International Labour Office 1 Setting Social Security Standards in a Global Society An analysis of present state and practice and of future options for ILO social security standard setting Inter-regional Tripartite Meeting on The Future of Social Security in Arab States Amman, Jordan, 6-8 May 2008 Ursula Kulke, Social Security Department International Labour Office, Geneva

International Labour Office 2 The ILO Mandate in the field of social security  The ILO Mission – Preamble to the ILO Constitution: …to improve conditions of labour, inter alia, through the «prevention of unemployment, …the protection of the worker against sickness, disease, and injury arising out of his employment, the protection of children, young persons and women, provision for old-age and injury » – Declaration of Philadelphia1944: to pursue…«the extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care » – ILC 2001: Conclusions of the ILC 2001 confirmed ILO Mandate in social security and requested the ILO to launch a global campaign for the extension of social security for all (launched in 2003)

International Labour Office 3 ILO’s main tools for pursuing its mandate  International Labour Standards  The ILO is the only international organziation which is charged by its constituents with the setting of interntaional labour standards  International labour standards take the form of either Conventions or Recommendations  Conventions and Recommendations are adopted by the International Labour Conference of the ILO by 2/3 majority of ILO constituents  Conventions (188): Are open to ratification and when ratified,they become legal obligations, if not ratified: represent goals for national policy making  Recommendations (199): Are not open to ratification, they provide technical guidelines for the implementation of Conventions at national level  The application of international labour standards by national law and practice, is regularly monitored by ILO supervisory bodies

International Labour Office 4 ILO’s up-to-date social security Standards  Conventions  C. 102 on Social Security (Minimum Standards)  C. 121 on Employment Injury Benefits  C. 128 on Old-Age, Invalidity and Survivors’ Benefits  C. 130 on Medical Care Benefits  C. 168 on Unemployment Benefits  C. 183 on Maternity Benefits  C. 118 on Equality of Treatment in Social Security  C. 157 on Maintenance of Migrant Workers Rights  Major Recommendations  R. 67 on Income Security  R. 69 on Medical care

International Labour Office 5 Social Security (Minimum Standards) Convention, 1952 (No. 102) Flagship Convention No. 102  Defines 9 branches of social security  Medical care benefit, sickness benefit, unemployment benefit, old-age benefit, employment injury benefits, maternity benefit, family benefit, Invalidity benefit, survivors’ benefit  Sets minimum standards for these nine branches  Is based on commonly agreed social security principle  Is built upon the basis that there is no right model for social security and it reflects countries’ social and cultural values, their history, their institutions and their level of economic development  It thus includes several flexibility clauses to allow as many countries as possible to fulfill its provisions

International Labour Office 6 Social Security (Minimum Standards) Convention, 1952 (No. 102) Flagship Convention No. 102  Sets minimum standards for the nine branches  Minimum percentage of personal coverage  Minimum level of benefits  Maximum qualifying period for the entitlement to benefits  Minimum duration of benefits

International Labour Office 7 Social Security (Minimum Standards) Convention, 1952 (No. 102) Convention Branches Convention No. 102 Conventions Nos. 121, 128, 130, 168, 183 Benefit Sickness Benefit 45 % 1 60 % Unemployment Benefit 45 %50 % Old-Age Benefit 40 %45 % Employment Injury Benefits Short term Disability Survivors ’ 50 % 45 % 60 % 50 % Family Benefit 3 % or 1,5 %--- Maternity Benefit 45 %2/3 of the woman ’ s earnings Invalidity Benefit 40 %50 % Survivors ’ Benefit 40 %45 %

International Labour Office 8 Social Security (Minimum Standards) Convention, 1952 (No. 102) Flagship Convention No. 102  Defines basic social security principles  Guaranteed, defined benefits  Participation of protected persons in administration  General responsibility of the Governments for  provision of benefits, and  proper administration of schemes, e.g. through regular actuarial reviews  Collective financing  Adjustment of pensions  Right of appeal  Equality of treatment

International Labour Office 9 Social Security Schemes to comply with Convention No. 102  Social insurance schemes  Universal schemes  Social assistance schemes Administrations to comply with Convention No. 102  Public social security schemes  Private social security schemes, if in compliance with minimum standards and basic principles

International Labour Office 10 Advantages of Ratification of Convention No. 102  When Convention No. 102 is ratified, state parties will benefit on a priority basis from ILO experience in the field of social security and from technical assistance, including policy advice, actuarial and financial advice, advice regarding collection of data, drafting of legislation, etc.  Commitment to Convention No. 102 will lead to provide regular and sustainable benefits, thus it will enhance the confidence of insured persons in the scheme and in the national social security administration in general

International Labour Office 11 The relevance of ILO social security Conventions and particularly Convention No. 102 Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights ILO social security standards as main reference for interpretation and definition of the right to social security and implementation guidance Regional human rights and social security instruments - In the European Social Charter: reference for establishing the minimum level of social security in line with Convention No. 102 (Art. 12 of EC), - European Code of Social Security: modelled after Convention No. 102, - CARICOM Agreement on Social Security and SADC Code on Social Security make reference to Convention No. 102 National social security systems - Important impact on social security legislation all over the world  An examination of the country cases where the ILO Committee of Experts has observed non-compliance with ratified social security Conventions shows that, in most cases (in 75 cases since 1964), the national law and practice has been brought in conformity with the requirements of the Convention by ratifying States following the recommendations of the ILO Committee  The standards had and still have substantial influence at the international, regional and national level

International Labour Office 12 How effective are ILO social security standards with regard to the extension of social security and coverage for all through a basic benefit package All residents have access to basic/essential health care benefits, where the State accepts the general responsibility for ensuring the adequacy of the delivery system and financing of the scheme All children enjoy income security at least at the poverty level: through family/child benefits aimed to facilitate access to nutrition, education and care Some targeted income support for the poor and unemployed in active age group (promoting economic activity) All residents in old age or with disability enjoy income security at least at the poverty level through pensions for old age and disability

International Labour Office 13 How effective are ILO social security standards for achieving social security and coverage for all? - Recommendations Nos. 67 and 69: Universal coverage for cash benefits under 8 branches and universal health care benefits, through social insurance or social assistance (for those not covered) - Convention No. 102: - Protection of certain percentage of classes of population (e.g. 50% of all employees, or economically active persons constituting not less than 20% of all residents or all residents with small means) - Ratification of minimum of 3 out of 9 branches (incl. one long-term or unemployment benefit), without indication of priority benefits -Benefit levels are too high for universal basic benefits  R. 67 and 69 appear effective for providing minimum benefit package for all, but non-binding, while C. 102 is not due to limited scope of personal coverage

International Labour Office 14 Ratification Map of Convention No. 102 (43 ratifications as of 2008)

International Labour Office 15 Ratification Chart of Convention No. 102 Albania (2006) Austria (1969) Barbados (1972) Belgium (1959) Bolivia (1977) Bosnia and Herzegovina (1993) Democratic Rep. of the Congo (1987) Costa Rica (1972) Croatia (1991) Cyprus (1991) Czech Rep. (1993) Denmark (1955) Ecuador (1974) France (1974) Germany (1958) Greece (1955) Iceland (1961) Ireland (1968) Israel (1955) Italy (1956) Japan (1976) Libya (1975) Luxembourg (1964) Macedonia (1991) Mauritania (1968) Mexico (1961) Montenegro (2006) Netherlands (1962) Niger (1966) Norway (1954) Peru (1961) Poland (2003) Portugal (1994) Senegal (1962) Serbia (2000) Slovakia (1993) Slovenia (1992) Spain (1988) Sweden (1953) Switzerland (1977) Turkey (1975) United Kingdom (1954) Venezuela (1982)

International Labour Office 16 Prospects of further ratifications of Convention No. 102  Convention No. 102 has been ratified by 43 ILO member States  However: After the Governing Body decision in 2002 which classified the up-to-date standards, several member States indicated strong interest in ratification of C. 102, e.g. Argentina, Brazil, Bulgaria, Jordan, Mongolia, Romania, Russia, Ukraine, ILO Convention No. No. of Ratifications 10243

International Labour Office 17 Conclusions What do we have? Existing social security Conventions, and in particular Convention No. 102 – Embody an internationally accepted definition of social security, – Have had and still have substantial influence at international, regional and national level  Are thus of utmost relevance for ILO member States  But they fall short of providing universal access to basic benefit package

International Labour Office 18 Conclusions What do we need? Ideally, a new mechanism that – Makes concrete the human right to social security – Helps to achieve universal access to basic benefits to combat poverty as fast as possible, – Progressively provides for more comprehensive social security protection, – Is linked to Convention No. 102, providing income replacement according to economic performance – Contributes to the achievement of relevant Millenium Development Goals – The Office has started analysing and discussing it with its constituents, the process will take several years

International Labour Office 19 THANK YOU