Income Security Recommendation, 1944
n The Recommendation advocates taking further steps towards the attainment of income security by:
è the unification or co-ordination of social insurance schemes;
è the extension of such schemes to all workers and their families, including rural populations and the self-employed;
è the elimination of inequitable anomalies.
n It therefore recommends member States to apply progressively a number of general guiding principles.
n Income security schemes should relieve want and prevent destitution in cases of inability to work (including old age).
n Such income security should be organized as far as possible on the basis of compulsory social insurance, provision for needs not covered being made by social assistance.
n The Recommendation also defines the range of contingencies that should be covered by social insurance, on the one hand for persons employed for remuneration and, on the other hand, for self-employed persons.
n It contains a number of provisions concerning the financing, administration and management of social insurance systems.
n Finally, the Annex to the Recommendation contains a number of suggestions for application of these guiding principles.
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Chapter
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Social securityConvention
No.
102
Social Security (Minimum Standards) Convention, 1952
The Convention aims at ensuring a minimum level of protection in the following nine branches of social security:a) medical care; b) sickness benefit;
c) unemployment benefit; d) old-age benefit;
e) employment injury benefit; f) family benefit;
g) maternity benefit; h) invalidity benefit; i) survivors’ benefit.
Some of the Conventions and Recommendations adopted subsequently are based on the same concepts and principles while affording a higher level of protection in terms of the persons covered, the benefits and their duration. This section is limited to a presentation of the general principles of Convention No. 102.
The benefits required by this Convention and each of the otherinstruments will be described in the following sections of this chapter in order to allow for a comparison between the provisions of Convention No. 102 and those of the subsequent Conventions for the corresponding branches. In addition, the maternity benefits will be examined in a separate chapter, “Maternity Protection”, as some of the provisions of the relevant instruments go beyond social security issues and cover for instance the right to maternity leave.
Flexibility clauses
Convention No. 102 provides for some flexibility in order to take into account the variety of national situations. For example, a State whose economy and/or medical facilities are insufficiently developed can determine the persons protected with reference only to the numbers of employees in industrial workplaces of a certain size.2
Moreover, the State can, as a temporary exception and in certain branches, provide benefits of a lower level or for a shorter period.Social security
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154 154 154
Flexibility clauses also cover the scope of social security Conventions and Recommendations in terms of the persons protected. The State has to protect a certain proportion of persons in a specific group and can choose between two or three methods related to the employees, the economically active population and the residents in the country respectively.
Flexibility is also found in the method of calculating the rate of cash benefits. This minimum rate is defined for any given State in relation to the wages in that country. In addition, Convention No. 1023provides States with a choice of three methods of calculation. They can decide to set the minimum rate of benefits:
a. at a certain percentage of the previous earnings of the beneficiary or breadwinner;
b. at a flat rate or by including a minimum amount determined in relation to the wage of an ordinary adult male labourer; or c. according to a prescribed scale which may depend on the level
of the other resources of the beneficiary’s family (only if all residents are covered).
Irrespective of the method chosen, the rate of the benefit for a “standard beneficiary” must attain a certain percentage of the reference wage. The standard beneficiary is defined in a specific manner for each contingency. States are permitted to choose their own rules and methods for calculating the rate of benefit, provided only that the resulting rate is at least equal to that laid down in the Convention.General responsibility of the State
Irrespective of the administrative system chosen (public or private), the State has to take general responsibility for the proper administration of social security institutions.
In order to ensure the provision of benefits, irrespective of the method of financing adopted, the competent national authorities are under the obligation to ensure that actuarial studies be made periodically and, in any event, prior to any change in benefits, the rate of insurance contributions or the taxes allocated to cover the contingencies.Participation of insured persons
Where the administration is not entrusted to an institution regulated by the public authorities or to a government department responsible13
3 These formulae are valid for all branches of social security, with the exception of family
benefit. Of the third generation instruments, only Conventions Nos. 168 (unemployment benefit) and 183 (maternity benefit) contain other specific rules.
to a legislature, the representatives of the persons protected must participate in its management or be associated therewith in a consultative capacity.
The Convention also provides for the participation of representatives of employers and of the public authorities.Financing of benefits4
The cost of the benefits and of their administration must be borne collectively by way of insurance contributions or taxation, or both.
The methods of financing must take into account the economicsituation of the country and of the persons protected.
In the case of contributory schemes, the total of the insurance contributions borne by the employees protected must not exceed 50 per cent of the total of the financial resources allocated for protection.Right of appeal
Every claimant has a right of appeal in the event of the refusal of a benefit or complaint as to its quality or quantity.Suspension of benefit
The benefit to which a person protected would be entitled may be suspended in the following cases:Ü
if the person concerned is absent from the territory of the State in which entitlement to the benefit has been acquired;Ü
if he or she is maintained at public expense, or at the expense of a social security institution, or is in receipt of other benefits or indemnities;Ü
if he or she commits an act such as a fraudulent claim, wilful misconduct which has caused the contingency, or failure to make use of the appropriate services.
In addition, unemployment benefit may be refused, withdrawn or suspended where the person concerned has deliberately contributed to his or her own dismissal, or has left employment voluntarily without just cause.Social security
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156 156 156
4 Conventions Nos. 121, 128, 130 and 168, examined below, do not contain provisions on this
subject. Convention No. 183 contains specific rules aimed at preventing making the employment of women more expensive for employers, which would lead to the recruitment of fewer women workers.
Social Protection Floors Recommendation, 2012
n This Recommendation gives guidance on introducing or maintaining social security floors and on implementing social protection floors as part of strategies to extend social security arrangements. The aim of these strategies is to gradually extend higher levels of social security to as many people as possible, in accordance with the guidelines set out in ILO standards relating to social security.
n Social protection floors constitute a set of elementary guarantees of social security at national level, the objective being to ensure a minimum level of income and access to essential health care and other social services for all persons.
n The Recommendation recognizes that the responsibility for putting it into practice lies principally with the State, and is dependent on implementation of the following principles: universality of protection; entitlement to benefits stipulated in national legislation; the sufficient and predictable character of benefits; non-discrimination, gender equality and attention to special needs; social inclusion, including persons working in the informal economy; respect for the rights and dignity of persons covered by social security guarantees; progressive implementation; solidarity where funding is concerned; consideration of different methods and approaches; healthy, responsible and transparent financial management; financial, budgetary and economic continuity, with social justice and fairness duly taken into account; consistency with social, economic and employment policies; proper coordination between the institutions responsible for providing social protection services; quality public services working to improve the efficiency of social security systems; the efficiency and accessibility of complaints and appeal procedures; regular monitoring of implementation and periodic assessment; full respect for collective bargaining and freedom of association for workers; tripartite participation with organizations representing employers and workers, and consultation of other relevant organizations representative of the persons concerned.
n Members should as quickly as possible establish and maintain their social protection floors, which should provide elementary guarantees of social security, ensuring all persons in need, throughout their lives, of:
è access to essential health care;
è elementary security of income, giving effective access to goods and services nationally defined as necessary;
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n Social protection floors should at least provide the following social security guarantees:
è access to a set of health care goods and services defined nationally as being essential, including maternity care, which meet the criteria of availability, accessibility, acceptability and quality;
è elementary security of income for children, of at least a nationally defined minimum level, giving access to food, education, health care and all other necessary goods and services;
è elementary security of income, of at least a nationally defined minimum level, for persons of working age who are incapable of earning sufficient income, in particular because of sickness, unemployment, maternity or disability;
è elementary security of income for the elderly, of at least a nationally defined minimum level.
n The Recommendation contains detailed provisions on how it is to be implemented, defining the range and level of the benefits giving effect to these guarantees and the conditions governing their award. It also contains provisions on complaints procedures.
n National strategies for extending social security should be formulated, based on national consultations, involving effective social dialogue and social participation. The Recommendation lays down what the priorities should be.
n Strategies for extending social security should apply equally to the informal economy and involve support for disadvantaged groups and persons with special needs.
n Members should monitor the progress made in implementing social protection floors and achieving other national strategy objectives in extending social security through appropriate, nationally defined mechanisms, including tripartite participation involving employers’ and workers’ representatives, and consultation with other relevant organizations representative of the persons concerned.
n A legal framework should be put in place to secure and protect personal information recorded in social security data-processing systems.
Social security