be realized. The bill sion of full benefits, on a par with ters. In Bolivia and Norway, new authorizes the Minister of Labor and those in industry, for agricultural laws went into operation,. The Nor- Social Security to intervene on his workers. wegian law amended a 40-year-old own initiative in the fixing of medical In the Union of Soviet Socialist compulsory program by extending charges and to have them determined Republics, the act of July 14, 1956, coverage to everyone in the country. by a specially appointed committee. effective October 1, provided for The Bolivian change incorporated The 3-year time limit for benefits sharp pension increases, thus re- health insurance-which had been under the special program for ex- establishing, at least in part, the operating since 1951-into a new tended iilness was eliminated. earlier relationship of benefits to comprehensive Social Security Code wages and living costs. In modifying designed to pay more nearly adequate Workmen’s Compensation a system that had changed little in benefits and promote efficiency. Although programs of protection the past 20 years, the law provided Territorial expansion took place in against employment injuries remained old-age benefits on a sliding scale, Colombia, where workers and their substantially unchanged during 1955- weighted for the lower-paid worker. dependents in the District of Valle 57, one nation-Jordan-enacted a The other main elements of the were covered, and in India, Panama, law for the first time, and several Soviet system were not changed; pen- and Venezuela. countries improved their existing pro- sionable ages, favored treatment for Increases in cash benefits were grams through new legislation. unhealthful occupations, supplements adopted in many countries. Two reia- A few of these amending acts in- for periods of uninterrupted work, tiveiy new programs, those of Aus- tegrated or partially integrated work- and disability benefits varying with tralia (which first offered subsidized men’s compensation with other social length of service and degree of dis- medical and hospital insurance in insurance programs. For example, ablement are among the features re- 1953) and Sweden (where the change Sweden merged many parts of its tained. Pensions are paid from the from a voluntary to a compulsory program with the new general com- general budget of the Soviet Union. program took effect in January 1955) pulsory health insurance program. In Summary.-At least 11 nations were in operation. Both these coun- Nicaragua workmen’s compensation, made fundamental changes in their tries had had extensive experience formerly the only social insurance old-age, survivors, and disability pro- with various kinds of public medical program in the country, is now con- grams in the period 1955 through and cash benefits before adopting solidated into a unified system under early 1957. No other similar period their present programs. the Social Security Code adopted in had witnessed so many basic changes In Canada, after five Provinces had December 1955; this move has not in this important type of social se- signiiied approval of a Federal-Pro- eliminated protection under the poli- curity protection. vincial national health service to cies issued by private companies in Higher benefits and liberalized eli- begin with hospitalization benefits, areas where the new system has not gibility conditions were the distin- Parliament enacted the Hospital In- Yet been introduced. guishing marks of practically all the surance and Diagnostic Services Law Bolivia consolidated workmen’s newly enacted laws. This trend was by unanimous vote of the House and compensation with health, maternity, centered in the Western European Senate in April 1957. This law auth- and pension programs through its nations and in a few other countries orizes Federal-Provincial agreements Social Security Code of December 14, having high per capita incomes. under which the Provinces will pro- i956. Until November 1951 the only Among the smaller systems, relatively vide services on an insurance basis form of general social security in few changes appeared. and the Federal Government will pay Bolivia was that provided by work- Automatic adjustment of benefits approximately half the cost. accident and occupational disease to future cost-of-living changes proved In Great Britain the National legislation, although there was also increasingly popular, as did the use Health Service continued to expand. a system of compulsory savings from of the benefit formula to encourage The limitation on annual costs that which lump-sum withdrawals could persons to work longer without claim- had been set in 1951 was removed be made. The present Code combines ing old-age benefits. in 1954-55. all the programs, including old-age, In France, where health insurance invalidity, and survivors insurance Health and Maternity provides partial reimbursement for and family allowances. Insurance the costs of medical service, the doc- The Union of Soviet Socialist Re- The general expansion of health tors may charge what they please, publics-in addition to increasing and maternity insurance continued but the reimbursement is limited by benefit amounts-relaxed certain dis- at a moderate tempo during 1955-57. regulations. A Governmentsponsored ciplinary aspects of short-term cash In Burma and Nicaragua, health and bill of 1956, considered and favorably benefits that had operated in health maternity insurance programs were reported in Committee in 1957 and and accident insurance since the late introduced for the first time, with still under consideration by Parlia. 1930’s. A decree of February 1957 older employer liability laws replaced ment in July 1957, would limit doc- repealed the g-month requalifying by work-injury benefits administered tors’ fees so that the intent of the period formerly demanded of persons in conjunction with the health in- health insurance law to meet four- who had left their jobs without per-

6 Social Security mission or been absent without due claimants of seasonal benefits has of wage earners in 1954. Thereafter, cause. The former 50-percent reduc- also been adopted. Amendments in- because of the method of paying the tion in the cash benefit paid to non- creasing benefits were enacted in allowances, the amount of the pay. union members was also revoked. nearly all jurisdictions in the United ments rose rapidly (within 2 years) Spain unified agricultural accident States. In Austria coverage under from 4.65 pesos a day to 44.60. The insurance with that for commerce unemployment insurance was ex- legislature was considering further and industry in 1955; the benefits tended to female domestic servants, increases in 1957. Under the non- for a large sector of the population effective August 1956. reserve or “distribution” system for were thus raised. An El Salvador Denmark’s system, for which the the retirement program, 40 percent decree of 1956 provided for new legis- basic law is now that of 1921, became of the revenue originally planned for lation to replace its 1911 law. the focus of discussion early in the old-age and other pensions is used In Australia, Canada, and the winter of 1956-57. The occasion was to pay family allowances. In addition, United States numerous States and a bill (later enacted) providing grants the latter plan receives money from Provinces increased benefits without to the country’s largest unemploy- taxes collected in foreign currency fundamentally modifying other as- ment society, that for general work- because of variations in foreign ex- pects of workmen’s compensation. ers. The debate broadened into a change rates. Uruguay enacted regu- There were increases in benefits in discussion of the voluntary system, lations for its new program of agri- Austria, Chile, Great Britain, Ireland, An unemployment insurance commit- cultural family allowances in 1956. and the Netherlands. Haiti covered tee established in 1954 is expected to In addition to these changes, nearly privately employed workers outside present suggestions. all countries increased the amount the capital for the first time in 1956. of the allowances. Two countries recently achieving in- Family Allowances dependence presumably continue their Germany’s family allowances pro- former programs-Tunisia, under the gram, enacted in November 1954 and Supplement act of 1921 as amended, and Ghana, fully in operation early in 1955, pro- The following pages give in some detail under its workmen’s compensation vided 25 marks a month for the third the more important social security changes law of 1941. The number of countries and each subsequent child of em- adopted by the various countries during without some sort of law for compen ployed or self-employed persons living 1955, 1956, and early 1957. Some pertin- ent legislation enacted before 1955 and sating for employment injuries has in the Federal Republic. not carried in the earlier reports is in- about reached the vanishing point. Austria first voted family allow- cluded. ances for the self-employed at the Unemployment Insurance end of 1955, and a year later in- Argentina Most of the unemployment insur- creased the rates to make them the Domestic workers over age 18 are cov- ered under a special retirement program ance systems in the world have been same for this group as for wage and (decree of 19561, under which the insured in existence for many years. The salary workers. Originally the pro- person contributes 5 percent of his wages Jabanese system is 10 sears old: the gram for the self-employed did not and the employer 7 percent. The benefit Swedish and American programshave provide a benefit for the first child. formula is weighted to favor low-income workers. The program is administered by had 20 years of experience; the Ger- In Belgium the allowance was in- the commercial workers’ fund, within the man, 30; the Italian, more than 35; creased if the mother is in the home National Social Insurance Institute. and the Danish, 50. The British sys- (1956)) and contributions were raised tem, the world’s first compulsory un- 0.5 percent to meet the higher cost. Australia employment insurance program, Bolivia brought the existing family Cash benefits are now 64 weekly for age and invalidity, 64 5s. for a widow caring started 45 years ago. allowances into a single system with for a child under age 16, and 83 7s. 6d. In the present state of economic other benefit.s through its Social Se- for other eligible widows. Property and activity there has been no rush to curity Code of December 1956. Con- income tests have been liberalized for establish such programs. Today, as tributions remain at 13 percent of these benefits. The family allowance re- mains unchanged at 10s. a week for the in 1954, there are 14 compulsory un- wage or salary, paid entirely by the second and each subsequent child and employment insurance systems in op- employer, and there are five kinds at 5s. for the first child. eration, plus four Government-subsi- of benefits : lump sums at birth, A 1954 law authorized the Federal Gov- marriage, and death; periodic pay- ernment to make capital grants to homes dized plans in which there is no com- for the aged to encourage provision of pulsion (at the national level, at ments for nursing mothers; and the suitable residential care. least) to become insured. Benefits family allowance itself, which is 3,000 subject to an income or means test bolivianos a month for each child Austria are paid under national legislation under age 16 (age 19 if the child is Old-age, invalidity, and survivors insur- ante.-Benefits were increased 16.67 per- in at least four other countries, and in school and indefinitely if he is an cent by the 1956 amendments, effective a few nations pay benefits to special invalid 1. Januarv 1957. The minimum monthlv bene- groups of workers. Canada reduced from four to two fit is 550 schillings for a primary bene- Among the changes made by re- the number of age groups for which ficiary or widow, 200 for a wife, and 50 for a child. These increases followed the cent enactments has been a rise in different rates are paid. Chile, which general Social Insurance Law of 1955, benefits in Canada, where a somk- first paid family allowances to salar- which had improved and simplified the what shorter qualifying period for ied employees in 1937, added families program and brought the wage earners’

Bulletin, August 1957 7 system much closer to that for salaried insurance program and amended the to a schedule in the law. A lump sum employees. The previous special provision health and maternity insurance, work- equal to four times the annual pension is adding 1 month’s pension annually was men’s compensation, and family allow- paid if the reduction in working capacity made permanent. Small independent in- ances programs. Operation of the pension does not exceed 25 percent. Medical care come may be received without reduction program began in January 1957 and is benefits are comprehensive; they include of the old-age benefit. scheduled for all major population cen- appliances and occupational retraining and Unemployment insurance. - Domestic ters by the end of 1957. have a duration of up to 52 weeks. servants were covered by a 1956 ordinance, The insured person contributes 73’2 per- Family allowances.-A matrimonial grant effective in August. The only groups now cent of the full amount of wages, and of 3,500 bolivianos a month is made dur- exempted are public employees, agricul- the employer, 30 percent. For benefits, ing marriage if either husband or wife tural workers on small farms, apprentices, full credit is given for the first 6,000 is a covered worker. The nursing grant persons earning less than 2’70 schillings a bolivianos daily (180,000 a month) and 30 consists of milk products to the value of month, and near relatives of the em- percent for amounts in excess of that 5,000 bolivianos a month, delivered daily ployer. Effective January 1956, the Gen- sum. The Government contribution is to the mother for 1 year following birth eral Social Insurance Law of 1955 added set at 1 percent of total wages in 1957 of the child. The child’s allowance is five new wage classes for contribution and and is to rise by stages to 5 percent after 3,000 bolivianos a month for each child benefit purposes. Benefits range from 82 6 years; funds are to be raised by taxes under age 16 (age 19 if in school, and schillings a week to 142.50 schillings for on tin and other metals exported and on indefinitely if an invalid). A birth grant single persons, plus 30 schillings for the business profits. Governments at various of 10,000 bolivianos is paid in a lump sum first dependent and 11 schillings for each levels pay employer contribution for pub- if insurance medical services are avail- additional dependent. lic employees. able; otherwise 30,000 bolivianos. A fun- Persons who work for another in areas eral grant of 10,000 bolivianos is paid if Belgium where the program operates are covered. the deceased child was aged 1 or under Old-age and survivors insurance.-The Public employees are included: occasional and 15,000 bolivianos if the child was laws of 1953, 1954, and 1955 are basically workers are excluded. The law authorizes more than a year old. the same. The benefit amount is related coverage of the self-employed at an ap- to average earnings during a full working propriate time. Burma lifetime. The old-age benefit for a man Old-age, invalidity, and survivors insur- once.-The old-age benefit is equal to 50 The act of 1954, as amended, established with a dependent wife is i/4 of 75 percent a system of health and maternity insur- of his average wage for each year of work; percent of the wage, plus increments (not yet fixed) for contributions in excess of ance and workmen’s compensation, ini- the benefit for a single man is 1/s of 60 tially restricted to Rangoon and its sub- percent: and for a woman it is y4c of 60 180 months. Contributions for 180 months are required. The pensionable age for urbs. Operations began in January 1956. percent. The law applies only to wage The program covers wage and salary earners and not to salaried employees. men is 55, and for women 50 (subject to change after actuarial study). A lump workers in industrial establishments with An arbitrary amount is assigned as the 10 or more workers. Administration is average wage for each year before 1955. sum is paid after more than 24 but less than 180 contributions. by the Social Security Board, on which The minimum benefit for persons reach- workers, employers, and the Government ing pensionable age before the program The benefit for permanent disability is the same as for old age. The individual are represented. came into effect is 28,000 francs a year For health and maternity insurance, the for a married man and 18,700 francs for must be 50-percent disabled for work and have paid contributions for 60 months-18 worker contributes 1 percent of his wage other beneficiaries. The amount rises or and the employer 3 percent; the Govern- falls with each B-percent change in the of them in the past 36 months. Widows (or disabled or aged widowers) ment contributes by subsidizing the con- cost-of-living index. The widow’s benefit struction of medical facilities. There are is 30 percent (formerly 25 percent) of the are paid the equivalent of 40 percent of the old-age pension. Smaller benefits go six wage classes; the contributions range husband’s highest annual wage. from 0.40 kyats a week to 2.40. Contributions rose according to plan to to orphans, parents, brothers, and sisters. The maximum total pension for survivors A cash benefit equal to two-thirds of 8.5 percent of wages and are shared equal- the wage is paid for 13 weeks for sickness ly by worker and employer: the Govern- is the same as the insured person’s pen- sion. A funeral benefit equal to 1 month’s and 12 weeks for maternity, after a S-day ment contribution-l,280 million francs in waiting period. The funeral grant is 200 1956is scheduled to rise by 40 million wages or, for a pensioner, l$h month’s pension is payable for a dependent wife kyats. To receive sickness benefits the francs annually to an ultimate total of insured person must have paid 17 contri- 2 billion francs. as well as the covered worker. Health and maternity insurance.-The butions in the preceding 26 weeks, and Coverage was extended to the self-em- for maternity benefits, 26 contributions in ployed by the 1956 act, which gives a insured person and his dependents (in- cluding a common-law wife) are entitled the preceding 52 weeks. Medical care is choice of affiliation in the General Sav- provided the insured person, usually for ings and Retirement Fund (governmental) to comprehensive care that includes den- tistry, hospitalization, and medicines. Ben- the same duration as the cash benefit. He or in an occupational or similar fund. The may be reimbursed for the cost of pri- individual contributes 1,200 francs a year, efits are provided after 1 month’s con- tribution in the 2 months preceding sick- vate attention if care in the program’s and the Government, 750 million francs. dispensaries or in its clinics is not avail- Family allowances.-The temporary in- ness and after 6 months’ contributions in the 12 months preceding confinement. The able. crease (1954) in the allowance if the Benefits for work injuries are entirely mother is in the home was made perman- cash benefit for sickness and maternity is equal to 100 percent of the national employer-financed. Medical care and cash ent by the 1956 law. To meet the cost, benefits are provided for temporary and the law raised the contribution rate by minimum wage, plus 70 percent of the amount earned in excess of this minimum; permanent disability, and benefits are 0.5 percent to 8.0 percent of payroll. The paid to survivors of deceased workers. 1956 law also raised the allowances for the a waiting period of 3 days is required, and qualifications are the same as for second and subsequent children; for the Canada second child the increase amounted to 54 medical care. francs a month, for the third child it was Workmen’s compensation. -The same Old-age security.-Benetlts (payable at 75 francs a month, for the fourth child benefit is paid for temporary disability as age 70 without an income test or insur- 100 francs, and for the fifth and subse- for sickness, with a waiting period of 3 ance requirement) were increased from quent children 125 francs. days. For permanent, total disability, the $40 a month to $46 in 1957. Federal grants benefit is equal to 100 percent of the to the Provinces for assistance to the Bolivia national minimum wage, plus 30 percent aged (still 50 percent of the payment) and of earnings in excess of the minimum. the blind (still 75 percent) take into ac- The Social Security Code of 1956 estab- The partial disability benefit represents count the new maximum. The amount lished an old-age, invalidity, and survivors a percentage of the wage loss, according of total income (benefits plus outside in-

8 Social Security come) allowable before a reduction is (according to length of coverage) at age Family allowances.-If the parent works made in the assistance payment was raised 60. 20 or more days a month in full-time em- $10 to $110 a month. Health and maternity insurance and ployment, he receives 70 crowns a month Hospitalization insurance. -Under the workmen’s compensation.-Amending leg- for one child, 170 crowns for two children, Hospital Insurance and Diagnostic Services islation of 1953-58 extended coverage to 310 crowns for three, 490 crowns for four, Law, adopted in 1957, in Provinces sign- sugar-cane farmers (1956) and provided and 220 crowns for each additional child. ing an agreement with the Federal Gov- for a Government contribution of NT$1.20 The allowances are lower for an employed ernment, Federal grants will meet about a month for employed persons and NT$3.60 person who cultivates farm land. half the cost of hospital and related serv- for self-employed craftsmen (first covered ices (with a larger share for Provinces in 1951). Worker and employer contribu- Denmark with low per capita incomes): individual tions were unchanged (1 percent and 3 contributions will meet all or most of The law of 1956, effective April 1, 1957, percent respectively of wages). Medical added a universal pension, payable at age the costs not federally financed. Contri- care first became available in July 1956 bution rates are to be determined by the 67. For a couple the benefit is equal to in the form of hospitalization for indus- 9 percent of the average gross income of Province. The law requires that at least trial workers. heads of families: for others, two-thirds six Provinces having half the population of that amount. The amount was initially of the country must sign the agreement Czechoslovakia Set at 1,020 crowns for a couple and 684 before Federal payments are made. Five A new pension formula and other Provinces had met the condition in early crowns for a single person; the rate will changes took effect January 1957. The be redetermined each year. An earmarked 1957, and a sixth had indicated its inten- employer contributes 15 percent of wages tion to sign. income tax of 1 percent was introduced if the worker is covered by the general to help finance the cost. Unemployment insurance.-Amendments family allowances program and 10 percent of 1956 extended coverage to commercial The means test for the “national” (for- otherwise. The worker contributes through mer old-age) pension was liberalized and fishermen, whether employed, self-em- a progressive income tax. The Govern- ployed, or working on shares. The pro- the basic pension expanded to include ment meets costs not covered by other most sums formerly added as supplements; gram coverage is otherwise limited to revenue. There is no wage ceiling for con- persons employed by another. Effective the total benefit was increased about 13 tributions, but earnings in excess of 24,000 percent. The minimum pensionable age 1950, for salaried employees the upper crowns a year are not counted in full salary limit for coverage purposes is for this benefit is scheduled to rise from for benefit purposes. 65 to 67 for men and from 60 to 62 for $4,800 a year. Old-age, invalidity, and survivors insur- Under a new schedule of contributions women. The amount for a single person unce.-The basic old-age benefit after 20 is 3,312 crowns a year, 3,180 crowns, and and benefits, effective October 1955, there years of work is equal to 60, 55, or 50 per- are nine wage classes. Both employer 2,964 crowns, depending on the cost-of- cent of the average wage, according to living zone; for a couple it is 5,016 crowns, and employee pay 16 cents a week if the the individual’s work group (I, aviation 4,752 crowns, and 4,356 crowns. The benefit weekly earnings are less than $15, 24 and underground mining: II, 800 specified cents if they are $15.00-$20.99, and so on, is reduced if the beneficiary has other important occupations: and III, other). income. The reduction follows a sliding rising to a maximum of 70 cents if earn- An increment of 2.0, 1.5, or 1.0 percent ings are $57 or more. The Government scale, which starts at 60 crowns for each (according to the work group) is paid for 100 crowns of income in excess of the meets the cost of administration and also each year of employment in excess of contributes an amount equal to one-fifth specified amount. This amount, in the 20 in groups I and II and of 25 years in highest cost-of-living area, is 2,300 crowns the combined employer-employee contri- group III. The benefit is normally payable bution. for a single person and 3.400 crowns for at age 60 after 20 years’ work for men a couple. Benefits to the worker who earned less and at age 55 after 20 years’ work for than $15 are $6 a week: if he has depend- women (and for men in group I). The El Salvador ents, he receives an additional $2. The benefit is reduced two-thirds for em- maximum benefit, paid to a worker who Health and maternity insurance.-Regis- ployees in groups II and III who continue tration of workers in the District of El earned $57 or more, is $23: it is $30 if he to work. has dependents. Reduced benefits are pay- Salvador and adjacent areas was the sub- The minimum benefit for disability is ject of a regulation of June 11, 1956, able for partial unemployment. the same as for old age: it is equal to 50 The 1950 provision establishing seasonal which also provided for employer report- percent of average earnings, plus an in- ing, statistics, and issuance of membership unemployment benefits mainly for work- crement (varying with the work group) ers in logging, lumbering, and stevedoring cards to workers. for each year of work after the first 15. Workmen’s compensation. - Decree No. was liberalized in 1955 and 1956. Contri- To qualify the worker must have had 5 butions and benefits are the same as those 2118 of May 24. 1956, provided for a new years’ work out of the past 10 if he is law to replace the 1911 act. for other workers under the unemploy- aged 28 or over: the requirement is lower ment insurance system. if he is younger. Finland Family allowances.-The program was Survivor benefits are equal to 70 percent amended in 1957 to provide $6 monthly of the insured person’s pension for the The old-age insurance law of 1956, for children under age 10 and $8 for those widow, 25 percent for a half orphan, and effective January 1, 1957, provides for an aged 10-15. Formerly $5 was payable for 50 percent for a full orphan. A woman estimated fourfold increase in average old- a child under age 5 and $7 for those aged under age 50 and not having a child in age and permanent disability benefits. 10-12. her care is entitled to 1 year’s pension The formation of reserves iS largely SUS- Chile only, unless she is aged 45 and has raised pended. The dual system of pensions- two or more children. without and with an income test-is re- Workmen’s compensation. - Pensions Health and maternity insurance.-The tained, but the insurance benefit is super- were increased by a 1957 law to a mini- cash sickness benefit is equal to 60-90 seded by a universal pension. The contri- mum of 3,750 pesos a month. (The 1949 percent of the average wage: the mater- bution rate remains 1 percent each for minimum was 3,600 pesos a year.) nity benefit (payable for 18 weeks) is the insured person and the employer. Family allowances. - Allowances were Xi-90 percent of the employed woman’s assessed on full income (the former maxi- made payable on behalf of the children wage. The rates vary with the length of mum contribution was 5,000 marks a year). of pensioners, including recipients of a uninterrupted employment in one enter- The Government share was increased widow’s pension. prise. A lump-sum maternity grant of from about 9 billion marks a year to 22 650 crowns is made for a birth in the billion. China (Nationalbt) worker’s family: a funeral grant of 1,000 A basic old-age insurance benefit of Old-age insurance.-The Labor Insurance crowns is paid when the insured worker 24,000 marks a year is paid to everyone Law of 1950 includes provision for a lump- dies and 200-800 crowns (according to at age 65. The old-age assistance payment sum payment of up to 15 months’ wages age) when a dependent dies. is 72,000 marks, 63,000 marks, or 54,000

Bulletin, August 1957 9 marks a year, varying with the cost-of- billion marks in 1956 to 13.3 billion in ing) . Administration is through family living area: it is not reduced if the annual 1957. About 6.5 million pensions were allowance compensation funds, one in each income is less than 34,000, 24,009, or 17,000 raised an average of more than 50 per- employers’ liability insurance association marks. A couple, both members of whom cent. The program covers mainly wage (agency administering workmen’s com- are eligible, receives 160 percent of the and salary workers; the latter are not pensation) single person’s payment. compulsorily covered if they earn more Under a new provision the basic pen- than 15,000 marks a year (formerly 9,000). Germany (East) sion is increased 12.5 percent for each The old-age benefit is based on earnings year receipt of pension is postponed and years covered, changes in the national Old-age, invalidity, and survivors tnsur- (maximum increase, 62.5 percent at age standard of living (average wage level), once.-A benefit increase of 30 marks 70). The pensionable age remains at 65, and cost-of-living changes. For each year (East) a month raised the minimum pri- but a woman aged 63 may receive assist- of coverage (actual or credited), the mary benefit 40 percent, to 105 marks, ance. Neither a record of contributions claimant receives 1.5 percent of his cred- effective December 1956. The minimum nor retirement is required. ited earnings. The individual’s benefit pension to a widow is now 96 marks bears the same relation to the general (East), an increase of 46 percent. Bene- France wage level shortly before he qualifies for fits for miners, disabled veterans, and totally disabled victims of an accident, as Old-age, invalidity, and survivors insur- the pension as his past earnings bore, on the average, to the past general wage well as general pensions for wage and once.--Under a law effective April 1, 1956, salary workers and the self-employed, supplements to the old-age pensions are level. Employment for 40 years with earnings at the national average, for ex- were affected. There are no financing paid after an income test to persons over provisions. age 65 (age 60 if unable to work) who ample, provides benefits equal to 60 per- cent of the current wage level. The 1957 receive any legally established old-age Great Britain payment. Everyone receives the same earnings base for computing benefit is amount (31,200 francs a year) unless total 4,231 marks a year. Since 1955 Great Britain has increased income, including pension and supplement, The qualifying period for receipt of an social security benefits, contributions, and exceeds 201,000 francs a year for a single old-age pension is 15 years. The pension- the amount of earnings permitted retired person or 258,000 francs for a couple, able age is 65, but a woman aged 60, re- persons and widows. when the supplement is reduced by the tired, with 10 years’ coverage in the past The contribution paid by an adult man amount of the excess. This increase is 20 years, is eligible; also a person aged amounts to 6s. 9d. a week: his employer financed by earmarked, special taxes on 60 and unemployed for 1 full year. Re- contributes 6s. An employed woman con- personal and corporation incomes; taxes tirement is not required after age 65. tributes 5s. 6d., and her employer 4s. lld. on alcohol-based beverages, automobiles, The invalidity benefit is of two types- An adult man who is self-employed pays stock-market transactions, luxuries, and one paid in case of incapacity for work 8s. 5d., and a woman pays 7s. 2d. In Great gifts: and a stamp tax. Total revenue is at the regular occupation and the other Britain the nonemployed also contribute estimated at 130-140 billion francs an- (at a higher rate) for general disability. to the social security program: adult men nually. For both benefits the qualifying period is pay 6s. 6d., and adult women 5s. 2d. The Since October 1, 1955, the maximum 5 years. Benefit rates for wage earners contribution rates are less for workers annual earnings considered for contribu- and salaried employees are now the same. under age 18 and for their employers. tion and benefit purposes are 528,000 The pension for total disability is com- If the worker earns less than 60s. weekly, francs. The amount of pension paid to puted as if contributions had been paid his own contributions are reduced but persons not formerly employed by an- to age 55. those of his employer are raised, and the other is 31,200 francs a year, plus a sup- A widow (or dependent widower) total employer-employee contribution is plement from the national solidarity fund. normally receives 60 percent of the pen- the same as for other workers. Health and maternity insurance.-Under sion the insured spouse would have re- Amendments of 1957 allocated 20d. a a 1955 decree, cash and other benefits in ceived, but the amount is less if she is week to the National Health Service from cases of extended illness are paid for an under age 45, able to work, and without the man’s contribution and corresponding unlimited period (formerly for 3 years). dependent children. The full orphan re- increases from other groups of contribu- Insured persons in the Paris region, in- ceives one-fifth the pension of the in- tors, thus doubling former allocations and stead of paying the full cost of prescrip- sured; the half orphan receives one-tenth. charging insurance with about 11 percent tions and receiving a refund, as before, Contributions, paid in equal amounts of the cost of the health program. were permitted under a 1957 administra- by employer and employee, are 14 per- Weekly benefits paid under the national tive decision to pay only the 20 percent cent of the wage up to 9,000 marks a insurance program for retirement, per- that is the insured person’s final percent- year, plus a substantial Government manent disability, sickness, and unemploy- age of the scheduled cost. grant. (The former pension contribution ment are, for an adult single person, 40s. Family allowances.-Payments were in- was 11 percent, but a l-percent drop in (Some benefits are lower for persons aged creased 4.3 percent in January 1955 the unemployment insurance assessment 1618.) If the person has an adult de- through an increase in the basic monthly partly offsets the total payroll tax rise.) pendent, the benefit is 65s. Od: if he also wage in the Paris region, to which the There are 16 wage classes, with monthly has a child, it is 76s. 6d. In addition, 3s. allowances are related. This wage-in contribution payments ranging from 1.75 6d. may be paid for each child after the theory the minimum wage of unskilled to 105.00 marks. Reserves will be smaller. first, plus the family allowance payment. workers in the steel industry-became The contribution rate is fixed for the Married women normally receive a weekly 18,000 francs, which brought a rise of 165 next few years, but actuarial estimates unemployment benefit of 30s. and a sick- francs a month for families with two show that higher rates may be necessary ness benefit of 25s.. but under some cir- children, 412 francs for those with three later. cumstances they may qualify for 40s. The children, and 660 francs for those with A “saving clause,” for use in possible maternity allowance for an employed four children. A new schedule of family financial emergency, permits basic amounts woman is 40s. for 18 weeks. The maternity allowances became effective April 1, 1956. to be iixed by special law if specified grant is a lump-sum payment of $10; for financial developments occur, including home confinement the grant is $4. Widows Germany (West) any adverse effect of benefits on contribu- receive 55s. weekly for 13 weeks. plus tions, on Government grants, or on re- 16s. 6d. for the first child and 8s. 6d. for Old-age, invalidity, and survivors insur- serves. each additional child, plus family allow- ante.-The program was completely re- Family allowances-The program be- ances. After 13 weeks, the benefit is re- vised by a law of 1957, effective January came fully operative January 1955, paying duced 15s. A widow without children is 1 for benefits and March 1 for contribu- 25 marks monthly for the third and each entitled if she is aged 50 or over at wid- tions. The law eliminates all but admin- subsequent child of employed or self- owhood and had been married 3 years istrative differences between salaried em- employed persons. Allowances are pay- when her husband died: formerly, 10 ployees’ and wage earners’ programs. able to age 18 (age 25 if the child is years of marriage were required. A widow Payments are scheduled to rise from 7.8 dependent or receiving occupational train- with children receives benefits until the 10 Social Security youngest child attains age 18 (as long as ized services for mother and child are pro- based on estimated and actual operating the child is living with her, and even vided. Postnatal care for as long as 6 costs of the farm. though the child is not receiving benefits months is available for the mother and Unemployment insurance. - Agricultural because he does not attend school or be- as long as 2 years for the infant. Milk workers were covered under 1955 and cause he is not disabled). A widow who for a mother unable to nurse her child 1956 decrees giving effect to the 1949 law. no longer has eligible children receives is furnished for 8 months, and a layette benefits if she is aged 50 or over (former- is supplied. A cash benefit equal to 50 Japan ly aged 40 or over) when the youngest percent of her wage is paid to the insured child attains age 18. woman during her suspension from work Health and maternity insurance.-An As in 1954, the retirement benefits are before confinement: for absence from amendment adopted in 1957 provides for increased 1s. 6d. a week for every 25 work during and after confinement, full partial payment by the insured person contributions paid during the first 5 years wages may be paid for 3 months and two- when medical care for sickness is provided after reaching pensionable age. These thirds of the wage thereafter, with no by a physician or other personnel desig- benefits (as well as those for permanent specified time limit. Funeral grants and nated by the insurance carrier. The pa- disability and, if there are no children, survivor pensions are payable (the latter tient pays the cost of the first consulta- widow’s pensions) are reduced by 6d. a to minor or invalid children). tion to a maximum of 100 yen. If hospi- week (formerly 1s.) for each shilling talized, he pays 30 yen a day for the first earned in excess of 50 but less than 70 India 30 days. Other medical service costs are a week, and by Is. for each shilling earned Health and maternity insurance and met by insurance. If care is not provided in excess of 80. (Formerly the benefit workmen’s compensation.-With the geo- by the insurance staff for any reason, the was reduced shilling for shilling if earn- graphical expansion of these programs in cost will be reimbursed according to usual ings were more than 40s. weekly.) The 1955 and 1956, workers in 43 areas now insurance program fees. widowed mother’s allowance is reduced have coverage for such benefits. Additional The dependents’ funeral benefit amounts 6d. for each shilling earned between 60 cash benefits for insured workers with to 2,000 yen, paid in a lump sum. A and 80 a week and 1s. for each shilling tuberculosis were provided in 1955. A maternity benefit (lump sum) of 1,000 in excess of 80 (the former reduction was salaried system is used for physicians in yen is paid to the wife of an insured 1s. for each shilling in excess of 60). most areas, and a panel system in a few. worker. Insured woman workers may National Health Service.-General prac- Provident funds.-Approximately 20 new receive nursing allowances of 200 yen a titioner, specialist, and hospital services industries were placed under the Em- month, payable for 6 months. continue to be provided without charge ployees’ Provident Funds Act during 1956. Contributions under the general health (the patient may voluntarily pay extra insurance program are paid equally by to obtain private or small-ward accommo- Iraq the insured and the employer. The rate dation in the hospital). For dentistry, the is 6.5 percent of wages in Government- patient pays 91 for treatment (not mouth The Social Security Act of 1956, effective managed societies and 3.0-8.0 percent in examination) and meets the full cost if December 1956, covers persons working society-managed programs, with an aver- the treatment does not cost more than in specified professions for firms with 30 age of 6.36 percent. The Government El; he also pays approximately half the or more employees. All employees of oil pays 3 billion yen a year toward benefits cost of dentures (maximum for denture companies and all government employees under a 1956 law (formerly it paid ad- payments, $4 5s.). For spectacles, the adult not already under a superannuation pro- ministrative costs only). In the volun- patient pays El for lenses and the full gram are covered. The worker contributes tary national health insurance program cost of frames. For prescriptions, a charge 10 fils (2.8 cents) a day, the employer for all residents, the Government share of Is. is made for ,each item in the pre- 15 fils, and the Government 15 fils and an was increased in 1955 to include 20 per- scription (effective December 1956). added grant. Benefits consist of periodic cent of benefit costs. Workmen’s compensation. - Legislation payments for sickness and unemployment, Unemployment insurance.-The insured in 1955 and 1956 increased payments to lump-sum payments for marriage and person and the employer contribute 1.6 the following weekly amounts: maternity, funeral grants, and, when the percent of wages each. Insurance for individual is permanently disabled, attains persons employed by the day was estab- s. d. old age, or dies, payment of the amount lished in 1950; benefits and contributions Total disability, temporary or per- remaining in his individual account. The are at a flat rate instead of a percentage manent ...... 67 6 retirement age for men is 60; for women of the wage. Special hardship allowance ...... 27 6 it is 55. Unemployability supplement ...... 40 0 Mexico Constant attendance allowance . . . 30 0 Zreland Allowance for dependent wife . . 25 0 Geographical expansion of the unified Allowance for dependent child, first.. 16 6 Benefits were increased for unemploy- system in 1955 and 1956 added 250,000 Each additional child (in addition to ment, temporary and permanent disability, workers, including 130,000 in agriculture. family allowance) ...... 86 maternity, and widows’ contributory pen- The first agricultural coverage was in sions under the amendments of 1956. The portions of Sonora, Sinaloa, and Chihu- Family allowances.-Allowances were in- single adult receives 30s. a week: the ahua, under a 1954 decree. Agricultural creased in July 1956 to 10s. a week for single person under age 18, 22s. 6d: the contributions are collected in three ways: each child after the second; the rate for married woman with her own insurance for permanent workers, through a regu- the second child continues at 8s. Aa of the and not head of a family, 22s. 6d; an lar wage-class system; for temporary same date, the upper age limit for a adult dependent, 15s.; and children, 8s. workers, by means of coupons; and for child still in school or apprenticed was each. The combined employer-employee colonists and cooperative workers, through raised to 18. The allowance is paid to contribution was raised to 5s. 6d. a week cooperative and agricultural banks. Work- age 16 for a child physically unable to for adult men and 4s. 5d. for women. ers’ housing units totaled 2,200 in 1956, attend school or perform gainful work. with an investment of 59 million pesos. Italy Benefits were substantially liberalized by Guatemala Health and maternity insurance.-Small a law of December 1956, modifying 78 of Maternity insurance.-Effective in the farmers, whether owners or tenants, were the 142 articles in the basic legislation. District of Guatemala May 1. 1953. medical covered under the law of November 1954 Old-age, invalidity, and survivors in- care is provided to the insured woman for general and specialist services, ob- surance.-The basic benefit for old-age and the wife or common-law wife of the stetrical care, and hospital care. An esti- and permanent disability was raised from insured man; it includes monthly exam- mated 7 million persons in 2 million 26 percent of wages to 34 percent; the inations for the first 6 months before con- families are covered. Contributions, which minimum pension from 50 pesos a month finement and more frequent examinations include 12 lire daily per insured person to 120: and the maximum from 600 pesos and treatment thereafter. Hospitalization from the Government as well as flat to 1,200. Existing pensions of more than during confinement and necessary special- amounts from the individual covered, are 120 pesos were increased 10 percent. A

Bulletin, August 1957 11 permanent disability pension is paid for obtain regular work. The universal super- Norway wage loss of 50 percent (formerly 66% annuation benefit payable at age 65 is percent): the amount is increased 20 per- 1105 annually (beginning April 1957). Health insurance.-Coverage was ex- cent if constant attendance is required. tended to the entire population by a Nicaragua 1956 act, bringing an estimated lo-percent A widow receives a pension equal to 50 The percent, and a child who is either a half increase in the number covered. A law of 1955 inaugurated a general program had formerly covered only per- or full orphan 30 percent, of the amount social security program, including insur- the insured person would have received. sons employed by another. Benefits at ance in the event of sickness, maternity. one-third the normal rate were made pay- (Formerly a widow received 40 percent, work injury, old age, permanent disability, and a half orphan 20 percent.) If no able to a single person when hospitalized and death. The program became effective (formerly no benefit was paid unless there widow or orphan survives, the pension is for pensions and sickness and maternity payable to dependent parents or grand- were dependents). benefits in February 1957 in Managua. Old-age pensions.-Benefit rates were parents, who were not previously eligible. Contributions are 16 percent of wages, Health and maternity insurance.-De- increased in 1956 from 1,680 crowns a 8 percent from the employer and 4 per- year to 1,860 crowns for single persons pendent parents, as well as the insured cent each from the worker and the Gov- person and his wife and children, are and from 2.520 crowns to 2,796 crowns for ernment couples. Supplements for children were now eligible for medical care. The cash The program is administered through sickness benefit is equal to 50 percent increased from 240 crowns a year to 300 the National Social Security Institute, an crowns. (formerly 40 percent) of the wage. If autonomous agency. Directors include rep- the worker is hospitalized and there are resentatives of workers, employers, physi- Poland dependents, the amount is not reduced; cians, and the Government. The 1955 administrative reorganization formerly it was reduced 50 percent. The Old-age, invalidity, and survivors in- funeral benefit was raised from 250 pesos surance-The old-age benefit amounts to abolished the Social Insurance Institution. to 500. In extended illness, the benefit is 30 percent of base earnings, with supple- The Ministry of Labor and Social Insur- paid for 52 weeks, plus a further 26 weeks ments based on duration of coverage and ance now administers pension insurance through provincial offices and local gov- if necessary. with additions for dependents. The maxi- Workmen’s compensation.-Injuries sus- mum is equal to 80 percent of the base ernment units. Trade unions administer tained while traveling to and from work cash benefits for sickness, maternity, work wage. Benefits may be paid at age 60; injuries, funeral costs, and family benefits. are now specifically included in the risks they are compulsory at age 65, when the covered. The temporary disability bene- beneficiary must retire. Contributions for fit was raised from 75 percent of the wage ‘750 weeks are required. The benefit for Spain to 100 percent. permanent total disability is computed in After a ?-month trial period during A new class was added at the top of the same way as the old-age benefit. The 1956, the Government discontinued its con- the wage scale. The maximum wage for claimant must be aged 60 and have made tribution for social security, transferring both contribution and benefit purposes. 150 weekly contributions in the 6 years this part of the cost to the employer. formerly 26 pesos daily, is now 50 pesos preceding disablement. whose contributions had been sharply re- a day. A widow is paid 50 percent of the pen- duced following a wage increase. Begin- sion the insured person would have re- ning October 1956, the insured person con- The Netherlands ceived for total disability, and a legitimate tributes 1 percent of his earnings for A general old-age pensions act, adopted child under age 14 receives an amount family allowances and the employer 4 in 1956 and effective April 1, 1957, applies equal to half the widow’s benefit. The percent. For old-age and permanent dis- to all permanent residents. The annual total paid to survivors cannot exceed 80 ability, the insured person contributes 1 benefit is 1,404 guilders for a couple and percent of the worker’s base pay. The percent and the employer 3 percent, and 846 guilders for a single person. The bene- same number of contributions is required for sickness insurance the individual pays fit varies with the cost of living and is for survivor benefits as for disability 2 percent and the employer 12 percent. not subject to an income or retirement benefits. The worker also pays 0.3 percent for union test. The pensionable age is 65. (The age Health and maternity insurance.-The dues and 0.2 percent for occupational is the same and the benefit rate nearly cash benefit equals 60 percent of the wage; training; the employer pays 1.5 percent the same as under the Emergency As- if a worker with no dependents is hos- and 0.2 percent for these purposes. sistance Act, effective 1941-56, which im- pitalized, the benefit is reduced one-half. Old-age, invalidity, and survivors inanT- posed an income test.1 Sickness benefits are paid for 26 weeks; ante.-Benefits for old-age and permanent Contributions are paid entirely by the maternity benefits for 12 weeks (6 before disability were increased in January 1956 individual. He pays 6.75 percent of in- and 6 following confinement). For sick- by a third, to 400 pesetas monthly for come up to 6,900 guilders a year but ness benefits there is a S-day waiting former wage earners in agriculture and pays nothing if his income is less than period. for former workers in industry and com- 1,500 guilders if he is single or 2,100 guild- Benefits in kind include general and merce not entitled to insurance benefits ers if he is married. A wage increase specialist care, hospitalization, medicines, from a mutual benefit society. Under this of 5.6 percent was enacted, to go into and dental care. Dependents are not eligi- program a widow aged 65 who had been effect when the contributions became pay- ble for medical services, but the wife of married 10 years now receives half the able, and at the same time the employer an insured worker, as well as the insured benefit received by her husband or to was relieved of the long-standing “equali- woman, receives maternity care. Benefits, which he would have been entitled. zation tax” of 4 percent of payroll. in cash or kind, are provided for an in- Workmen’s compensation.-Legislation in The law provides that the extensive fant for the first 6 months. For cash 1955 on work accidents and occupational system of private plans will be adjusted sickness benefits, a qualifying period of diseases extended the general system to to the new system. 12 weekly contributions in the 6 calendar agricultural workers and fishermen, re- months preceding the claim for benefits placing special systems. Among the bene- New Zealand is required; for medical care, 4 weekly fit changes was a rise in the total cash The latest benefit increase, effective contributions in the 9 weeks preceding disability benefit to 100 percent of the November 1956, made the weekly rate claim, or 12 contributions in the preceding wage (formerly 75 percent). The widow’s 63 19s. for a single person qualifying for 6 months. For maternity benefits, but pension is half the former wage of the an age, invalidity, or widow’s pension and not for prenatal care, 16 weekly contri- insured person (previously 37.5 percent) ; for miner’s, sickness. or unemployment butions in the 9 months preceding the an additional 10 percent of the wage iS benefits. The income test, where appli- presumed date of confinement are re- paid for each child. (Formerly the total cable, was liberalized. An age benefit is quired. payment for a widow with children could payable, subject to an income test, to a The funeral benefit paid varies with be no more than 75 percent, regardless woman aged 55 if she is unmarried and the wage class; it is 600, 1.000. or 1,500 of the number of children.) A lump-sum unable-for disability or other cause-to cordobas. payment is provided for certain lesions

12 Social Security or mutilations not causing permanent in- after 15 years (formerly 25). is required. Short-term benefits for work capacity for work. Health insurance.-Services were ex- accidents are the same as for non-work- Family allowances.-Increases, effective tended to almost all large towns. connected disability under health insur- January 1, 1956, brought the allowances to ance and were similarly amended in 1956. 60 pesetas a month for two dependents, Union of Soviet Socialist Republics 90 pesetas for three, 130 pesetas for four, Old-age, invalidity, and survivors insur- United States 175 pesetas for ilve, and 250 pesetas for ante.-All pensions were increased and a In 1956 Congress made major changes six dependents. The rates continue to in- retirement test was introduced in a law in the old-age and survivors insurance crease progressively: for 12 children, al- of July 14, 1956, effective October 1. All program, including extension of coverage lowances total 4,500 pesetas a month, with programs continue to accord favored to nearly 4 million persons, reduction of 3,090 pesetas for each additional child. treatment, including higher benefits and the age at which women may qualify for An allowance is also payable to a widowed more liberal qualifying conditions, to per- benefit, and addition of a new type of mother who is over age 50 or an invalid. sons in special employment. Financing benefit, payable to workers permanently Mutual benejit societies-Amendments is, as before, through funds provided in and totally disabled. (For the details of in 1956 raised all pensions awarded before the State budget. the amendments, see the September 1956 May 1, 1956, by 24 percent as of November The old-age benefit ranges from 100 issue of the Bulletin.) 1, with varying increases for pensions percent of average earnings in the last awarded later. The benefit for extended year of work for persons with low incomes Uruguay illness is now paid for a maximum of 5 (up to 350 rubles monthly) to 50 percent Agricultural employers and workers years (formerly 2% years). Orphans’ pen- in the highest wage bracket (1,000 or sions were raised 5 percent, with a new were covered under the family allowances more rubles). The minimum benefit is program by a law of 1954 and regulation minimum of 150 pesetas a month (formerly 300 rubles a month; the maximum, 1,200 75 or 100 pesetas. according to the society). of 1956. The initially assigned basis for rubles. Men may retire at age 60 after contributions is 50 pesos a month. The old-age pension was increased 10 25 years of service: women at age 55 percent for the wife and 10 percent for after 20 years’ service. A supplement may Venezuela each child: the invalidity pension was be paid, based on uninterrupted work in increased 10 percent for the wife. An the same undertaking. The social insurance system was further order of February 1956 created provincial For permanent disability the benefit for extended to seven new areas in 1957, assemblies of mutual benefit societies, with a person in ordinary work is equal to bringing the coverage of health and ma- representation by workers and employers, 85, 65, or 45 percent (according to the ternity insurance and workmen’s compen- to consider problems at the provincial degree of disability) of earnings up to a sation to an estimated 20 percent of the level. specified maximum, plus a portion of labor force. earnings above this amount. To qualify, Switzerland the disabled male worker must have had Yugoslavia Old-age and survivors insurance.-Citi- Z-20 years of employment, according to Contributions are paid exclusively by zens who were aged 65 in 1948, when the age. the employer (industry is generally na- present program went into operation, be- Survivor benefits vary with the number tionalized) and cover all social security came entitled to pensions without a means of survivors and the kind of employment benefits. The rate in 1956 was approxi- test under an act of 1955. The rates for of the insured. The minimum is 180 rubles mately 43 percent of wages. this new group of aged beneficiaries are a month if there is one dependent; 230 A regulation of 1956 provides for some 840 francs a year for the single old-age rubles if there are two dependents; and reduction in benefits to persons having pensioner, 1,360 francs for a couple, and 300 rubles if there are three or more de- income from agriculture, to help offset 680 francs for a widow; slightly higher pendents. For full benefits, the worker disadvantages to urban workers in times minimums were put into effect for all must ordinarily have been employed long of temporary unemployment and other other types of beneficiaries. Full orphans enough to meet qualifying conditions for dislocations. receive 390 francs; half orphans, 260 francs. permanent disability pension. The survi- Health and maternity insurance. - Others now over age 65 and not entitled vor must be “incapable of work” (widow Amendments of 1954, effective January to an insurance benefit receive transitional over age 55, widower over age 60 or in- 1955, provide cash sickness benefits equal pensions, subject to a means test. valid, and children under age X-up to to 80 percent of wages for the first ‘7 Amendments effective January 1957 low- age 18 if in school). Higher survivor bene- days and 90 percent thereafter for per- ered the pensionable age for single women fits are paid when death results from sons with 6 months’ continuous employ- and widows from 65 to 63 and increased work-connected injuries. ment or 12 months’ employment in the minimum and maximum benefits. Health and maternity insurance.-Vari- preceding 2 years. A reduced benefit is Workmen’s compensation.-Coverage be- ous disqualifying or limiting conditions paid for shorter qualifying periods. If the came compulsory in agriculture beginning were removed in 1956 and 1957. The cash insured person is hospitalized, the benefit January 1955. The insurance may be car- benefit is now the same for union and represents 50 percent of his earnings; if ried with commercial companies, under nonunion members (formerly the benefit he has dependents, it is 75-100 percent, administration by the cantons, subject to for nonmembers was reduced 50 percent). according to size of family. The benefit supervision of the Federal Social Insurance A labor discipline measure was repealed is paid during the disability or until per- Office. that prescribed 6 months’ employment as manent disability is certified (usually not a prerequisite for receipt of temporary more than 1 year). The funeral benefit Turkey disability benefits when the worker had equals the cost of the funeral, and the previously left employment of his own surviving family also receives 1 month’s A law of 1956 raised maximum and volition. pay or pension. minimum wages for determining social in- The minimum cash benefit is 300 rubles Workmen’s compensation.-Amendments surance benefits and contributions to 50 a month in cities and 270 rubles in rural (1950) provide 100 percent of wages during pounds and 3 pounds a day. The insur- areas. The cash benefit rate is 100 percent temporary disability and 50-100 percent, ance applies to work accident, sickness, of wages, regardless of the time worked according to degree of disablement, for maternity, old-age, permanent disability, in the same establishment (formerly it permanent disability of a third or more. and survivor benefits. The minimum pen- varied with the length of uninterrupted If the person is one-fifth to one-third sion is 720 pounds a year; the funeral service and the age of the worker); the disabled, a lump sum is paid. Injuries lump-sum payment is 150 pounds. old maximum was 90 percent of wages sustained on the way to or from work Old-age, invalidity, and survivors insur- after 12 years if earnings were more than are covered. ante.-A new act (February 195’7) liberal- 300 rubles a month. Unemployment insurance.-The program izes the program. Disability and survivor Workmen’s compensation. - Work-con- was reestablished by a 1952 decree: it benefits are payable after 5 years’ cover- nected pensions are slightly higher than covers wage and salary workers, appren- age (formerly 25 years); old-age benefits general pensions, and no qualifying period tices, and members of handicraft cooper-

Bulletin, August 1957 13 atives. Benefits equal to 50 percent of subsequent child in families of wage and four, and 11,200 for five. For each addi- the wage are payable after 1 year’s con- salary workers, military personnel, and tional child a maximum of 1.240 dinars tinuous employment or 18 months’ em- social insurance beneficiaries. Allowances is payable. The allowance may be reduced ployment in the 2 years preceding claim are payable to a child up to age 14 (age 15-75 percent, according to income in ad- for benefit; they are not paid if the 20 if he is an apprentice or in a second- dition to wage, and also if the income is household has other income sufficient to ary school and to age 25 if he is in a from agriculture. About 60 percent of all maintain the family. The Federal Gov- higher educational institution.) There is families received full allowances during ernment Board for Public Health and no age limit if the child is an invalid. 1955. Social Policy has general supervision over The breadwinner must have been con- The program is administered by the the program. Local employment offices tinuously employed at least 12 months or Federal Social Insurance Institute and by adjudicate and pay claims and operate have had 20 months’ employment in the institutes at the level of local republics the placement service. Their managing past 24 to obtain allowance. (provinces) and also by district and committees include union representatives. The maximum allowance is 3,240 dinars branch offices. Delegates to assemblies Family allowances. - The program, a month if there is one child, 5,890 for (governing bodies) are elected from adopted in 1951, covers the first and each two children, 8,200 for three, 9,960 for among insured persons.

PROGRAM OPERATIONS ards. In Arizona, for aid to dependent l Insured unemployment among (Continued from page 2) children, additional items were in- workers covered by the State un- ties. West Virginia had by far the cluded in the budget for certain In- employment insurance programs and largest decreases. Payments were dian children who returned home for the program for Federal employees lower by $5.21 in old-age assistance; the summer from publicly supported dropped 9 percent in May to a week- $8.44 per family in aid to dependent boarding schools. While these chil- ly average of 1,349,700. The average children; $3.58 in aid to the blind: dren are in school they receive an was nearly 8 percent higher, however, and $4.52 in aid to the permanently assistance allowance only for cloth- than in May 1956. The number of and totally disabled. These decreases ing and personal incidentals. Louisi- initial claims, which represent new occurred when the State reduced the ana, for aid to dependent children, unemployment, also declined 9 per- percentage of the budget deficit met aid to the permanently and totally cent, to a total of 1,000,‘700 for the by payments from 85 percent to 75 disabled, and general assistance, month. percent. raised the standards for food and also In an average week, 1,199,400 un- In Oklahoma the average payment combined personal needs and insur- employed workers received benefits- to recipients of aid to the perman- ance under a new item called “inci- 111,000less than in April and 135,000 ently and totally disabled rose $15.85 dentals.” more than in May 1956. The average when the State began meeting need The average payment in general weekly benefit for total unemploy- in full under that program. Formerly, assistance for the Nation as a whole ment was $27.47, and total benefits a 15-percent reduction in payments dropped 87 cents in May. Among paid during the month amounted to had been applied. Appreciable in- the States, changes in the average $145.7 million. A month earlier, bene- creases in average payments in Ari- payment per case ranged from a fits totaled $154.3 million, and in zona and Louisiana were attributable decrease of $6.04 in Minnesota to an May of 1956 they amounted to $125.8 to adjustments in assistance stand- increase of $5.84 in Puerto Rico. million.

Social Security