International Training Centre of the ILO Turin, 27 June 2012 Moving ahead with the extension of social security: The ILO Social Protection Floors Recommendation, 2012

Structure of the presentation 1. Conclusions of the International Labour Conference 2011 and consultation process leading towards the adoption of the Recommendation, The Social Protection Floors Recommendation, 2012: Structure and content 3.Significance of the new instrument 2

Conclusions of the International Labour Conference 2011 and subsequent consultation process 3 Point one

Where did we come from ILC General discussion: New Consensus on Social Security Global Campaign for Social Security and Coverage for All Policy papers and policy consultations Regional consultations and tripartite expert meeting 2011 ILC Recurrent discussion: Resolution and Conclusions on social protection (social security) 2012 ILC Standard-setting discussion on a new Recommendation on Social Protection Floors 4 Milestones Yaoundé Triparite declaration October 2010

Summary of results of the International Labour Conference 2011 and follow-up Resolution and Conclusions on social protection (social security) adopted by the tripartite delegations represented at International Labour Conference (183 member States)  Deepening the ‘new consensus on social security’ (2001) and putting it into broader context of the Decent Work Agenda  Endorsement of the ILO’s two-dimesnional strategy for the extension of social security coverage  Underlining importance of Convention 102 and other ILO social security standards  Agreement on the need to discuss a possible Recommendation on Social Protection Floors at ILC 2012  Reaffirmed mandate for the Office to assist member States in the extension of social security coverage and building comprehensive social security schemes 5

Effective national social security extension strategies: Building comprehensive social security systems 6 individual/household income Access to essential health care and minimum income security for all social security benefits of guaranteed levels Voluntary insurance under government regulation Level of protection high low Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all Vertical dimension: progressively ensuring higher levels of protection guided by C.102 and higher-level standards Floor level Higher levels min. c102

Pluralism of means –principal option I 7 individual/household income Social assistance Voluntary insurance under government regulation Level of protection high low Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all Vertical dimension: progressively ensuring higher levels of protection guided by C.102 and higher-level standards Floor level Higher levels min. c102 Social insurance Outcomes can be guaranteed through different means – there is no one-size-fits-all

Pluralism of means –principal option II 8 individual/household income Universal benefits Voluntary insurance under government regulation Level of protection high low Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all Vertical dimension: progressively ensuring higher levels of protection guided by C.102 and higher-level standards Floor level Higher levels min. c102 Social insurance Soc ass. Outcomes can be guaranteed through different means – there is no one-size-fits-all

Guidance on possible Recommendation on Social Protection Floors according to Conclusions (ILC 2011) (1)  Flexible but meaningful guidance to member States in building social protection floors within comprehensive social security schemes  Tailored to national circumstances and levels of development  Promotional and gender-responsive  Should be applied by all member States, using different methods and according to their own needs, resources, and their time frame for progressive implementation 9

Guidance on possible Recommendation on Social Protection Floors according to Conclusions (ILC 2011) (2)  The Recommendation should…  encourage member States to design, through an effective national social dialogue process, a social security strategy seeking to progressively close coverage gaps and built a comprehensive social security system  emphasize national ownership and flexibility: strategies should be country-led and responsive to national needs, priorities and resources  set out principles for the design and implementation of such strategies  encourage the implementation of effective monitoring mechanisms  encourage ratification and effective implementation of C.102 and other ILO social security standards 10

Elaboration of the proposed Recommendation for the ILC 2012: Consultation process June 2011 ILC Recurrent Discussion on social protection (social security) Resolution and conclusions concerning the recurrent discussion on social protection Decision on standard-setting item (single discussion) at ILC 2012 (GB) August 2011 Law and practice report (white report) Summary of law and practice in member States Questionnaire on possible Recommendation on social protection floors (deadline: 1 November 2011) March 2012 Final report (blue report) Summary of Member responses to questionnaire (2A) Office commentary (2A) Office draft of proposed Recommendation (2B) June 2012 ILC standard- setting discussion (single discussion) Discussion of amendments Adoption of Social Protection Floors Recommendation Questionnaire please submit before 1 Nov 2011 Resolution and conclusions ILC 2011 Resolution and conclusions ILC 2011 Replies from 118 member States Vote: 453 votes in favour, 1 abstention Social Protection Floors Recommen dation

The Social Protection Floors Recommendation 2012: Structure and Content The Social Protection Floors Recommendation 2012: Structure and Content 12 Point two

Social Protection Floor Recommendation at a glance Preambule Social Security as human right and social and economic necessity Reference to various international instruments I. Objectives, scope and principles Objective and scope Definition of national social protection floors Principles II. National social protection floors Definition of basic social security guarantees Legal Foundations Establishment and review ProvisionFinancing III. National Strategies for the extension of social security Prioritize implementation of national SPFs Progression to higher levels of protection Building and maintaining social security systems Policy coherence ILO social security standards IV. Monitoring National monitoring National consultations International exchange of information, experiences and expertise 13

Objective: National social protection floors 14 (a) Establish and maintain, as applicable, social protection floors as a fundamental element of their national social security systems (b) Implement social protection floors within strategies for the extension of social security that progressively ensure higher levels of social security to as many people as possible, guided by ILO social security standards nationally defined sets of basic social security guarantees which secure protection aimed at preventing or alleviating poverty, vulnerability and social exclusion Provides guidance to members to

National social protection floors: At least four nationally-defined guarantees The social protection floors should comprise at least the following basic social security guarantees: 15 access to a set of goods and services constituting essentail health care basic income security for children basic income security for persons in active age unable to earn sufficient income basic income security for persons in old age Guarantees should be provided to at least all resident and children, as defined in national laws and regulations, subject to Members’s existing international obligations National definition of minimum levels

Principles 16 universality of protection, based on social solidarity solidarity in financing and fair balance of interests overall and primary responsibility of the State adequacy and predictability of benefits Transparent, accountable and sound financial management and administration diversity of methods and approaches progressive realization, including by setting targets and timeframes financial, fiscal and economic sustainability entitlement to benefits prescribed by national law coherence with social, economic and employment policies respect for the rights and dignity of persons covered by guarantees Involvement of social partners and consultations with other stakeholders non- discrimination, gender equality and responsiveness to special needs social inclusion including of persons in the informal economy0 Coherence across institutions responsible for the delivery high-quality public services Efficiency and accessibility of complaint and appeal procedures regular monitoring of implemen- tation and periodic evaluation Full respect for collective bargaining and freedom of association

National Social Protection floors: Pluralism of approaches social assistance social insurance universal systems combination of these and others 17 national choice nationally guaranteed outcomes Most effective and efficient combination of benefits and schemes in national context (para.9(1)) Most effective and efficient combination of benefits and schemes in national context (para.9(1)) Benefits may include child and family benefits, sickness and health-care benefits, maternity benefits, disability benefits, old-age benefits, survivors’ benefits, unemployment benefits and employment gaurantees, and employment injury benefits as well as any other social benefits in cash or in kind (para.9(2))

National social security extension strategies: Formulation and implementation set objectives reflecting national priorities identify gaps in, and barriers to, protection seek to close gaps in protection through appropriate and effectively coordinated schemes complement social security with active labour market policies specify financial requirements and resources, time frame and sequencing for the progressive achievement of the objectives Raise awareness about social protection floors and their extension strategies 18 support growth of formal employment and the reduction of informality consistent with and conductive to the implementation of national social and economic development plans support disadvantaged groups and people with special needs

National social security strategies: Normative orientations Members should… 19 aim to achieve the range of benefits level of benefits specified in these instruments in building national social security systems aim to achieve the range of benefits level of benefits specified in these instruments in building national social security systems consider, as early as national circumstances allow, ratification giving effet to these instruments consider, as early as national circumstances allow, ratification giving effet to these instruments Other ILO social security Conventions and Recommendations setting out more advanced standards Social Security (Minimum Standards) Convention, 1952 (nº 102)

Monitoring Nationally-defined monitoring mechanisms and national consultations Collection, compilation and publication of social security data, statistics and indicators Legal framework to protect private individual information Taking into consideration relevant guidance provided by ILO and other international organisations Exchange of information, experience and expertise among members and with ILO Technical assistance from ILO and others 20 involving social partners and, as appropriate, other stakeholders

Significance of a Social Protection Floor Recommendation Significance of a Social Protection Floor Recommendation 21 Point three

ILO Policy: Nationally defined Social protection floors 22 New ILO Recommendation calls for Social Protection Floor for all Landmark Recommendation aims at extending essential health care and basic income security to millions of people around the globe. ●The new ILO Recommendation is the first autonomous one to be voted on social security in 68 years. ● With more than five billion people lacking adequate social security, the new international labour standard adopted by the International Labour Conference calls for providing people with essential health care and benefits, as well as basic income security constituting national social protection floors. ● Countries are encouraged to establish social protection floors as a “fundamental element of their national social security systems” and as part of their social, economic and environmental development plans. ● There are many positive examples in Latin America, Asia and Africa where countries successfully implemented the entire floor or at least major elements of it. These examples show that some social protection for all is affordable nearly everywhere.

Significance of a Social Protection Floors Recommendation at the national and global level National level Contributes to…  Reducing poverty and promoting social cohesion and investments in people  Giving effect to the human rigth to social security by establishing legal entitlements  Faciltating access to essential goods and services  Promoting productive economic activity and reduction of informality and precariousness  Providing framework for national social protection policies in close coordination with economic, employment and other social policies  Strengthening national dialogue, institutional frameworks and state-building 23 Global level Contributes to…  Accelerating progress towards achieving the MDGs  Promoting rights-based development policies  Building sustainable institutional structures in poor countries  Fostering policy coherence and coordination, and deepening multilateral collaboration

“Growing with equity” The virtuous cycle of development SPF investments Schooling/ Training/ Health Employable Employed in the formal sector and paying taxes Higher levels of social Protection 24

Reference documents ILO two-dimensional strategy and adoption of Social Protection Floors Recommendation ●ILO Recommendation concerning national floors of social protection (Social Protection Floors Recommendation), 2012 (No. 202), reports/provisional-records/WCMS_183326/lang--en/index.htmwww.ilo.org/ilc/ILCSessions/101stSession/ reports/provisional-records/WCMS_183326/lang--en/index.htm ●Social protection floors for social justice and a fair globalization, Report IV(2A and 2B), 101th Session of the International Labour Conference 2012, agenda/social-protection-floor/lang--en/index.htm agenda/social-protection-floor/lang--en/index.htm ●Social protection floors for social justice and a fair globalization, Report IV(1), 101th Session of the International Labour Conference 2012, uments/meetingdocument/wcms_ pdf uments/meetingdocument/wcms_ pdf ●Report of the Committee for the Recurrent Discussion on Social Protection (including Resolution and Conclusions), 100th Session of the International Labour Conference, Provisional Records No. 24), records/WCMS_157820/lang--en/index.htm records/WCMS_157820/lang--en/index.htm ●Social security for social justice and a fair globalization, 100th Session of the International Labour Conference, Report VI, submitted/WCMS_152819/lang--en/index.htm submitted/WCMS_152819/lang--en/index.htm 25 More general ●ILO, 2010: World Social Security Report 2010/11: Providing coverage in the time of crisis and beyond (Geneva: International Labour Office), oad.do?ressourceId= oad.do?ressourceId=15263 ●ILO, 2010: Extending social security to all. A guide through challenges and options (Geneva: International Labour Office), oad.do?ressourceId= oad.do?ressourceId=16152 ●Social Protection Floor Advisory Group, 2011: Social protection floor for a fair and inclusive globalization (Geneva: International Labour Office), dcomm/---publ/documents/publication/wcms_ pdf dcomm/---publ/documents/publication/wcms_ pdf ●UNDP, Special Unit for South-South Cooperation, and ILO, 2011: Sharing Innovative Experiences: Successful Social Protection Floor Experiences (New York and Geneva: UNDP, Special Unit for South-South Cooperation and ILO), oad.do?ressourceId= oad.do?ressourceId=20840 ●See also GESS web portal:

Thank you for your attention 26

Group exercice - 1 The full respect for collective bargaining and freedom of association for all workers and the tripartite participation with representative organizations of employers and workers are key principles of the SPFs Recommendation: As trade union representative how do you see your participation in designing, implementing, monitoring and evaluating a national social security extension strategy? Which are the main obstacles and concerns to this participation? How can these obstacles be overcomed? 27

Group exercise 2 You are participating in an important tripartite discussion on the implementation of social protection floors Recommendation. List 4/5 relevant arguments that could be use to sustain the implementation of the four basic components of SPF? If all components could not be available from the beginning, which principles should be observed when designing the social security extension strategy? 28