Unemployment protection,
as part of a comprehensive
social security system
Valerie Schmitt, Celine Peyron Bista
Hands-on Training, Oct 2013
Designing and implementing
unemployment benefits
Key questions
•
•
•
•
•
What is social security?
Towards the right to social security
The SPF endorsement
The SPF an amazing opportunity
How can social security standards help in
implementing the right to social security
What is social security?
• People face contingencies during their life cycle,
which have financial consequences
Maternity
Sickness / ill health Unemployment
Families with children
Invalidity
Work injury
Death of the
breadwinner
Medical care
Old age
Life cycle
• Social security is provided to members of a society
against the economic and social distress caused by
such contingencies
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?
Typology of social transfers
Social transfers
Contributory
Compulsory
 Social Insurance
Non contributory
Voluntary
Targeted
Non-Targeted
Extension of
social insurance to
informal sector
 Micro-Insurance
 Targeted social
assistance
 Universal
schemes
http://www.social-protection.org/gimi/gess/ShowTheme.do?tid=11&ctx=0
What is social security?
Social security as a human right
• Social security is a human right
(Article 22 Universal declaration of
human rights)
• Article 25 recognizes the right to a
standard of living adequate for
health and well being of the
individual and his/her family …
including medical care
• Flagship Convention 102, 1952
• Recommendation 202, 2012
reaffirms the universal right to social
security
Towards the right to social security
• Access to social security in
many countries
• Need to expand
horizontally and vertically
Poor
Rest of informal sector
Population
Level of
protection
Formal sector
Towards the right to social security
• Social insurance mainly
looks at covering formal
sector workers, with in
some cases extension of
voluntary schemes to the
informal sector
Poor
Rest of informal sector
Population
Level of
protection
Social
insurance
Formal sector
Towards the right to social security
• The major part of the
population is however be
left without adequate
protection
Poor
Rest of informal sector
Population
Level of
protection
Formal sector
Towards the right to social security
• All residents should enjoy at
least a minimum level of social
security
• Countries should establish SPFs
as a fundamental element of
their social security systems
Level of
protection
Social Protection Floor
Poor
Rest of informal sector
Population
Formal sector
Towards the right to social security
• Based on this floor, extend
social security to provide
progressively higher levels of SP
benefits to more people
• Ex SSO article 40 complements basic
pensions and UCS in Thailand
Level of
protection
Social
insurance
Social Protection Floor
Poor
Rest of informal sector
Population
Formal sector
The SPF adopted nationally
It was adopted in national social protection strategies, e.g. Cambodia
Source: NSPS-PV of Cambodia, 2011
The SPF endorsed globally
• 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
http://www.ilo.org/wcmsp5/groups/public/---ed_norm/--relconf/documents/meetingdocument/wcms_183326.pdf
The SPF adopted in Asia
• ILO Asia Pacific Regional Meeting (Dec 2011):
– Priority to “Reducing poverty and wide inequalities
in income and wealth” and “Building effective
social protection floors in line with national
circumstances
• Adoption by ASEAN member
states of the Declaration for
strengthening social
protection (6 Sept 2013)
The SPF: an amazing opportunity
A set of 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 have income security through
pensions or transfers in kind
The SPF: an amazing opportunity
3rd guarantee of the SPF
• 2 functions of unemployment
protection
– Income support (immediate response against poverty)
– Increase employability (long-term response to poverty)
• 3-dimensional approach:
Income security
Employability &
adaptability

Return to
employment
The SPF: an amazing opportunity
A fast track strategy
Thailand
The SPF: an amazing opportunity
Poverty reduction and development
Social
protection
2. Direct effects
Poverty and
inequality
2. Behavioral effects
Education &
training
1.
Household
consumption
5.
4.
Demand for
goods and
services
Child well
being
Labour
Increased
financing
Human capital
Health
Livelihoods
and productive
investments
Increased
Wages,
income
3.
Economic
performance
3.
Physical capital
4.
Labour
productivity
Source: Maastricht School of Governance
How to implement
the right to social security? How can
social security standards help?
• Governments have to organize access and
levels of services through legislative and
regulatory means
• It is the responsibility of the Government to
design an adapted legal framework
How can social security
standards help?
• ILO has adopted Social
Security Standards
• Two types: Conventions
and Recommendations
• These standards lay down
obligations and guidelines
for ILO Member States
• They help answer all the
design questions
How can social security
standards help?
• Conventions are designed with a view to
being ratified. Hence, when an ILO Member
state ratifies a Convention, it becomes subject
to legally binding international obligations.
• Recommendations are not open for
ratification, they specify general or technical
guidelines and often supplement
corresponding Conventions.
How can social security
standards help?
• Since 1919, the ILO has adopted 31
Conventions and 23 Recommendations in the
area of social security, which have greatly
contributed to the development of social
security as a universal human right
• In 2002, the ILO Governing Body confirmed
eight out of these 31 Conventions as up-todate social security Conventions
How can social security
standards help?
C 183
Maternity
C 130
C 168
Sickness / ill health
Unemployment
C 121
Work injury
Convention No102, covers the nine contingencies
Families with children
Invalidity
Death of the
breadwinner
Old age
C 183
C 128
C 128
C 128
Life cycle
How can social security
standards help?
Supplement
C.102 Social Security (Minimum Standards) Convention, 1952
C 121
Employment
Injury Benefits
Convention,
1964
R 121
Employment
Injury Benefits
Recommendation, 1964
C 128
Invalidity,
Old-Age and
Survivors'
Benefits
Convention,
1967
C 130
Medical Care
and Sickness
Benefits
Convention,
1969
R 131
Invalidity, Oldage and
Survivors'
Benefits Recommendation, 1967
R 134
Medical Care
and Sickness
Benefits
Recommendation, 1969
C 168
Employment
Promotion and
Protection
against
Unemployment
Convention,
1988
R 176
Employment
Promotion and
Protection
against Unemployment
Recom., 1988
C 183
Maternity
Protection
Convention,
2000
R 191
Maternity
Protection
Recommendation, 2000
R. 202 Social Protection Floors Recommendation, 2012 (No. 202)
How can social security
standards help?
Supplement
Flagship
C.102 Social Security (Minimum Standards) Convention, 1952
C 121
Employment
Injury Benefits
Convention,
1964
R 121
Employment
Injury Benefits
Recommendation, 1964
C 128
Invalidity,
Old-Age and
Survivors'
Benefits
Convention,
1967
R 131
Invalidity, Oldage and
Survivors'
Benefits Recommendation, 1967
C 168
Employment
C 183
C 1309 branches of social security
Promotion and
Maternity
Medical Care
Minimum
percentage
of
people
Protection
Protection
and Sickness
against
Convention,
Benefits
coveredUnemployment
(e.g.
50% of all
employees
2000
Convention,
Convention,
20%
of
all
residents)
1969
1988
Minimum levels of benefits
guaranteed
R 191
R 134
R 176
Maximum
qualifying
period
for
Maternity
Medical Care
Employment
entitlement
toand
benefits
Protection
and Sickness
Promotion
Benefits
Protection
Minimum
duration ofRecommenbenefits
dation, 2000
against Unemployment
Recom.,
1988 principles
Common
agreed
Recommendation, 1969
R. 202 Social Protection Floors Recommendation, 2012 (No. 202)
or
How can social security
standards help?
C.102 Social Security (Minimum Standards) Convention, 1952
C 130
Medical Care
and Sickness
Benefits
Convention,
1969
Member states of the ILO
R 121 social R 131
should establish
Employment
Invalidity, Oldprotection
Injuryfloors
Benefitsas a age and
RecommenSurvivors'
fundamental
element of
their
dation, 1964
Benefits Recomsocial security systems
mendation, 1967
R 134
Medical Care
and Sickness
Benefits
Recommendation, 1969
Supplement
C 128
C 121
Invalidity,
Employment
Old-Ageat
and
All residents
should enjoy
Injury Benefits
Survivors'
Convention, level of
least a minimum
social
Benefits
1964
Convention,
security
1967
C 168
Employment
Promotion and
Protection
against
Unemployment
Convention,
1988
R 176
Employment
Promotion and
Protection
against Unemployment
Recom., 1988
C 183
Maternity
Protection
Convention,
2000
R 191
Maternity
Protection
Recommendation, 2000
R. 202 Social Protection Floors Recommendation, 2012 (No. 202)
How can social security
standards help?
Supplement
C.102 Social Security (Minimum Standards) Convention, 1952
C 121
Employment
Injury Benefits
Convention,
1964
R 121
Employment
Injury Benefits
Recommendation, 1964
C 128
Invalidity,
Old-Age and
Survivors'
Benefits
Convention,
1967
C 130
Medical Care
and Sickness
Benefits
Convention,
1969
C 168
Employment
Promotion and
Protection
against
Unemployment
Convention,
1988
C 183
Maternity
Protection
Convention,
2000
Convention 168 concerning Employment Promotion and
ILC in
R 191
R 131
R 134
R 176
Protection
against
Unemployment
by
Maternity
Invalidity,
OldMedical
Care
Employment (adopted
Protection
age
and
and Sickness
Promotion and
1988)
RecommenSurvivors'
Benefits
Protection
dation, 2000
Benefits RecomRecommenagainst Unemmendation, 1967
dation, 1969
ployment
Recom., 1988
R. 202 Social Protection Floors Recommendation, 2012 (No. 202)
Social security standards provide
guidelines for the design of SS Laws
• What are the risks covered?
• What are the benefits in case the risk occur?
– Levels of benefits
– Duration of benefits
– Revision of benefits
• Who is covered?
– Residents, citizens, definition of the labour law…
– What are the qualifying conditions? (how many
years/months of contribution…)
• How will the protection be financed?
– How will the protection be organized?
Social security standards provide
principles for the design of SS Laws

The State is responsible for the provision of benefits &
proper functioning of the scheme

Solidarity & pooling of risks
•between men & women, rich & poor, generations

Tripartite administration
•Representatives of covered persons must participate in
the management or associated to the key decisions

Collective financing of benefits
•Through contributions, taxation or both
•Employees’ contributions should not exceed 50% of the
financial resources allocated
Social security standards provide
principles for the design of SS Laws

Adjustment of pensions (to keep the purchasing power)
•Following changes in the cost of living or general level of
earnings

Right to appeal
•In case of the refusal of the benefit
•Regarding the quality & quantity of benefits

Suspension of benefits
•If beneficiary absent from territory, receives other
benefits, made a fraudulent claim …