1. Introduction to social protection
Valerie Schmitt and Celine P. Bista
ILO
5 September 2013, Ulaanbaatar

2. Key questions What is social security? Typology of social transfers
Social security as a human right
ILO’s standards on providing social security
Extending social security to all
Social Protection Floor
ILO Recommendation on Social Protection Floors
Linkage with employment
SPF as an investment
Some examples in Asia

3. Social Security, principles and definitions of the international labour standards

4. What is social security?
People face contingencies during their life cycle, which have financial consequences
Social security is provided to members of a society against the economic and social distress caused by such contingencies
Maternity
Sickness / ill health
Unemployment
Work injury
Medical care
Families with children
Invalidity
Death of the breadwinner
Old age
Life cycle

5. 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

6. Typology of social transfers
Contributory
Non contributory
Compulsory
Voluntary
Targeted
Non-Targeted
 Social Insurance
 Targeted social assistance
 Universal schemes
Extension of social insurance to informal sector
 Micro-Insurance

7. Social security as a human right
Social security is a human right (Article 22 Universal declaration of human rights)
Flagship Convention 102, 1952
Recommendation 202, 2012 reaffirms the universal right to social security

8. ILO’s standards for implementing the right to SS
C 118 Equality of Treatment (Social Security) Convention, 1962
C 157 Maintenance of Social Security Rights Convention, 1982
C 168 Employment Promotion and Protection against Unemployment Convention, 1988
C 121 Employment Injury Benefits Convention, 1964
C 128 Invalidity, Old-Age and Survivors' Benefits Convention, 1967
C 130 Medical Care and Sickness Benefits Convention, 1969
C 183 Maternity Protection Convention, 2000
C.102 Social Security (Minimum Standards) Convention, 1952
R67 Income Security Recommendation, 1944
R69 Medical Care Recommendation, 1944
R.202 Recommendation on Social Protection Floors, 2012

9. Principles in ILO’s Convention No.102
International Labour Organization
Principles in ILO’s Convention No.102
PRINCIPLES
STATE’S RESPONSABILITY
Due provision of benefits
Proper administration of institutions and services (e.g. through enforcement mechanisms and regular actuarial reviews)
EQUALITY OF TREATMENT
Between Nationals and non-Nationals
SOLIDARITY AND POOLING THE RISKS
Between men & women, rich & poor, generations
TRIPARTITE ADMINISTRATION
Participation of employers and beneficiaries in key decisions and management

10. Principles in ILO’s Convention No.102
International Labour Organization
Principles in ILO’s Convention No.102
PRINCIPLES (CONTINUED)
COLLECTIVE FINANCING
Through contributions, taxation or both
Employees’ contributions should not exceed 50% of the financial resources allocated
ADEQUATE AND GUARANTEED BENEFITS
Level of benefits guaranteed, paid periodically
Consistent with level of economic and institutional development
Adjustment of pensions on cost of living
SUSPENSION OF BENEFITS
If beneficiary absent from territory, receives other benefits, made a fraudulent claim …
RIGHT TO APPEAL
In case of the refusal of the benefit
Regarding the quality & quantity of benefits
PROGRESSIVE EXTENSION
Gradual extension of social security coverage (population and level of benefits)

11. International Labour Organization
Reinforced principles in R.202
UNIVERSALITY
Universal coverage of all residents, including informal economy workers
RIGHTS AND DIGNITY
Respect for the rights and dignity of people covered by the social security guarantees
Full respect for collective bargaining and freedom of association for all workers
EFFECTIVE DELIVERY
High-quality public services that enhance the delivery of social security systems
Coordination among national institutions and international development partners

12. The Social Protection Floor

13. Extending social security to all
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

14. Extending social security to all
Discussion on social security in 2001 led to a new consensus: priority to be given to the extension of coverage, exploring several strategies: adapted social insurance, micro-insurance, social assistance…
Level of protection
Poor
Rest of informal sector
Formal sector
Population

15. Extending social security to all
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
Universal schemes in some countries (e.g. UCS, old age allowance in Thailand)
Level of protection ??
Poor
Rest of informal sector
Formal sector
Population

16. Extending social security: 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 SPFs as a fundamental element of their social security systems
Nationally defined SPF
Poor
Rest of informal sector
Formal sector
Population

17. Extending social security: The Social Protection Floor
Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people
Level of protection
Higher levels of social security to more people
Nationally defined SPF
Poor
Rest of informal sector
Formal sector
Population

18. Social Protection Floor: 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

19. Social Protection Floors
Nationally defined SPFs
No ‘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…

20. Social Protection Floor
It was adopted in national social protection strategies, e.g. Cambodia
Source: NSPS-PV of Cambodia, 2011

21. ILO’s Recommendation on Social Protection Floors, 2012 (No. 202)
R202 was endorsed by the 185 member states of ILO in June 2012 with 456 ‘yes’ votes and 1 ‘not present’
R202 serves as a guidance to member states to establish or maintain nationally defined SPFs

22. Linkage with employment
The SPF de-links entitlement to social security from formal employment
The SPF promotes employability
People become active contributors to the economy

23. SPF as an investment Social protection Household consumption
Poverty and inequality
Education & training
Health
Child well being
Livelihoods and productive investments
Labour
Human capital
Physical capital
Labour productivity
Economic performance
Demand for goods and services
Increased Wages, income
Increased financing 1. 2. 3. 4.
Direct effects
Behavioral effects 5.
Source: Maastricht School of Governance

24. Some examples in Asia

25. Universal access to health care in Thailand
Level of protection
CSMBS
6.7% pop
SSF sect.33 and % 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)

26. Cash transfers & scholarships for poor children in Indonesia
Level of protection
PKH and PKSA 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.

27. Income security and public employment programme for the working age in India
Level of protection
Coverage < 1% of the working force
Unemployment insurance
122 million with Job Card (been enrolled at least once)
Yet the majority with no protection – huge portion of working poor
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
PEP (100 days/year) = NREGA
Poor
Rest of informal sector
Formal sector

28. Extension of social insurance to informal economy workers in Thailand
Level of protection CS
6.7% pop
SSF sect.33 and % 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.

29. 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

30. 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

31. Thank you!
Valerie Schmitt, Social Security Specialist, ILO Bangkok Celine Peyron Bista Chief Technical Advisor, Unemployment Protection, ILO Bangkok