Presented by V. Schmitt & S. Satriana Vientiane, 25 April 2013 The Social Protection Floor framework International standards and practices Presented by V. Schmitt & S. Satriana Vientiane, 25 April 2013

Structure of the presentation What is social security? How to extend social security? The Social Protection Floor concept and recommendation Examples from ASEAN countries

What is social security? People face contingencies during their lives Maternity Sickness / ill health Unemployment Work injury Life cycle Families with children Invalidity Death of the breadwinner Old age These have financial consequences

What is social security? THE PROTECTION PROVIDED BY SOCIETY To compensate for the loss of income & covers health care expenditures To facilitate access to social services and fulfill basic needs FINANCIAL SUPPORT ACCESS TO SERVICES SOCIAL TRANSFERS

What is social security? Social security is a human right The Universal Declaration of Human Rights The International Covenant on Economic, Social and Cultural Rights The Declaration of Philadelphia (annex to the Constitution of the International Labour Organization)

How to implement the right to social security? ILO has adopted Social Security Standards Two types: Conventions and Recommendations These standards lay down obligations and guidelines for ILO Member States

The main Social Security standards for each “contingency” Maternity Sickness / ill health Unemployment Work injury Convention No102, covers the nine contingencies Life cycle Families with children Invalidity Death of the breadwinner Old age C 183 C 128 C 128 C 128

How to implement the right to social security? Contributory Non contributory Compulsory Voluntary Targeted Non-Targeted Social Insurance (Ex: SSO) Extension of social insurance to informal sector Micro-Insurance (Ex: CBHI) Fully subsidized provisions for civil servants (Ex: CSBMS) Targeted social assistance (Ex: HEFs) Universal schemes (Ex: UCS) http://www.social-protection.org/gimi/gess/ShowTheme.do?tid=11&ctx=0

Structure of the presentation What is social security? How to extend social security? The Social Protection Floor concept and recommendation Examples from ASEAN countries

Social security extension For a long time, SS was contributory and mainly adapted to the formal sector Level of protection Assumption that these schemes would progressively extend their coverage with the shrinking of the informal sector ??? This did not happen…. Poor Rest of informal sector Formal sector Population

Social security extension Discussion on SS in 2001 -> new consensus: priority to the extension of coverage, exploring several strategies: adapted SI, micro-insurance, social assistance… Level of protection Poor Rest of informal sector Formal sector Population

Social security extension Situation today: SP programs are scattered, sometimes overlapping, inclusion/exclusion errors Coverage through micro-insurance limited; often not sustainable Some programs target only the poorest, leaving the rest of informal sector workers uncovered In a few countries (e.g. Thailand) universal schemes (UCS, old age allowance) Level of protection ?? Poor Rest of informal sector Formal sector Population

Social security extension: the social protection floor Level of protection All residents should enjoy at least a minimum level of social security Member states of the ILO should establish social protection floors as a fundamental element of their social security systems Nationally defined social protection floor Poor Rest of informal sector Formal sector Population

Social security extension: the social protection floor Level of protection Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people Higher levels of social security to more people Nationally defined social protection floor Poor Rest of informal sector Formal sector Population

Structure of the presentation What is social security? How to extend social security? The Social Protection Floor concept and recommendation Examples from ASEAN countries

It was adopted in national social protection strategies Source: NSPS-PV of Cambodia, 2011

And endorsed by the 185 member states of the ILO in June 2012 with the adoption of the SPF Recommendation (No 202) 101st ILC 14 June 2012 456 yes votes 1 absention The recommendation 202 is a useful guidance for member states who wish to establish/maintain SPFs as part of their national social security systems http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdf

In a country with a Social protection floor, four guarantees:  All residents have access to essential health care  All children enjoy income security through transfers in cash or kind  access to nutrition, education and care  All those in active age groups who cannot earn sufficient income enjoy a basic income security (particularly in case of sickness, unemployment, maternity, disability)  All residents in old age and with disabilities have income security through pensions or transfers in kind

Nationally defined Social Protection Floors Not a one size fits all approach : each country defines the levels of benefits that it can/is willing to provide Each country also decides how to do it – through universal schemes, targeted social assistance, social insurance, a combination…

Give effect to the recommendation According to ILO’s Constitution ILO member states have to submit the Social Protection Floors Recommendation before the national authorities to enact legislation or take action to give effect to the Recommendation. In this context the Assessment Based National Dialogue Exercise will be a useful tool since it will propose concrete routes for the further development of the SPF in Lao PDR.

Structure of the presentation What is social security? How to extend social security? The Social Protection Floor concept and recommendation Examples from ASEAN countries

Universal access to health care in Thailand Level of protection CSMBS 6.7% pop SSF sect.33 and 39 15.5% pop Universal Coverage Scheme (UCS) – 75.1% population CMHI since 2009 (880,000 insured) Poor Rest of informal sector Formal sector Quasi 100% Coverage (issues: large number of undocumented migrant workers are not covered by the Compulsory Migrant Health Insurance (CMHI) due to problems of affordability)

15 years free education policy in Thailand (9 years compulsory) Level of protection Educa-tion grant (Rbt educ. Fees from 3 to 25 years of age) Child support grant (400 Baht month) Free education policy extended to 15 years, compulsory education from 6 to 15 years of age Poor Rest of informal sector Formal sector Limitations: children of poor families are requested to work; advocacy for a child support grant either universal or targeted to poor households / children of certain age groups

Cash transfers & scholarships for poor children in Indonesia Level of protection PKH and PKSA - 1.5 million very poor households in 2012 Scholarship for the poor – 6.3 million students in 2012 BOS program – Free education – 44.7 million students in 2012 (grade 1 to 9) Poor Rest of informal sector Formal sector Limitations: The PKH program should be expanded to cover at least all poor households (instead of only very poor); lack of health and education supply may curb the impact of the program.

Income security and return to work for the working age in Indonesia Level of protection Community Empowerment Plan de Empleo Comunitario (community work plan): $150 (US$38.5) per month for unemployed workers Programa Jóvenes Más y Mejor Trabajo (programme for more and better work for young people): From $150 to 550 (US$38.5 to 141.0) per month plus counseling and training services (school completion, work orientation, vocational training) Seguro de Capacitación y Empleo (training and employment insurance): $225 (US$57.7) per month plus counseling and training services (school completion, work orientation, vocational training) Interzafra: $225 (US$57.7) per month for unemployed workers in temporary positions Seguro de Desempleo: (unemployment insurance) $357 (US$91.5) on average per month for formal-sector unemployed workers Recuperación Productiva, REPRO, (programme for productive recovery): $600 (US$153) per month as subsidy for nominal wages for employees of businesses hit by crisis Training Training Training Micro credit Micro credit Poor Rest of informal sector Formal sector

Income security and return to work for the working age in Argentina Level of protection Unem-ployment insurance REPRO-wage subsidy Allowance for temporary workers Plan de Empleo Comunitario (community work plan): $150 (US$38.5) per month for unemployed workers Programa Jóvenes Más y Mejor Trabajo (programme for more and better work for young people): From $150 to 550 (US$38.5 to 141.0) per month plus counseling and training services (school completion, work orientation, vocational training) Seguro de Capacitación y Empleo (training and employment insurance): $225 (US$57.7) per month plus counseling and training services (school completion, work orientation, vocational training) Interzafra: $225 (US$57.7) per month for unemployed workers in temporary positions Seguro de Desempleo: (unemployment insurance) $357 (US$91.5) on average per month for formal-sector unemployed workers Recuperación Productiva, REPRO, (programme for productive recovery): $600 (US$153) per month as subsidy for nominal wages for employees of businesses hit by crisis Allowance / month & training & counselling Community workk plan Poor Rest of informal sector Formal sector

Extension of social insurance to informal economy workers in Thailand Level of protection CS 6.7% pop SSF sect.33 and 39 15.5% pop Social security Act, Section 40 Package 1: 70 baht / 30 baht Death, Work injury, Sickness SSF section 40 Universal disability allowance of 500 baht/month Poor Rest of informal sector Formal sector With the introduction of subsidies, coverage has increased from 68 persons to 1.3 million in 18 months. However the target population = 24 million informal economy workers. Also only 50% pay contributions regularly.

Income security for the elderly (>60 years) in Thailand Level of protection Pen-sion for CS Social security Act, Section 40 Package 2: 100 baht / 50 baht Death, Work injury, Sickness & Old age lump sum SSF section 33 & 39 SSF section 40 Universal old age allowance Plan de Empleo Comunitario (community work plan): $150 (US$38.5) per month for unemployed workers Programa Jóvenes Más y Mejor Trabajo (programme for more and better work for young people): From $150 to 550 (US$38.5 to 141.0) per month plus counseling and training services (school completion, work orientation, vocational training) Seguro de Capacitación y Empleo (training and employment insurance): $225 (US$57.7) per month plus counseling and training services (school completion, work orientation, vocational training) Interzafra: $225 (US$57.7) per month for unemployed workers in temporary positions Seguro de Desempleo: (unemployment insurance) $357 (US$91.5) on average per month for formal-sector unemployed workers Recuperación Productiva, REPRO, (programme for productive recovery): $600 (US$153) per month as subsidy for nominal wages for employees of businesses hit by crisis >90: 1000 baht 80-89: 800 baht 60-69: 600 baht 70-79: 700 baht Poor Rest of informal sector Formal sector

Income security for the elderly in Viet Nam Level of protection Voluntary insurance under government regulation Social pension (180,000 VND/month) Problems with the vertical dimension: weak protection to formal workers 5 millions don’t receive any pension 1,300,000 social assistance +80 100,000 social assistance 60-80 1,000,000 pensioners 100,000 voluntary participants

An ASEAN priority Cambodia proposed a Concept note and Plan of Action at ASEAN summit in Nov 2012, Phnom Penh to… Achieve Integration with a Human Face Mitigate any negative social effects of the economic integration especially for the Community’s least developed countries and on the poorest segments of ASEAN population Nationally defined social protection floors Towards an ASEAN Declaration