Social Security Programs

Throughout the World:

The Americas, 2007

Social Security Administration

Offi ce of Retirement and Disability Policy

Offi ce of Research, Evaluation, and Statistics

500 E Street, SW, 8th Floor

Washington, DC 20254

SSA Publication No. 13-11804

Released: March 2008
 
Preface

This fourth issue in the current four-volume series of Social Security Programs Throughout the 

World reports on the countries of the Americas. The combined findings of this series, which also 

includes volumes on Europe, Asia and the Pacific, and Africa, are published at 6-month intervals 

over a 2-year period. Each volume highlights features of social security programs in the particular 

region.

The information contained in these volumes is crucial to our efforts, and those of researchers in other countries, to review different ways of approaching social security challenges that will 

enable us to adapt our social security systems to the evolving needs of individuals, households, 

and families. These efforts are particularly important as each nation faces major demographic 

changes, especially the increasing number of aged persons, as well as economic and fiscal issues.

Social Security Programs Throughout the World is the product of a cooperative effort between 

the Social Security Administration (SSA) and the International Social Security Association 

(ISSA). Founded in 1927, the ISSA is a nonprofit organization bringing together institutions and 

administrative bodies from countries throughout the world. The ISSA deals with all forms of compulsory social protection that by legislation or national practice are an integral part of a country’s 

social security system.

Previous editions of this report, which date back to 1937, were issued as one volume and were 

prepared by SSA staff. With the introduction of the four-volume format in 2002, however, the 

research and writing has been contracted out to the ISSA. The ISSA has conducted the research 

largely through its numerous country-based correspondents, as well as its Social Security Worldwide Database and a myriad of other types of data that must be drawn together to update this 

report. Members of the ISSA’s Information System and Databases Unit analyzed the information 

and revised the publication to reflect detailed changes to each social security program. Social 

Security Programs Throughout the World is based on information available to the ISSA and SSA 

with regard to legislation in effect in July 2007, or the last date for which information has been 

received.

Questions about the report should be sent to Barbara Kritzer at ssptw@ssa.gov. Corrections, 

updated information, and copies of relevant documentation and legislation are also welcome and 

may be sent to:

International Social Security Association

Information System and Databases Unit

Case postale 1

4 route des Morillons

CH-1211 Geneva 22

Switzerland

This report is available at http://www.socialsecurity.gov/policy. For additional copies, please 

e-mail op.publications@ssa.gov.

SSA staff members were responsible for technical and editorial assistance and production. 

Barbara Kritzer served as technical consultant and provided overall project management. Staff of 

the Division of Information Resources edited and produced the report and prepared the electronic 

versions for the Web.

Susan Grad

Acting Associate Commissioner

for Research, Evaluation, and Statistics

March 2008

Contents

Guide to Reading the Country Summaries

Sources of Information ............................................................................................... 1

Types of Programs

Employment-Related ..................................................................................................... 2

Universal........................................................................................................................ 2

Means-Tested ................................................................................................................. 3

Other Types of Programs ............................................................................................... 3

Format of Country Summaries

Old Age, Disability, and Survivors................................................................................ 4

Sickness and Maternity.................................................................................................. 8

Work Injury.................................................................................................................... 11

Unemployment............................................................................................................... 13

Family Allowances......................................................................................................... 15

Tables

1. Types of social security programs............................................................................. 17

2. Types of mandatory systems for retirement income ................................................. 19

3. Demographic and other statistics related to social security, 2007 ............................ 21

4. Contribution rates for social security programs, 2007.............................................. 23

Country Summaries

Antigua and Barbuda ............................ 27

Argentina............................................... 30

Bahamas................................................ 39

Barbados ............................................... 43

Belize .................................................... 47

Bermuda................................................ 51

Bolivia................................................... 55

Brazil..................................................... 61

British Virgin Islands............................ 67

Canada................................................... 70

Chile...................................................... 76

Colombia............................................... 86

Costa Rica ............................................. 92

Cuba ...................................................... 96

Dominica............................................. 100

Dominican Republic ........................... 103

Ecuador ............................................... 107

El Salvador.......................................... 111

Grenada ............................................... 115

Guatemala ........................................... 119

Guyana ................................................ 122

Haiti..................................................... 126

Honduras............................................. 128

Jamaica................................................ 132

Mexico ................................................ 136

Nicaragua ............................................ 142

Panama................................................ 146

Paraguay.............................................. 150

Peru ..................................................... 154

Saint Kitts and Nevis .......................... 159

Saint Lucia .......................................... 163

Saint Vincent and the Grenadines....... 166

Trinidad and Tobago ........................... 169

United States....................................... 174

Uruguay............................................... 181

Venezuela ............................................ 187

This fourth issue in the current four-volume series 

of Social Security Programs Throughout the World

reports on the countries of the Americas. The combined findings of this series, which also includes volumes on Europe, Asia and the Pacific, and Africa, are 

published at 6-month intervals over a 2-year period. 

Each volume highlights features of social security 

programs in the particular region.

This guide serves as an overview of programs in 

all regions. A few political jurisdictions have been 

excluded because they have no social security system 

or have issued no information regarding their social 

security legislation. In the absence of recent information, national programs reported in previous volumes 

may also be excluded.

In this volume on the Americas, the data reported 

are based on laws and regulations in force in July 2007 

or on the last date for which information has been 

received.1 Information for each country on types of 

social security programs, types of mandatory systems 

for retirement income, contribution rates, and demographic and other statistics related to social security is 

shown in Tables 1–4 beginning on page 17.

The country summaries show each system’s major 

features. Separate programs in the public sector and 

specialized funds for such groups as agricultural workers, collective farmers, or the self-employed have not 

been described in any detail. Benefit arrangements of 

private employers or individuals are not described in 

any detail, even though such arrangements may be 

mandatory in some countries or available as alternatives to statutory programs.

The country summaries also do not refer to 

international social security agreements that may be 

in force between two or more countries. Those agreements may modify coverage, contributions, and benefit 

provisions of national laws summarized in the country 

write-ups. Since the summary format requires brevity, 

technical terms have been developed that are concise 

as well as comparable and are applied to all programs. 

1

The names of the countries in this report are those used 

by the U.S. Department of State. The term country has been 

used throughout the volume even though in some instances 

the term jurisdiction may be more appropriate.

The terminology may therefore differ from national 

concepts or usage.

Sources of Information

Most of the information in this report was collected 

from the Social Security Programs Throughout the 

World survey conducted by the International Social 

Security Association (ISSA) under the sponsorship of 

the U.S. Social Security Administration (SSA). This 

information was supplemented by data collected from 

the ISSA’s Developments and Trends Annual Survey. 

Empirical data were also provided by numerous social 

security officials throughout the world. (For a listing 

of countries and jurisdictions that responded to the survey, see page 2.) Important sources of published information include the ISSA Documentation Center; the 

legislative database of the International Labour Office; 

social security institution websites; and selected 

documents received from social security institutions. 

During the compilation process, international analysts 

at both SSA and the ISSA examined the information 

sources for factual errors, ambiguous statements, and 

contradictions.

Types of Programs

The term social security in this report refers to programs established by statute that insure individuals 

against interruption or loss of earning power and for 

certain special expenditures arising from marriage, 

birth, or death. This definition also includes allowances to families for the support of children.

Protection of the insured person and dependents 

usually is extended through cash payments to replace 

at least a portion of the income lost as the result of old 

age, disability, or death; sickness and maternity; work 

injury; unemployment; or through services, primarily 

hospitalization, medical care, and rehabilitation. Measures providing cash benefits to replace lost income are 

usually referred to as income maintenance programs; 

measures that finance or provide direct services are 

referred to as benefits in kind.

Three broad approaches to coverage provide cash 

benefits under income-maintenance programs; namely, 

employment-related, universal, and means-tested 

systems. Under both the employment-related and the 

Guide to Reading

the Country Summaries
 ♦ SSPTW: The Americas, 2007

universal approaches, the insured, dependents, and 

survivors can claim benefits as a matter of right. Under 

means-tested approaches, benefits are based on a 

comparison of a person’s income or resources against 

a standard measure. Some countries also provide other 

types of coverage.

Employment-Related

Employment-related systems, commonly referred to 

as social insurance systems, generally base eligibility 

for pensions and other periodic payments on length 

of employment or self-employment or, in the case of 

family allowances and work injuries, on the existence 

of the employment relationship itself. The amount of 

pensions (long-term payments, primarily) and of other 

periodic (short-term) payments in the event of unemployment, sickness, maternity, or work injury is usually related to the level of earnings before any of these 

contingencies caused earnings to cease. Such programs 

are financed entirely or largely from contributions 

(usually a percentage of earnings) made by employers, 

workers, or both and are in most instances compulsory 

for defined categories of workers and their employers.

The creation of notional defined contributions 

(NDC) is a relatively new method of calculating benefits. NDC schemes are a variant of contributory social 

insurance that seek to tie benefit entitlements more 

closely to contributions. A hypothetical account is created for each insured person that is made up of all contributions during his or her working life and, in some 

cases, credit for unpaid activity such as caregiving. A 

pension is calculated by dividing that amount by the 

average life expectancy at the time of retirement and 

indexing it to various economic factors. When benefits 

are due, the individ­ual’s notional account balance is 

converted into a periodic pension payment.

Some social insurance systems permit voluntary 

affiliation of workers, especially the self-employed. 

In some instances, the government subsidizes such 

programs to encourage voluntary participation.

The government is, pro forma, the ultimate guarantor of many benefits. In many countries, the national 

government participates in the financing of employment-related as well as other social security programs. 

The government may contribute through an appropriation from general revenues based on a percentage of 

total wages paid to insured workers, finance part or 

all of the cost of a program, or pay a subsidy to make 

up any deficit of an insurance fund. In some cases, the 

government pays the contributions for low-paid workers. These arrangements are separate from obligations 

the government may have as an employer under systems that cover government employees. Social security 

contributions and other earmarked income are kept in 

a dedicated fund and are shown as a separate item in 

government accounts. (For further details on the government’s role in financing social security, see Source 

of Funds under Old Age, Disability, and Survivors.)

Universal

Universal programs provide flat-rate cash benefits to 

residents or citizens, without consideration of income, 

employment, or means. Typically financed from general revenues, these benefits may apply to all persons 

with sufficient residency. Universal programs may 

include old-age pensions for persons over a certain 

age; pensions for disabled workers, widow(er)s, and 

orphans; and family allowances. Most social security 

Antigua and Barbuda Colombia Panama

Argentina Costa Rica Paraguay

Barbados Dominica Peru

Belize Ecuador Saint Kitts and Nevis

Bermuda El Salvador Saint Lucia

Bolivia Grenada Saint Vincent and the Grenadines

Brazil Guyana Trinidad and Tobago

British Virgin Islands Haiti United States

Canada Jamaica Uruguay

Chile Mexico Venezuela

Countries in the Americas that Responded to the

Social Security Programs Throughout the World Survey
SSPTW: The Americas, 2007 ♦ 

systems incorporating a universal program also have a 

second-tier earnings-related program. Some universal 

programs, although receiving substantial support from 

income taxes, are also financed in part by contributions 

from workers and employers.

Means-Tested

Means-tested programs establish eligibility for benefits 

by measuring individual or family resources against 

a calculated standard usually based on subsistence 

needs. Benefits are limited to applicants who satisfy a 

means test. The size and type of benefits awarded are 

determined in each case by administrative decision 

within the framework of the law.

The specific character of means, needs, or income 

tests, as well as the weight given to family resources, 

differ considerably from country to country. Such 

programs, commonly referred to as social pensions 

or equalization payments, traditionally are financed 

primarily from general revenues.

Means-tested systems constitute the sole or principal form of social security in only a few jurisdictions. 

In other jurisdictions, contributory programs operate in tandem with income-related benefits. In such 

instances, means- or income-tested programs may be 

administered by social insurance agencies. Meanstested programs apply to persons who are not in 

covered employment or whose benefits under employment-related programs, together with other individual 

or family resources, are inadequate to meet subsistence 

or special needs. Although means-tested programs can 

be administered at the national level, they are usually 

administered locally.

In this report, when national means-tested programs supplement an employment-related benefit, 

the existence of a means-tested program is generally 

noted, but no details concerning it are given. When a 

means-tested program represents the only or principal 

form of social security, however, further details are 

provided.

Other Types of Programs

Three other types of programs are those delivered, in 

the main, through financial services providers (mandatory individual accounts, mandatory occupational 

pensions, and mandatory private insurance), publicly 

operated provident funds, and employer-liability 

systems.

Programs Delivered by Financial Services 

Providers

Mandatory individual account. Applies to a program 

where covered persons and/or employers must contribute a certain percentage of earnings to the covered 

person’s individual account managed by a contracted 

public or private fund manager. The mandate to 

establish membership in a scheme and the option to 

choose a fund manager lie with the individual. The 

accumulated capital in the individual account is normally intended as a source of income replacement for 

the contingencies of retirement, disability, ill health, 

or unemployment. It may also be possible for eligible 

survivors to access the accumulated capital in the case 

of the insured’s death.

Contributions are assigned to an employee’s individual account. The employee must pay administrative 

fees for the management of the individual account and 

usually purchase a separate policy for disability and 

survivors insurance.

Mandatory occupational pension. Applies to a program 

where employers are mandated by law to provide 

occupational pension schemes financed by employer, 

and in some cases, employee contributions. Benefits 

may be paid as a lump sum, annuity, or pension.

Mandatory private insurance. Applies to a program 

where individuals are mandated by law to purchase 

insurance directly from a private insurance company.

Provident Funds. These funds, which exist primarily 

in developing countries, are essentially compulsory 

savings programs in which regular contributions withheld from employees’ wages are enhanced, and often 

matched, by employers’ contributions. The contributions are set aside and invested for each employee in a 

single, publicly managed fund for later repayment to 

the worker when defined contingencies occur. Typically, benefits are paid out in the form of a lump sum 

with accrued interest, although in certain circumstances drawdown provisions enable partial access 

to savings prior to retirement or other defined contingencies. On retirement, some provident funds also 

permit beneficiaries to purchase an annuity or opt for 

a pension. Some provident funds provide pensions for 

survivors.

Employer-Liability Systems. Under these systems, 

workers are usually protected through labor codes 

that require employers, when liable, to provide specified payments or services directly to their employees. 

Specified payments or services can include the payment of lump-sum gratuities to the aged or disabled; 
 ♦ SSPTW: The Americas, 2007

the provision of medical care, paid sick leave, or both; 

the payment of maternity benefits or family allowances; the provision of temporary or long-term cash 

benefits and medical care in the case of a work injury; 

or the payment of severance indemnities in the case of 

dismissal. Employer-liability systems do not involve 

any direct pooling of risk, since the liability for payment is placed directly on each employer. Employers 

may insure themselves against liability, and in some 

jurisdictions such insurance is compulsory.

Format of Country Summaries

Each country summary discusses five types of 

programs:

Old age, disability, and survivors;

Sickness and maternity;

Work injury;

Unemployment; and

Family allowances.

Old Age, Disability, and Survivors

Benefits under old age, disability, and survivor programs usually cover long-term risks, as distinct from 

short-term risks such as temporary incapacity resulting 

from sickness and maternity, work injury, or unemployment. The benefits are normally pensions payable 

for life or for a considerable number of years. Such 

benefits are usually provided as part of a single system 

with common financing and administration as well as 

interrelated qualifying conditions and benefit formulas.

The laws summarized under Old Age, Disability, 

and Survivors focus first on benefits providing pensions or lump-sum payments to compensate for loss 

of income resulting from old age or permanent retirement. Such benefits are usually payable after attaining a specified statutory age. Some countries require 

complete or substantial retirement in order to become 

eligible for a pension; other countries pay a retirement 

pension at a certain age regardless of whether workers 

retire or not.

The second type of long-term risk for which pensions are provided is disability (referred to in some 

countries as invalidity). Disability may be generally 

defined as long-term and more or less total work 

impairment resulting from a nonoccupational injury or 

disease. (Disability caused by a work injury or occupational disease is usually compensated under a separate 

program; see Work Injury, below.)

•

•

•

•

•

The third type of pension is payable to dependents 

of insured workers or pensioners who die. (Pensions for survivors of workers injured while working 

are usually provided under a separate Work Injury 

program.)

Coverage. The extent of social security coverage 

in any given country is determined by a number 

of diverse factors, including the kind of system, 

sometimes the age of the system, and the degree of 

economic development. A program may provide 

coverage for the entire country or some portion of the 

workforce.

In principle, universal systems cover the entire 

population for the contingencies of old age, disability, 

and survivorship. A person may have to meet certain 

conditions, such as long-term residence or citizenship. 

Many countries exclude aliens from benefits unless 

there is a reciprocal agreement with the country of 

which they are nationals.

The extent of employment-related benefits is usually determined by the age of the system. Historically, 

social security coverage was provided first to government employees and members of the armed forces, 

then to workers in industry and commerce, and eventually extended to the vast majority of wage earners and 

salaried employees through a general system. As a 

result, public employees (including military personnel 

and civil servants), teachers, and employees of public 

utilities, corporations, or monopolies are still covered by occupation-specific separate systems in many 

countries.

In many countries, special occupational systems 

have been set up for certain private-sector employees, 

such as miners, railway workers, and seamen. Qualifying conditions and benefits are often more liberal 

than under the general system. The risk involved in 

an occupation, its strategic importance for economic 

growth, and the economic and political strength of 

trade unions may have had a role in shaping the type 

and size of benefits offered by the particular program.

Groups that might be considered difficult to 

administer—family workers, domestics, day workers, 

agricultural workers, and the self-employed—were 

often initially excluded from coverage. The trend has 

been to extend coverage to these groups under separate funds or to bring them gradually under the general system. In some countries, noncovered workers 

become eligible for the right to an eventual pension 

if they make voluntary contributions at a specified 

level. Some systems also provide voluntary coverage 
SSPTW: The Americas, 2007 ♦ 

for women who leave the labor force temporarily to 

have children or to raise a family, or for self-employed 

persons not covered by a mandatory program. Some 

developed countries with younger programs have 

constructed a unified national program, thus largely 

bypassing the need for developing separate industrial 

or agricultural funds.

Most developing countries have extended coverage gradually. Their first steps toward creating a social 

security system have commonly been to cover wage 

and salary workers against loss of income due to work 

injury, and then old age and, less commonly, disability.

In a number of developing countries, particularly 

in those that were once British colonies, this initial 

step has come via the institutional form of provident 

funds. Most provident funds provide coverage for 

wage and salary workers in the government and private sector. A few funds have exclusions based on the 

worker’s earnings or the size of the firm. Funds that 

exclude employees with earnings above a certain level 

from compulsory coverage may in some cases give 

them the option to affiliate or continue to participate 

voluntarily.

Source of Funds. The financing of benefits for oldage, disability, and survivor programs can come from 

three possible sources:

A percentage of covered wages or salaries paid by 

the worker,

A percentage of covered payroll paid by the 

employer, and

A government contribution.

Almost all pension programs under social insurance (as distinct from provident funds or universal 

systems) are financed at least in part by employer 

and employee contributions. Many derive their funds 

from all three sources. Contributions are determined 

by applying a percentage to salaries or wages up to a 

certain maximum. In many cases the employer pays a 

larger share.

The government’s contribution may be derived 

from general revenues or, less commonly, from special 

earmarked or excise taxes (for example, a tax on 

tobacco, gasoline, or alcoholic beverages). Government contributions may be used in different ways to 

defray a portion of all expenditures (such as the cost 

of administration), to make up deficits, or even to 

finance the total cost of a program. Subsidies may be 

provided as a lump sum or an amount to make up the 

difference between employer/employee contributions 

•

•

•

and the total cost of the system. A number of countries 

reduce or, in some cases, eliminate contributions for 

the lowest-paid wage earners, financing their benefits 

entirely from general revenues or by the employer’s 

contribution.

The contribution rate apportioned between the 

sources of financing may be identical or progressive, increasing with the size of the wage or changing 

according to wage class. Where universal and earnings-related systems exist side by side, and the universal benefit is not financed entirely by the government, 

separate rates may exist for each program. In other 

instances, flat-rate weekly contributions may finance 

basic pension programs. These amounts are uniform 

for all workers of the same age and sex, regardless of 

earnings level. However, the self-employed may have 

to contribute at a higher rate than wage and salary 

workers, thereby making up for the employer’s share.

For administrative purposes, a number of countries assess a single overall social security contribution 

covering several contingencies. Benefits for sickness, 

work injury, unemployment, and family allowances as 

well as pensions may be financed from this single contribution. General revenue financing is the sole source 

of income in some universal systems. The contribution of the resident or citizen may be a percentage of 

taxable income under a national tax program. General 

revenues finance all or part of the means-tested supplementary benefits in many countries.

Contribution rates, as a rule, are applied to wages 

or salaries only up to a statutory ceiling. A portion of 

the wage of highly paid workers will escape taxation 

but will also not count in determining the benefit. In a 

few cases, an earnings ceiling applies for the determination of benefits but not for contribution purposes. In 

some countries, contribution rates are applied not to 

actual earnings but to a fixed amount that is set for all 

earnings falling within a specified range or wage class.

Qualifying Conditions. Qualifying to receive an 

old-age benefit is usually conditional on two requirements: attainment of a specified age and completion 

of a specified period of contributions or covered 

employment. Another common requirement is total or 

substantial withdrawal from the labor force. In some 

instances, eligibility is determined by resident status or 

citizenship.

Old-age benefits generally become payable 

between ages 60 and 65. In some countries, length-ofservice benefits are payable at any age after a certain 

period of employment, most commonly between 30 
 ♦ SSPTW: The Americas, 2007

and 40 years. In recent years, several countries have 

increased the age limit for entitlement, in part because 

of budgetary constraints arising as a consequence of 

demographic aging.

Many programs require the same pensionable age 

for women as for men. Others permit women to draw 

a full pension at an earlier age, even though women 

generally have a longer life expectancy. Although the 

norm has been for the differential to be about 5 years, 

there is now an emerging international trend toward 

equalizing the statutory retirement age.

Many programs offer optional retirement before 

the statutory retirement age is reached. A reduced pension, in some instances, may be claimed up to 5 years 

before the statutory retirement age. Some countries 

pay a full pension before the regular retirement age 

if the applicant meets one or more of the following 

conditions: work in an especially arduous, unhealthy, 

or hazardous occupation (for example, underground 

mining); involuntary unemployment for a period near 

retirement age; physical or mental exhaustion (as 

distinct from disability) near retirement age; or, occasionally, an especially long period of coverage. Some 

programs award old-age pensions to workers who are 

older than the statutory retirement age but who cannot 

satisfy the regular length-of-coverage requirement. 

Other programs provide increments to workers who 

have continued in employment beyond the normal 

retirement age.

Universal old-age pension systems usually do not 

require a minimum period of covered employment or 

contributions. However, most prescribe a minimum 

period of prior residence.

Some old-age pension systems credit periods 

during which persons, for reasons beyond their control, were not in covered employment. Credits can be 

awarded for reasons such as disability, involuntary 

unemployment, military service, education, child 

rearing, or training. Other systems disregard these 

periods and may proportionately reduce benefits for 

each year below the required minimum. Persons with 

only a few years of coverage may receive a refund of 

contributions or a settlement in which a proportion 

of the full benefit or earnings is paid for each year of 

contribution.

The majority of old-age pensions financed through 

social insurance systems require total or substantial 

withdrawal from covered employment. Under a retirement test, the benefit may be withheld or reduced for 

those who continue working, depending on the amount 

of earnings or, less often, the number of hours worked. 

Universal systems usually do not require retirement 

from work for receipt of a pension. Provident funds 

pay the benefit only when the worker leaves covered 

employment or emigrates.

Some countries provide a number of exemptions 

that act to eliminate the retirement condition for specified categories of pensioners. For instance, the retirement test may be eliminated for workers who reached 

a specified age above the minimum pensionable age or 

for pensioners with long working careers in covered 

employment. Occupations with manpower shortages 

may also be exempted from the retirement test.

The principal requirements for receiving a disability benefit are loss of productive capacity after completing a minimum period of work or having met the 

minimum contribution requirements. Many programs 

grant the full disability benefit for a two-thirds loss of 

working capacity in the worker’s customary occupation, but this requirement may vary from one-third to 

100 percent.

The qualifying period for a disability benefit is 

usually shorter than for an old-age benefit. Periods of 3 

to 5 years of contributions or covered employment are 

most common. A few countries provide disability benefits in the form of an unlimited extension of ordinary 

cash sickness benefits.

Entitlement to disability benefits may have age 

limitations. The lower limit in most systems is in the 

teens, but it may be related to the lowest age for social 

insurance or employment or to the maximum age for 

a family allowance benefit. The upper age limit is 

frequently the statutory retirement age, when disability 

benefits may be converted to old-age benefits.

For survivors to be eligible for benefits, most 

programs require that the deceased worker was a 

pensioner, completed a minimum period of covered 

employment, or satisfied the minimum contribution 

conditions. The qualifying contribution period is often 

the same as that for the disability benefit. The surviving spouse and orphans may also have to meet certain 

conditions, such as age requirements.

Old-Age Benefits. The old-age benefit in most countries is a wage-related, periodic payment. However, 

some countries pay a universal fixed amount that bears 

no relationship to any prior earnings; others supplement their universal pension with an earnings-related 

pension.
SSPTW: The Americas, 2007 ♦ 

Provident fund systems make a lump-sum payment, usually a refund of employer and employee 

contributions plus accrued interest. In programs that 

have mandatory individual accounts, options for retirement include purchasing an annuity, making withdrawals from an account regulated to guarantee income for 

an expected lifespan (programmed withdrawals), or a 

combination of the two (deferred annuity).

Benefits that are related to income are almost 

always based on average earnings. Some countries 

compute the average from gross earnings, including 

various fringe benefits; other countries compute the 

average from net earnings. Alternatively, some countries have opted to use wage classes rather than actual 

earnings. The wage classes may be based on occupations or, for administrative convenience, on earnings 

arranged by size using the midpoint in each step to 

compute the benefit.

Several methods are used to compensate for 

averages that may be reduced by low earnings early 

in a worker’s career or by periods without any credited earnings due, for example, to unemployment or 

military service, and for the effects of price and wage 

increases due to inflation. One method is to exclude 

from consideration a number of periods with the lowest (including zero) earnings. In many systems the 

period over which earnings are averaged may be shortened to the last few years of coverage, or the average 

may be based on years when the worker had his or her 

highest earnings. Other systems revalue past earnings 

by applying an index that usually reflects changes in 

national average wages or the cost of living. Some 

assign hypothetical wages before a certain date. 

Alternatively, others have developed mechanisms for 

automatic adjustment of workers’ wage records based 

on wage or price changes.

A variety of formulas are used in determining 

the benefit amount. Instead of a statutory minimum, 

some systems pay a percentage of average earnings—for instance, 35 percent or 50 percent—that is 

unchanged by length of coverage once the qualifying 

period is met. A more common practice is to provide a 

basic rate—for example, 30 percent of average earnings—plus an increment of 1 percent or 2 percent of 

earnings either for each year of coverage or for each 

year in excess of a minimum number of years. Several 

countries have a weighted benefit formula that returns 

a larger percentage of earnings to lower-paid workers 

than to higher-paid workers.

Most systems limit the size of the benefit. Many 

do so by establishing a ceiling on the earnings taken 

into account in the computation. Others establish a 

maximum cash amount or a maximum percentage of 

average earnings set, for example, at 80 percent. Some 

systems combine these and other, similar methods.

Most systems supplement the benefit for a wife 

or child. The wife’s supplement may be 50 percent or 

more of the basic benefit, although in some countries 

the supplement is payable only for a wife who has 

reached a specified age, has children in her care, or 

is disabled. It may also be payable for a dependent 

husband.

Minimum benefits are intended to maintain a minimum standard of living in many countries, although 

that objective is not always achieved. A maximum that 

reduces the effect large families have on benefits is 

commonly used to limit total benefits, including those 

of survivors, in the interest of the financial stability of 

the program.

In some countries, benefits are automatically 

adjusted to reflect price or wage changes. In other 

countries, the process is semiautomatic—the adequacy 

of pensions is reviewed periodically by an advisory 

board or other administrative body that recommends a 

benefit adjustment to the government, usually requiring legislative approval.

Disability Benefits. Under most programs, provisions 

for disability benefits for persons who are permanently 

disabled as the result of nonoccupational causes are 

very similar to those for the aged. The same basic 

formula usually applies for total disability as for old 

age—a cash amount usually expressed as a percentage of average earnings. Increments and dependents’ 

supplements are generally identical under the total disability and old-age programs. For the totally disabled, 

a constant-attendance supplement, usually 50 percent 

of the benefit, may be paid to those who need help on 

a daily basis. Partial disability benefits, if payable, are 

usually reduced, according to a fixed scale. The system 

may also provide rehabilitation and training. Some 

countries provide higher benefits for workers in arduous or dangerous employment.

Survivor Benefits. Most systems provide periodic 

benefits for survivors of covered persons or pensioners, although some pay only lump-sum benefits. 

Survivor benefits are generally a percentage of either 

the benefit paid to the deceased at death or the benefit 

to which the insured would have been entitled if he or 
 ♦ SSPTW: The Americas, 2007

she had attained pensionable age or become disabled 

at that time.

Survivor benefits are paid to some categories of 

widows under nearly all programs. The amount of a 

widow’s benefit usually ranges from 50 percent to 

75 percent of the deceased worker’s benefit or, in some 

cases, 100 percent. In some countries, lifetime benefits 

are payable to every widow whose husband fulfills 

the necessary qualifying period. More commonly, the 

provision of widows’ benefits is confined to widows 

who are caring for young children, are above a specified age, or are disabled.

Lifetime benefits are ordinarily payable to aged 

and disabled widows. Those awarded to younger 

mothers, however, are usually terminated when all 

children have passed a certain age, unless the widow 

has reached a specified age or is disabled. Most widows’ benefits also terminate on remarriage, although 

a final lump-sum grant may be payable under this 

circumstance. Special provisions govern the rights 

of the divorced. Age limits for orphan’s benefits are 

in many cases the same as for children’s allowances. 

Many countries fix a somewhat higher age limit for 

orphans attending school or undergoing an apprenticeship or for those who are incapacitated. The age limit 

is usually removed for disabled orphans as long as 

their incapacity continues. Most survivor programs 

distinguish between half orphans (who have lost one 

parent) and full orphans (who have lost both parents), 

with the latter receiving benefits that are 50 percent to 

100 percent larger than those for half orphans. Special 

payments are also made to orphans under the family 

allowance programs of some countries.

Benefits are payable under a number of programs 

to widowers of insured workers or pensioners. A widower usually must have been financially dependent on 

his wife and either disabled or old enough to receive 

an old-age benefit at her death. A widower’s benefit 

is usually computed in the same way as a widow’s 

benefit.

Many systems also pay benefits to other surviving close relatives, such as parents and grandparents, 

but only in the absence of qualifying widows, widowers, or children. The maximum total benefit to be split 

among survivors is usually between 80 percent and 

100 percent of the benefit of the deceased.

Administrative Organization. Responsibility for 

administration generally rests with semiautonomous 

institutions or funds. These agencies are usually 

subject to general supervision by a ministry or government department but otherwise are largely selfgoverning, headed by a tripartite board that includes 

representatives of workers, employers, and the government. Some boards are bipartite with representatives 

of workers and employers only or of workers and the 

government. Where coverage is organized separately 

for different occupations, or for wage earners and 

salaried employees or self-employed workers, each 

program usually has a separate institution or fund. In 

a few cases, the administration of benefits is placed 

directly in the hands of a government ministry or 

department.

Sickness and Maternity

Sickness benefit programs are generally of two types: 

cash sickness benefits, which are paid when shortterm illnesses prevent work, and health care benefits, 

which are provided in the form of medical, hospital, 

and pharmaceutical benefits. Some countries maintain a separate program for cash maternity benefits, 

which are paid to working mothers before and after 

childbirth. In most countries, however, maternity 

benefits are administered as part of the cash sickness 

program. (Benefits provided as a result of work injury 

or occupational disease are provided either under work 

injury or sickness programs. Details of the benefits are 

discussed under Work Injury.)

Cash sickness and maternity benefits as well as 

health care are usually administered under the same 

branch of social security. For this reason, these programs are grouped together in the country summaries.

An important reason for grouping these numerous 

benefits together is that each deals with the risk of temporary incapacity. Moreover, in most instances, such 

benefits are furnished as part of a single system with 

common financing and administration. Most countries 

provide medical care services for sickness and maternity as an integral part of the health insurance system 

and link those services directly with the provision of 

cash benefits. In some instances, however, maternity 

cash grants are covered under family allowance programs. Occasionally, medical care services are provided under a public health program, independent of 

the social insurance system. Where this dual approach 

is followed, it has been indicated in the summaries.

Where health care is dispensed directly by the 

government or its agencies and the principal source 

of funds is general revenue, the cash benefit program 

usually continues to be administered on an insurance 

basis, funded by payroll contributions, and merged in 
SSPTW: The Americas, 2007 ♦ 

some instances with other aspects of the social insurance system such as old age and disability. However, 

countries that deliver health care primarily through 

private facilities and private funding are also likely to 

have developed separate programs. Where the social 

security program operates its own medical facilities, 

both types of benefits are usually administered jointly.

Benefits designed to assist in the provision of 

long-term care, often at home, are generally supported 

by a special tax. Benefit levels are normally set to the 

level of care required. These benefits may be payable 

in cash, as care services, or as a combination of the 

two.

Coverage. The proportion of the population covered by sickness programs varies considerably from 

country to country, in part because of the degree of 

economic development. Coverage for medical care 

and cash benefits is generally identical in countries 

where both types of benefits are provided through 

the same branch of social insurance. In a number of 

systems, particularly in developing countries, health 

care insurance extends only to employees in certain 

geographic areas. A common procedure is to start the 

program in major urban centers, then extend coverage 

gradually to other areas. Both cash sickness and health 

care programs may exclude agricultural workers, who, 

in some countries, account for a major proportion of 

the working population. Where a health insurance 

system (as distinguished from a national health service 

program) exists, most workers earning below a certain 

ceiling participate on a compulsory basis. Others, such 

as the self-employed, may be permitted to affiliate on 

a voluntary basis. In several countries, higher-paid 

employees are specifically excluded from one or both 

forms of sickness insurance, although some voluntary 

participation is usually permitted.

Many countries include pensioners as well as other 

social security beneficiaries under the medical care 

programs, in some cases without cost to the pensioner. 

Elsewhere, pensioners pay a percentage of their pension or a fixed premium for all or part of the medical 

care coverage. Special sickness insurance systems may 

be maintained for certain workers, such as railway 

employees, seamen, and public employees.

Where medical care coverage is provided through 

a national health service rather than social insurance, 

the program is usually open in principle to virtually all 

residents. However, restrictions on services to aliens 

may apply.

Source of Funds. Many countries have merged the 

financing of sickness programs with that of other 

social insurance benefits and collect only a single 

contribution from employees and employers. More 

commonly, however, a fixed percentage of wages, up 

to a ceiling, is contributed by employees and employers directly to a separate program that administers both 

health care and cash benefits for sickness and maternity. Some countries also provide a government contribution. Where medical care is available to residents, 

generally through some type of national health service, 

the government usually bears at least the major part of 

the cost from general revenues.

Qualifying Conditions. Generally, a person becoming 

ill must be gainfully employed, incapacitated for work, 

and not receiving regular wages or sick-leave payments from the employer to be eligible for cash sickness benefits. Most programs require claimants to meet 

a minimum period of contribution or to have some 

history of work attachment prior to the onset of illness 

to qualify. Some countries, however, have eliminated 

the qualifying period.

The length of the qualifying period for cash sickness benefits may range from less than 1 month to 6 

months or more and is ordinarily somewhat longer for 

cash maternity benefits. Usually the period must be 

fairly recent, such as during the last 6 or 12 months. 

In the case of medical benefits, a qualifying period 

is usually not required. In instances where such a 

requirement does exist, it is generally of a short duration. Most programs providing medical services to 

dependents of workers, as well as to the workers themselves, do not distinguish in their qualifying conditions 

between the two types of beneficiaries. A few programs require a longer period of covered employment 

before medical services are provided to dependents.

Cash Benefits. The cash sickness benefit is usually 

50 percent to 75 percent of current average earnings, 

frequently with supplements for dependents. Most 

programs, however, fix a maximum benefit amount or 

do so implicitly through a general earnings ceiling for 

contributions and benefits. Benefits may be reduced 

when beneficiaries are hospitalized at the expense of 

the social insurance system.

A waiting period of 2 to 7 days is imposed under 

most cash sickness programs. As a result, benefits may 

not be payable if an illness or injury lasts for only a 

few days. Similarly, in the case of a prolonged inability to work, benefits may not be payable for the first 

few days. Under some programs, however, benefits are 

retroactively paid for the waiting period when the dis-
10 ♦ SSPTW: The Americas, 2007

ability continues beyond a specified time, commonly 

2 to 3 weeks. A waiting period reduces administrative and benefit costs by excluding many claims for 

short illnesses or injuries during which relatively little 

income is lost and can also help reduce the potential 

for the inappropriate use of the system by workers.

The period during which a worker may receive 

benefits for a single illness or injury, or in a given 

12-month period, is ordinarily limited to 26 weeks. 

In some instances, however, benefits may be drawn 

for considerably longer and even for an unlimited 

duration. A number of countries permit the agency to 

extend the maximum entitlement period to 39 or 52 

weeks in specific cases. In most countries, when cash 

sickness benefits are exhausted, the recipient is paid a 

disability benefit if the incapacity continues.

Cash maternity benefits are usually payable for 

a specified period, both before and after childbirth. 

A woman is almost always required to stop working 

while receiving maternity benefits, and usually she 

must use the prenatal and postnatal medical services 

provided by the system. In some countries, cash maternity benefits are also payable to working men who stay 

home to care for a newborn child while the mother 

returns to work. Cash payments may also be available 

for a parent, usually the mother, who is absent from 

work to care for a sick child under a specified age.

The proportion of earnings payable as a cash 

maternity benefit differs considerably from country 

to country but, like cash sickness benefits, is usually 

between 50 percent and 75 percent of current earnings. 

However, in a number of countries, maternity benefits 

are set at 100 percent of wages. Benefit payments usually start approximately 6 weeks before the expected 

date of childbirth and end 6 to 8 weeks afterward.

A nursing allowance—usually 20 percent or 25 

percent of the regular maternity benefit and payable for 

up to 6 months or longer—may be provided in addition to the basic cash maternity benefit. A grant for the 

purchase of a layette—clothes and other essentials for 

the new-born baby—or the provision of a layette itself 

is furnished under some programs. Finally, a lumpsum maternity grant may be paid on the birth of each 

child. The wives of insured men may be eligible for 

this grant. Similar benefits may be provided under the 

family allowance program.

Medical Benefits. Medical services usually include at 

least general practitioner care, some hospitalization, 

and essential drugs. Services of specialists, surgery, 

maternity care, some dental care, a wider range of 

medicines, and certain appliances are commonly 

added. Transportation of patients and home-nursing 

services may be included.

There are three principal methods of meeting the 

cost of health care: direct payment to providers by the 

public system or its agents, reimbursement of patients, 

and direct provision of medical care. These methods 

may be used in different combinations and may be 

varied for different kinds of services.

Under direct payment, the social security or 

public medical care system pays providers directly 

for services. Patients usually have little or no direct 

financial dealings with the care provider. Payments for 

care are commonly made on the basis of contracts with 

service providers or the professional groups representing them, such as practitioner or hospital associations. 

Remuneration may take the form of a specified fee for 

each service, a capitation payment in return for providing all necessary services to a given group of persons, 

or a salary.

Under the reimbursement method, the patient 

makes the initial payment and is reimbursed by social 

security for at least part of the cost. A maximum is 

sometimes placed on the refund, expressed as a percentage of the bill or a flat amount that can vary with 

the nature of the service as stipulated in a schedule 

of fees. The ceiling on medical bills can be placed on 

the provider when presenting the bill or on the patient 

when applying for reimbursement. In the latter case, 

the patient may be reimbursed for only a small portion 

of the bill.

Under the direct-provision method, the social 

security system or the government owns and operates 

its own medical facilities, largely manned by salaried 

staff. Countries using this method may contract for 

services of public or private providers. The patient 

normally pays no fee for most of these services, except 

insofar as part of the social security contribution may 

be allotted toward health care funding.

Regardless of the funding method used, all 

national health care programs provide for at least a 

small degree of cost-sharing by patients, usually on 

the assumption that such charges discourage overuse. 

Thus, the patient either pays part of the cost to the 

provider or social security agency or receives less than 

full reimbursement. Even under the direct-provision 

method, with its emphasis on basically free medical 

services to the whole population, patients are generally 

required to pay a small fixed fee per medical treatment 

or prescription or per day of hospitalization.
SSPTW: The Americas, 2007 ♦ 11

Some health care systems have no limit on how 

long medical care may be provided. Other systems fix 

a maximum, such as 26 weeks, for services provided 

for any given illness. Some set limits only on the 

duration of hospitalization paid for by social security. 

Where time limits are imposed, they may be extended.

Maternity Care. Prenatal, obstetric, and postnatal 

care for working women is provided in most countries 

under the medical services program. Obstetric care 

is sometimes limited to the services of a midwife, 

although a doctor is usually available in case of complications. Care in a maternity home or hospital, as 

well as essential drugs, are ordinarily furnished where 

necessary.

Medical Care for Dependents. When medical benefits for insured workers are provided through social 

insurance, similar services are typically furnished 

to their spouse and young children (and, in some 

cases, other adults or young relatives living with and 

dependent on the insured). Maternity care is generally 

provided to the wife of an insured man.

In some countries, however, medical services 

available to dependents are more limited than those 

provided to insured workers or heads of families. 

Dependents may be subject to a shorter maximum 

duration for hospital stays, for example, and may have 

to pay a larger percentage of the cost of certain services such as medicines.

Administrative Organization. The administrative 

organization for the sickness and maternity program is 

similar to that of the old-age, disability, and survivor 

program in many countries. Most commonly, such 

programs are administered by some form of national 

social security institution. Under some systems, social 

security agencies own and operate their own medical 

facilities, furnishing at least part of the services available under their programs.

In most countries with a national health insurance 

program, responsibility for detailed administration lies 

with semiautonomous, nongovernment health funds or 

associations. All workers covered by the program must 

join one of these funds.

Each health fund usually requires government 

approval and must satisfy certain requirements. Workers and, in some countries, employers participate in 

the election of governing bodies. The funds normally 

collect contributions within minimum and maximum 

limits. Funds may also receive government subsidies 

related to their expenditures or to the number of affiliated members.

National law usually prescribes the minimum 

(and, in some cases, the maximum) cash benefits and 

medical services the health funds may provide. In a 

few countries, individual funds may determine what 

specific health care benefits and services to provide 

and arrange to furnish medical care to their members. 

This arrangement can involve delivery through contracts with care and service providers in the region.

Less commonly, government departments are 

responsible for the actual provision of medical services, usually through a national health service program. The administrative responsibility for delivering 

medical services in some countries is often separated 

from the administration of cash benefit programs, 

which tend to be linked with other types of social security benefits.

Work Injury

The oldest type of social security—the work injury 

program—provides compensation for work-connected 

injuries and occupational illnesses. Such programs 

usually furnish short- and long-term benefits, depending on both the duration of the incapacity and the 

age of survivors. Work injury benefits nearly always 

include cash benefits and medical services. Most 

countries attempt to maintain separate work injury 

programs that are not linked directly with other social 

security measures. In some countries, however, work 

injury benefits are paid under special provisions of 

the general social security programs. Both types of 

programs are dealt with under Work Injury.

Types of Systems. There are two basic types of work 

injury systems: social insurance systems that use a 

public fund, and various forms of private or semiprivate arrangements required by law. In most countries, 

work injury programs operate through a central public 

fund, which may or may not be part of the general 

social insurance system. All employers subject to the 

program must pay contributions to the public carrier, 

which in turn pays the benefits.

Countries that rely primarily on private arrangements require employers to insure their employees 

against the risk of employment injury. However, in 

some of these countries, only private insurance is 

available. In the remainder, a public fund does exist, 

but employers are allowed the option of insuring with 

either a private carrier or the public fund.

The premiums charged by private or mutual insurance companies for work injury protection usually 

vary according to the experience of work accidents in 
12 ♦ SSPTW: The Americas, 2007

different undertakings or industries, and the cost of 

protection may vary widely. In some countries, however, experience rating has been eliminated, and all 

employers contribute to the program at one rate.

In other instances, workers’ compensation laws 

simply impose on employers a liability to pay direct 

compensation to injured workers or their survivors. 

Employers covered under such laws may simply pay 

benefits from their own funds as injuries occur or may 

voluntarily purchase a private or mutual insurance 

contract to protect themselves against risk.

Coverage. Work injury programs commonly cover 

wage and salary workers and exclude the selfemployed. The programs of some of the more highly 

industrialized nations cover practically all employees. 

However, many countries either exclude all agricultural employees or cover only those who operate 

power-driven machinery. Some programs also exclude 

employees of small enterprises.

Source of Funds. Work injury benefits are financed 

primarily by employer contributions, reflecting the 

traditional assumption that employers should be liable 

when their employees suffer work injuries. Where certain elements of the work injury program are meshed 

with one or more of the other branches of the social 

insurance system, however, financing usually involves 

contributions from employees, employers, and the 

government. Another exception occurs in countries 

that provide medical treatment for work-connected 

illnesses under their ordinary public medical care 

programs.

Work Injury Benefits. Work injury programs provide cash benefits and medical benefits. Cash benefits 

under work injury programs may be subdivided into 

three types: benefits for temporary disability, those for 

permanent total disability, and those for permanent 

partial disability. No qualifying period of coverage or 

employment is ordinarily required for entitlement to 

work injury benefits. The concept of work-connected 

injury has gradually been liberalized in a number of 

countries to cover injuries occurring while commuting 

to and from work.

Temporary disability benefits are usually payable 

from the start of an incapacity caused by a work injury, 

though some programs require a waiting period of 1 

to 3 days. Benefits normally continue for a limited 

period, such as 26 to 52 weeks, depending on the 

duration of incapacity. If incapacity lasts longer, the 

temporary disability benefit may be replaced by a permanent disability benefit. In some systems, temporary 

benefits may continue for an extended period, particularly if the temporary and permanent benefit amounts 

are identical.

The temporary benefit is nearly always a fraction of the worker’s average earnings during a period 

immediately before injury, usually at least one-third 

to one-half. A ceiling may be placed on the earnings 

considered in computing a benefit. Temporary benefits under work injury programs may be significantly 

higher than in the case of ordinary sickness. Benefits 

are reduced under some programs when a worker is 

hospitalized.

The second type of cash work injury benefit is provided in cases of permanent total disability. Generally, 

it becomes payable immediately after the temporary 

disability benefit ceases, based on a medical evaluation that the worker’s incapacity is both permanent and 

total. The permanent total disability benefit is usually 

payable for life, unless the worker’s condition changes. 

A minority of programs, however, pay only a single 

lump-sum grant equal to several years’ wages.

The permanent total disability benefit usually 

amounts to two-thirds to three-fourths of the worker’s 

average earnings before injury, somewhat higher than 

for ordinary disability benefits. In addition, unlike 

ordinary disability benefits, the rate usually does not 

vary based on the length of employment before the 

injury. Supplements may be added for dependents 

and for pensioners requiring the constant attendance 

of another person, in which case benefits may exceed 

former earnings. In some countries, the benefits of 

apprentices or new labor force entrants who become 

permanently disabled as a result of work-connected 

injury or disease are based on hypothetical lifetime 

wages or on the wage of an average worker in the 

particular industry. This mechanism overcomes the 

problem of establishing a lifetime benefit based on a 

very low starting wage.

The third type of cash work injury benefit is 

provided when permanent partial disability results in 

a worker’s loss of partial working or earning capacity. 

It is usually equal to a portion of the full benefit corresponding to the percentage loss of capacity. Alternatively, permanent partial disability benefits may be 

paid in the form of a lump-sum grant. Partial disability 

payments are generally smaller and are usually stipulated in a schedule of payments for particular types of 

injuries. Some systems pay the benefit as a lump sum 

when the extent of disability is below a stated percentage, such as 20 percent.
SSPTW: The Americas, 2007 ♦ 13

Medical and hospital care and rehabilitation 

services are also provided to injured workers. Nearly 

always free, they may include a somewhat wider range 

of services than the general sickness program. Ordinarily, they are available until the worker recovers or the 

condition stabilizes. In some countries, however, free 

care is limited, the amount being based on the duration 

of services or their total cost.

Survivor Benefits. Most work injury programs also 

provide benefits to survivors. These benefits are customarily payable to a widow, regardless of her age, 

until her death or remarriage; to a disabled widower; 

and to orphans below specified age limits. If the benefit is not exhausted by the immediate survivors’ claims, 

dependent parents or other relatives may be eligible 

for small benefits. No minimum period of coverage is 

required.

Survivor benefits are computed as a percentage 

of either the worker’s average earnings immediately 

before death or the benefit payable (or potentially payable) at death. These percentages are typically larger 

than those for survivor benefits under the general 

program and do not normally vary with the length of 

covered employment. They are usually about onethird to one-half of the worker’s average earnings for 

a widow, about half as much for each half orphan, and 

about two-thirds as much for each full orphan. A limit 

is commonly placed on the combined total of survivor 

benefits.

Not all countries, however, provide work injury 

benefits to survivors, and some do not differentiate 

between survivors in this category and survivors entitled to benefits under other social insurance programs. 

Some schemes pay only a lump sum equal to the 

worker’s earnings over a specified number of years. 

Most systems also pay a funeral grant equivalent to a 

fixed sum or a percentage of the worker’s earnings.

Administrative Organization. The functions involved 

in administering work injury programs differ widely 

between countries in which employers are not required 

to insure or can insure with private carriers and those 

in which a public agency or fund has sole responsibility for both collecting contributions and paying 

benefits.

Unemployment

Benefits in this category provide compensation for 

the loss of income resulting from involuntary unemployment. In some countries, these programs are 

independent of other social security measures and 

may be closely linked with employment services. 

In other countries, the unemployment programs are 

included with social security measures covering other 

short-term risks, although employment services may 

continue to verify unemployment and assist in a job 

search.

Unemployment programs, which exist mainly in 

industrialized countries, are compulsory and fairly 

broad in scope in many countries. Some countries 

restrict benefits to those who satisfy a means or income 

test. In addition to the programs offering scheduled 

payments, a number of countries provide lump-sum 

grants, payable by either a government agency or the 

employer; other countries provide mandatory individual severance accounts, providing total benefits equal 

to the value of accumulated capital in the individual 

account. In addition, employers in many instances are 

required to pay lump-sum severance indemnities to 

discharged workers.

Coverage. About half of the compulsory unemployment programs cover the majority of employed 

persons, regardless of the type of industry. Coverage 

under the remaining programs is limited to workers 

in industry and commerce. A few exclude salaried 

employees earning more than a specified amount. 

Some have special provisions covering temporary and 

seasonal employees. Several countries have special 

occupational unemployment programs, most typically 

for workers in the building trades, dockworkers, railway employees, and seafarers.

Voluntary insurance systems are limited to industries in which labor unions have established unemployment funds. Membership in these funds is usually 

compulsory for union members in a covered industry 

and may be open on a voluntary basis to nonunion 

employees. Noninsured workers, such as recent school 

graduates or the self-employed, for example, may be 

eligible for a government-subsidized assistance benefit 

when they become unemployed.

Source of Funds. The methods used to finance 

unemployment insurance are usually based on the 

same contributory principles as for other branches of 

social insurance—contributions amounting to a fixed 

percentage of covered wages are paid on a scheduled 

basis. In many cases, the government also grants a 

subsidy, particularly for extended benefits.

Unemployment insurance contributions are 

shared equally between employees and employers in 

many countries. Alternatively, the entire contribution 

may be made by the employer. However, govern-
14 ♦ SSPTW: The Americas, 2007

ment subsidies may be quite large, amounting to as 

much as two-thirds of the program’s expenditures. 

Means-tested unemployment assistance programs are 

financed entirely by governments, with no employer or 

employee contribution.

Qualifying Conditions. To be entitled to unemployment benefits, a worker must be involuntarily unemployed and have completed a minimum period of 

contributions or covered employment. The most common qualifying period is 6 months of coverage within 

the year before employment ceased. In a number of 

industrialized countries, however, students recently out 

of school who are unable to find jobs may be eligible 

for unemployment benefits, even without a work 

record. This benefit provides a transition from school 

to work, particularly in periods of recession.

Nearly all unemployment insurance programs, 

as well as those providing unemployment assistance, 

require that applicants be capable of, and available for, 

work. An unemployed worker, therefore, is usually 

ineligible for unemployment benefits when incapacitated or otherwise unable to accept a job offer. Usually, 

the unemployed worker must register for work at an 

employment office and report regularly for as long as 

payments continue. This close linkage between unemployment benefits and placement services ensures that 

benefits will be paid only after the person has been 

informed of any current job opportunities and been 

found unsuitable.

An unemployed worker who refuses an offer of 

a suitable job without good cause usually will have 

benefits temporarily or permanently suspended. Most 

programs stipulate that the job offered must have been 

suitable for the worker. The definitions of suitable 

employment vary considerably. Generally, the criteria include the rate of pay for the job being offered 

in relation to previous earnings; distance from the 

worker’s home; relationship to the worker’s previous 

occupation, capabilities, and training; and the extent 

to which the job may involve dangerous or unhealthy 

work. In some countries, long-term unemployed workers may also be obliged to undertake employment 

retraining programs. Some countries also provide the 

unemployed with access to educational placements. 

If an unemployed worker refuses a place on a retraining program or fails, without good cause, to attend an 

educational placement, benefits can be temporarily or 

permanently suspended.

An unemployed worker may satisfy all of the qualifying conditions for a benefit but still be temporarily 

or permanently disqualified. Nearly all unemployment 

systems disqualify a worker who left voluntarily without good cause, was dismissed because of misconduct, 

or participated in a labor dispute leading to a work 

stoppage that caused the unemployment. The period of 

disqualification varies considerably, from a few weeks 

to permanent disqualification.

Unemployment Benefits. Weekly benefits are usually a percentage of average wages during a recent 

period. A system of wage classes rather than a single 

fixed percentage is used in some countries. The basic 

rate of unemployment benefits is usually between 40 

percent and 75 percent of average earnings. However, 

a ceiling on the wages used for benefit computations or 

maximum benefit provisions may considerably narrow 

the range within which the basic percentage of wages 

applies.

Flat-rate amounts are sometimes payable instead 

of graduated benefits that vary with past wages and 

customarily differ only according to the family status 

or, occasionally, the age of the worker. Supplements 

for a spouse and children are usually added to the basic 

benefit of unemployed workers who are heads of families. These supplements are either flat-rate amounts or 

an additional percentage of average earnings.

Most countries have a waiting period of several 

days before unemployment benefits become payable 

to reduce the administrative burden of dealing with a 

very large number of small claims. Most waiting periods are between 3 and 7 days. Some programs have a 

waiting period for each incident of unemployment, and 

others limit eligibility to once a year. Longer waiting 

periods may be prescribed for certain workers, such as 

the seasonally employed.

Most countries place a limit on the period during 

which unemployment benefits may be continuously 

drawn. Typically, this limit varies from 8 to 36 weeks 

but may be longer in certain cases.

Duration of benefits may also depend on the length 

of the preceding period of contribution or coverage 

under the program. That criterion may reduce the 

maximum duration of unemployment benefits for 

workers with brief work histories. However, workers 

with a long history of coverage may, under some programs, have their benefit period extended well beyond 

the ordinary maximum.

Many unemployed workers who exhaust the right 

to ordinary benefits continue to receive some assistance, provided their means or incomes are below 

specified levels. Recipients are usually required to 

continue registering and reporting at an employment 
SSPTW: The Americas, 2007 ♦ 15

exchange. Some countries that have unemployment 

assistance but no insurance program do not place any 

limit on the duration of payments. A number of countries require that insured workers approaching retirement age who have been out of work for a specified 

period be removed from the unemployment rolls and 

granted a regular old-age benefit.

Administrative Organization. Unemployment insurance systems may be administered by government 

departments or self-governing institutions that are 

usually managed by representatives of insured persons, 

employers, and the government.

Unemployment insurance and placement service 

programs usually maintain a close administrative 

relationship that ensures that benefits are paid only 

to workers who are registered for employment. At 

the same time, this liaison increases the effectiveness 

of the placement services by providing an incentive, 

through payment of benefits, for unemployed persons 

to register and report regularly.

Some countries have merged the administration 

of unemployment insurance and employment service 

programs, especially at the lower administrative levels 

where claims are received and benefits are paid by the 

local employment office. Other countries require persons to register with a local employment office, but the 

receipt of claims and payment of benefits are handled 

by a separate insurance office.

In addition to providing an income for the unemployed, many governments have elaborate measures to 

prevent or counteract unemployment. The typical procedure is for government employment services to work 

with industry to promote occupational and geographic 

mobility of labor and to minimize unemployment 

caused by economic or technological developments; 

they do that by subsidizing the retraining and relocation of workers in industries that are declining or being 

restructured. Governments may grant tax and other 

incentives to industry to locate in areas of high unemployment, or they may allocate funds to create jobs in 

anticipation of periods of seasonal unemployment.

Family Allowances

The general purpose of family allowance programs is 

to provide additional income for families with young 

children in order to meet at least part of the added 

costs of their support. These programs may either be 

integrated with other social security measures or kept 

entirely separate. In this report, family allowances primarily include regular cash payments to families with 

children. In some countries, they also include school 

grants, birth grants, maternal and child health services, 

and allowances for adult dependents.

Most industrialized countries have family allowance programs that originated in Europe in the 19th 

century when some large companies began paying premiums to workers with large families. The idea spread 

gradually, and several European countries enacted 

programs during the 1920s and 1930s. Most programs 

in operation today, however, have been in place since 

1945.

Types of Systems and Coverage. Family allowance 

programs are of two types: universal and employmentrelated. The first category, in principle, provides allowances to all resident families with a specified number 

of children. The second category provides allowances 

to all wage and salary workers and, in some cases, the 

self-employed. A few systems cover some categories 

of nonemployed persons as well. Most employmentrelated programs continue to pay family allowances 

to insured persons with dependent children in their 

care when they retire or are temporarily off the job 

and receiving sickness, unemployment, work injury, 

disability, or other benefits. Employment-related family programs also pay allowances to widows of social 

security beneficiaries.

Source of Funds. The differences in family allowance 

programs are reflected in the methods used for financing. In universal systems, the entire cost is usually 

covered by general revenue. By contrast, countries 

linking eligibility with employment meet the cost 

of allowances entirely or in considerable part from 

employer contributions, usually at a uniform percentage-of-payroll rate. If employer contributions do not 

cover the entire cost, the remainder is usually met 

from a government subsidy. Few countries require 

an employee contribution toward family allowances, 

although some require self-employed persons to 

contribute.

Eligibility. Eligibility is commonly related to the size 

of the family and, in some cases, to family income. 

Many countries pay allowances beginning with the 

first child. In addition, some countries pay an allowance for a nonemployed wife or other adult dependent, 

even if there are no children.

In some countries, families with only one child are 

ineligible. Age requirements vary but are usually tied 

to the last year of school or the minimum working age, 

which are often the same and fall somewhere between 

ages 14 and 18. Under most programs, the continua-
16 ♦ SSPTW: The Americas, 2007

tion of schooling, apprenticeship, or vocational training qualifies a child for an extension of the age limit. 

In the case of disabled children, many countries extend 

the age limit beyond that for continued education or 

pay allowances indefinitely.

Benefits. Whether a program pays a uniform rate for 

all children or an increasing or decreasing amount for 

each additional child may reflect the history or the 

intent of the program. The allowance structure may 

vary, for example, depending on whether the primary 

intent is to provide assistance or stimulate population 

growth. The allowance in most countries is a uniform 

amount for every child, regardless of the number of 

children in a family. The allowance in most of the 

other countries increases for each additional child; the 

payment for a fifth child, for example, may be considerably larger than that for the first or second child. In 

a few countries, the allowance per child diminishes or 

ceases with the addition of children beyond a certain 

number. In some countries, family allowances (and tax 

exemptions for dependent family members) have been 

replaced or supplemented by credits or other forms of 

a negative income tax.

Administrative Organization. In countries where 

family allowances are available to all families and 

financed from general revenues, the program is usually 

administered by a government department. Where 

allowances are payable mainly to families of employed 

persons and financed primarily from employer contributions, the administration may be by a semiautonomous agency under public supervision. Equalization 

funds may handle the program’s financial operations. 

Each employer pays family allowances to its employees with their wages. The firm then settles with the 

local fund only the surplus or deficit of contributions 

due, after deducting allowances the firm has paid. A 

similar procedure of settling only surpluses or deficits is followed by the local funds in relation to the 

regional equalization funds under whose supervision 

they operate. The equalization process makes it possible to fix a uniform contribution rate for all employers, 

regardless of the number of children in their employees’ families. It also eliminates any effect allowances 

might have in inducing employers to discriminate in 

hiring workers with children.
SSPTW: The Americas, 2007 ♦ 17

Cash

benefits

for both

Cash

benefits plus

medical care a

Antigua and Barbuda X X b b b b

Argentina X X X X X X

Bahamas X X b X b b

Barbados X X b X X b

Belize X X b X b b

Bermuda X b c X b b

Bolivia X X X X b X

Brazil X X X X X X

British Virgin Islands X X b X b b

Canada X X X X X X

Chile X X X X X X

Colombia X X X X X X

Costa Rica X X X X b X

Cuba X X X X b X

Dominica X X X X b b

Dominican Republic X X X X b X

Ecuador X X X X X b

El Salvador X X X X b b

Grenada X X b X b b

Guatemala X X X X b b

Guyana X X b X b b

Haiti X b b X b b

Honduras X X X X b b

Jamaica X d X X b X

Mexico X X X X X X

Nicaragua X X X X b X

Panama X X X X b b

Paraguay X X X X b b

Peru X X X X b b

Saint Kitts and Nevis X X b X b b

Saint Lucia X X b X b b

(Continued)

Sickness and maternity

Table 1.

Types of social security programs

Country

Old age,

disability,

and

survivors

Work

injury Unemployment

Family 

allowances
18 ♦ SSPTW: The Americas, 2007

Cash

benefits

for both

Cash

benefits plus

medical care a

Saint Vincent and the 

Grenadines X X b X b b

Trinidad and Tobago X X X X b X

United States X X X X X X

Uruguay X e e X X X

Venezuela X X X X X e

a.

b.

c.

d.

e.

Maternity benefits only.

Coverage is provided under other programs.

Table 1.

Continued

Country

Old age,

disability,

and

survivors

Sickness and maternity

Work

injury

Coverage is provided for medical care, hospitalization, or both.

Has no program or information is not available.

Family 

allowances

Medical benefits only.

Unemployment

SOURCE: Based on information in the country summaries in this volume.
SSPTW: The Americas, 2007 ♦ 19

Country

FlatrateEarningsrelatedMeanstestedFlat-rate

universal

Provident

funds a

Occupational 

retirement 

schemes

Individual 

retirement 

schemes

Antigua and Barbuda X X

Argentina X b X X X

Bahamas X X

Barbados X X

Belize X X

Bermuda X b X X

Bolivia X X

Brazil X X

British Virgin Islands X

Canada X X c

Chile X d X X e

Colombia X X e

Costa Rica X X X

Cuba X X

Dominica X

Dominican Republic X d X f X

Ecuador X X

El Salvador X d X e

Grenada X

Guatemala X

Guyana X

Haiti X

Honduras X

Jamaica X g X g

Mexico X d X e

Nicaragua X X

Panama X

Paraguay X

Peru X X e

Saint Kitts and Nevis X X

Saint Lucia X

Table 2.

Types of mandatory systems for retirement income

(Continued)
20 ♦ SSPTW: The Americas, 2007

Country

FlatrateEarningsrelatedMeanstestedFlat-rate

universal

Provident

funds

Occupational 

retirement 

schemes

Individual 

retirement 

schemes

Saint Vincent and the 

Grenadines X

Trinidad and Tobago X X

United States X X

Uruguay X X X

Venezuela X g X g

a.

b.

c.

d.

e.

f.

g.

Table 2.

Continued

Occupational retirement schemes: Employers are required by law to provide private occupational retirement 

schemes financed by employer and, in some cases, employee contributions. Benefits are paid as a lump sum, 

annuity, or pension.

The earnings-related social insurance system is closed to new entrants and is being phased out.

SOURCE: Based on information in the country summaries in this volume.

No country in the Americas has a provident fund. The column in this table is to facilitate comparisons with 

countries in other regions.

The universal pension is increased by an income-tested supplement.

Individual retirement schemes: Employees and, in some cases, employers must contribute a certain 

percentage of earnings to an individual account managed by a public or private fund manager chosen by the 

employee. The accumulated capital in the individual account is used to purchase an annuity, make programmed 

withdrawals, or a combination of the two and may be paid as a lump sum.

The benefit increases with the length of the contribution period.

Means-tested pension: A pension paid to eligible persons whose own or family income, assets, or both fall 

below designated levels. It is generally financed through government contributions, with no contributions from

employers or employees.

The government provides a guaranteed minimum pension.

The means-tested pension has not been implemented.

The pension formula contains a flat-rate component and an earnings-related element.

Provident funds: Employee and employer contributions are set aside for each employee in publicly managed 

special funds. Benefits are generally paid as a lump sum with accrued interest.

NOTE: The types of mandatory systems for retirement income are defined as follows:

Flat-rate pension: A pension of uniform amount or one based on years of service or residence but independent 

of earnings. It is financed by payroll tax contributions from employees, employers, or both.

Earnings-related pension: A pension based on earnings. It is financed by payroll tax contributions from 

employees, employers, or both.

Flat-rate universal pension: A pension of uniform amount normally based on residence but independent of 

earnings. It is generally financed through government contributions, with no contributions from employers

or employees.
SSPTW: The Americas, 2007 ♦ 21

Antigua and 

Barbuda 0.069 3.7 44.9 70.0 74.9 60 60 c c 12,500

Argentina 38.7 10.2 57.7 71.6 79.1 65 60 c c 14,280

Bahamas 0.323 6.2 50.8 70.6 76.3 65 65 60 60 18,380

Barbados 0.292 9.2 38.9 74.4 79.8 65.5 65.5 60 60 17,297

Belize 0.276 4.2 72.1 73.3 79.2 65 65 60 60 7,109

Bermuda 0.066 12.5 44.5 76.0 80.2 65 65 c c 69,900

Bolivia 9.2 4.5 74.2 63.4 67.7 65 65 c c 2,819

Brazil 186.8 6.1 51.5 68.8 76.1 65 d 60 d c c 8,402

British Virgin 

Islands 0.023 5.4 34.4 75.7 78.0 65 65 c c 38,500

Canada 32.2 13.1 44.3 78.3 82.9 65 65 c c 33,375

Chile 16.2 8.1 49.2 75.5 81.5 65 60 c c 12,027

Colombia 44.9 5.1 54.5 69.2 76.6 60 55 c c 7,304

Costa Rica 4.3 5.8 51.9 76.5 81.2 61.9 59.9 c c 10,180

Cuba 11.2 11.2 43.8 76.2 80.4 60 55 c c 6,000

Dominica 0.072 10.2 55.7 72.1 78.1 60 60 c c 6,393

Dominican 

Republic 9.47 5.6 64.2 69.3 75.5 60 60 57 57 8,217

Ecuador 13.0 5.9 62.6 72.1 78.0 60 60 c c 4,341

El Salvador 6.7 5.5 65.5 68.8 74.9 60 55 c c 5,255

Grenada 0.105 6.8 69.2 67.0 70.4 60 60 c c 7,843

Guatemala 12.7 4.3 90.1 66.7 73.8 60 60 c c 4,568

Guyana 0.739 5.7 58.2 64.2 69.9 60 60 c c 4,508

Haiti 9.3 4.1 72.4 59.1 62.8 55 55 c c 1,663

Honduras 6.8 4.1 78.9 66.9 73.7 65 60 c c 3,430

Jamaica 2.7 7.5 64.4 70.0 75.2 65 60 c c 4,291

Mexico 104.2 5.8 57.5 73.7 78.6 65 65 60 60 10,751

Nicaragua 5.4 4.0 72.1 69.9 76.0 60 60 c c 3,674

Panama 3.2 6.0 57.0 73.0 78.2 62 57 c c 7,605

Paraguay 5.9 4.8 68.3 69.7 73.9 60 60 55 55 4,642

Peru 27.2 5.6 59.5 68.9 74.0 60 60 55 50 6,039

Saint Kitts 

and Nevis 0.039 7.9 54.0 69.8 75.6 62 62 c c 8,200

Saint Lucia 0.161 7.2 54.0 71.9 75.6 62 62 60 60 6,707

Women

GDP

per

capita

Country (US$)

Percentage

65 or

older

Dependency 

ratio a Women

Life

expectancy

at birth (years)

(Continued)

Table 3.

Demographic and other statistics related to social security, 2007

Men Men Men

Statutory

pensionable

age

Women

Early

pensionable

age b Total 

population

(millions)
22 ♦ SSPTW: The Americas, 2007

Saint Vincent 

and the 

Grenadines 0.119 6.5 55.7 69.5 73.8 60 60 c c 6,568

Trinidad and 

Tobago 1.3 6.5 40.2 67.8 71.8 60 60 c c 14,603

United States 299.8 12.3 49.4 75.6 80.8 65.8 65.8 62 62 41,890

Uruguay 3.3 13.5 59.5 72.8 79.9 60 60 c c 9,962

Venezuela 26.7 5.0 57.0 70.9 76.8 60 55 c c 6,632

a.

b.

c.

d.

GDP = gross domestic product.

Dependency 

ratio a Women

Early

pensionable

age b Total 

population

(millions) Men Women

Statutory

pensionable

age

Country

SOURCES: United Nations Population Division, Department of Economic and Social Affairs. World Population Prospects: 

The 2006 Revision Population Database , available at http://esa.un.org/unpp (2006); Human Development Report 2007, 

prepared for the United Nations Development Programme (Gordonsville VA: Palgrave Macmillan, 2007); U.S. Central 

Intelligence Agency. The World Factbook, 2007 (Washington D.C.: Central Intelligence Agency, 2007).

Men Men

NOTES: Information on statutory and pensionable ages is taken from the country summaries in this volume.

Table 3.

Continued

Percentage

65 or

older

GDP

per

capita

Women (US$)

Life

expectancy

at birth (years)

The country has no early pensionable age, has one only for specific groups, or information is not available.

Urban workers.

Population aged 14 or younger plus population aged 65 or older, divided by population aged 15–64.

General early pensionable age only; excludes early pensionable ages for specific groups of employees.
SSPTW: The Americas, 2007 ♦ 23

Antigua and Barbuda 3 b 5 b 8 b 3 5 8 c

Argentina 11 10.17 21.17 17 22.7 d 39.7 c

Bahamas 1.7 b 7.1 b 8.8 b 1.7 7.1 d 8.8 c

Barbados 5.93 b 5.93 b 11.86 b 6.68 6.68 13.36 c

Belize e e e e e e

Bermuda 5 g 5 g 10 g 5 g 5 d,g 10 c,g

Bolivia 10 f 0 10 f 10 10 h 20 c

Brazil 8 b 20 b 28 b 8 21 d 29 c,i

British Virgin Islands 3.25 3.25 6.5 4 4.5 8.5 c

Canada 4.95 4.95 9.9 6.75 8.47 d,j 15.22 c,j,k

Chile 10 f 0 10 f 17.6 2.4 d 20 c,k

Colombia 3.875 11.625 15.5 7.875 36.773 44.648 c

Costa Rica 3.5 8 11.5 9 17.25 d 26.25

Cuba 0 14 b 14 b 0 14 14

Dominica 4 b 6.75 b 10.75 b 4 6.75 d 10.75 c

Dominican Republic 2.87 7.10 9.97 5.73 13.77 d 19.5 c

Ecuador 6.64 b 3.1 b 9.74 b 8.64 10.36 19

El Salvador 6.25 f 4.05 f 10.3 f 9.25 11.55 20.8 b,c

Grenada 4 b 5 b 9 b 4 5 9 c

Guatemala 1.83 3.67 5.5 4.83 10.67 15.5

Guyana 5.2 b 7.8 b 13 b 5.2 7.8 13 c

Haiti 6 6 12 6 6 d 12

Honduras 1 2 3 3.5 7 10.5 c

Jamaica 2.5 b 2.5 b 5 b 2.5 2.5 5 c,k

Mexico 1.125 d 5.15 6.275 d 1.375 6.85 d,l 8.225 c

Nicaragua 4 b 6 b 10 b 10.25 24 34.25 c

Panama 7.25 b 10.75 b 18 b 7.25 10.75 d 18

Paraguay 9 b 14 b 23 b 9 14 23

Peru 10 f 0 10 f 10 9.63 19.63 c

Saint Kitts and Nevis 5 b 5 b 10 b 5 6 11 c

Saint Lucia 5 b 5 b 10 b 5 5 10 c

Table 4.

Contribution rates for social security programs, 2007 (in percent)

All social security programs a

Employer Total

Insured

person

Old age, disability, and survivors

Country Total

(Continued)

Employer

Insured

person
24 ♦ SSPTW: The Americas, 2007

Saint Vincent and the 

Grenadines 2.5 b 3 b 5.5 b 2.5 3.5 6 c

Trinidad and Tobago 3.11 6.23 9.34 3.5 7.02 10.52 c,k

United States 6.2 6.2 12.4 7.65 8.45 d 16.1 c,k,m

Uruguay 15 f 7.5 f 22.5 f 18 12.5 d 30.5 c,i,k

Venezuela 1.93 4.82 6.75 4.22 b 9.98 14.2 c

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

l.

m.

Plus flat-rate social insurance contributions.

Country Employer

Old age, disability, and survivors

Employers pay the total cost of work injury benefits.

Also includes the contribution rates for other programs.

A flat-rate weekly contribution to finance all benefits is paid according to eight earnings classes.

SOURCE: Based on information in the country summaries in this volume.

Includes old age, disability, and survivors; sickness and maternity; work injury; unemployment; and family allowances. 

In some countries, the rate may not cover all of these programs. In some cases, only certain groups, such as wage 

earners, are represented. When the contribution rate varies, either the average or the lowest rate in the range is used.

Total

Table 4.

Continued

Insured

person

Contributions are submitted to a ceiling on some benefits.

Employer

Insured

person

All social security programs a

Total

Employers pay the total cost of family allowances.

Contributions finance old-age benefits only. Additional contributions are required for survivor and disability benefits.

Contributions may be higher or lower in some states.

Plus flat-rate contributions for medical benefits.

Government pays the total cost of family allowances.

Contributions may be higher in some provinces.

Government pays the total cost of unemployment benefits.
Country

Summaries

SSPTW: The Americas, 2007 ♦ 27

Antigua and Barbuda

Antigua and Barbuda

Exchange rate: US$1.00 equals

2.70 East Caribbean dollars (EC$).

Old Age, Disability, and Survivors

Regulatory Framework

First and current laws: 1972 (social insurance); 1973 (old 

age), with 2005 amendment; 1977 (disability); and 1993 

(social assistance).

Type of program: Social insurance and social assistance 

system.

Coverage

Social insurance: Employed and self-employed persons 

aged 16 to 59.

Voluntary coverage is not possible.

Exclusions: A married woman working for her husband; 

certain family members working for a family business; 

casual workers with weekly earnings less than EC$7.50 and 

having worked for less than 8 weeks; and employed persons 

with any earnings paid on the basis of commissions, fees, or 

profit sharing.

There are no special systems for any specified groups of 

employees.

Social assistance: Persons who were aged 65 or older in 

1993; age 60 or older and blind with annual income up to 

EC$5,000.

Source of Funds

Insured person: 3% of covered monthly earnings (private 

sector) or 2% of covered monthly earnings (public sector).

The minimum weekly earnings for contribution purposes are 

EC$7.50.

The maximum annual earnings for contribution purposes are 

EC$54,000.

The insured’s (private sector) contributions also finance 

sickness and maternity benefits.

Self-employed person: 8% of covered monthly earnings.

The minimum monthly earnings for contribution purposes 

are EC$450.

The maximum annual earnings for contribution purposes are 

EC$54,000.

The self-employed person’s contributions also finance sickness and maternity benefits.

Employer: 5% of covered monthly payroll.

The minimum earnings for contribution purposes are 

EC$7.50 a week; EC$32.50 a month.

The maximum annual earnings for contribution purposes are 

EC$54,000.

The employer’s contributions also finance sickness and 

maternity benefits.

Government: None; contributes as an employer.

Note: The Social Security Board finances social assistance 

benefits.

Qualifying Conditions

Old-age pension: Age 60 with at least 500 weeks of contributions for a full pension.

Partial pension: A reduced pension is paid at age 60 with 

350 to 499 weeks of contributions.

Transitional pension: A reduced pension is paid at age 60 

with at least 156 weeks of contributions starting before 

1975.

Early pension: There is no early pension.

Deferred pension: There is no deferred pension.

Old-age settlement: Aged 60 or older and does not satisfy 

the qualifying conditions for the old-age pension, but has at 

least 26 paid contributions starting before 1975 or at least 

52 contributions starting after 1974.

Old-age benefits are payable abroad.

Old-age assistance: Aged 77 or older; aged 60 or older if 

blind or disabled.

Disability pension: The insured must be assessed as disabled, be younger than age 60, and have at least 156 weeks 

of contributions.

The degree of disability is assessed by the insured’s doctor 

and a Social Security Board doctor.

Disability settlement: The insured must be assessed as disabled, be younger than age 60, and have at least 52 weeks of 

contributions but does not satisfy the qualifying conditions 

for the disability pension.

The degree of disability is assessed by the insured’s doctor 

and a Social Security Board doctor.

Disability benefits are payable abroad.

Survivor pension: Paid if the deceased was eligible for or 

was receiving a disability pension or an old-age pension at 

the time of death.

Eligible survivors are a widow or a dependent disabled widower and children younger than age 16 (age 18 if a student).

Survivor settlement: Paid if the deceased was eligible for 

or was receiving the old-age grant or the disability grant at 

the time of death.
28 ♦ SSPTW: The Americas, 2007

Antigua and Barbuda

Eligible survivors are a widow aged 50 or older who had 

been married or living with the deceased for at least 3 years, 

a dependent disabled widower who had been married or 

living with the deceased for at least 3 years, and children 

younger than age 16 (age 18 if a student).

Survivor benefits are payable abroad.

Funeral grant: The deceased had at least 26 weeks of paid 

contributions in the last 12 months or was eligible for or was 

receiving sickness benefits, maternity benefits, an old-age 

pension, or a disability pension at the time of death.

Old-Age Benefits

Old-age pension: The full pension is equal to 25% of 

the insured’s average earnings, plus 1% for each 50-week 

period of contributions exceeding 500 contributions, up to a 

maximum of 50%.

Average earnings are based on earnings in the best 5 years 

in the last 10 years of work; if the number of years worked 

is less than 5 years, the average is based on total earnings.

Partial pension: A percentage of the full pension is paid 

according to the number of weeks of contributions.

Transitional pension: The pension is equal to 25% of average earnings in the best 5 years in the last 10 years of work.

Early pension: There is no early pension.

Deferred pension: There is no deferred pension.

The minimum monthly pension is EC$350.

The maximum monthly pension is EC$2,250.

Old-age settlement: EC$1,200 or 75% of the combined 

employer and employee contributions, whichever is higher.

Benefit adjustment: Benefits are adjusted according to actuarial reviews, subject to economic conditions.

Old-age assistance: EC$255 a month is paid.

Permanent Disability Benefits

Disability pension: The pension is equal to 25% of the 

insured’s average earnings, plus 1% for each 50-week 

period of contributions exceeding 500 contributions, up to a 

maximum of 50%.

Average earnings are based on earnings in the best 5 years 

in the last 10 years of work; if the insured has less than 

5 years of work, the average is based on earnings in the total 

period.

The minimum monthly pension is EC$350.

The maximum monthly pension is EC$2,250.

Disability settlement: EC$1,200 or 75% of the combined 

employer and employee contributions, whichever is higher.

Benefit adjustment: Benefits are adjusted according to actuarial reviews, subject to economic conditions.

Survivor Benefits

Survivor pension: An eligible widow(er) receives 50% of 

the pension paid or payable to the deceased. A limited pension is paid for a year if the widow is younger than age 50 

and employed at the time of the insured’s death.

The pension ceases on remarriage.

The minimum survivor pension is EC$150.15 a month.

Orphan’s pension: 25% of the deceased’s pension (40% 

if a full orphan) is paid to an orphan younger than age 16 

(age 18 if a student).

The minimum orphan’s pension is EC$50.05 a month.

Survivor settlement: The grant must not exceed the value 

of the old-age settlement or disability settlement.

Benefit adjustment: Benefits are adjusted according to actuarial reviews, subject to economic conditions.

Funeral grant: EC$2,500 is paid to the person who met the 

cost of the funeral.

Administrative Organization

Ministry of Finance provides general supervision.

Antigua and Barbuda Social Security Board (http://www.

socialsecurity.gov.ag) administers the program.

Sickness and Maternity

Regulatory Framework

First and current laws: 1972 (social insurance), 1973 (sickness), and 1973 (maternity).

Type of program: Social insurance system. Cash benefits 

only.

Coverage

Private-sector employees and self-employed persons 

aged 16 to 59.

Voluntary coverage is not possible.

Exclusions: A married woman working for her husband; 

certain family members working for a family business; 

casual workers with weekly earnings less than EC$7.50 and 

having worked for less than 8 weeks; and employed persons 

with any earnings paid on the basis of commissions, fees, or 

profit sharing.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.
SSPTW: The Americas, 2007 ♦ 29

Antigua and Barbuda

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: None.

Qualifying Conditions

Cash sickness benefits: The insured must be insured for 

at least 26 weeks; worked at least 8 weeks in the 3 calendar 

months immediately before the incapacity began and was 

employed the day before the incapacity began. The incapacity is not the result of a work-related injury.

Cash maternity benefits: The insured must have 26 weeks 

of contributions in the year before the expected date of 

childbirth.

Maternity grant: The grant is paid to an insured woman 

or the wife of an insured man, with at least 26 weeks of 

paid contributions in the year before the expected date of 

childbirth.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 60% of the 

insured’s average weekly earnings and is paid after a 3-day 

waiting period for up to 26 weeks; may be extended for an 

additional 13 weeks.

Average weekly earnings are based on earnings in the 3 calendar months before the incapacity began.

Maternity benefit: The benefit is equal to 60% of the 

insured’s average weekly earnings and is paid for a maximum of 13 weeks beginning not earlier than 6 weeks before 

the expected date of childbirth or later than the expected 

week of childbirth.

Average weekly earnings are based on earnings in the 

52 weeks before the last 6 weeks before the expected week 

of childbirth.

Maternity grant: A lump sum of EC$560 is paid.

Workers’ Medical Benefits

Medical benefits: No statutory benefits are provided.

Medical services are provided by the Medical Benefits 

Scheme, Ministry of Health, and through public health 

facilities.

Necessary medical treatment is permitted abroad.

Dependents’ Medical Benefits

Medical benefits for dependents: No statutory benefits are 

provided.

Medical services are provided by the Medical Benefits 

Scheme, Ministry of Health, and through public health 

facilities.

Necessary medical treatment is permitted abroad.

Administrative Organization

Ministry of Finance provides general supervision.

Antigua and Barbuda Social Security Board (http://www.

socialsecurity.gov.ag) administers the program.
30 ♦ SSPTW: The Americas, 2007

Argentina

Argentina

Exchange rate: US$1.00 equals 3.07 pesos.

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1904 to 1958 (various laws on special categories), 1944 (commerce), 1946 (industry), and 1954 (rural 

workers).

Current laws: 1993 (pensions), implemented in 1994; 1995; 

1998 (small contributors), implemented in 1999, with 2004 

amendment; 1999 (domestic workers), implemented in 

2000; 2004 (early retirement), implemented in 2005; 2007 

(modification of provisional scheme), to be fully implemented in 2008; and 13 national social assistance laws 

approved between 1952 and 1994.

Type of program: Social insurance, individual account, and 

social assistance system.

Note: Beginning in 2007, the insured may switch between 

the social insurance system and the individual accounts 

system every 5 years. New entrants to the labor force have 

90 days to choose between the social insurance or individual 

accounts systems. If new entrants do not choose, they are 

covered by the social insurance system.

Coverage

Social insurance and individual account: Employed and 

self-employed persons; domestic workers; and occasional 

workers with declared earnings no greater than 12,000 pesos 

in the previous year.

Voluntary coverage for cooperative members, trade union 

officials, clergy, domestic workers, persons insured under 

professional provincial systems, and housewives.

Exclusions: Armed forces, security forces, and police force 

personnel; technical workers hired abroad who work in 

Argentina for less than 2 years and are insured in another 

country; and persons younger than age 18.

Special systems for armed forces, security forces, and 

police force personnel; civil servants of some provinces and 

municipalities; and certain other groups including teachers, foreign ministry employees, investigators, and judicial 

authorities.

Social assistance: Needy elderly and disabled persons.

Source of Funds

Insured person: 11% of covered earnings (January 2008). 

The contribution also finances disability and survivor benefits and administrative fees (limited to 1% of covered earnings) for those covered by the individual account system.

Domestic workers must contribute 8.15 pesos or 24.44 pesos 

a month, according to the number of hours worked.

The minimum monthly earnings for contributions purposes 

are equal to three MOPREs.

The maximum monthly earnings for contributions purposes 

are equal to 75 MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2007.

Contributions are paid monthly. Additionally, contributions 

are paid on the annual complementary salary, which is paid 

in two halves in the months of June and December.

Self-employed person: Contributions vary according to 

activity and gross earnings.

Small contributors, including persons who sell goods, rent 

goods, provide services, or who are members of workers’ 

cooperatives or certain enterprises specified by law with 

less than three workers, pay a monthly amount between 

92.44 pesos and 564.44 pesos (according to annual declared 

earnings). The contribution includes value-added taxes and 

income taxes, and also finances sickness benefits.

Contributions are paid monthly except for occasional workers who contribute 5% of each declared invoice.

Employer: 10.17% or 12.71% of gross payroll, according 

to the type of enterprise (16% for public sector employers). 

Additional contributions are made on behalf of workers in 

hazardous or unhealthy occupations.

The minimum monthly earnings for contributions purposes 

are equal to three MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2007.

Employers of domestic workers contribute a monthly lump 

sum of 12, 24, or 35 pesos (according to the number of 

hours worked).

Contributions are paid monthly. Additionally, contributions 

are paid on the annual complementary salary, which is paid 

in two halves in the months of June and December.

Government: Contributes through general revenue, investment income, and certain earmarked taxes for the cost of 

social insurance pensions; finances the total cost of social 

assistance pensions; and contributes to the cost of the 

disability and survivor pensions for insured persons born 

before 1963 (men) or 1968 (women) who have opted for the 

individual account.

Qualifying Conditions

Old-age pension

Basic universal old-age pension (social insurance and individual account): Age 65 (men) or age 60 (women) with at 
SSPTW: The Americas, 2007 ♦ 31

Argentina

least 30 years of contributions and service, up to a maximum of 45 years. (In order to meet the contribution qualifying condition, the insured may substitute 2 years of age after 

the retirement age for 1 year of contributions.)

The retirement age and contribution qualifying conditions 

are reduced by up to 10 years for hazardous or unhealthy 

occupations.

Compensatory pension (social insurance): Age 65 (men) or 

age 60 (women) with at least 30 years of contributions and 

service, up to a maximum of 35 years. The benefit is paid 

only if the insured has credited contributions to the social 

insurance system before June 1994.

Additional pension (social insurance): Age 65 (men) or 

age 60 (women) with at least 30 years of contributions and 

service, up to a maximum of 30 years. The additional pension is paid if the insured has been credited with contributions to the social insurance system since June 1994.

Early pension (social insurance): Age 60 (men) or age 55 

(women) with at least 30 years of contributions and service 

and unemployed since December 31, 1995. Persons receiving the early pension must cease all gainful activity. (Beginning April 2007, no new claims for an early pension will be 

awarded; existing claims will continue to be paid until the 

beneficiary reaches the normal pensionable age.)

Advanced-age old-age pension (social insurance and individual account): Aged 70 or older (men and women) with 

at least 10 years of service with contributions paid while 

employed or self-employed, including 5 of the last 8 years 

before leaving employment. A self-employed person must 

have been insured for at least 5 years.

Old-age pension (individual account): Age 65 (men) or age 

60 (women).

Early pension (individual account): Paid only if the individual account balance is sufficient to finance a minimum 

monthly benefit specified by law.

Noncontributory old-age pension (social assistance): Indigent persons aged 70 or older residing in Argentina.

Disability pension

Disability pension (social insurance and individual account):

Paid for the loss of at least 66% of earning capacity. The 

insured must be younger than the normal retirement age, 

have paid contributions on a regular or nonregular basis, and 

not be receiving early retirement benefits.

Regular contributors must meet the minimum contribution 

qualifying condition for the old-age pension (basic universal) or have paid 30 months of contributions in the last 

36 months before the disability began.

Nonregular contributors must meet 50% of the minimum 

contribution qualifying condition for the old-age pension 

(basic universal) or have paid 12 months of contributions 

in the 60 months before the disability began or have paid 

18 months of contributions in the 36 months before the disability began.

District medical commissions assess the degree of disability. 

Three years after the initial assessment, the commission can 

certify permanent disability, extend the disability certification for 2 years, or determine that the person is no longer 

disabled.

Advanced-age disability pension (social insurance and 

individual account): The insured must be assessed with a loss 

of at least 66% of earning capacity and be aged 65 or older 

(men and women).

Noncontributory disability pension (social assistance): Paid 

to indigent disabled persons residing in Argentina.

Survivor pension

Survivor pension (social insurance and individual account):

The deceased was a pensioner or had paid contributions on a 

regular or nonregular basis.

Regular contributors must have met the minimum contribution qualifying condition for the old-age pension (basic 

universal) or have paid 30 months of contributions in the 

last 36 months before death.

Nonregular contributors must meet 50% of the minimum 

contribution qualifying condition for the old-age pension 

(basic universal) or have paid 12 months of contributions in 

the last 60 months before death or have paid 18 months of 

contributions in the last 36 months before death.

Eligible survivors include a widow(er) or partner who lived 

with the deceased for at least 5 years (2 years if they had 

children); an unmarried child younger than age 18 who is 

not receiving benefits; a widowed daughter younger than 

age 18 who is not receiving benefits; and a disabled child 

(regardless of age) who was dependent on the deceased.

Old-Age Benefits

Old-age pension

Note: Insured persons who have set up an individual 

account may receive different combinations of social insurance and individual account benefits.

Basic universal old-age pension (social insurance and 

individual account): The monthly pension is equal to 2.5 

MOPREs, plus 1% of 2.5 MOPREs for each year of contributions exceeding 30 years, up to a maximum of 45 years.

The value of the MOPRE is 80 pesos in 2007.

Compensatory pension (social insurance): The monthly 

pension is equal to 1.5% of the insured’s average adjusted 

monthly earnings in the last 10 years (weighted average 

adjusted amounts for all periods for self-employed persons) 

with contributions paid before July 1994, up to a maximum 

of 35 years.
32 ♦ SSPTW: The Americas, 2007

Argentina

The maximum compensatory pension is equal to one 

MOPRE for each year of contributions used to calculate the 

compensatory pension.

The value of the MOPRE is 80 pesos in 2007.

Additional pension (social insurance): The monthly pension 

is equal to 0.85% of the insured’s average adjusted monthly 

earnings in the last 10 years (weighted average adjusted 

amounts for all periods for self-employed persons) with 

contributions paid after July 1994, up to a maximum of 

35 years.

Early pension (social insurance): The monthly pension 

is equal to 50% of the full old-age pension (including all 

pension entitlements). The early pension is commuted to a 

full old-age pension (including all pension entitlements) at 

age 65 (men) or age 60 (women).

An early pensioner is not entitled to receive other benefits.

The minimum monthly early pension is 530 pesos.

Advanced-age old-age pension (social insurance and individual account): The monthly pension is equal to 70% of the 

basic universal old-age pension, plus the compensatory pension, the additional pension, and the value of any pension 

received from an individual account.

The minimum monthly advanced-age old-age pension is 

530 pesos.

The combined minimum monthly old-age pension (the sum 

of all contributory pensions) is 530 pesos.

The maximum monthly old-age pension (the sum of 

the basic universal and social insurance pensions) is 

3,888.33 pesos.

Pensions are payable abroad under bilateral or multilateral 

agreement.

Schedule of payments: Pensions are paid monthly, with a 

13th payment equal to the regular monthly payment divided 

in half and paid in June and December.

Benefit adjustment: Benefits are adjusted annually by government, according to changes made to the MOPRE.

Old-age pension (individual account): The value of the pension depends on the insured’s contributions, plus accrued 

interest. The pension is paid as a life pension annuity, programmed withdrawals, or as partial withdrawals.

The combined minimum old-age pension of 530 pesos does 

not apply to insured persons who are eligible only for an 

old-age pension based on an individual account.

Early pension (individual account): The insured may receive 

an early pension, regardless of age, if the individual account 

balance is sufficient to finance a monthly benefit that, when 

paid under the life pension annuity or programmed withdrawal method, provides at least 50% of the base salary 

or 460 pesos a month (twice the maximum basic universal 

pension), whichever is greater.

Pensions are payable abroad under bilateral or multilateral 

agreement.

Schedule of payments: The pension is paid monthly, with a 

13th payment equal to the regular monthly payment divided 

in half and paid in June and December.

Noncontributory old-age pension (social assistance): The 

monthly pension is equal to 371 pesos (70% of the minimum pension of 530 pesos). Additional benefits may be paid 

for dependents under Family Allowances, below.

Social assistance pensions are not payable abroad.

Schedule of payments: The noncontributory pension is paid 

monthly, with a 13th payment equal to the regular monthly 

payment divided in half and paid in June and December.

Benefit adjustment: Benefits are adjusted when the minimum pension is adjusted.

Permanent Disability Benefits

Disability pension

Disability pension (social insurance and individual account):

The pension is equal to 70% of the insured’s average salary 

(regular contributor) or 50% of the insured’s average salary 

(nonregular contributor) in the 5 years before the disability 

began.

Until December 31, 2007, disability insurance contributes 

to the financing of the pension for persons covered by the 

individual account system if the balance of the individual 

account is insufficient to finance the pension. From January 1, 2008, a mutual fund contributes to the financing of 

disability benefits for persons covered by the individual 

account system if the balance of the individual account is 

insufficient to finance the pension.

The minimum monthly disability pension is 530 pesos.

The maximum monthly disability pension is 3,888.33 pesos.

The pension is payable abroad under bilateral or multilateral 

agreement.

Schedule of payments: The disability pension is paid 

monthly, with a 13th payment equal to the regular monthly 

payment divided in half and paid in June and December.

Advanced-age disability pension (social insurance and 

individual account): The monthly pension is equal to 70% 

of the basic universal old-age pension, plus the insured’s 

compensatory pension, additional pension, and the value of 

any pension received from an individual account.

The minimum monthly advanced-age disability pension is 

530 pesos.

The maximum monthly advanced-age disability pension is 

3,888.33 pesos.

The pension is payable abroad under bilateral or multilateral 

agreement.
SSPTW: The Americas, 2007 ♦ 33

Argentina

Schedule of payments: The advanced-age disability pension 

is paid monthly, with a 13th payment equal to the regular monthly payment divided in half and paid in June and 

December.

Benefit adjustment: Pensions are adjusted annually by government, according to changes made to the MOPRE.

Noncontributory disability pension (social assistance): The 

monthly pension is equal to 371 pesos (70% of the minimum pension of 530 pesos). Additional benefits may be paid 

for dependents under Family Allowances, below.

The noncontributory disability pension is not payable 

abroad.

Benefit adjustment: Benefits are adjusted when the minimum pension is adjusted.

Survivor Benefits

Survivor pension

Survivor pension (social insurance and individual account):

A widow(er) or partner without dependents receives 70% of 

the reference payment or, if the deceased was a pensioner, 

the pension; a widow(er) or partner with children receives 

50%. (Life insurance tops-up the accumulated capital in the 

deceased’s individual account if the balance is less than the 

required minimum to finance the survivor pension.)

Until December 31, 2007, survivors insurance contributes 

to the financing of the pension for persons covered by the 

individual account system if the balance of the individual 

account is insufficient to finance the pension. From January 

1, 2008, a mutual fund contributes to the financing of survivor benefits for persons covered by the individual account 

system if the balance of the individual account is insufficient 

to finance the pension.

The reference payment is equal to 70% of the deceased’s 

average earnings (regular contributor) or 50% of the 

deceased’s average earnings (nonregular contributor) in the 

5 years before death.

The amount paid may be recalculated if the number of eligible survivors changes.

The minimum monthly survivor pension is 530 pesos.

Orphan’s pension (social insurance and individual account):

Each eligible child receives 20% of the deceased’s pension or reference payment. In the absence of an eligible 

widow(er) or partner, the survivor pension is also split 

equally among the surviving children.

Until December 31, 2007, survivors insurance contributes 

to the financing of the pension for persons covered by 

the individual account system if the balance of the individual account is insufficient to finance the pension. From 

J­anuary 1, 2008, a mutual fund contributes to the financing 

of survivor benefits for persons covered by the individual 

account system if the balance of the individual account is 

insufficient to finance the pension.

The reference payment is equal to 70% of the deceased’s 

average salary (regular contributor) or 50% of the 

deceased’s average salary (nonregular contributor) during 

the 5 years before death.

The amount paid may be recalculated if the number of eligible survivors changes.

All survivor benefits combined must not exceed 100% of the 

reference payment or the deceased’s pension.

Schedule of payments: Pensions are paid monthly, with a 

13th payment equal to the regular monthly payment divided 

in half and paid in June and December.

Benefit adjustment: Benefits are adjusted annually by government, according to changes made to the MOPRE.

Funeral grant (social insurance and individual account): A 

lump sum of 1,000 pesos is paid to survivors.

Administrative Organization

Secretariat for Social Security (http://www.seguridadsocial.

gov.ar) is responsible for policy development for all areas of 

social security except health insurance.

National Social Security Administration (http://www.anses.

gov.ar) provides supervision and administers the social 

insurance system.

Superintendent of Retirement and Pension Fund Administrators (http://www.safjp.gov.ar) provides general supervision 

of the individual accounts system.

Retirement and Pension Fund Administrators (AFJPs) 

administer individual accounts.

National Assistance Pension Commission (http://www.cnpa.

gov.ar) administers the social assistance pension program.

Sickness and Maternity

Regulatory Framework

First laws: 1934 (maternity) and 1944 (sickness).

Current laws: 1996 (family allowances); 1988 (health 

institutions), implemented in 1989; 1988 (health insurance), 

implemented in 1989; and 2000 (health institutions deregulation), implemented in 2001.

Type of program: Social insurance (medical benefits), 

employer-liability (cash sickness benefits), and employment-related (maternity benefits) system.

Coverage

Cash sickness benefits: No statutory benefits are provided. (Under employment law, the employer is required to 

pay monthly cash sickness benefits to employees.)

Cash maternity benefits: Employed women (including 

temporary workers).

Exclusions: Self-employed persons.
34 ♦ SSPTW: The Americas, 2007

Argentina

Medical benefits: Employed persons, self-employed persons (small contributors), unemployed persons, pensioners, 

and domestic workers.

Voluntary coverage for other persons.

Exclusions: Military police personnel, provincial and 

municipal public-sector employees, and beneficiaries of 

noncontributory or social assistance benefits.

Source of Funds

Cash sickness benefits:

Insured person: None.

Self-employed person: None.

Employer: The total cost.

Government: None.

Cash maternity benefits

Insured person: None.

Self-employed person: None.

Employer: See source of funds under Family Allowances, 

below.

Government: See source of funds under Family Allowances, 

below.

Medical benefits

Insured person: 6% of covered earnings, plus 1.5% of 

covered earnings for each eligible dependent other than the 

spouse or children. Pensioners contribute 3% of the pension.

The minimum monthly earnings for contributions purposes 

are equal to three MOPREs.

The maximum monthly earnings for contributions purposes 

are equal to 75 MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2007.

Self-employed person: Small contributors pay a monthly 

lump sum of 24.44 pesos, plus 24.44 pesos for a spouse and 

children. Domestic workers pay a monthly lump sum of 

20 pesos, plus 20 pesos for a spouse and children.

Employer: The average contribution is 7.2% of gross payroll (including 1.5% or 1.62% of gross payroll for retired 

persons).

The minimum monthly earnings for contributions purposes 

are equal to three MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2007.

Government: Provides subsidies for persons who would not 

otherwise qualify.

Qualifying Conditions

Cash sickness benefits: No statutory benefits are provided. (Under employment law, the employer is required 

to pay monthly cash sickness benefits to employees. The 

duration of benefits depends on the length of the employment period.)

Cash maternity benefits: The insured must have at least 3 

months of continuous employment before the expected date 

of childbirth; temporary workers must be in employment 

immediately before the start of the maternity leave period.

Medical benefits: The insured must be currently employed 

or a pensioner. Coverage may be extended for 3 months if 

the insured has more than 3 months of continuous service.

Eligible dependents include a spouse or cohabiting partner 

and single children younger than age 21 (up to age 25 if a 

student, no limit if disabled and dependent).

Other dependents are eligible only with the payment of 

additional contributions.

Sickness and Maternity Benefits

Sickness benefit: Under employment law, employers are 

required to provide 100% of salary for up to 3 months to 

employees with less than 5 years of service; up to 6 months 

with at least 5 years of service. The maximum duration of 

cash benefits is doubled for workers with dependents.

Maternity benefit: The benefit is equal to 3 months of average gross earnings before the maternity leave period and is 

paid for 45 days before and 45 days after the expected date 

of childbirth; the benefit is extended for 6 months if the 

child is diagnosed with Down’s syndrome.

The benefit is also paid if the pregnancy ends after at least 

180 days of gestation or if the child is stillborn.

Workers’ Medical Benefits

Benefits include medical, hospital, dental, and palliative 

care; rehabilitation; prostheses; and transportation. Benefits 

are defined by the schedule in law issued by the Ministry of 

Health and Environment.

There is no limit to duration, except in the event of hospitalization for psychiatric treatment.

Pharmaceutical products for chronic diseases are either free 

or require a 30% copayment; 60% for other diseases.

Pharmaceutical products are free during pregnancy, childbirth, and for postnatal care; for children until age 1; and for 

hospitalization.

Cost sharing: Up to 4 pesos for an outpatient visit, up to 

5 pesos for medical examinations, and up to 7 pesos for 

outpatient dental treatment.

There is no cost sharing for pregnancy, childbirth, or postnatal care; for children up to age 1; for hospitalization; and for 

the treatment of tumours.
SSPTW: The Americas, 2007 ♦ 35

Argentina

Dependents’ Medical Benefits

Benefits include medical, hospital, dental, and palliative 

care; rehabilitation; prostheses; and transportation. Benefits 

are defined by the schedule in law issued by the Ministry of 

Health and Environment.

There is no limit to duration, except in cases of hospitalization for psychiatric treatment.

Pharmaceutical products for chronic diseases are either free 

or require a 30% copayment; 60% for other diseases.

Pharmaceutical products are free during pregnancy, childbirth, and for postnatal care; for children until age 1; and for 

hospitalization.

Cost sharing: Up to 4 pesos for an outpatient visit, up to 

5 pesos for medical examinations, and up to 7 pesos for 

outpatient dental treatment.

There is no cost sharing for pregnancy, childbirth, or postnatal care; for children up to age 1; for hospitalization; and for 

the treatment of tumours.

Administrative Organization

Ministry of Health and Environment (http://www.msal.gov.

ar) provides general supervision.

Superintendent of Health Services (http://www.sssalud.gov.

ar) controls, coordinates, and administers the program.

Authorized health insurance institutions provide medical 

services. Insured persons are free to choose between health 

insurance institutions.

Work Injury

Regulatory Framework

First law: 1915.

Current law: 1995 (work injury), implemented in 1996.

Type of program: Employer-liability system.

The employer and public institutions (other than national 

institutions), may self-insure if solvency requirements are 

met and medical care services can be guaranteed. If the 

employer does not meet both conditions, mandatory insurance must be purchased from a work injury insurer (ART).

Coverage

Employed persons in the private and public sectors (including provinces and municipalities).

There is no voluntary coverage.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: The total cost is met through a work injury 

insurer (ART) or through self-insurance.

Government: Contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. Accidents that occur while commuting to and from 

work are covered.

Temporary Disability Benefits

The monthly benefit is equal to the insured’s average earnings in the 12 months before the disability began and is paid 

from the day after the disability began. The employer pays 

the benefit for the first 10 days, with the remaining period 

covered by the ART. The benefit is paid until recovery or 

certification of permanent disability.

The minimum monthly earnings for benefit calculation purposes are equal to three MOPREs.

The maximum monthly earnings for benefit calculation 

purposes are equal to 60 MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2007.

The disability is presumed to be permanent if it continues 

beyond a year.

A medical commission assesses the degree of disability.

Permanent Disability Benefits

Permanent disability benefit: For an assessed loss of earning capacity of at least 66%, the benefit is equal to 70% of 

the insured’s average earnings in the 12 months before the 

disability began, plus family allowances.

The minimum monthly earnings for benefit calculation purposes are equal to three MOPREs.

The maximum monthly earnings for benefit calculation 

purposes are equal to 60 MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2007.

An initial benefit is paid for 36 months (extended for 

24 months if there is uncertainty about the final degree of 

loss of earning capacity). When the disability is assessed as 

permanent, the monthly disability benefit - 70% of average 

earnings (regular contributor) or 50% of average earnings 

(nonregular contributor) in the 5 years before the disability began - is paid, plus an annuity based on 53 times the 

insured’s average earnings in the 12 months before the 

disability began multiplied by a coefficient resulting from 

dividing 65 by the insured’s age when the disability began. 

The amount must not exceed 180,000 pesos, plus a lumpsum benefit of 40,000 pesos.
36 ♦ SSPTW: The Americas, 2007

Argentina

Constant-attendance allowance: For a severe permanent 

total disability, an additional monthly benefit equal to three 

MOPREs is paid by the ART for the constant attendance of 

another person.

The minimum monthly earnings for benefit calculation purposes are equal to three MOPREs.

The maximum monthly earnings for benefit calculation 

purposes are equal to 60 MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2005.

A preliminary partial permanent disability benefit is paid for 

36 months; the period may be reduced if there is uncertainty 

about the final degree of loss of earning capacity.

Permanent partial disability benefit: For an assessed loss of 

earning capacity lower than 66%, the benefit is equal to 70% 

of the insured’s average earnings in the 12 months before 

the disability began multiplied by the assessed loss of earning capacity, plus family allowances.

When the partial disability is assessed as permanent with 

an assessed loss of earning capacity from 50% to 66%, 

the benefit is equal to the insured’s average earnings in the 

12 months before the disability began (up to a maximum of 

180,000 pesos), plus a lump-sum benefit of 30,000 pesos.

When the partial disability is assessed as permanent with 

an assessed loss of earning capacity that is less than 50%, 

a lump-sum benefit is paid equal to 53 times the insured’s 

average earnings in the 12 months before the disability 

began multiplied by the assessed loss of earnings capacity and a coefficient resulting from dividing 65 by the 

insured’s age when the disability began. The amount must 

not exceed 180,000 pesos multiplied by the assessed degree 

of disability.

A medical commission assesses the degree of disability.

Benefit adjustment: Benefits are adjusted annually by the 

government, according to changes made to the MOPRE.

Workers’ Medical Benefits

Benefits include medical, pharmaceutical, and orthopedic 

care; prostheses; rehabilitation; and professional training.

Survivor Benefits

Survivor pension: Survivors receive an annuity based on 

53 times the deceased’s average earnings in the 12 months 

before disability began (that resulted in the insured’s death) 

or death multiplied by a coefficient resulting from dividing 65 by the insured’s age when the disability began or 

at death. The sum must not exceed 180,000 pesos, plus a 

lump-sum benefit of 50,000 pesos.

The lump sum is split equally among eligible survivors, 

including the spouse and children younger than age 21 (up 

to age 25 if a student).

Other eligible survivors: In order of priority, parents or 

relatives who were dependent on the deceased receive a 

pension.

The pension is payable abroad under bilateral or multilateral 

agreement.

Benefit adjustment: Benefits are adjusted annually by the 

government, according to changes made to the MOPRE.

Administrative Organization

Secretariat for Social Security (http://www.seguridadsocial.

gov.ar) is responsible for policy development for all areas of 

social security except health insurance.

Superintendent of Work Injury provides general supervision.

Work injury insurers (ART) are responsible for work injury 

prevention and the management of benefits.

Unemployment

Regulatory Framework

First law: 1967.

Current laws: 1991 (unemployment insurance), implemented in 1992; 1999 (agricultural workers), implemented 

in 2004; and 2000 (construction workers), implemented in 

2001.

Type of program: Social insurance system.

Coverage

Private-sector employees, including temporary and occasional workers.

There is no voluntary coverage.

Exclusions: Self-employed persons, domestic workers, public-sector employees, and teachers in private institutions.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: 0.89% or 1.11% of gross payroll, according to 

the enterprise type.

The minimum monthly earnings for contributions purposes 

are equal to three MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2007.

Government: Finances any deficit.

Qualifying Conditions

Unemployment benefits: The insured must have 6 months 

of contributions in the 3 years before unemployment; 

90 days in the 12 months before unemployment for temporary workers.
SSPTW: The Americas, 2007 ♦ 37

Argentina

Extended unemployment benefit: The benefit may be 

extended for 6 months if the unemployed person is at least 

age 45 (men and women) and has children who are eligible 

for family allowances.

Single-payment benefit: The benefit is paid to an unemployed person who intends to create an enterprise. The 

unemployed person must present a business plan to the 

Ministry of Labor, Employment, and Social Security for 

approval.

The unemployed person must be registered and available for 

suitable employment and not be receiving any other social 

security benefit.

Unemployment Benefits

The monthly benefit is equal to 50% of the insured’s best 

wage in the 6 months before unemployment. The benefit 

is paid for 4 months if the insured has 12 to 23 months 

of contributions; for 8 months with 24 to 35 months; for 

12 months with 36 months or more.

The minimum monthly unemployment benefit is 250 pesos.

The maximum monthly unemployment benefit is 400 pesos.

Extended unemployment benefit: The benefit is equal to 

70% of the first monthly unemployment benefit paid.

Single-payment benefit: Paid after the first monthly payment 

has been paid and there remains at least 3 monthly payments 

before entitlement ceases. The benefit is equal to twice the 

total amount of the remaining monthly payments.

Unemployment beneficiaries may receive family 

allowances.

Administrative Organization

Ministry of Labor, Employment, and Social Security (http://

www.trabajo.gov.ar) provides general supervision.

National Social Security Administration (http://www.anses.

gov.ar) administers the social insurance program.

National Registry of Agricultural Workers and Employers (http://www.renatre.org.ar) administers the agricultural 

social insurance program.

Family Allowances

Regulatory Framework

First law: 1957.

Current law: 1996 (family allowances), implemented in 

1996.

Type of program: Social insurance and social assistance 

system.

Coverage

Social insurance: Employed persons in the private sector and beneficiaries of the work injury or unemployment 

programs. Public-sector employees also received Family 

benefits paid directly by their employer.

Social assistance: Beneficiaries of the social insurance, 

individual account, or social assistance programs.

Exclusions: Self-employed persons and domestic workers.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: 4.44% or 5.56% of gross payroll, according to 

the enterprise type.

The employer’s contributions also finance maternity benefits 

(see Sickness and Maternity, above).

The minimum monthly earnings for contribution purposes 

are equal to three MOPREs.

The MOPRE is an indexed figure determined once a year. 

The value of the MOPRE is 80 pesos in 2007.

Government: The cost of benefits for pensioners and other 

recipients of noncontributory benefits.

Qualifying Conditions

Family allowances: The monthly income of employed 

persons or beneficiaries of work injury and unemployment 

benefits must be between 100 pesos and 3,500 pesos (lower 

than 3,888.33 pesos for other beneficiaries), depending on 

the allowance. Income limits and benefit amounts vary by 

region.

Child benefit (means-tested): A monthly benefit is paid to an 

employed person or to a pensioner who qualifies for family 

allowances or to an ART beneficiary for every unmarried 

child younger than age 18. The benefit is paid to one of the 

parents or to the guardian.

Disabled child benefit (not means-tested): A monthly benefit 

is paid to an employed person or to a pensioner who qualifies for family allowances or to an ART beneficiary for each 

disabled child of any age. The benefit is paid to one of the 

parents or to the guardian.

Prenatal grant (means-tested): A monthly benefit is paid to 

an employed person or to an ART beneficiary from the time 

of conception to the expected date of childbirth or end of 

the pregnancy. The insured must have current continuous 

employment for 3 months.

School allowance (means-tested): An annual benefit is paid 

to an employed person or to a pensioner who qualifies for 

family allowances or to an ART beneficiary who qualifies 

for a child benefit or a disabled child benefit. Certification of 

the child’s school enrollment must be provided at the beginning of the year.

Birth grant (means-tested): A benefit is paid to an employed 

person or to an ART beneficiary for the birth of a child. 
38 ♦ SSPTW: The Americas, 2007

Argentina

The grant is paid to one of the parents or to the guardian. 

The insured must have current continuous employment for 

6 months.

Adoption grant (means-tested): A benefit is paid to an 

employed person or to an ART beneficiary for the adopted 

child. The grant is paid to one of the adopting parents. The 

insured must have current continuous employment for 

6 months.

Marriage grant (means-tested): A benefit is paid to both 

spouses if they are employed or are ART beneficiaries who 

qualify for family allowances. The insured must have current continuous employment for 6 months.

Spouse benefit (means-tested): A monthly benefit is paid to 

a pensioner for a legal spouse who resides in Argentina.

Family Allowance Benefits

Family allowances

Child benefit (means-tested): The monthly benefit is 

between 36 pesos and 154.80 pesos, depending on the 

insured’s income (in some cases, including cash benefits) 

and region.

Disabled child benefit (not means-tested): The monthly 

benefit is between 144 pesos and 576 pesos, depending on 

the region.

Prenatal allowance (means-tested): The monthly allowance 

is between 36 pesos and 154.80 pesos, depending on the 

insured’s income (in some cases, including cash benefits) 

and region.

School allowance (means-tested): The annual allowance 

is between 130 pesos and 520 pesos, depending on the 

insured’s income (in some cases, including cash benefits) 

and region.

Birth grant (means-tested): A lump sum of 400 pesos is paid.

Adoption grant (means-tested): A lump sum of 2,400 pesos 

is paid.

Marriage grant (means-tested): A lump sum of 600 pesos is 

paid.

Spouse benefit (means-tested): The monthly benefit is 

between 30 pesos and 60 pesos, depending on the beneficiary’s income and region.

Administrative Organization

Secretariat for Social Security (http://www.seguridadsocial.

gov.ar) is responsible for policy development for all areas of 

social security except health insurance.

National Social Security Administration (http://www.anses.

gov.ar) provides supervision and administers the social 

insurance program.
SSPTW: The Americas, 2007 ♦ 39

Bahamas

Bahamas

Exchange rate: US$1.00 equals 1.00 Bahamian 

dollar (B$).

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1956 (old-age noncontributory pensions) and 

1967 (public assistance for disability).

Current law: 1972 (national insurance), with 1999 

amendment.

Type of program: Social insurance and social assistance 

system.

Coverage

Social insurance: Employed persons, self-employed persons, and the voluntarily insured.

Social assistance: Residents of the Bahamas who do not 

qualify under the National Insurance Act.

Source of Funds

Social insurance

Insured person: 1.7% of covered earnings, if weekly covered earnings are less than B$60; 3.4% for earnings greater 

than B$60. Voluntarily insured persons contribute 5% of 

weekly average wages or income, based on the insured’s 

wages or income of the previous year before registration.

The maximum annual earnings for contribution and benefit 

purposes are B$20,800.

The insured person’s mandatory contributions also finance 

cash sickness, maternity, and work injury benefits. The 

contributions of the voluntarily insured finance old-age, 

disability, and survivor pensions and funeral and maternity 

grants.

Self-employed person: 8.8% of covered earnings if also 

covered for work injury benefits; 6.8% or covered earnings 

if not covered for work injury benefits.

The maximum annual earnings for contribution and benefit 

purposes are B$20,800.

The self-employed person’s contributions also finance cash 

sickness, maternity, and work injury benefits (except for 

certain categories of self-employed persons).

Employer: 7.1% of covered payroll for weekly covered 

wages less than B$60; 5.4% for wages greater than B$60. 

(0.75% of the employer’s contribution is earmarked for 

work injury benefits.)

The maximum annual earnings for contribution and benefit 

purposes are B$20,800.

The employer’s contributions also finance cash sickness, 

maternity, and work injury benefits.

Government: None.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost of all income-tested allowances 

in force before October 1974.

Qualifying Conditions

Social insurance

Retirement pension: Age 65 with at least 150 weeks of paid 

contributions. Employees who were older than age 35 in 

1974 (self-employed persons older than age 35 in 1976) 

receive a 25-week credit for each year that they were older 

than age 35, up to a maximum of 600 weeks, provided 

that contributions were paid for 150 weeks during the first 

3 years that the program was in operation.

Entitlement ceases if the insured person earns B$200 or 

more a week.

Early pension: An early pension is payable between ages 60 

and 64.

Deferred pension: The pension can be deferred up to age 69.

Benefit is paid locally for insured persons who live abroad.

Disability pension: The insured must be younger than 

age 65 and assessed as permanently incapable of any work. 

Employees who were older than age 35 in 1974 (selfemployed persons older than age 35 in 1976) receive a 25-

week credit for each year that they were older than age 35, 

up to a maximum of 600 weeks, provided that contributions 

were paid for at least 150 weeks during the first 3 years that 

the program was in operation.

Survivor pension: The deceased was a pensioner or had 

made at least 150 contributions at the time of death.

Eligible survivors are a widow aged 40 or older who is 

incapable of gainful employment or is caring for a child 

eligible for survivor benefits. The pension is also paid to 

a dependent disabled widower with weekly income less 

than B$46.15 and dependent children younger than age 16 

(age 21 if a student).

Funeral grant: Paid for the death of an insured person or the 

spouse of an insured person. The insured must have at least 

50 paid contributions.

Social assistance

Noncontributory old-age pension (income-tested): Paid 

to residents of the Bahamas who are aged 65 or older 

and retired but who do not qualify for benefits under the 

National Insurance Act.
40 ♦ SSPTW: The Americas, 2007

Bahamas

Disability assistance (income-tested): Paid to residents of 

the Bahamas who are assessed as disabled but who do not 

qualify for benefits under the National Insurance Act.

Survivor assistance (income-tested): Paid to eligible survivors if the deceased did not qualify for benefits under the 

National Insurance Act.

Old-Age Benefits

Social insurance

Retirement pension: The pension is equal to 40% of the 

covered wage with 750 weeks of paid or credited contributions; 15% to 38% of the covered wage with between 

150 and 749 weeks of paid or credited contributions. The 

pension is increased by 1% of the covered wage for each 

50-week period of paid or credited contributions exceeding 

750 weeks, up to a maximum of 60%.

The covered wage is based on average weekly earnings in 

the best 3 years in the 10 years before the contribution year 

in which the insured reaches age 65.

Early pension: The benefit is reduced by between 20% and 

4%, depending on the age at which the pension is taken 

between ages 60 and 64.

Deferred pension: Calculated in the same way as the retirement pension, above.

The minimum pension is B$53.07 a week.

Social assistance

Noncontributory old-age pension (income-tested): B$46.15 a 

week is paid.

Permanent Disability Benefits

Social insurance

Disability pension: The pension is equal to 40% of the covered wage, according to wage class, with 750 weeks of paid 

or credited contributions; 15% to 38% of covered wage with 

between 150 and 749 weeks of paid or credited contributions. The pension is increased by 1% of the covered wage 

for each 50-week period of paid or credited contributions 

exceeding 750 weeks, up to a maximum of 60%.

The covered wage is based on average weekly earnings in 

the best 3 years in the 10 years before the contribution year 

in which the onset of disability occurs.

The maximum annual wage for benefit calculation purposes 

is B$ 20,800.

The minimum pension is B$53.07 a week.

Social assistance

Disability assistance (income-tested): B$46.15 a week is 

paid.

Survivor Benefits

Social insurance

Survivor pension: 50% of the deceased’s pension is paid to a 

widow aged 40 or older who is incapable of gainful employment or is caring for a child eligible for survivor benefits. 

The pension is also paid to a dependent disabled widower 

with weekly income less than B$46.15.

Other eligible survivors (in the absence of the above): The 

full pension is paid to a dependent mother older than age 40 

or a disabled father with weekly income less than B$46.15.

The minimum survivor pension is B$53.07 a week.

Orphan’s pension: Each dependent child younger than 

age 16 (age 21 if a full-time student) receives 10% of the 

deceased’s pension, up to a family maximum of 100%.

Full orphans receive B$21.92 a week each; up to B$25.50 a 

week each if older than age 12, a student, or disabled.

The minimum orphan’s pension is B$21.92 a week.

Funeral grant: A lump sum of B$1,500 is paid to the person 

who pays for the funeral. If the funeral costs less than 

B$1,500, the remaining balance is paid at the discretion of 

the National Insurance Board.

Social assistance

Survivor assistance (income-tested): Adults receive B$46.15 

a week; children receive B$18.46 a week each.

Administrative Organization

Ministry of Housing and National Insurance provides general supervision.

National Insurance Board (http://www.nib-bahamas.com) 

administers the program.

Sickness and Maternity

Regulatory Framework

First and current law: 1972 (national insurance), with 1999 

amendment.

Type of program: Social insurance system. Cash benefits 

only.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.
SSPTW: The Americas, 2007 ♦ 41

Bahamas

Government: None.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

40 weeks of paid contributions with 26 weeks paid or credited contributions in the year immediately before the incapacity began, or in the last contribution year, or 13 weeks 

paid or credited contributions in the 26 weeks immediately 

before the incapacity began.

Cash maternity benefits: The insured must have at least 

50 weeks of contributions since first joining the system 

including 26 weeks of paid or credited contributions in the 

last contribution year, or 26 weeks of contributions in the 

40 weeks before the benefit is due.

Maternity grant: The insured must have at least 50 paid 

contributions.

Funeral benefit: Paid for the death of an insured person or 

the spouse of an insured person. The insured must have at 

least 50 paid contributions.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 60% of average 

weekly covered earnings and is paid after a 3-day waiting 

period for up to 26 weeks (may be extended to 40 weeks in 

certain circumstances).

The minimum benefit is B$53.07 a week.

Sickness allowance (means-tested): B$46.15 a week is 

paid for an insured person who does not meet the qualifying 

conditions for sickness benefit.

Maternity benefit: The benefit is equal to 60% of average 

weekly covered earnings. The benefit is paid for 13 weeks 

(may be extended to 15 weeks) beginning not earlier than 

6 weeks before the expected date of childbirth.

The minimum benefit is B$43.85 a week.

Maternity grant: A lump sum of B$400 is paid for each live 

birth.

Funeral benefit: A lump sum of B$1,500 is paid.

Workers’ Medical Benefits

Medical benefits: No statutory benefits are provided.

Public and private medical care is available at public hospitals and clinics. Government subsidizes the cost for public 

patients, children, the elderly, and indigent persons.

Dependents’ Medical Benefits

Medical benefits for dependents: No statutory benefits are 

provided.

Public and private medical care is available at public hospitals and clinics. Government subsidizes the cost for public 

patients, children, the elderly, and indigent persons.

Administrative Organization

Prime Minister’s Office provides general supervision.

National Insurance Board (http://www.nib-bahamas.com) 

administers the program.

Work Injury

Regulatory Framework

First law: 1943 (workmen’s compensation).

Current law: 1972 (national insurance).

Type of program: Social insurance system.

Coverage

Employed persons and certain categories of self-employed 

persons.

Exclusions: Family labor and certain categories of selfemployed persons.

Source of Funds

Insured person: None.

Self-employed person: Certain categories of self-employed 

persons contribute 2% of the total 8.8% contribution made 

under Old Age, Disability, and Survivors, above.

Employer: The total cost. (See source of funds under Old 

Age, Disability, and Survivors, above.)

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

Temporary disability pension: The benefit is equal to 

66.6% of average weekly covered earnings and is paid after 

a 3-day waiting period, for up to a maximum of 40 weeks.

The minimum benefit is B$53.07 a week.

Permanent Disability Benefits

Permanent disability pension: If the assessed degree of 

permanent disability is 100%, the pension is equal to 66.6% 

of average weekly covered earnings.

The minimum weekly benefit for a total disability is 

B$53.07.

Partial disability: If the insured has an assessed degree of 

permanent disability of at least 25%, a proportionately 

reduced pension is paid.

The minimum benefit for a partial disability is B$36.92 a 

week.
42 ♦ SSPTW: The Americas, 2007

Bahamas

Lump-sum grant: A lump sum of between B$100 and 

B$2,400 is also paid, depending on the assessed degree of 

disability.

Workers’ Medical Benefits

Benefits include hospitalization, general and specialist care, 

medicines, and transportation.

Survivor Benefits

Survivor pension: The pension is equal to 50% of the 

deceased’s temporary disability pension.

Orphan’s pension: Each dependent child younger than 

age 16 (age 21 if a full-time student) receives 10% of the 

deceased’s temporary disability pension, up to a family 

maximum of 100%.

Industrial death benefit: A lump sum is paid equal to the 

monthly value of the survivor pension or orphan’s pension.

Industrial funeral benefit: A lump sum of B$1,500 is paid.

Administrative Organization

Ministry of Housing and National Insurance provides general supervision.

National Insurance Board (http://www.nib-bahamas.com) 

administers the program.
SSPTW: The Americas, 2007 ♦ 43

Barbados

Barbados

Exchange rate: US$1.00 equals

2.02 Barbadian dollars (B$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1937 (social assistance).

Current law: 1966 (social insurance), with 2002 

amendment.

Type of program: Social insurance and social assistance 

system.

Coverage

Social insurance: All employed persons, public-sector 

employees, and self-employed persons aged 16 to 65 and 

6 months.

Beginning 2006, the pensionable age is increasing gradually 

by 6 months every 4 years until it reaches age 67 in 2018.

Exclusions: Unpaid family labor.

Social assistance: Residents aged 65 and 6 months or 

older; aged 18 or older and incapable of work because of an 

eyesight disorder or serious hearing and speech problems.

Source of Funds

Social insurance

Insured person: 5.93% to 13.50% of covered earnings.

The minimum earnings for contribution purposes are B$21 

a week for employees paid weekly or B$91 a month for 

employees paid monthly.

The maximum earnings for contribution and benefit 

purposes are B$782 a week for employees paid weekly or 

B$3,390 a month for employees paid monthly.

The insured’s contributions also finance sickness and maternity benefits and work injury benefits.

Self-employed person: 13.5% of quarterly earnings.

The minimum annual earnings for contribution purposes are 

B$1,092.

The self-employed person’s contributions also finance sickness and maternity benefits and work injury benefits.

Employer: 5.93% to 6.75% of covered payroll.

The minimum earnings for contribution purposes are B$21 

a week for employees paid weekly or B$91 a month for 

employees paid monthly.

The maximum earnings for contribution and benefit 

purposes are B$782 a week for employees paid weekly or 

B$3,390 a month for employees paid monthly.

The employer’s contributions also finance sickness and 

maternity benefits and work injury benefits.

Government: None; contributes as an employer.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Social insurance

Old-age pension: Age 65 and 6 months with 500 weeks 

of contributions, including at least 150 weeks of paid 

contributions.

Early pension: Age 60 and no longer employed or 

self-employed.

Deferred pension: The pension may be deferred until age 70.

Old-age grant: Age 65 and 6 months with at least 50 but not 

more than 499 contributions.

Old-age benefits are payable abroad.

Disability pension: Younger than age 65 and 6 months, with 

at least 150 weeks of contributions, and incapable of any 

work. The degree of incapacity for work is assessed periodically by a National Insurance Office doctor.

Disability grant: Younger than age 65 and 6 months, with at 

least 50 but not more than 149 contributions, and incapable 

of any work. The degree of incapacity for work is assessed 

periodically by a National Insurance Office doctor.

Disability benefits are not payable abroad.

Survivor pension: The deceased had at least 150 weeks of 

paid contributions.

Eligible survivors are a widow(er) and children.

Funeral grant: The deceased had at least 50 weeks of paid 

contributions.

Survivor benefits are payable abroad.

Social assistance

Noncontributory old-age pension: Age 65 and 6 months, 

satisfies the residency conditions, and does not meet the 

qualifying conditions for a social insurance pension.

Noncontributory disability pension (income-tested): Aged 18 

or older, satisfies the residency conditions, is assessed as 

incapable of work as the result of being assessed as blind or 

having serious hearing and speech problems, and earns less 

than B$30 a week.
44 ♦ SSPTW: The Americas, 2007

Barbados

Old-Age Benefits

Social insurance

Old-age pension: The pension calculation varies according 

to the insured’s age on December 31, 2002.

For insured persons aged 56 or older on December 31, 2002, 

the pension is equal to 40% of average covered earnings, 

plus 1% of covered earnings for each 50-week period of 

contributions exceeding 500 weeks (old basis).

For insured persons aged 47 or younger on December 31, 

2002, the pension is calculated on the basis of 2% of average annual earnings for the first 20 years plus 1.25% average annual earnings for each year exceeding 20 (new basis).

For all insured person older than age 47 but younger than 

age 56 on December 31, 2002, 50% of the pension is 

calculated according to the old basis and 50% is calculated 

according to the new basis.

Average earnings are based on earnings in the best 5 years 

divided by 5; if the number of years worked is less than 

15 years, the average is based on total earnings.

The maximum earnings for benefit calculation purposes 

are B$782 a week for employees paid weekly or B$3,390 a 

month for employees paid monthly.

The minimum weekly pension is B$123 (January 2008).

The maximum pension is equal to 60% of average covered 

earnings.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost of living.

Old-age grant: A lump sum is paid equal to 6 weeks’ average 

covered earnings for each 50-week period of contributions.

Social assistance

Noncontributory old-age pension: The minimum weekly 

pension is B$100 (January 2008).

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost of living.

Permanent Disability Benefits

Social insurance

Disability pension: If the insured has an assessed degree 

of disability of at least 30%, the pension is calculated on 

the basis of average earnings and the assessed degree of 

disability.

Average earnings are based on earnings in the best 5 years 

in the last 15 years; if the number of years worked is less 

than 5 years, the average is based on total earnings.

The maximum earnings for benefit calculation purposes 

are B$782 a week for employees paid weekly or B$3,390 a 

month for employees paid monthly.

The minimum weekly pension is B$123 (January 2008).

The maximum pension for a total permanent disability 

(100%) is 90% of the insured’s average earnings.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost of living.

Disability grant: A lump sum is paid equal to 6 weeks’ average covered earnings for each 50-week period of paid or 

credited contributions.

Social assistance

Noncontributory disability pension (income-tested): The 

minimum weekly pension is B$96.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost of living.

Survivor Benefits

Survivor pension: The pension is equal to 50% of the 

pension paid or payable to the deceased if the widow(er) is 

aged 50 or older and was married to the deceased for at least 

3 years.

If the widow(er) is younger than age 50, a limited pension 

is paid for 12 months (for the duration of the disability if 

disabled). 

Orphan’s pension: Each child younger than age 16 (age 25 

if a student, no limit if disabled before age 16) receives 

16.6% of the deceased’s pension; 33.3% if a full orphan or 

disabled.

Funeral grant: B$1,585 is paid to the person who pays for 

the funeral of the insured or of the insured’s spouse (January 

2008).

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost of living.

Administrative Organization

Ministry of Finance is responsible for policy.

Directed by a tripartite board, the National Insurance Office 

(http://www.nis.gov.bb) administers the program.

Sickness and Maternity

Regulatory Framework

First and current law: 1966 (social insurance).

Type of program: Social insurance system. Cash benefits 

only.

Coverage

All employed persons, public-sector employees, and selfemployed persons aged 16 to 65 and 6 months.

Exclusions: Unpaid family labor. Permanent government 

employees are not covered for cash sickness benefits.
SSPTW: The Americas, 2007 ♦ 45

Barbados

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

7 weeks of paid contributions in the last quarter but one 

before the quarter in which the incapacity began, and be 

employed immediately before the incapacity began; at least 

39 paid or credited contributions in the four consecutive 

quarters ending with the last quarter but one before the quarter the incapacity began.

Cash maternity benefits: Employed women must have at 

least 26 weeks of coverage, including 16 weeks of paid contributions in the two consecutive quarters ending with the 

last quarter but one before the quarter in which the benefit is 

paid.

Self-employed women must have at least 39 weeks of contributions in the four consecutive quarters ending with the 

last quarter but one before the quarter in which the benefit 

is paid; 16 weeks of paid contributions in the two consecutive quarters ending with the last quarter but one before the 

quarter in which the benefit is paid.

Maternity grant: Paid for a woman who is not insured or 

who fails to meet the coverage qualifying condition for cash 

maternity benefits but whose spouse does meet the coverage 

qualifying condition.

Funeral grant: Paid for the death of an insured person who 

was receiving or was eligible to receive contributory sickness, maternity, disability, or old age benefits.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 66.6% of average 

covered weekly earnings and is paid after a 3-day waiting 

period for up to 26 weeks; may be extended to 52 weeks if 

the insured has paid 150 weeks of contributions, including 

75 contributions paid or credited in the 3 years before the 

year the incapacity began. The waiting period is waived if 

the incapacity lasts 14 days or more.

Maternity benefit: The benefit is equal to 100% of average covered weekly earnings and is paid for up to 6 weeks 

before and 6 weeks after the expected date of childbirth.

Funeral grant: B$1,585 is paid to the person who pays for 

the cost of the funeral (January 2008).

Maternity grant: A lump sum of B$910 is paid (January 

2008).

Workers’ Medical Benefits

Medical benefits: No statutory benefits are provided.

Free medical care is available in public hospitals and health 

centers.

Dependents’ Medical Benefits

Medical benefits for dependents: No statutory benefits are 

provided.

Free medical care is available in public hospitals and health 

centers.

Administrative Organization

Ministry of Finance is responsible for policy.

Directed by a tripartite board, the National Insurance Office 

(http://www.nis.gov.bb) administers the program.

Work Injury

Regulatory Framework

First law: 1916 (workmen’s compensation).

Current law: 1966 (social insurance).

Type of program: Social insurance system.

Coverage

All employed persons, public-sector employees, and some 

categories of fishermen aged 16 to 65 and 6 months.

Exclusions: Self-employed persons and unpaid family labor.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 90% of average covered earnings and 

is paid after a 3-day waiting period for up to 52 weeks. The 

waiting period is waived if the disability lasts for 21 days or 

more.
46 ♦ SSPTW: The Americas, 2007

Barbados

Permanent Disability Benefits

Permanent disability pension: For a total permanent disability (100%), the pension is equal to 90% of the insured’s 

average earnings.

The degree of disability is assessed by the insured’s doctor 

and may be reviewed by National Insurance Office doctors.

Constant-attendance supplement: Equal to 50% of the 

pension.

Partial disability: A percentage of the full pension is paid 

according to the assessed degree of disability.

A lump sum is paid if the assessed degree of disability is 

less than 30%.

Workers’ Medical Benefits

Benefits include reimbursement of expenses for medical, 

surgical, dental, and hospital treatment; nursing care; medicines; appliances; and transportation.

Survivor Benefits

Survivor pension: 50% of the deceased’s temporary disability benefit is paid to a dependent spouse.

The pension ceases on remarriage or cohabitation, and a 

lump sum is paid.

Remarriage settlement: A lump sum equal to a year’s pension is paid.

Orphan’s pension: Each child younger than age 16 receives 

16.6% of the deceased’s temporary disability benefit; 33.3% 

if a full orphan or disabled. There is no age limit for a disabled orphan.

All survivor benefits combined must not exceed 100% of the 

deceased’s temporary disability benefit.

Funeral grant: B$1,585 is paid to the person who pays for 

the insured’s funeral (January 2008).

Administrative Organization

Ministry of Finance is responsible for policy.

Directed by a tripartite board, the National Insurance Office 

(http://www.nis.gov.bb) administers the program.

Unemployment

Regulatory Framework

First and current law: 1981 (social insurance).

Type of program: Social insurance system.

Coverage

Employees aged 16 to 65 and 6 months.

Exclusions: Self-employed persons, family labor, and permanent government employees.

Source of Funds

Insured person: 0.75% of covered earnings.

The minimum earnings for contribution purposes are B$21 

a week for employees paid weekly or B$91 a month for 

employees paid monthly.

The maximum earnings for contribution and benefit 

purposes are B$782 a week for employees paid weekly or 

B$3,390 a month for employees paid monthly.

Self-employed person: Not applicable.

Employer: 0.75% of covered payroll.

The minimum earnings for contribution purposes are B$21 

a week for employees paid weekly or B$91 a month for 

employees paid monthly.

The maximum earnings for contribution and benefit 

purposes are B$782 a week for employees paid weekly or 

B$3,390 a month for employees paid monthly.

Government: None; contributes as an employer.

Qualifying Conditions

Unemployment benefit: The insured must be younger than 

age 65 and 6 months with 52 weeks of coverage; at least 

20 weeks of paid or credited contributions in the three consecutive quarters ending with the last quarter but one before 

unemployment began; at least 7 weeks of paid or credited 

contributions in the last quarter but one before unemployment began.

Unemployment Benefits

The benefit is equal to 60% of the insured’s average covered 

weekly earnings. The benefit is paid after a 3-day waiting period for up to 26 weeks in any 52-week period. The 

waiting period is waived if the insured is unemployed for 

21 days or more.

Administrative Organization

Ministry of Finance is responsible for policy.

Directed by a tripartite board, the National Insurance Office 

(http://www.nis.gov.bb) administers the program.
SSPTW: The Americas, 2007 ♦ 47

Belize

Belize

Exchange rate: US$1.00 equals

2.00 Belize dollars (B$).

Old Age, Disability, and Survivors

Regulatory Framework

First and current law: 1979 (social security), with 

amendments.

Type of program: Social insurance and social assistance 

system.

Coverage

Social insurance: Employed persons aged 14 to 64, including public servants and self-employed persons. (Persons 

aged 60 or older who have previously received an old-age 

benefit and who return to work are covered for work injury 

benefits only.)

Exclusions: Casual labor, persons employed for less than 

8 hours a week, and military personnel.

Voluntary coverage for old-age benefits, survivor benefits, 

and the funeral grant for workers younger than age 65 who 

become self-employed and who have paid at least 150 contributions as an employee.

Social assistance (noncontributory old-age pension):

Aged 67 or older (men) or aged 65 or older (women) who 

are citizens or permanent residents of Belize.

Source of Funds

Social insurance

Insured person: Weekly contributions vary according to 

eight wage classes:

B$0.83 if weekly earnings are less than B$70;

B$1.35 if B$70 to B$109.99;

B$1.95 if B$110 to B$139.99;

B$3.15 if B$140 to B$179.99;

B$4.75 if B$180 to B$219.99;

B$6.35 if B$220 to B$259.99;

B$7.95 if B$260 to B$299.99; and

B$9.55 if B$300 or greater.

The insured’s contributions also finance sickness and maternity benefits and work injury benefits.

Voluntary contributors pay weekly contributions calculated 

on the basis of the best 3 years of contributions paid previously. Voluntary weekly contributions range from a minimum of B$1.76 to a maximum of B$10.24.

•

•

•

•

•

•

•

•

Self-employed person: 7% of weekly income between B$55 

and B$320.

The self-employed person’s contributions also finance sickness and maternity benefits and work injury benefits.

Employer: Weekly contributions vary according to eight 

wage classes:

B$3.57 if weekly earnings are less than B$70;

B$5.85 if B$70 to B$109.99;

B$8.45 if B$110 to B$139.99;

B$9.65 if B$140 to B$179.99;

B$11.25 if B$180 to B$219.99;

B$12.85 if B$220 to B$259.99;

B$14.45 if B$260 to B$299.99; and

B$16.05 if B$300 or greater.

The employer’s contributions also finance sickness and 

maternity benefits and work injury benefits; work injury 

benefits only for employees between ages 60 and 64 who 

have previously received an old-age benefit and for all 

employees aged 65 or older.

Government: Covers any deficit; contributes as an employer.

Social assistance (noncontributory old-age pension)

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Old-age pension: Age 65 with 500 weeks of paid or credited contributions including 150 paid contributions. Retirement from employment is not necessary if aged 65 or older.

Early pension: From age 60 and retired from insured 

employment, with a total of at least 500 weeks of paid or 

credited contributions including 150 paid contributions.

Retirement grant: Paid at age 60 to an insured person who 

has at least 26 weeks of paid contributions but does not meet 

the qualifying conditions for an old-age pension.

Noncontributory old-age pension: Paid to men aged 67 or 

older and women aged 65 or older who have inadequate or 

no income.

Disability pension: Younger than age 60 and incapable of 

work with at least 150 weeks of paid contributions since 

1981, with at least 110 paid contributions in the 5 consecutive contribution years before the year in which the 

disability began, and 5 paid or credited contributions in 

the 13 weeks immediately before the week in which the 

incapacity leading to the onset of disability began.

The degree of disability is assessed by the medical board.

•

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•

•

•

•

•

•
48 ♦ SSPTW: The Americas, 2007

Belize

Disability grant: Paid to an insured person younger than 

age 60 who has at least 26 weeks of paid contributions but 

does not meet the qualifying conditions for a disability 

pension.

The degree of disability is assessed by the medical board.

Survivor pension: The deceased was eligible to receive or 

was receiving an old-age or disability pension at the time of 

death.

Eligible survivors are a widow who is pregnant or caring for the deceased’s children or is aged 50 or older (or 

disabled) and was married to the insured for at least 3 years; 

a widower who was dependent on the deceased for at least 

3 years; each child younger than age 16 (age 21 if a fulltime student); and, in the absence of other survivors, parents 

aged 55 or older.

Survivor grant: The deceased was not eligible to receive 

an old-age or disability pension but had at least 26 paid 

contributions.

Eligible survivors are a widow who is pregnant or caring for the deceased’s children or is aged 50 or older (or 

disabled) and was married to the insured for at least 3 years; 

a widower who was dependent on the deceased for at least 

3 years; each child younger than age 16 (age 21 if a fulltime student); and, in the absence of other survivors, parents 

aged 55 or older.

Funeral grant: The deceased had 50 weeks of paid contributions; 150 weeks of paid contributions for the funeral of a 

spouse or dependent child younger than age 16 (age 21 if a 

full-time student).

Old-Age Benefits

Old-age pension: The pension is equal to 30% of the 

insured’s average weekly covered earnings, plus 2% of 

earnings for each 50-week period of contributions exceeding 

500 weeks up to 750 weeks, plus 1% of earnings for every 

50-week period of contributions exceeding 750 weeks.

Average weekly covered earnings are based on the best 

3 years of earnings.

Early pension: Calculated in the same way as the old-age 

pension. The pension is suspended if the insured returns to 

work before age 65.

The minimum weekly pension is B$47. The pension is paid 

monthly.

The maximum pension is equal to 60% of average weekly 

covered earnings, up to a weekly maximum of B$192.

Retirement grant: A lump sum equal to six times the sum 

of average covered earnings in the best 3 years of contributions, divided by 150, and multiplied by the number of 

50-week contribution periods; or twice the sum of weekly 

covered earnings, divided by the number of contributions, 

and multiplied by the number of 50-week contribution periods. The higher amount is paid.

The minimum grant is B$800.

Noncontributory old-age pension: B$100 a month is paid.

Permanent Disability Benefits

Disability pension: With at least 500 weeks of contributions, the pension is equal to 30% of the insured’s average 

weekly covered earnings. With less than 500 weeks of contributions, the pension is equal to 25% of average weekly 

covered earnings.

Average weekly covered earnings are based on the best 

3 years of earnings.

The minimum weekly pension is B$47. The pension is paid 

monthly.

The maximum pension is equal to 60% of average weekly 

covered earnings.

Disability grant: A lump sum equal to six times the sum 

of average covered earnings in the best 3 years of contributions, divided by 150, and multiplied by the number of 

50-week contribution periods; or twice the sum of weekly 

covered earnings, divided by the number of contributions, 

and multiplied by the number of 50-week contribution periods. The higher amount is paid.

The minimum grant is B$800.

Survivor Benefits

Survivor pension: A widow(er) receives 66.6% of the oldage or disability pension paid or payable to the deceased.

Orphan’s pension: 25% of the old-age or disability pension 

paid or payable to the deceased is paid to each child younger 

than age 16 (age 21 if a full-time student); 40% if disabled.

Dependent parent’s pension (in the absence of other 

eligible survivors): 40% of the old-age or disability pension 

paid or payable to the deceased is paid to a parent aged 55 

or older.

The minimum weekly survivor pension is B$47 and is 

split among eligible survivors. Survivor pensions are paid 

monthly.

All survivor benefits combined must not exceed 100% of 

the pension paid or payable to the deceased; otherwise, the 

pensions are reduced proportionately.

Survivor grant: A lump sum equal to six times the sum of 

average covered earnings in the best 3 years of contributions, divided by 150, and multiplied by the number of 

50-week contribution periods; or twice the sum of weekly 

covered earnings, divided by the number of contributions, 

and multiplied by the number of 50-week contribution periods. The higher amount is paid.

The minimum grant is B$800.

Funeral grant: B$1,500 is paid for the insured’s death; 

B$1,000 to the insured on the death of a spouse; and B$500 

to the insured on the death of a dependent child.
SSPTW: The Americas, 2007 ♦ 49

Belize

Administrative Organization

Ministry of Finance provides general supervision.

Social Security Board (http://www.socialsecurity.org.bz) 

administers the program.

Sickness and Maternity

Regulatory Framework

First and current law: 1979 (social security), with 

amendments.

Type of program: Social insurance system. Cash benefits 

only.

Coverage

Employed persons aged 14 to 64, including public servants 

and self-employed persons.

Exclusions: Casual labor, persons employed for less than 

8 hours a week, and military personnel.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: Covers any deficit; contributes as an 

employer.

Qualifying Conditions

Cash sickness benefits: The insured must be currently 

employed with at least 50 weeks of contributions, including 

5 of the 13 weeks before the incapacity began.

Cash maternity benefits: The insured must have at least 

50 weeks of contributions, including 25 weeks of the 

39 weeks ending 6 weeks before the expected date of childbirth or the day on which the benefit was claimed.

Maternity grant: The insured must have at least 50 weeks 

of contributions, including 25 weeks of the 50 weeks before 

the expected date of childbirth. The grant is paid to an 

insured woman or to an insured man whose wife or common-law spouse has given birth and is not entitled to the 

benefit.

Sickness and Maternity Benefits

Sickness benefit: The weekly benefit is equal to 80% of 

average weekly covered earnings and is paid for a maximum 

of 26 weeks; thereafter, the benefit may be paid for a further 

13 weeks at 60% of average weekly covered earnings. After 

39 weeks, a disability pension may be paid.

The minimum weekly benefit for the first 26 weeks is 

B$44.00.

The maximum weekly benefit for the first 26 weeks is 

B$256.00.

Maternity benefit: The benefit is equal to 80% of average 

weekly covered earnings and is paid for up to 14 weeks, 

beginning 7 weeks before the expected date of childbirth 

or the day on which the benefit was claimed. The benefit is 

paid in two installments: one for the period before childbirth, one for the period after childbirth.

The minimum weekly benefit is B$44.00.

The maximum weekly benefit is B$256.00.

Maternity grant: B$300 is paid for each child.

Workers’ Medical Benefits

No statutory benefits are provided.

Dependents’ Medical Benefits

No statutory benefits are provided.

Administrative Organization

Ministry of Finance provides general supervision.

Social Security Board (http://www.socialsecurity.org.bz) 

administers the program.

Work Injury

Regulatory Framework

First and current law: 1979 (social security), with 

amendments.

Type of program: Social insurance system.

Coverage

Employed persons aged 14 to 64, including public servants, 

self-employed persons, and persons aged 60 or older who 

have previously received an old-age benefit and who return 

to work.

Exclusions: Casual labor, persons employed for less than 

8 hours a week, and military personnel.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: Covers any deficit; contributes as an 

employer.
50 ♦ SSPTW: The Americas, 2007

Belize

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period and no contribution requirement. Accidents that 

occur while commuting to and from work are covered.

Temporary Disability Benefits

The weekly benefit is equal to 80% of average weekly covered earnings in the 4 weeks before the disability began and 

is paid from the first day of incapacity for up to 156 days; 

thereafter, the benefit may be extended and paid at 60% of 

average weekly covered earnings for up to 91 days.

The minimum weekly benefit for the first 156 days is 

B$44.00.

The maximum weekly benefit for the first 156 days is 

B$256.00.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to 

60% of average weekly covered earnings in the 4 weeks 

before the disability began times the assessed degree of 

disability.

The minimum weekly pension is B$47. The pension is paid 

monthly.

Constant-attendance allowance: Equal to 25% of the disability pension, if the assessed degree of disability is 100%.

The degree of disability is assessed and reviewed periodically by the medical board.

Disablement grant: If the assessed degree of disability is 

less than 25%, a lump sum is paid equal to average covered 

earnings in the 4 weeks before the disability began times the 

assessed degree of disability times 260.

The degree of disability is assessed by the medical board.

Workers’ Medical Benefits

Benefits include full medical care, including treatment 

abroad if deemed necessary.

Survivor Benefits

Survivor pension: A widow(er) receives 66.6% of the permanent disability pension paid or payable to the deceased.

Eligible widows are a dependent widow who is pregnant or 

caring for the deceased’s children or is aged 50 or older and 

was married to the deceased for at least 3 years. A limited 

pension may be paid to a widow for 52 weeks if the qualifying conditions are not met. A pension is also payable to a 

disabled widower who was fully dependent on the deceased 

for at least 3 years.

The widow(er) pension ceases on remarriage.

Orphan’s pension: 25% of the permanent disability pension paid or payable to the deceased is paid to each child up 

to age 16 (age 21 if a full-time student); 40% if disabled.

Dependent parent’s pension (in the absence of other 

eligible survivors): 40% of the pension paid or payable to 

the deceased is paid to parents aged 55 or older.

The minimum weekly pension is B$47 and is split among 

the eligible survivors. Survivor pensions are paid monthly.

All survivor benefits combined must not exceed 60% of the 

deceased’s average covered earnings in the 4 weeks before 

the date of the employment injury resulting in the insured’s 

death; otherwise, the pensions are reduced proportionately.

Funeral grant: B$1,500 is paid for the death of the insured.

Administrative Organization

Ministry of Finance provides general supervision.

Social Security Board (http://www.socialsecurity.org.bz) 

administers the program.
SSPTW: The Americas, 2007 ♦ 51

Bermuda

Bermuda

Exchange rate: US$1.00 equals

1 Bermuda dollar (B$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1967 (old-age and survivors).

Current laws: 1970 (old-age and survivors), with amendments; 1980 (disability); and 1998 (occupational pensions), 

implemented in 2000, with amendment.

Type of program: Social insurance, mandatory occupational 

pension, and social assistance system.

Coverage

Social insurance

Employed and self-employed persons older than age 16, 

except full-time students who work weekends or during 

school vacations.

Voluntary coverage for persons who were previously 

covered.

Exclusions: Those who are not ordinarily resident, unless 

gainfully employed for more than 26 consecutive weeks.

Mandatory occupational pension

Employees aged 23 or older who are Bermudian or the 

spouse of a Bermudian and who have worked 720 hours or 

more for their current employer in any calendar year; selfemployed persons aged 23 or older who are Bermudian or 

the spouse of a Bermudian and who have annual earnings 

greater than B$2,000.

Social assistance

All residents of Bermuda.

Source of Funds

Social insurance

Insured person: B$28.48 a week; if older than age 65, none.

Self-employed person: B$56.96 a week; if older than age 65, 

B$28.48 a week.

Employer: B$28.48 a week for employees of any age.

Government: None; contributes as an employer.

Mandatory occupational pension

Insured person: 5% of covered earnings.

The maximum annual earnings for contribution purposes are 

B$200,000.

Self-employed person: 10% of declared earnings. Additional 

voluntary contributions are possible.

The maximum mandatory contribution on declared earnings 

is B$5,000 a year.

Employer: 5% of covered earnings.

The maximum annual earnings for contribution purposes are 

B$200,000.

Government: None.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Social insurance

Old-age pension: Age 65 with at least 484 weeks of contributions, including 50 weeks of contributions for each year 

of coverage. Retirement is not necessary.

Partial pension: A reduced pension is paid with between 25 

and 49 weeks of contributions for each year of coverage.

The old-age pension is payable abroad.

Old-age settlement: Age 65 and the insured does not satisfy 

the qualifying conditions for a pension.

Disability pension: Aged 18 to 64, employed immediately 

before the disability began, and unable to work during a full 

year. The insured must have at least 150 weeks of contributions including 50 weeks of contributions for each year of 

coverage.

Partial pension: A reduced pension is paid with between 25 

and 49 weeks of contributions for each year of coverage.

The disability pension is payable abroad.

Survivor pension: The deceased was a pensioner or met the 

qualifying conditions for a pension. The spouse was married 

to the deceased for at least 3 years. A widow is credited for 

contribution purposes for every week she receives a survivor 

pension and may substitute a year of her husband’s contribution record for her own.

Partial pension: A reduced pension is paid with between 25 

and 49 weeks of contributions for each year of coverage.

Eligible survivors are the widow(er) and orphans.

The survivor pension is payable abroad.

Survivor settlement: The deceased did not satisfy the qualifying conditions for a pension.

Eligible survivors are the widow(er) and orphans.
52 ♦ SSPTW: The Americas, 2007

Bermuda

Mandatory occupational pension

Old-age pension: The normal retirement age is 65.

Disability pension: The insured must be assessed as incapable of work as the result of a physical or mental condition.

Survivor pension: On the insured’s death, the pension is paid 

to a beneficiary named by the deceased.

Social assistance

Noncontributory old-age pension: Age 65 and Bermudian 

with at least 10 years of continuous residency in Bermuda 

in the 20 years immediately before the application and does 

not satisfy the qualifying conditions for the old-age pension.

Noncontributory disability pension: Aged 18 to 64 with 

10 years of residency in Bermuda immediately before 

the application and assessed as permanently incapable of 

employment.

Appointed medical doctors assess the degree of disability.

Noncontributory survivor pension: No benefits are provided.

Old-Age Benefits

Social insurance

Old-age pension: B$199.21 a week (B$836.24 a month) is 

paid, plus B$1.17 for each 26-week period of contributions 

exceeding 484 weeks.

Partial pension: The minimum monthly partial pension 

is B$431.64 if the annual average number of weeks of 

contributions is between 25 and 29; B$517.96 with 30 to 

34 weeks; B$604.28 with 35 to 39 weeks, B$690.60 with 40 

to 44 weeks; or B$776.92 with 45 to 49 weeks.

Old-age settlement: The total employer and employee contributions are refunded as a lump sum.

Mandatory occupational pension

Old-age pension: Pension calculations are based on average 

earnings or the amount of the insured’s accumulated capital.

Social assistance

Noncontributory old-age pension: The monthly pension is 

B$396.15.

If annual income is less than B$4,000, the minimum 

monthly pension is B$407.68.

Permanent Disability Benefits

Social insurance

Disability pension: The monthly pension is B$575.42.

Partial pension: If the number of average annual weeks of 

contributions is at least 25 but less than 50, a percentage of 

the full pension is paid according to the number of average 

annual weeks of contributions.

Mandatory occupational pension

Disability pension: The value of the benefit depends on the 

specific rules that apply to the occupational pension scheme.

Social assistance

Noncontributory disability pension: The monthly pension is 

B$396.15.

Survivor Benefits

Social insurance

Survivor pension: The basic monthly pension is B$836.24.

Partial pension: B$431.64 a month is paid if the deceased’s 

annual average number of weeks of contributions was 

between 25 and 29; B$517.96 for 30 to 34 weeks; B$604.28 

for 35 to 39 weeks; B$690.60 for 40 to 44 weeks; or 

B$776.92 for 45 to 49 weeks.

The survivor pension is payable for 26 weeks or until dependent children reach age 16; for life if the surviving spouse is 

older than age 50 or disabled.

The survivor pension ceases if the spouse remarries or 

cohabits.

Orphan’s pension: Each orphan receives B$86.13 a month 

until old enough to leave school.

Survivor settlement: The total employer and employee contributions are refunded as a lump sum.

Mandatory occupational pension

Survivor pension: Benefits are based on the value of the 

deceased’s contributions, accumulated capital, or accrued 

benefits. The benefit is paid as a lump sum.

The pension does not cease on remarriage.

A lump sum is also paid to the survivor if the deceased had 

less than 2 years of membership in an occupational pension 

scheme at the time of death.

Social assistance

Noncontributory survivor pension: No benefits are provided.

Administrative Organization

Social insurance and social assistance

Ministry of Finance provides general supervision.

Department of Social Insurance (http://www.socialinsurance.gov.bm) administers the program.

Mandatory occupational pension

Pension Commission (http://www.pensioncommission.bm) 

supervises and regulates the program.
SSPTW: The Americas, 2007 ♦ 53

Bermuda

Sickness and Maternity

Regulatory Framework

First and current law: 1970 (hospital insurance), with 

amendments.

Type of program: Compulsory insurance with a public 

or private carrier or an approved employer-operated plan 

(employed persons). Individual or voluntary insurance (nonemployed persons). Medical benefits only.

Note: Under the 2000 Employment Act, employers are 

required to provide paid sick leave and paid and unpaid 

maternity leave.

Coverage

All residents of Bermuda.

Employers are liable for carrying insurance for employees 

and employees’ nonemployed spouses.

Source of Funds

Insured person: B$101.14 a month each for an employee 

and his or her nonemployed spouse. (Other insured persons 

contribute B$202.28 a month.)

Self-employed person: B$202.28 a month on an individual 

or voluntary basis.

Employer: B$101.14 a month each for an employee and his 

or her nonemployed spouse.

Government: A government grant finances 80% of the cost 

of medical care for residents aged 65 to 74, 90% for residents aged 75 or older, and 100% for resident children and 

indigent persons.

Qualifying Conditions

Cash sickness and maternity benefits: No statutory benefits are provided.

Under the 2000 Employment Act, employers are required to 

provide paid sick leave and paid and unpaid maternity leave.

Medical benefits: There is no minimum qualifying period, 

except for a 10-month waiting period for maternity care 

benefits.

Sickness and Maternity Benefits

Sickness benefit: No statutory benefits are provided.

The 2000 Employment Act provides for 8 days of paid sick 

leave a year to employees who have worked for the same 

employer for at least a year.

Maternity benefit: No statutory benefits are provided.

The 2000 Employment Act provides for 8 weeks of paid 

maternity leave and 4 weeks of unpaid maternity leave to 

employees who have worked for the same employer for at 

least a year; 8 weeks unpaid maternity leave for employees 

with less than a year.

Workers’ Medical Benefits

The Hospital Insurance Commission, a private insurance 

company, or an employer plan reimburses the hospital for 

services provided. Benefits include inpatient and outpatient 

services, including room and board; nursing, laboratory, 

ambulance, and resident doctor services; drugs; appliances; 

surgery; maternity care; and physical therapy.

There is no limit to duration.

Dependents’ Medical Benefits

The Hospital Insurance Commission, a private insurance 

company, or an employer plan reimburses the hospital for 

services provided. Benefits include inpatient and outpatient 

services, including room and board; nursing, laboratory, 

ambulance, and resident doctor services; drugs; appliances; 

surgery; maternity care; and physical therapy.

There is no limit to duration.

Administrative Organization

Ministry of Finance, through the Department of Social 

Insurance (http://www.socialinsurance.gov.bm), provides 

general supervision.

Hospital Insurance Commission administers the program.

Work Injury

Regulatory Framework

First and current law: 1965 (workmen’s compensation).

Type of program: Employer-liability system. (The government may require employers to carry insurance.)

Coverage

Employed persons and apprentices aged 16 or older.

Exclusions: Casual labor, part-time workers, temporary 

employees, students, and voluntary workers.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost is met through the direct provision 

of benefits or the purchase of insurance premiums.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period, but the work injury must last more than 3 days.
54 ♦ SSPTW: The Americas, 2007

Bermuda

Temporary Disability Benefits

The benefit is equal to 50% of lost earnings (up to a maximum of B$170 a week) or a lump sum. The total benefit 

paid must not exceed the permanent disability benefit for 

which the insured would be eligible.

Permanent Disability Benefits

If totally disabled, the full benefit is equal to 4 years’ 

earnings.

The minimum benefit is B$5,000.

The maximum benefit is B$53,000.

Constant-attendance supplement: Equal to 25% of the permanent disability benefit.

Partial disability: A percentage of the full disability benefit 

is paid according to the assessed loss of earning capacity.

Appointed medical doctors assess the degree of disability.

Workers’ Medical Benefits

Benefits include the cost of necessary medical care, including hospitalization (up to a maximum based on the prevailing public ward charge for 56 days); emergency outpatient 

treatment; surgery, according to a fee schedule; medical 

expenses, including the cost of nursing, ambulances, and 

medicines, up to B$1,000; the cost of prostheses up to 

B$2,000; and the cost of transportation up to B$250.

Survivor Benefits

Survivor benefit: A lump sum is paid equal to 3 years’ earnings or B$42,000 (whichever is less), minus the value of any 

permanent disability benefits received by the deceased.

Eligible survivors are dependents who were totally dependent on the deceased’s earnings.

Partial survivor grant: A grant is paid to those who were 

partially dependent on the deceased’s earnings.

Funeral grant and medical expenses: Up to B$2,000 is 

paid if there are no dependents.

Administrative Organization

Ministry of Labor, Home Affairs, and Public Safety provides general supervision.

Supreme Court administers lump sums.

Courts supervise the agreement between an employer and 

the insured on the amounts payable.
SSPTW: The Americas, 2007 ♦ 55

Bolivia

Bolivia

Exchange rate: US$1.00 equals

7.94 bolivianos (Bs).

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1949 (social insurance); and 1956 (social security), implemented in 1959.

Current laws: 1996 (mandatory individual account), implemented in 1997; and 2002 (Bonosol pension), implemented 

in 2003.

Type of program: Mandatory individual account, private 

insurance, and universal pension (Bonosol) system.

Note: In 1997, all active members of the social insurance 

system transferred to a system of mandatory individual 

accounts.

Coverage

Mandatory individual account: Salaried workers, including 

armed forces personnel, and apprentices.

Voluntary coverage for self-employed persons.

Universal pension (Bonosol): All resident citizens who 

were born before January 1, 1974.

Source of Funds

Mandatory individual account

Insured person: 10% of covered earnings for old-age 

benefits, plus 1.71% of covered earnings for disability and 

survivor insurance and 0.5% of covered earnings for administrative fees.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage.

The maximum earnings for contribution purposes are equal 

to 60 times the legal monthly minimum wage.

The legal monthly minimum wage is Bs520. (The legal 

monthly minimum wage is adjusted for changes in the cost 

of living, depending on the financial resources of the state 

budget. The last adjustment was made in May 2006.)

The insured’s contributions for disability and survivor insurance also finance permanent disability and survivor benefits 

under Work Injury.

Self-employed person: A voluntary contribution of 10% of 

declared earnings, plus 1.71% of declared earnings for disability and survivor insurance and 0.5% of declared earnings 

for administrative fees.

The minimum declared earnings for contribution purposes 

are equal to the legal monthly minimum wage.

The maximum declared earnings for contribution purposes 

are equal to 60 times the legal monthly minimum wage.

The legal monthly minimum wage is Bs520. (The legal 

monthly minimum wage is adjusted for changes in the cost 

of living, depending on the financial resources of the state 

budget. The last adjustment was made in May 2006.)

The self-employed person’s voluntary contributions for 

disability and survivor insurance also finance permanent disability and survivor benefits under Work Injury.

Employer: None.

Government: Finances pensions payable under the previous 

social insurance system and the funeral grant; contributes as 

an employer.

Universal pension (Bonosol)

Insured person: None.

Self-employed person: None.

Employer: None.

Government: Financed from the privatization of state-owned 

enterprises.

Qualifying Conditions

Old-age pension: Age 65; at any age if the accumulated 

capital in the individual account, plus accrued interest, is 

sufficient to finance a monthly pension equal to 70% of the 

insured’s average covered earnings in the last 5 years.

The sole qualifying condition for armed forces personnel is 

35 years of continuous service.

The old-age pension is payable abroad temporarily in specific cases.

Universal pension (Bonosol): Paid to resident citizens 

aged 65 or older who were born before January 1, 1974.

The universal pension is payable abroad temporarily in 

specific cases.

Disability pension: The insured must be younger than 

age 65 with an assessed degree of disability of at least 60%.

Additionally, the insured must have made 60 months of 

contributions to the old or new scheme or have made contributions during half the period between the date of the first 

contribution to the new scheme and the date the disability 

began and must be currently contributing or have ceased 

contributing no longer than 12 months before the disability 

began. If the disability is due to an illness, the insured must 

also have 18 months of contributions in the last 36 months 

before the disability began. 

The Assessment Body (EEC) assesses the degree of disability through a Medical Assessment Panel consisting of three 

medical professionals. The insured or his or her dependents 
56 ♦ SSPTW: The Americas, 2007

Bolivia

are entitled to require the Superintendent of Pensions, Values, and Insurance to review the assessed degree of disability once only.

The disability pension is payable abroad temporarily in 

specific cases.

Survivor pension: The deceased was a pensioner or had 

made 60 months of contributions to the old or new scheme 

or had made contributions during half the period between 

the date of the first contribution to the new scheme and the 

date of death or was still contributing or had ceased contributing no longer than 12 months before the date of death. If 

the death was the result of an illness, the deceased must also 

have had 18 months of contributions in the last 36 months 

before the date of death.

Eligible survivors include the spouse or cohabiting partner 

and children younger than age 18 (age 25 if a student, no 

limit if disabled).

In the absence of a spouse or cohabiting partner and eligible 

children, eligible survivors include the insured’s father 

and mother, the insured’s brothers and sisters younger than 

age 18, or other survivors named by the insured.

The survivor pension is payable abroad temporarily in 

specific cases.

Funeral grant: Paid for the death of an insured worker or 

a citizen aged 65 or older who was born before January 1, 

1974.

Old-Age Benefits

Old-age pension: The insured’s accumulated capital (contributions plus accrued interest) is used to purchase a fixed 

or variable life annuity, depending on the total amount of 

the accumulated capital. (The value of accrued rights under 

the old system is combined with the individual account 

balance.)

The first monthly amount paid under a variable life annuity 

must not be less than 70% of the insured’s average covered 

earnings in the last 5 years.

For armed forces personnel, the pension is equal to 100% of 

the insured’s average covered earnings in the last 5 years.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Pensions are adjusted annually according to the UFV (Unidad de Fomento de Vivienda), calculated by the Central Bank for changes in the cost of living.

Universal pension (Bonosol): The annual benefit payable 

for life is Bs1,800.

Schedule of payments: One annual payment.

Benefit adjustment: The benefit is adjusted every 5 years 

according to an actuarial evaluation by the Superintendent 

of Pensions, Values, and Insurance.

Permanent Disability Benefits

Disability pension: The monthly pension is equal to 70% 

of the insured’s average earnings in the last 5 years or in 

the last 18 months if the insured has less than 60 months of 

contributions. (Disability insurance tops-up the accumulated 

capital in the individual account if the balance is less than 

the required minimum to finance the permanent disability 

pension.)

The minimum earnings for pension calculation purposes are 

equal to the legal monthly minimum wage.

The maximum earnings for pension calculation purposes are 

equal to 60 times the legal monthly minimum wage.

The legal monthly minimum wage is Bs520. (The legal 

monthly minimum wage is adjusted by decree for changes 

in the cost of living, depending on the financial resources 

of the state budget. The last adjustment was made in 

May 2006.)

Schedule of payments: Thirteen payments a year.

The pension ceases at age 65 when the insured becomes 

entitled to the old-age pension.

The insurance company also pays a monthly contribution 

equal to 10% of the insured’s last monthly earnings before 

the disability began to the disabled insured’s old-age pension account.

If a disabled insured person is not eligible for a pension, 

the insured may use the accumulated capital in his or her 

individual account to purchase a temporary annuity. The 

monthly amount of the annuity must not be less than 70% of 

the legal monthly minimum wage.

Benefit adjustment: Pensions are adjusted annually according to the UFV (Unidad de Fomento de Vivienda), calculated by the Central Bank for changes in the cost of living.

Survivor Benefits

Survivor pension: The monthly pension paid to a 

widow(er) or cohabiting partner with no eligible children is 

equal to 80% of the monthly base survivor pension; 60% if 

there is one eligible child; and 50% if there are two or more 

eligible children. (Life insurance tops-up the accumulated 

capital in the deceased’s individual account if the balance 

is less than the required minimum to finance the survivor 

pension.)

The monthly base survivor pension is equal to 70% of the 

deceased’s average monthly earnings in the last 5 years (in 

the last 18 months if the deceased had less than 60 months 

of contributions) or 70% of the deceased’s old-age or disability monthly pension.

The minimum earnings for pension calculation purposes are 

equal to the legal monthly minimum wage.

The maximum earnings for pension calculation purposes are 

equal to 60 times the legal monthly minimum wage.
SSPTW: The Americas, 2007 ♦ 57

Bolivia

The legal monthly minimum wage is Bs520. (The legal 

minimum wage is adjusted by decree for changes in the cost 

of living, depending on the financial resources of the state 

budget. The last adjustment was made in May 2006.)

Schedule of payments: Thirteen payments a year.

The widow(er)’s or partner’s pension ceases on remarriage 

or if cohabiting with a new partner.

Orphan’s pension: The monthly pension is equal to 20% of 

the monthly base survivor pension for a single orphan; 50% 

is split equally if there are two or more orphans; and 100% 

is split equally between full orphans. (Life insurance tops-up 

the accumulated capital in the deceased’s individual account 

if the balance is less than the required minimum to finance 

the survivor pension.)

The monthly base survivor pension is equal to 70% of the 

deceased’s average monthly earnings in the last 5 years (in 

the last 18 months if the deceased had less than 60 months 

of contributions) or 70% of the deceased’s old-age or disability monthly pension.

Schedule of payments: Thirteen payments a year.

When an orphan ceases to be eligible, the widow(er)’s or 

partner’s pension is recalculated.

All survivor benefits combined must not exceed 100% of the 

base survivor pension.

Other eligible survivors (in the absence of the above):

The monthly pension is equal to 20% of the monthly base 

survivor pension for each parent and 10% for each brother 

or sister younger than age 18. Other persons named by the 

insured may also be eligible.

The monthly base survivor pension is equal to 70% of the 

deceased’s average monthly earnings in the last 5 years (in 

the last 18 months if the deceased had less than 60 months 

of contributions) or 70% of the deceased’s old-age or disability monthly pension.

Schedule of payments: Thirteen payments a year.

All benefits combined for other eligible survivors must not 

exceed 60% of the base survivor pension.

If the deceased was not eligible to receive a pension, the 

accumulated capital plus interest of the deceased’s individual account may be used to finance temporary payments to 

the eligible survivors according to pension allocation rules. 

The monthly payments are based on a hypothetical base 

survivor pension equal to at least 70% of the legal monthly 

minimum wage.

Benefit adjustment: Pensions are adjusted annually according to the UFV (Unidad de Fomento de Vivienda), calculated by the Central Bank for changes in the cost of living.

Funeral grant: A lump sum of Bs1,100 is paid.

Administrative Organization

Superintendent of Pensions, Values, and Insurance (http://

www.spvs.gov.bo) supervises the Pension Fund Administrators (AFPs) and defines the investment limits for each 

financial instrument.

Pension Fund Administrators (AFPs) administer the old-age 

benefits (including Bonosol benefits and funeral grants) 

and contract with insurance companies for disability and 

survivor insurance.

Insurance companies administer the disability pension and 

survivor pension program.

Assessment Body (EEC), established by the AFPs and the 

insurance companies, determine the origin, cause, degree, 

and date of the disability for disability benefit calculation 

purposes as well as the origin and cause of death for survivor benefit calculation purposes.

Sickness and Maternity

Regulatory Framework

First law: 1949.

Current laws: 1987 (social security), 1988, 1998 (health), 

and 2002 (maternity).

Type of program: Social insurance system.

Coverage

Cash and medical benefits: All workers.

Voluntary coverage for self-employed persons.

Medical benefits only: Persons older than age 60.

Source of Funds

Insured person: None; pensioners contribute 5% of the 

pension.

Self-employed person: Voluntary contributions. (Selfemployed miners contribute 10% of 1.3 times the legal 

minimum wage.)

The legal monthly minimum wage is Bs520. (The legal 

monthly minimum wage is adjusted for changes in the cost 

of living, depending on the financial resources of the state 

budget. The last adjustment was made in May 2006.)

The self-employed person’s contributions also finance temporary disability benefits and medical benefits under Work 

Injury.

Employer: 10% of payroll.

The employer’s contributions also finance temporary disability benefits and medical benefits under Work Injury.

Government: None.
58 ♦ SSPTW: The Americas, 2007

Bolivia

Qualifying Conditions

Cash sickness benefits: The insured must have made at 

least two contributions before the incapacity began.

Cash maternity and medical benefits: The insured must 

have made at least 4 months of contributions before the 

start of the pregnancy. The benefit is payable to an insured 

woman or to the spouse of an insured man.

Medical benefits: The insured must have made at least 

1 month of contributions in the previous 2 months.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 75% of the 

insured’s last earnings and is paid after a 3-day waiting 

period for up to 26 weeks; may be extended to 52 weeks if 

continuing medical care will prevent permanent disability.

Maternity benefit: The benefit is equal to 95% of the 

insured’s earnings and is paid for up to 45 days before and 

45 days after the expected date of childbirth.

Nursing and prenatal allowances: See Family Allowances, 

below.

Workers’ Medical Benefits

Medical benefits include general, specialist, and preventive care; diagnostic services; surgery; hospitalization; and 

medicines.

Dependents’ Medical Benefits

Medical benefits include general, specialist, and preventive care; diagnostic services; surgery; hospitalization; and 

medicines.

Administrative Organization

Minister of Health (http://www.sns.gov.bo) provides 

supervision.

National Health Fund administers the program.

Work Injury

Regulatory Framework

First law: 1924.

Current laws: 1987 (social security); and 1996 (mandatory 

individual account), implemented in 1997.

Type of program: Social insurance and mandatory individual account system.

Coverage

Salaried workers and apprentices.

Voluntary coverage for self-employed persons.

Source of Funds

Insured person: None for temporary disability benefits 

and medical benefits. For permanent disability and survivor 

benefits, see source of funds under Old Age, Disability, and 

Survivors.

Self-employed person: For temporary disability benefits 

and medical benefits, see source of funds under Sickness and Maternity. For permanent disability and survivor 

benefits, see source of funds under Old Age, Disability, and 

Survivors.

Employer: For temporary disability benefits and medical 

benefits, see source of funds under Sickness and Maternity. 

None for permanent disability and survivor benefits.

Government: Contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period. Accidents that occur while commuting to 

and from work are covered if the employer provides the 

transportation.

Voluntarily insured self-employed workers must have 

6 months of contributions in the 12 months before the 

disability began or death. Coverage is extended for up to 

6 months after the last contribution.

Temporary Disability Benefits

The benefit is the same as the cash sickness benefit payable 

under Sickness and Maternity, above. The benefit is equal 

to 75% of the insured’s last earnings and is paid after a 3-

day waiting period for up to 26 weeks; may be extended to 

52 weeks if continuing medical care will prevent permanent 

disability.

Permanent Disability Benefits

Permanent disability pension: If the assessed degree of 

disability is at least 60%, the monthly pension is equal to 

100% of the insured’s average earnings in the last 5 years.

The minimum earnings for pension calculation purposes are 

equal to the legal monthly minimum wage.

The maximum earnings for pension calculation purposes are 

equal to 60 times the legal monthly minimum wage.

The legal monthly minimum wage is Bs520. (The legal 

monthly minimum wage is adjusted by decree for changes 

in the cost of living, depending on the financial resources 

of the state budget. The last adjustment was made in 

May 2006.)

Partial disability: If the assessed degree of disability is 

between 25% and 60%, the pension is equal to a percentage of the total disability pension according to the assessed 

degree of disability.
SSPTW: The Americas, 2007 ♦ 59

Bolivia

The disability pension ceases at age 65 and is replaced by 

the old-age pension.

Disability grant: If the assessed degree of disability is 

between 10% and 25%, a lump sum equal to 4 years’ partial 

disability pension is paid according to the assessed degree of 

disability.

The insurance company also pays a monthly contribution 

equal to 10% of the insured’s last monthly earnings before 

the disability began to the disabled person’s old-age pension 

mandatory individual account.

The Assessment Body (EEC) assesses the degree of disability through a Medical Assessment Panel consisting of three 

medical professionals. The insured or his or her dependents 

are entitled to require the Superintendent of Pensions, Values, and Insurance to review the assessed degree of disability once only.

Benefit adjustment: Pensions are adjusted annually according to the UFV (Unidad de Fomento de Vivienda), calculated by the Central Bank for changes in the cost of living.

Workers’ Medical Benefits

Benefits include necessary medical and surgical care, hospitalization, and medicines.

Survivor Benefits

Survivor pension: The monthly pension payable to a 

widow(er) or cohabiting partner with no eligible children is 

equal to 80% of the monthly base survivor pension; 60% if 

there is one eligible child; and 50% if there are two or more 

eligible children.

The monthly base survivor pension is equal to 100% of the 

deceased’s average monthly earnings in the last 5 years (in 

the last 18 months if the deceased had less than 60 months 

of contributions) or 100% of the deceased’s old-age pension 

or disability pension.

The minimum earnings for pension calculation purposes are 

equal to the legal monthly minimum wage.

The maximum earnings for pension calculation purposes are 

equal to 60 times the legal monthly minimum wage.

The legal monthly minimum wage is Bs520. (The legal 

monthly minimum wage is adjusted by decree for changes 

in the cost of living, depending on the financial resources 

of the state budget. The last adjustment was made in 

May 2006.)

Schedule of payments: Thirteen payments a year.

The widow(er)’s or partner’s pension ceases on remarriage 

or if cohabiting with a new partner.

Orphan’s pension: The monthly pension is equal to 20% of 

the monthly base survivor pension for a single orphan; 50% 

is split equally if there are two or more orphans; 100% is 

split equally between full orphans.

The monthly base survivor pension is equal to 100% of the 

deceased’s average monthly earnings in the last 5 years (in 

the last 18 months if the deceased had less than 60 months 

of contributions) or 100% of the deceased’s old-age or disability monthly pension.

Schedule of payments: Thirteen payments a year.

When an orphan ceases to be eligible, the widow(er)’s or 

partner’s pension is recalculated.

All survivor benefits combined must not exceed 100% of the 

base survivor pension.

Other eligible survivors (in the absence of the above):

The monthly pension is equal to 20% of the monthly base 

survivor pension for each parent and 10% for each brother 

or sister younger than age 18. Other persons named by the 

insured may also be eligible.

The monthly base survivor pension is equal to 100% of the 

deceased’s average monthly earnings in the last 5 years (in 

the last 18 months if the deceased had less than 60 months 

of contributions) or 100% of the deceased’s old-age or disability monthly pension.

Schedule of payments: Thirteen payments a year.

All benefits combined for other eligible survivors must not 

exceed 60% of the base survivor pension.

If the deceased was not eligible for a pension, the accumulated capital, plus interest, of the deceased’s mandatory individual account may be used to finance temporary payments 

to the eligible survivors according to pension allocation 

rules. The monthly payments must be based on a hypothetical base survivor pension equal to at least 70% of the legal 

monthly minimum wage.

Benefit adjustment: Pensions are adjusted annually according to the UFV (Unidad de Fomento de Vivienda), calculated by the Central Bank for changes in the cost of living.

Funeral grant: A lump sum of Bs1,100 is paid.

Administrative Organization

Superintendent of Pensions, Values, and Insurance (http://

www.spvs.gov.bo) supervises the Pension Fund Administrators (AFPs) and defines the investment limits for each 

financial instrument.

The authorized Pension Fund Administrators (AFPs) collect 

contributions and contract insurance companies for work 

injury disability and survivor insurance.

Insurance companies administer work injury disability and 

survivor programs.

Assessment Body (EEC), established by the AFPs and the 

insurance companies under the legal form of a civil association, determines the origin, cause, degree, and date of the 

disability for disability benefit purposes as well as the origin 

and cause of death for survivor benefit purposes.

National Health Fund administers temporary disability benefits and medical benefits.
60 ♦ SSPTW: The Americas, 2007

Bolivia

Unemployment

Regulatory Framework

No statutory unemployment benefits are provided.

Labor law requires employers to grant severance pay to 

dismissed employees. Dismissed workers are covered for 

medical and maternity benefits for 2 months after employment ceases.

Family Allowances

Regulatory Framework

First law: 1953.

Current laws: 1956 (social security), implemented in 1959; 

and 1987 (social security).

Type of program: Employment-related system.

Coverage

All workers.

Special systems for bank employees, military personnel, and 

other groups of workers.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost.

Government: None.

Qualifying Conditions

Family allowances: The child must be between age 1 

(when the nursing allowance ceases) and age 19; no limit if 

disabled. The family head must be currently working more 

than 15 days a month.

Housing allowance: Paid to single and married workers.

Prenatal grant: Paid from the 5th month of pregnancy.

Birth grant: Paid for the birth of a child.

Nursing allowance: Paid for each child for the 12-month 

period following birth (paid in kind).

Burial allowance: Paid for the funeral of a child younger 

than age 19.

Family Allowance Benefits

Family allowances: A monthly allowance is paid for each 

child.

Housing allowance: An allowance is paid to single and 

married workers.

Prenatal grant: Milk and a cash benefit is provided from 

the fifth month of pregnancy.

Birth grant: A grant equal to the legal monthly minimum 

wage is paid for each birth.

The legal monthly minimum wage is Bs520. (The legal 

monthly minimum wage is adjusted by decree for changes 

in the cost of living, depending on the financial resources 

of the state budget. The last adjustment was made in 

May 2006.)

Nursing allowance: A monthly milk allowance is provided 

for each child for the 12-month period following birth (paid 

in kind).

Burial allowance: An allowance equal to the legal monthly 

minimum wage is paid.

The legal monthly minimum wage is Bs520. (The legal 

monthly minimum wage is adjusted by decree for changes 

in the cost of living, depending on the financial resources 

of the state budget. The last adjustment was made in 

May 2006.)

Administrative Organization

Ministry of Housing and Economic Development provides 

general supervision.

National Secretariat of Pensions, through the National Institute of Pensions, administers the program.

Employers pay allowances for single and married adults to 

employees.
SSPTW: The Americas, 2007 ♦ 61

Brazil

Brazil

Exchange rate: US$1.00 equals 1.92 reais.

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1923 (railroads), 1934 (commerce), and 1936 

(industry).

Current laws: 1991 (social security), with 1999 amendment; 1991 (social insurance); 1993 (social assistance); and 

1999 (social insurance regulations).

Type of program: Social insurance and social assistance 

system.

Coverage

Social insurance: Employed persons in industry, commerce, and agriculture; domestic servants; some categories 

of casual worker; elected civil servants; and self-employed 

persons.

Voluntary coverage for students, housewives, unemployed 

persons, and other categories.

Special systems for public-sector employees and military 

personnel.

Social assistance: Needy elderly or disabled persons.

Source of Funds

Social insurance

Insured person: 8% of covered earnings with earnings up 

to 868.29 reais; 9% with earnings from 868.30 reais to 

1,447.14 reais; or 11% with earnings from 1,447.15 reais 

to 2,894.28 reais. Voluntary contributors contribute 20% 

of declared earnings; a reduced contribution of 11% of the 

minimum monthly salary finances reduced benefits.

The minimum monthly earnings for contribution purposes 

are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for contribution purposes 

are 2,894.28 reais.

The insured’s contributions also finance sickness and maternity benefits and family allowances.

Self-employed person: 20% of declared covered earnings.

The minimum monthly earnings for contribution purposes 

are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for contribution purposes 

are 2,894.28 reais.

The self-employed person’s contributions also finance sickness and maternity benefits.

Employer: 20% of covered payroll.

The minimum monthly earnings for contribution purposes 

are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for contribution purposes 

are 2,894.28 reais.

Small-enterprise employers may contribute from 1.8% to 

7.83% of monthly declared earnings, depending on annual 

earnings declared in the last 12 months and on the sector of 

activity.

The employer’s contributions also finance sickness and 

maternity benefits and family allowances.

Government: Earmarked taxes are used to finance administrative costs and any deficit.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Old-age pension

Age pension (social insurance): Age 65 (men) or age 60 

(women) for employees and the urban self-employed; 

age 60 (men) or age 55 (women) for rural workers.

Persons who were first insured before July 25, 1991, must 

have at least 156 months of contributions; persons first 

insured since July 25, 1991, must have at least 180 months 

of contributions.

Contributory pension (social insurance): The insured must 

have at least 35 years of contributions (men) or 30 years of 

contributions (women). For arduous employment, the coverage period is between 15 years and 25 years.

Proportional pension (social insurance): Age 53 with 

30 years of contributions (men) or age 48 with 25 years 

of contributions (women); for persons first insured before 

December 16, 1998, the insured must also contribute 40% 

of the difference between the required contribution years at 

age 53 (men) or age 45 (women) and the number of years 

actually paid as of December 16, 1998.

All contributory pensions are payable abroad under bilateral 

or multilateral agreement.

Old-age assistance (social assistance): Age 65, without 

remunerated work, and with family monthly earnings less 

than 25% of the minimum monthly wage for each person 

(95 reais). Eligibility is reviewed every 2 years.

Disability pension

Disability pension (social insurance): The insured must be 

assessed as permanently incapable for work and have at 
62 ♦ SSPTW: The Americas, 2007

Brazil

least 12 months of contributions. The contribution period is 

waived if the disability is the result of an accident.

The degree of disability is assessed by the National Institute 

of Social Security.

Disability benefit (social assistance): The insured must be 

assessed as disabled and have family monthly earnings less 

than 25% of the minimum monthly wage for each person 

(95 reais). Eligibility is reviewed every 2 years.

Survivor pension (social insurance): The deceased was a 

pensioner or insured.

Eligible survivors include the widow(er) or partner and 

children younger than age 21 (no limit if disabled); in the 

absence of the above (in order of priority), parents and 

brothers and sisters younger than age 21 (no limit if disabled). The pension is split equally among eligible survivors. If one survivor ceases to be eligible, the pensions for 

the remaining survivors are recalculated.

Survivor pensions are payable abroad under bilateral or 

multilateral agreement.

Old-Age Benefits

Old-age pension

Age pension (social insurance): The monthly benefit is equal 

to 70% of the insured’s average earnings plus 1% of average 

earnings for each year of contributions, up to a maximum of 

100%.

For persons first insured before November 29, 1999, average earnings for benefit calculation purposes are based on 

earnings in the best 4/5 of the total number of months of 

earnings. Monthly earnings since July 1994 are adjusted.

For persons first insured after November 28, 1999, average earnings for benefit calculation purposes are based on 

earnings in the best 4/5 of the total number of months of 

earnings.

Insured persons may opt for the pension to be calculated 

using the Factor Previdenciario method. The monthly pension is equal to the Factor Previdenciario times 70% of average earnings (based on earnings in the best 4/5 of the total 

number of months of earnings).

The Factor Previdenciario is based on the insured’s contribution rate, contribution period, age, and life expectancy.

The minimum monthly earnings for benefit calculation purposes are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for benefit calculation 

purposes are 2,894.28 reais.

The minimum monthly age pension is equal to the minimum 

monthly wage (380 reais).

The maximum age pension is equal to 100% of average 

earnings.

Pensioners are not required to cease gainful activity.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index.

Contributory pension (social insurance): The monthly benefit 

is equal to 100% of the insured’s average earnings.

For persons insured before November 29, 1999, the average earnings for benefit calculation purposes are based on 

earnings in the best 4/5 of the total number of months of 

earnings. Monthly earnings since July 1994 are adjusted.

For persons first insured after November 28, 1999, the 

monthly benefit is equal to the Factor Previdenciario times 

100% of average earnings (based on earnings in the best 4/5 

of the total number of months of earnings).

The Factor Previdenciario is not applied to arduous work 

with 15, 20, or 25 years contributions.

The Factor Previdenciario is based on the insured’s contribution rate, contribution period, age, and life expectancy.

The minimum monthly earnings for benefit calculation purposes are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for benefit calculation 

purposes are 2,668.15 reais.

The minimum pension for minimum monthly contributions 

is equal to the minimum monthly wage (380 reais).

Pensioners are not required to cease gainful activity.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index.

Proportional pension (social insurance): For persons first 

insured before November 29, 1999, the monthly benefit is 

equal to 70% of the insured’s average earnings plus 5% of 

average earnings for each additional year of contributions, 

up to a maximum of 100%.

Average earnings for benefit calculation purposes are based 

on earnings in the best 4/5 of the total number of months of 

earnings. Monthly earnings since July 1994 are adjusted.

The minimum monthly earnings for benefit calculation purposes are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for benefit calculation 

purposes are 2,894.28 reais.

The minimum pension for minimum monthly contributions 

is equal to the minimum monthly wage (380 reais).

Pensioners are not required to cease gainful activity.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index.

Old-age assistance (social assistance): The monthly benefit 

is equal to the minimum monthly wage (380 reais).

Benefit adjustment: Benefits are adjusted annually according 

to changes in the minimum wage.
SSPTW: The Americas, 2007 ♦ 63

Brazil

Permanent Disability Benefits

Disability pension

Disability pension (social insurance): The monthly benefit is 

equal to 100% of the insured’s average earnings; 100% of 

the minimum wage for rural workers.

For persons first insured before November 29, 1999, average earnings for benefit calculation purposes are based on 

earnings in the best 4/5 of the total number of months of 

earnings. Monthly earnings since July 1994 are adjusted.

For persons first insured after November 28, 1999, average 

earnings for benefit calculation purposes are based on earnings in the best 4/5 of the total months of earnings.

The minimum monthly earnings for benefit calculation purposes are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for benefit calculation 

purposes are 2,894.28 reais.

The minimum monthly pension is equal to the minimum 

monthly wage (380 reais).

The maximum monthly pension is 2,894.28 reais.

Pensioners are required to cease gainful activity.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index.

Disability assistance (social assistance): The monthly benefit is equal to the minimum monthly wage (380 reais).

Benefit adjustment: Benefits are adjusted annually according 

to changes in the minimum wage.

Survivor Benefits

Survivor pension (social insurance): The monthly pension is equal to 100% of the pension paid or payable to the 

deceased; 100% of the minimum wage for rural workers. 

The pension is split equally among eligible survivors. If one 

survivor ceases to be eligible, the pensions for the remaining 

survivors are recalculated.

The minimum monthly pension is equal to the minimum 

monthly wage (380 reais).

The maximum monthly pension is 2,894.28 reais.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index; the minimum wage 

for rural workers’ benefits.

Administrative Organization

Ministry of Social Insurance (http://www.previdencia.gov.

br) provides general supervision.

National Social Security Institute (http://www.inss.gov.br) 

administers benefits.

Sickness and Maternity

Regulatory Framework

First laws: 1923 (railroads), 1934 (commerce), and 1936 

(industry).

Current laws: 1990 (health); 1991 (social security), with 

1999 amendment; and 1991 (social insurance).

Type of program: Social insurance system.

Coverage

Employed persons in industry, commerce, and agriculture; domestic servants; some categories of casual worker; 

elected civil servants; and self-employed persons.

Voluntary coverage for students, housewives, unemployed 

persons, and other categories.

Special systems for public-sector employees and military 

personnel.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: The cost of medical benefits.

Qualifying Conditions

Cash sickness benefits: The insured must have contributed in the last 12 months. There is no qualifying period in 

the event of an accident or serious illness.

Cash maternity benefits: There is no minimum qualifying period for salaried workers, domestic workers, and 

occasional workers; 10 months of contributions for selfemployed persons and rural workers.

Medical benefits: The insured must have contributed in the 

last 12 months. There is no qualifying period in the event of 

an accident or serious illness.

Sickness and Maternity Benefits

Sickness benefit: The monthly benefit is equal to 91% of 

average earnings; 100% of the minimum wage for rural 

workers. The benefit is paid after a 15-day waiting period 

(during which the employer is required to pay 100% of earnings); there is no waiting period for self-employed persons 

and voluntarily covered persons.

There is no limit to duration.
64 ♦ SSPTW: The Americas, 2007

Brazil

Average earnings are based on earnings in the best 4/5 of the 

total number of months of earnings. Monthly earnings since 

July 1994 are adjusted.

The minimum monthly earnings for benefit calculation purposes are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for benefit calculation 

purposes are 2,894.28 reais.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index; the minimum wage 

for rural workers’ benefits.

Maternity benefit: The monthly benefit is equal to 100% 

of the last wage; 100% of average earnings in the last 

12 months for self-employed and voluntarily covered 

women; 100% of the minimum wage for rural workers. The 

benefit is paid for a total of 120 days, from 28 days before 

until 91 days after the expected date of childbirth.

The benefit is paid for 2 weeks in the case of a miscarriage.

The benefit is also paid for 120 days to a woman who adopts 

a child younger than age 1; 60 days if the child is aged 1 to 

4; or 30 days if the child is aged 4 to 8.

The minimum monthly earnings for benefit calculation purposes are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for benefit calculation 

purposes are 2,894.28 reais.

Workers’ Medical Benefits

Medical services are provided directly to patients in rural 

and urban areas through the Unified Health System. Benefits 

include general, specialist, maternity, and dental care; hospitalization; medicines (some cost sharing is required); and 

necessary transportation.

There is no limit to duration.

Dependents’ Medical Benefits

Medical services are provided directly to patients in rural 

and urban areas through the Unified Health System. Benefits 

include general, specialist, maternity, and dental care; hospitalization; medicines (some cost sharing is required); and 

necessary transportation.

There is no limit to duration.

Administrative Organization

Ministry of Health (http://www.saude.gov.br) provides general supervision of the Unified Health System.

Ministry of Social Insurance (http://www.previdencia.gov.

br) provides general supervision.

National Social Security Institute (http://www.inss.gov.br) 

administers cash benefits.

Federal, state, and municipal institutions are part of the Unified Health System and administer medical benefits.

Work Injury

Regulatory Framework

First laws: 1919, 1944, and 1967.

Current laws: 1991; and 1991, with 1999 amendment.

Type of program: Social insurance system.

Coverage

Employed persons.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1% to 3% of gross payroll according to the 

assessed degree of risk; 1% of gross payroll for employers 

of rural workers.

There are no minimum or maximum earnings for contribution purposes.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. Accidents that occur while commuting to and from 

work are covered.

Temporary Disability Benefits

The monthly benefit is equal to 91% of average earnings 

and is paid after a 15-day waiting period (during which the 

employer is required to pay 100% of earnings). No waiting 

period is required for occasional and rural workers.

There is no limit to duration.

Average earnings are based on earnings in the best 4/5 of the 

total number of months of earnings. Monthly earnings since 

July 1994 are adjusted. For rural workers, average earnings 

are equal to 100% of the minimum monthly wage.

The minimum monthly earnings for benefit calculation purposes are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for benefit calculation 

purposes are 2,894.28 reais.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index; the minimum wage 

for rural workers’ benefits.

Permanent Disability Benefits

Permanent disability pension: The monthly pension is 

equal to 100% of average earnings and is paid if the insured 

is incapable of any work.
SSPTW: The Americas, 2007 ♦ 65

Brazil

Average earnings for benefit calculation purposes are based 

on earnings in the best 4/5 of the total number of months of 

earnings. Monthly earnings since July 1994 are adjusted.

The minimum monthly earnings for benefit calculation purposes are equal to the minimum monthly wage (380 reais).

The maximum monthly earnings for benefit calculation 

purposes are 2,894.28 reais.

Constant-attendance supplement: Equal to 25% of the 

pension.

Schedule of payments: Thirteen payments a year.

The degree of disability is assessed by National Social Security Institute doctors and reassessed every 2 years.

Accident benefit (partial disability): The monthly benefit 

is equal to 50% of average earnings and is paid to disabled 

workers who are capable of some kind of work.

Average earnings for benefit calculation purposes are based 

on earnings in the best 4/5 of the total number of months of 

earnings. Monthly earnings since July 1994 are adjusted. 

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index.

Workers’ Medical Benefits

Medical treatments are directly provided to patients in urban 

and rural areas by the Unified Health System. Medical and 

dental treatment, hospital treatment, medicines (some cost 

sharing is required), and transportation.

Survivor Benefits

Survivor pension: The monthly benefit is equal to 100% 

of the pension paid or payable to the deceased; 100% of 

the minimum wage for rural workers. The pension is split 

equally among eligible survivors. If one survivor ceases 

to be eligible, the pensions for the remaining survivors are 

recalculated.

Eligible survivors include the widow(er) or partner and 

children younger than age 21 (no limit if disabled); in 

the absence of the above (in order of priority), parents 

and brothers and sisters younger than age 21 (no limit if 

disabled).

The minimum monthly pension is equal to the minimum 

monthly wage (380 reais).

The maximum monthly pension is 2,894.28 reais.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index; the minimum wage 

for rural workers’ benefits.

Administrative Organization

Ministry of Health (http://www.saude.gov.br) provides general supervision of the Unified Health System.

Ministry of Social Insurance (http://www.previdencia.gov.

br) provides general supervision.

National Social Security Institute (http://www.inss.gov.br) 

administers cash benefits.

Federal, state, and municipal institutions are part of the Unified Health System and administer medical benefits.

Unemployment

Regulatory Framework

First laws: 1965 (severance pay fund) and 1986 (unemployment insurance).

Current law: 1990 (unemployment insurance), with 1994 

and 2002 amendments.

Type of program: Social assistance system.

Note: Employers contribute 8% of earnings to the Guarantee Fund for Severance Pay (FGTS), which has individual 

savings accounts to which the insured has access in the 

event of unemployment, marriage, retirement, and other 

contingencies.

Coverage

Employed persons.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: None.

Government: The total cost is financed by earmarked taxes.

Qualifying Conditions

Unemployment benefits: The benefit varies according to 

whether the insured had 6 months to 11 months of coverage, 

12 months to 23 months of coverage, or 24 months or more 

of coverage in the last 36 months. Unemployment must not 

be due to misconduct. The insured must lack other resources 

to support self or family and must not receive other social 

insurance benefits.

Unemployment Benefits

Unemployment benefit (means-tested): The monthly 

benefit varies according to average earnings in the last 

3 months of employment: 80% of average earnings is paid 

with average earnings up to 495.23 reais; 396.18 reais, plus 

50% of earnings exceeding 495.23 reais, is paid with average earnings between 495.23 reais and 825.47 reais; and 

561.30 reais is paid with average earnings of 825.47 reais or 

more.
66 ♦ SSPTW: The Americas, 2007

Brazil

The benefit is paid for 3 to 5 months, depending on the 

insured’s duration of coverage in any 16-month period.

The minimum monthly benefit is equal to the minimum 

monthly wage (300 reais).

Benefit adjustment: Benefits are adjusted annually according 

to changes in the minimum wage.

Administrative Organization

Ministry of Labor and Employment (http://www.mte.gov.br) 

provides general supervision.

Worker Assistance Fund Advisory Council administers the 

program.

Family Allowances

Regulatory Framework

First law: 1941 (large families).

Current laws: 1991 (social insurance) and 1998 (family 

allowances).

Type of program: Employment-related system.

Coverage

Low-income employees with one or more children.

Exclusions: Domestic workers, casual workers, elected civil 

servants, and self-employed persons.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Family allowances (income-tested): Employees with 

monthly income up to 676.27 reais. The child must be 

younger than age 14 (no limit if disabled). The parents are 

required to present annual proof of vaccinations for children 

up to age 6 and proof of school attendance each semester 

from age 7. The parent must be currently in insured employment or receiving a sickness benefit. The allowance is payable to both parents if both are insured.

Family Allowance Benefits

Family allowances (income-tested): 23.08 reais is paid 

monthly for each child if the insured’s earnings do not 

exceed 449.93 reais; 16.26 reais a month if earnings are 

between 449.93 reais and 676.27 reais.

Employers pay allowances and the total cost is reimbursed 

by government.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the consumer price index.

Administrative Organization

Ministry of Social Insurance (http://www.previdencia.gov.

br) provides general supervision.

National Social Security Institute (http://www.inss.gov.br) 

administers benefits.

Employers pay benefits to employees.
SSPTW: The Americas, 2007 ♦ 67

British Virgin Islands

British Virgin Islands

Exchange rate: Uses the US dollar (US$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1979 (social security).

Current law: 1980 (social security).

Type of program: Social insurance system.

Coverage

All employed and self-employed persons aged 16 to 65.

Voluntary coverage is possible.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: 3.25% of covered monthly earnings. (Voluntary contributors pay 7% of monthly earnings.)

The maximum annual earnings for contribution and benefit 

purposes are US$31,430. (US$32,292 from January 2008.)

Self-employed person: 8.5% of declared monthly earnings.

The maximum annual earnings for contribution and benefit 

purposes are US$31,430. (US$32,292 from January 2008.)

Employer: 3.25% of covered monthly payroll.

The maximum annual earnings for contribution and benefit 

purposes are US$31,430. (US$32,292 from January 2008.)

Government: None; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 65 with at least 500 weeks of 

contributions.

Partial pension: A reduced pension is paid with between 51 

and 499 weeks of contributions.

Early pension: There is no early pension.

Old-age grant: Age 65 with at least 50 weeks of contributions and ineligible for any periodic benefit.

All old-age benefits are payable abroad.

Disability pension: Younger than age 65 with at least 

500 weeks of contributions and assessed as permanently 

incapable of any work.

The degree of disability is assessed every 6 months by any 

medical doctor.

Disability grant: Younger than age 65 with at least 

50 weeks of contributions, assessed as permanently incapable of any work, and ineligible for any periodic benefit.

All disability benefits are payable abroad.

Survivor pension: The deceased was a pensioner or was 

eligible for a pension at the time of death.

Eligible survivors are widow(er)s (including an unmarried spouse) aged 40 or older or caring for a dependent 

child younger than age 15 (age 21 if a student) and orphans 

younger than age 15 (age 21 if a student).

All survivor benefits are payable abroad.

Survivor grant: Paid if the deceased was not eligible for a 

pension but had at least 50 weeks of contributions.

Funeral grant: Paid for the death of an insured person or his 

or her dependents. The insured must have at least 26 weeks 

of paid contributions.

Old-Age Benefits

Old-age pension: The pension is equal to 30% of average covered earnings, plus 1% of average covered earnings for every 50-week period of contributions exceeding 

500 weeks.

Average covered earnings are based on the sum of earnings 

in the best 3 years in the last 15 years, divided by three.

The maximum annual earnings for benefit calculation purposes are US$31,430. (US$32,292 from January 2008.)

Partial pension: The full pension is reduced in proportion to 

the number of weeks of contributions.

Early pension: There is no early pension.

The minimum old-age pension is US$208 (January 2005).

The maximum old-age pension is equal to 60% of the 

insured’s average annual covered earnings.

Retirement from gainful employment is not necessary.

Old-age grant: A lump sum is paid equal to six times average weekly earnings for every 50-week period of contributions above 50 weeks and below 500 weeks.

Retirement from gainful employment is not necessary.

Permanent Disability Benefits

Disability pension: The pension is equal to 30% of average covered earnings, plus 1% of average covered earnings for every 50-week period of contributions exceeding 

500 weeks.

Average covered earnings are based on the sum of earnings 

in the best 3 years in the last 15 years (or in the total number 

of covered years where less) before the year in which the 

disability began, divided by three.

The maximum annual earnings for benefit calculation purposes are US$31,430. (US$32,292 from January 2008.)
68 ♦ SSPTW: The Americas, 2007

British Virgin Islands

The minimum disability pension is US$208 (January 2005).

The maximum disability pension is equal to 60% of the 

insured’s average annual covered earnings.

The disability pension is replaced by the old-age pension at 

age 65.

Disability grant: A lump sum is paid equal to six times 

average weekly earnings for every 50-week period of contributions above 50 weeks and below 500 weeks.

Survivor Benefits

Survivor pension: The widow(er)’s pension is equal to 2/3 

of the old-age pension paid or payable to the deceased.

Orphan’s pension: The pension is equal to 1/3 of the 

widow(er)’s pension; 2/3 if a full orphan.

Survivor grant: The widow(er)’s grant is equal to 2/3 of the 

old-age grant paid or payable to the deceased.

Orphan’s grant: The grant is equal to 1/3 of the widow(er)’s 

grant; 2/3 if a full orphan.

Funeral grant: The grant depends on the age of the person 

at death. For a child younger than age 1, US$300 is paid; 

for a child aged 1 to 15, US$1,300; for persons aged 16 or 

older, US$2,000. The grant is paid to the person who meets 

the cost of the funeral.

Administrative Organization

A tripartite board of directors appointed by the Minister 

Responsible for Social Security manages the Social Security 

Board.

Social Security Board (http://www.bvissb.vg) administers 

the program.

Sickness and Maternity

Regulatory Framework

First law: 1979 (social security).

Current law: 1980 (social security).

Type of program: Social insurance system. Cash benefits 

only.

Coverage

All employed and self-employed persons aged 16 to 65.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: 0.75% of covered monthly earnings.

The maximum weekly and monthly earnings for contribution and benefit purposes are US$450 and US$1,950, 

respectively.

Self-employed person: 1.5% of declared monthly earnings.

The maximum weekly and monthly earnings for contribution and benefit purposes are US$450 and US$1,950, 

respectively.

Employer: 0.75% of covered monthly payroll.

The maximum weekly and monthly earnings for contribution and benefit purposes are US$450 and US$1,950, 

respectively.

Government: None; contributes as an employer.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

26 weeks of contributions, including 8 weeks of contributions in the 13 weeks before the incapacity began.

Cash maternity benefits: The insured must have at least 

26 weeks of contributions, including 20 weeks of contributions in the 39 weeks before the expected date of childbirth.

Maternity grant: The insured must have at least 26 weeks of 

contributions. The insured can be a woman or her husband 

or cohabiting partner. A cohabiting partner must have lived 

with the woman for at least 2 years. If both parents are 

eligible, 100% of the grant is paid to each.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 2/3 of average 

weekly covered earnings and is paid after a 3-day waiting 

period for up to 26 weeks.

Average weekly covered earnings are based on covered 

earnings in the 13 weeks before the incapacity began.

There is no minimum weekly sickness benefit.

The maximum weekly sickness benefit is US$300.

Maternity benefit: The benefit is equal to 2/3 of average weekly covered earnings in the 39 weeks before the 

expected date of childbirth. The benefit is paid for up to 

13 weeks, beginning no earlier than 6 weeks before the 

expected date of childbirth.

Average weekly covered earnings are based on covered 

earnings in the 39 weeks before the expected date of 

childbirth.

There is no minimum weekly maternity benefit.

The maximum weekly maternity benefit is US$300.

Maternity grant: A lump sum of US$200 is paid for each 

eligible insured parent per child.

Workers’ Medical Benefits

No statutory benefits are provided.

Dependents’ Medical Benefits

No statutory benefits are provided.
SSPTW: The Americas, 2007 ♦ 69

British Virgin Islands

Administrative Organization

A tripartite board of directors appointed by the Minister 

Responsible for Social Security manages the Social Security 

Board.

Social Security Board (http://www.bvissb.vg) administers 

the program.

Work Injury

Regulatory Framework

First and current law: 1994 (employment injury).

Type of program: Social insurance system.

Coverage

All employed and self-employed persons from age 16.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: None.

Self-employed person: 0.5% of declared monthly earnings.

The maximum annual earnings for contribution purposes are 

US$31,430. (US$32,292 from January 2008.)

Employer: 0.5% of covered monthly payroll (including on 

behalf of employees aged 65 or older).

The maximum annual earnings for contribution and benefit 

purposes are US$31,430. (US$32,292 from January 2008.)

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period for a work injury or an occupational disease.

Temporary Disability Benefits

The benefit is equal to 75% of average weekly covered earnings and is paid for up to 26 weeks.

The maximum temporary disability benefit is US$975.

Permanent Disability Benefits

For a total disability (100%), the benefit is equal to 75% 

of average weekly covered earnings and is paid for up to 

26 weeks.

The maximum permanent disability benefit is US$975.

Partial disability: For an assessed degree of disability of 

30% to 99%, a percentage of the full pension is paid according to the assessed degree of disability.

The degree of disability is assessed every 6 months by any 

medical doctor.

A lump sum is paid for an assessed degree of disability of 

less than 30%.

Workers’ Medical Benefits

Benefits include medical, surgical, dental, and hospital treatment; skilled nursing services; the supply of medicines; the 

supply, fitting, maintenance, repair, and renewal of artificial 

limbs; and the cost of transportation for the purpose of 

obtaining medical services.

Survivor Benefits

Survivor pension: The maximum survivor pension is 3/4 of 

the pension paid or payable to the deceased. The surviving 

spouse receives 1/2 of this amount.

Eligible survivors are married or unmarried spouses who 

lived with the deceased for at least 3 years.

The pension ceases if the surviving spouse remarries or 

cohabits.

Orphan’s pension: Each orphan younger than age 15 

(age 21 if a student, no limit if disabled) receives 1/6 of the 

maximum survivor pension.

Other eligible survivors: Up to 1/2 of the maximum 

survivor pension is split equally among other dependent 

survivors.

Funeral grant: A lump sum of US$2,000 is paid to the person who meets the cost of the funeral.

Administrative Organization

A tripartite board of directors appointed by the Minister 

Responsible for Social Security manages the Social Security 

Board.

Social Security Board (http://www.bvissb.vg) administers 

the program.
70 ♦ SSPTW: The Americas, 2007

Canada

Canada

Exchange rate: US$1.00 equals

1.06 Canadian dollars (C$).

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1927 (old-age assistance), 1937 (blind assistance), and 1955 (disability assistance).

Current laws: 1952 (universal pension), 1965 (earningsrelated pension), and 1967 (income-tested supplement).

Type of program: Universal pension and social insurance 

system.

Coverage

Universal pension (old-age security): All persons residing 

in Canada.

Earnings-related pension (Canada Pension Plan/Quebec Pension Plan): All employees and all self-employed 

persons working in Canada.

Exclusions: Those in casual employment (annual earnings 

less than C$3,500) or in seasonal agricultural employment.

A province may opt out of the federal earnings-related 

Canada Pension Plan if it establishes a comparable program. 

This is the case with the Quebec Pension Plan; benefits are 

portable between the two plans.

Source of Funds

Universal pension

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost, including the total cost of 

income-tested benefits.

Earnings-related pension

Insured person: 4.95% of covered earnings.

The minimum annual earnings for benefit and contribution 

purposes are C$3,500.

The maximum annual earnings for benefit and contribution 

purposes are C$43,700.

Earnings limit adjustment: Adjusted annually according to 

increases in the average industrial wage.

Self-employed person: 9.9% of covered earnings.

The minimum annual earnings for benefit and contribution 

purposes are C$3,500.

The maximum annual earnings for benefit and contribution 

purposes are C$43,700.

Earnings limit adjustment: Adjusted annually according to 

increases in the average industrial wage.

Employer: 4.95% of covered payroll.

The minimum annual earnings for benefit and contribution 

purposes are C$3,500.

The maximum annual earnings for benefit and contribution 

purposes are C$43,700.

Earnings limit adjustment: Adjusted annually according to 

increases in the average industrial wage.

Government: None; contributes as an employer.

Qualifying Conditions

Old-age pension

Universal pension: Age 65 with at least 10 years of residence 

in Canada after age 18. Retirement is not necessary.

The pension is payable abroad if the beneficiary resided in 

Canada for at least 20 years after age 18.

Low-income supplement (income-tested): Age 65, receiving 

the old-age pension, and with low annual income. Income is 

based on individual income or family income if the pensioner has a spouse or common-law (same sex or opposite 

sex) partner. The supplement is not payable abroad.

Low-income allowance (income-tested): Aged 60 to 64, with 

at least 10 years of residence in Canada after age 18, and 

the claimant’s spouse or common-law partner (same sex or 

opposite sex) is entitled to the old-age pension and the lowincome supplement. At age 65, the allowance is replaced by 

the universal old-age pension and, depending on income, the 

low-income supplement.

Earnings-related retirement pension (Canada Pension 

Plan/Quebec Pension Plan): Age 60 with at least 1 valid 

contribution. If the pension is awarded before age 65, the 

insured must have fully or substantially ceased employment. 

If the pension is awarded at age 65 or older, retirement is 

not necessary.

Early pension: A reduced pension is paid from age 60.

Deferred pension: A deferred pension is possible.

The pension is payable abroad.

Earnings-related disability pension (Canada Pension 

Plan/Quebec Pension Plan): The insured must be assessed 

with a severe and prolonged incapacity for any gainful 

activity and have contributions in 4 of the last 6 years. (The 

Quebec Pension Plan normally requires contributions in half 

the years in which contributions could have been made; the 

minimum contribution period is 2 of the last 3 years.)

The pension is payable abroad.
SSPTW: The Americas, 2007 ♦ 71

Canada

Survivor pension

Universal pension (survivor allowance, income-tested): Paid 

to widows and widowers aged 60 to 64. The survivor must 

be a resident of Canada and have resided in Canada for at 

least 10 years after age 18. The pension is replaced by the 

universal old-age pension at age 65.

Earnings-related pension (Canada Pension Plan/Quebec 

Pension Plan): The deceased must have made contributions 

during the lesser of 10 years or one-third of the years in 

which contributions could have been made; the minimum 

contribution period is 3 years.

The pension is payable abroad.

The spouse and widow(er) include legally married persons 

and common-law partners (including same-sex partners).

Old-Age Benefits

Old-age pension

Universal pension: The maximum monthly pension is 

C$497.83. The pension is calculated as 1/40th of the 

maximum pension for each year of residence in Canada 

after age 18, up to a maximum of 40 years. The pension of 

high-income earners is subject to recovery (the pension is 

reduced by 15% of annual income, minus allowable income 

tax deductions and expenses, over C$63,511).

Low-income supplement (income-tested): The supplement increases the maximum monthly universal pension to 

C$1,126.19 for a single person or C$1,825.58 for a couple.

Benefit adjustment: Automatic quarterly adjustments of the 

universal pension for changes in the consumer price index.

Low-income allowance (income-tested): Up to a maximum 

of C$912.79 a month is paid for a pensioner’s spouse 

between ages 60 and 64.

Earnings-related retirement pension (Canada Pension 

Plan/Quebec Pension Plan): The pension is equal to 25% of 

average adjusted annual covered earnings. 15% of the years 

with the lowest income are disregarded; years in which 

the insured was caring for a child younger than age 7 may 

also be disregarded if it is in the insured’s favor; months 

when the insured was receiving a disability benefit are also 

disregarded.

Early pension: The pension is reduced by 0.5% a month if 

awarded at any age after 60 but before age 65.

Deferred pension: The pension is increased by 0.5% a 

month if awarded after age 65 but before age 70.

The maximum monthly pension is C$863.75.

Pension credits accumulated by spouses or common-law 

partners (including same-sex partners) during marriage or 

cohabitation may be divided equally in case of divorce or 

separation.

Recorded earnings are adjusted for changes in national average wages.

Benefit adjustment: Automatic quarterly adjustments of 

earnings-related pensions for changes in the consumer price 

index.

Permanent Disability Benefits

Earnings-related disability pension (Canada Pension 

Plan/Quebec Pension Plan): A basic monthly pension of 

C$405.96 is paid, plus 75% of the earnings-related retirement pension.

The maximum monthly pension is C$1,053.77.

The disability pension is replaced by a retirement pension at 

age 65.

Recorded earnings are adjusted for changes in national average wages.

Child’s supplement: C$204.68 a month is paid for each 

child younger than age 18; age 25 if a student. (Quebec 

Pension Plan: C$64.99 is paid for each child younger than 

age 18 only.)

Benefit adjustment: Automatic annual adjustment of all 

benefits for changes in the consumer price index.

Survivor Benefits

Survivor pension

Universal pension (survivor allowance, income-tested): Paid 

to a widow(er) aged 60 to 64.

The allowance ceases on remarriage or if the person enters 

into a common-law relationship that lasts for at least a year.

The maximum monthly allowance is C$1,011.80.

The survivor allowance is replaced by the universal old-age 

pension at age 65.

Earnings-related survivor pension (Canada Pension Plan/

Quebec Pension Plan): A surviving spouse aged 65 or older 

receives 60% of the deceased’s earnings-related retirement 

pension, up to a maximum of C$518.25 a month. (Quebec 

Pension Plan: The provision is the same for a surviving 

spouse aged 65 or older.)

A surviving spouse younger than age 65 receives 37.5% 

of the deceased’s earnings-related retirement pension plus 

C$158.39, up to a maximum of C$482.30 a month. (Quebec 

Pension Plan: A surviving spouse aged 45 to 64 receives 

up to a maximum of C$729.84 a month. For a surviving 

spouse younger than age 45 and disabled, the maximum 

pension is C$729.84 a month; if not disabled but caring for 

a dependent child, up to a maximum of C$700.80; if not 

disabled and with no dependent children, up to a maximum 

of C$427.87.)

Orphan’s pension (Canada Pension Plan/Quebec Pension 

Plan): C$204.68 a month is paid for each child younger than 

age 18; age 25 if a student. (Quebec Pension Plan: C$64.99 

is paid for each child younger than age 18 only.)
72 ♦ SSPTW: The Americas, 2007

Canada

Death benefit: Equal to 6 months’ earnings-related retirement pension, up to a maximum of C$2,500.

Benefit adjustment: Automatic annual adjustment of earnings-related pensions for changes in the consumer price 

index.

Administrative Organization

Human Resources and Social Development Canada 

(http://www.hrsdc.gc.ca), through district and local offices, 

administers the universal and earnings-related pensions and 

income-tested supplements.

Canada Revenue Agency (http://cra.gc.ca) collects contributions for the earnings-related pensions.

Quebec Department of Revenue (http://www.revenue.gouv.

qc.ca) and Quebec Pension Board (http://www.rrq.gouv.

qc.ca) administer the earnings-related Quebec Pension Plan.

Sickness and Maternity

Regulatory Framework

Cash benefits

First and current laws: 1996 (employment insurance) and 

2006 (Quebec maternity benefits).

Physician and hospital services

First laws: 1957 (hospital services) and 1968 (physician 

services).

Current law: 1984 (health).

Type of program: Social insurance (cash benefits) and universal system (physician and hospital services).

Coverage

Cash benefits: All salaried workers, including federal 

government employees; self-employed fishermen. Selfemployed persons in Quebec covered by the Quebec Parental Insurance Plan are eligible for maternity and parental 

benefits.

Provincial government employees may be covered with the 

consent of provincial government.

Exclusions: Self-employed persons other than fishermen and 

self-employed persons in Quebec covered by the Quebec 

Parental Insurance Plan.

Physician and hospital services: All persons residing 

in Canada who satisfy federal and provincial criteria for 

eligibility and insured status. (Virtually the total population 

is covered.) Coverage is portable from province to province 

and for emergency care anywhere in the world. In the latter 

case, payment is limited to the rate payable in the person’s 

home province.

Special provisions for certain groups, including members of 

the armed forces.

Source of Funds

Insured person

Cash benefits: See source of funds under Unemployment, 

below. In Quebec, 0.416% of earnings.

Physician and hospital benefits: Financed through general 

taxation. Premiums are paid in Alberta and British Columbia. Ontario has a health premium, that is based on taxable income above a certain threshold. None in the other 

provinces.

Self-employed person

Cash benefits: See source of funds under Unemployment, 

below. In Quebec, 0.737% of taxable income.

Physician and hospital benefits: Through general taxation. 

Premiums are paid in Alberta and British Columbia. Ontario 

has a health premium, that is based on taxable income above 

a certain threshold. None in the other provinces.

Employer

Cash benefits: See source of funds under Unemployment, 

below. In Quebec, 0.583% of payroll.

Physician and hospital benefits: Contributions vary by province from 1% to 4.5% of payroll.

Government

Cash Benefits: None.

Physician and hospital benefits: Most of the cost is met from 

federal, provincial, and territorial general revenues. Federal 

government makes contributions to provinces and territories 

through block transfers, part of which are conditional on 

provinces and territories meeting federal program requirements as set out in the Canada Health Act.

Qualifying Conditions

Cash sickness and maternity benefits: The insured must 

have at least 600 hours of covered employment in the previous 52 weeks. In Quebec, eligibility for maternity benefits 

is based on having at least C$2,000 of insured income in the 

previous 52 weeks.

Compassionate care benefits: The insured must have at 

least 600 hours of covered employment in the previous 52 

weeks. The benefit is paid to insured persons who leave 

work temporarily to provide care or support to a family 

member with a grave illness.

Medical and hospitalization benefits: Generally, 3 months’ 

residence in the province is required to be insured. When 

the insured moves from one province to another, the former 

province continues to provide insurance coverage during the 

waiting period.

In Alberta, British Columbia, and Ontario, the payment of 

premiums is an additional condition, but such payment is 

not linked to entitlement to services.
SSPTW: The Americas, 2007 ♦ 73

Canada

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 55% of average 

weekly covered earnings in the last 26 weeks, plus a family 

supplement for low-income and modest-income earners 

with dependent children. The supplement is awarded if 

annual net family income (after application of allowable 

deductions under the Income Tax Act) is less than C$25,921. 

The benefit is paid after a 2-week waiting period, for up to 

15 weeks.

Maternity benefit: The benefit is equal to 55% of average 

weekly covered earnings in the last 26 weeks, plus a family 

supplement for low-income and modest-income earners with 

dependent children. The supplement is awarded if annual 

net family income (after application of allowable deductions under the Income Tax Act) is less than C$25,921. The 

benefit is paid for up to 15 weeks, plus up to 35 additional 

weeks for parental care (provided by the mother, father, or 

both) on the birth or adoption of a child.

In Quebec, there is a choice of benefits. Maternity benefits are equal to 70% of covered earnings and are paid for 

18 weeks; 75% of covered earnings for 15 weeks. Paternity 

benefits are equal to 70% of covered earnings and are paid 

for 5 weeks; 75% of covered earnings for 3 weeks. Parental 

benefits (mother, father, or both) are equal to 70% of covered earnings for 7 weeks plus 55% of covered earnings for 

25 weeks; 75% of covered earnings for 25 weeks. Adoption 

benefits are equal to 70% of covered earnings for 12 weeks 

plus 55% of covered earnings for 25 weeks; 75% of covered 

earnings for 28 weeks.

Compassionate care benefit: The benefit is equal to 55% 

of average weekly covered earnings in the last 26 weeks, 

plus a family supplement for low-income and modestincome earners with dependent children. A supplement is 

awarded if annual net family income (after application of 

allowable deductions under the Income Tax Act) is less than 

C$25,921. The benefit is paid after a 2-week waiting period 

for up to 6 weeks.

The maximum weekly benefit is C$413. In Quebec, the 

maximum weekly benefit is based on a maximum annual 

income of C$59,000.

Workers’ Medical Benefits

Medical benefits: Medical benefits include general medical 

and maternity care and surgical, specialist, and laboratory 

services. Benefits are paid directly by provincial authorities 

according to predetermined formulas and agreed-upon fee 

schedules.

Hospital benefits: Benefits include standard ward care, 

necessary nursing, pharmaceuticals provided in hospital, 

and diagnostic and therapeutic services. Benefits are paid 

directly by provincial authorities according to predetermined 

formulas and agreed-upon fee schedules.

Other benefits include oral surgery if required and performed in an approved hospital and, in some provinces, services of osteopaths, chiropractors, and optometrists; dental 

care for children; prosthetics; and prescribed drugs. Some 

cost sharing may be required in such cases.

In some provinces, welfare recipients and persons older than 

age 65 are eligible for free drugs, eyeglasses, and subsidized 

nursing home care.

Dependents’ Medical Benefits

Medical benefits: Benefits include surgical, specialist, and 

laboratory services; and general medical and maternity care. 

Benefits are paid directly by provincial authorities according 

to predetermined formulas and agreed-upon fee schedules.

Hospital benefits for dependents: Benefits include standard ward care, necessary nursing, pharmaceuticals provided in hospital, and diagnostic and therapeutic services. 

Benefits are paid directly by provincial authorities according 

to predetermined formulas and agreed-upon fee schedules.

Other benefits include oral surgery if required and performed in an approved hospital and, in some provinces, services of osteopaths, chiropractors, optometrists; free dental 

care for children; prosthetics; and prescribed drugs. Some 

cost sharing may be required in such cases.

Administrative Organization

Health Canada (http://www.hc-sc.gc.ca/index_e.html) 

administers programs for groups not covered under provincial plans; monitors provincial compliance with conditions 

of national legislation; and provides provinces with technical, consultative, and coordinating services.

Provincial authorities administer their health insurance 

plans, establish resident eligibility status, assess hospital and 

medical claims, pay providers, and monitor all aspects of 

programs.

Providers are usually public, not-for-profit hospitals and 

other specialized institutions; doctors and allied practitioners in entrepreneurial practice.

Human Resources and Skills Development Canada, through 

Service Canada (http://www.canadabenefits.gc.ca), is 

responsible for cash sickness, maternity, parental, and compassionate care benefits provided under the Employment 

Insurance program.

Quebec parental benefits are administered by the Quebec 

Parental Insurance Plan.

Work Injury

Regulatory Framework

First and current laws: 1908 and 1996 (Newfoundland), 

1915 and 1996 (Nova Scotia), 1915 and 1998 (Ontario), 

1916 and 1996 (British Columbia), 1916 and 2006 (Manitoba), 1918 and 2004 (New Brunswick), 1918 and 2002 
74 ♦ SSPTW: The Americas, 2007

Canada

(Alberta), 1928 and 1998 (Quebec), 1930 and 2003 (Saskatchewan), 1949 and 1994 (Prince Edward Island), 1974 

and 1998 (Northwest Territories/Nunavut), and 2002 

(Yukon).

Type of program: Social insurance system.

Coverage

Employees in industry and commerce (some differences 

exist among provinces).

Exclusions: Self-employed persons, domestic workers, 

professional athletes, and members of sports clubs (some 

differences exist among provinces).

Special systems for merchant seamen and federal civil 

servants.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost, met through contributions varying 

by industry and according to the assessed degree of risk 

(large firms in some provinces may self-insure).

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit varies from 75% to 90% of gross earnings, 

according to province.

There is no nationally enforced minimum benefit. The minimum benefit varies according to province.

Permanent Disability Benefits

Permanent disability pension: In most provinces, the pension is either 75% or 90% of the insured’s earnings for full 

disability.

There is no nationally enforced maximum benefit. The 

maximum benefit varies according to province. 

Partial disability: The pension is equal to a percentage of the 

full benefit according to the assessed degree of loss of earning capacity; in some provinces, the pension is converted to 

a lump sum if the assessed degree of loss is 10% or less.

Workers’ Medical Benefits

Benefits in all provinces include medical, surgical, nursing, 

and hospital services; medicines; and appliances.

Survivor Benefits

Survivor pension: The pension varies according to province. The pension is paid to a widow(er).

Orphan’s pension: Either a monthly flat-rate pension set 

slightly higher than that for children residing with a parent 

or a percentage of the deceased’s wages is paid, according to 

province.

Other dependents (in the absence of a spouse or 

orphan): A reasonable sum is paid in proportion to the loss 

of income.

Funeral grant: The grant payable varies according to 

province.

Administrative Organization

Workers’ Compensation Board, or a Work Safety Commission, in each province and territory administers the program.

Unemployment

Regulatory Framework

First law: 1940.

Current law: 1996 (employment insurance), with 

amendments.

Type of program: Social insurance system.

Coverage

All salaried workers, including federal government employees; self-employed fishermen.

Exclusions: Self-employed persons other than fishermen.

Source of Funds

Insured person: 1.8% of covered earnings (also finances 

benefits under Sickness and Maternity, except for Quebec). 

In Quebec, 1.46% of covered earnings.

The maximum annual earnings for contribution and benefit 

purposes are C$40,000.

Self-employed person: Not applicable.

Employer: 2.52% of covered payroll (also finances benefits 

under Sickness and Maternity, except for Quebec). In Quebec, 2.04% of covered payroll.

The maximum annual earnings for contribution and benefit 

purposes are C$40,000.

Government: None.

Qualifying Conditions

Unemployment benefit: The qualifying conditions vary 

from 420 hours to 700 hours of covered employment in the 

last year, depending on the regional unemployment rate, or 

910 hours for a new entrant or reentrant to the labor force.
SSPTW: The Americas, 2007 ♦ 75

Canada

The insured must be registered, able, willing, and available 

to work and unable to obtain suitable employment; unable to 

work because of sickness, maternity, or providing parental 

care or compassionate care to a gravely ill family member 

with a potentially fatal condition.

If unemployment is due either to voluntary leaving without 

just cause or to misconduct, the disqualification is indefinite 

and applies until the insured requalifies for the benefit.

Unemployment Benefits

The benefit is equal to 55% of average covered earnings in 

the last 26 weeks, plus a family supplement for low-income 

and modest-income earners with dependent children. The 

supplement is awarded if annual net family income (after 

application of allowable deductions and expenses under the 

Income Tax Act) is less than C$25,921. The benefit is paid 

after a 2-week waiting period for between 14 and 45 weeks, 

depending on the claimant’s employment history and 

regional unemployment rates.

A pilot project in 25 regions, running from October 30, 

2005, until October 25, 2008, calculates benefits based on 

the highest 14 weeks of covered earnings.

The maximum weekly benefit is C$423.

Administrative Organization

Human Resources and Skills Development Canada, through 

Service Canada (http://www.canadabenefits.gc.ca) regional 

and local offices, administers the program.

Canada Revenue Agency (http://www.cra-arc.gc.ca/menue.html) collects contributions.

Family Allowances

Regulatory Framework

First law: 1944.

Current laws: 1998 and 2007.

Type of program: Refundable tax credit and universal 

system.

Coverage

All persons residing in Canada.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Canada child tax benefit (income-tested): A child must 

be younger than age 18 and live with the primary caregiver 

who has Canadian citizenship or who has permanent resident, refugee, or visitor status, and who must file an annual 

income tax return to be eligible.

Universal child care benefit: A child must be younger than 

age 6 and live with the primary caregiver who has Canadian 

citizenship or who has permanent resident, refugee, or visitor status.

Family Allowance Benefits

Canada child tax benefit (income-tested): The benefit is 

delivered through the income tax system.

The maximum annual benefit is C$3,271 for the first child, 

C$3,041 for the second child, and C$3,046 for the third and 

subsequent children.

The benefit has two components: the base tax benefit, which 

is paid to low- and middle-income families with children, 

and the national child benefit supplement, which is paid to 

low-income families with children. For the period July 2007 

to June 2008, families with net income up to C$101,328 

receive the base tax benefit. Families with net income up to 

C$37,178 also receive the benefit supplement.

Benefits are paid monthly and are based on total family 

income during the previous year.

Universal child care benefit: The benefit provides families 

with direct financial support to help offset the cost of child 

care. Each child younger than age 6 receives C$100 a month 

(up to C$1,200 a year). The benefit is taxable and paid to the 

spouse with the lowest income.

Administrative Organization

Canada Revenue Agency (http://www.cra-arc.gc.ca/menue.html) administers the Canada child tax benefit.

Human Resources and Social Development Canada (http://

www.hrsdc.gc.ca), through district and local offices, administers the universal child care benefit.
76 ♦ SSPTW: The Americas, 2007

Chile

Chile

Exchange rate: US$1.00 equals 525.10 pesos.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1924.

Current laws: 1952 (social insurance and health insurance); 

1952 (wage earners and salaried employees); 1975 (social 

assistance); 1980 (individual account), with 1995 and 2004 

amendments; 1980 (new contributory scheme); and 1980 

(institute of normalization).

Type of program: Mandatory individual account, social 

insurance, and social assistance system.

Note: A system of mandatory private individual accounts 

was introduced in May 1981. Workers entering the labor 

force after December 31, 1982, must join the new system. 

The social insurance system is being phased out.

Coverage

Mandatory individual account

Salaried employees.

Voluntary coverage for self-employed persons and workers 

who paid social insurance contributions before January 1, 

1983.

Social insurance

Wage earners and self-employed persons with earnings 

lower than three times the minimum monthly wage.

The minimum monthly wage is 144,000 pesos.

Special systems for particular groups of salaried employees, including railroad employees, seamen and port workers, public-sector employees, and armed forces and police 

personnel.

Source of Funds

Mandatory individual account

Insured person: 10% of covered earnings for the old-age 

pension, plus an average 2.55% of covered earnings for 

disability and survivor insurance and administrative fees. 

(Persons working under arduous conditions contribute an 

additional 1% or 2% of covered earnings.)

The minimum monthly earnings for contribution purposes 

for insured persons aged between 18 and 65 are equal to the 

minimum monthly wage of 144,000 pesos; 107,509 pesos 

for insured persons younger than age 18 or older than 

age 65.

The maximum monthly earnings for contribution purposes 

are equal to 60 UFs (unidad de fomento). The UF is equal to 

18,624.17 pesos and is adjusted daily according to changes 

in the consumer price index.

Self-employed person: 10% of declared earnings for the oldage pension, plus an average 2.55% of declared earnings for 

disability and survivor insurance and administrative fees.

The minimum monthly declared earnings for contribution 

purposes are 92,892 pesos.

The maximum monthly declared earnings for contribution 

purposes are 60 UFs. The UF is equal to 18,624.17 pesos 

and is adjusted daily according to changes in the consumer 

price index.

Employer: None, except 1% or 2% of covered earnings for 

employees working under arduous conditions.

The maximum monthly earnings for contribution purposes 

are 60 UFs. The UF is equal to 18,624.17 pesos and is 

adjusted daily according to changes in the consumer price 

index.

Government: The cost of the guaranteed minimum pension.

Social insurance

Insured person: Wage earners contribute 18.84% of covered 

wages; salaried employees contribute from 20% to 30% of 

covered earnings depending on the nature of the job.

The minimum monthly earnings for contribution purposes 

for insured persons aged between 18 and 65 are equal to the 

minimum monthly wage of 144,000 pesos; 107,509 pesos 

for insured persons younger than age 18 or older than 

age 65.

The maximum monthly earnings for contribution purposes 

are 60 UFs. The UF is equal to 18,624.17 pesos and is 

adjusted daily according to changes in the consumer price 

index.

Self-employed person: 18.84% of declared income.

The minimum monthly declared earnings for contribution 

purposes are 92,892 pesos.

The maximum monthly declared earnings for contribution 

purposes are 60 UFs. The UF is equal to 18,624.17 pesos 

and is adjusted daily according to changes in the consumer 

price index.

Employer: None.

Government: Special subsidies as needed to finance the 

program; the cost of social assistance pensions.

Qualifying Conditions

Mandatory individual account

Old-age pension: Age 65 (men) or age 60 (women).

If aged 55 or older (men) or aged 50 or older (women) on 

August 19, 2004, retirement before the normal retirement 
SSPTW: The Americas, 2007 ♦ 77

Chile

age is possible for insured persons with a pension equal to at 

least 50% of the insured’s average wage in the last 10 years 

and at least equal to 110% of the minimum old-age pension.

If younger than age 55 (men) or age 50 (women) on 

August 19, 2004, retirement before the normal retirement 

age is possible for insured persons with a pension equal to at 

least 55% of the insured’s average wage in the last 10 years 

(rising to 70% by August 19, 2010) and at least equal 

to a 150% of the minimum old-age pension (beginning 

August 19, 2007).

The normal retirement age for insured persons with 20 years 

of contributions is reduced by 2 years or 1 year for each 5-

year period of work under arduous conditions, depending on 

the activity. The maximum reduction of the normal retirement age is 10 years.

Guaranteed minimum pension: Age 65 (men) or age 60 

(women) with 20 years of contributions if the sum of the 

insured’s pensions, income, and taxable earnings is less 

than the minimum pension (89,715.87 pesos for a pensioner younger than age 70; 98,097.40 pesos from age 70 to 

age 75; or 104,666.62 pesos if older than age 75).

Disability pension: Paid for at least a 66% loss in earning 

capacity. The loss of earning capacity must not be caused 

by a work-related accident. Coverage is extended for up 

to 12 months after employment ceases if the insured has 

6 months of contributions in the last year of employment.

Partial disability: Paid for the loss of between 50% and 65% 

of earning capacity. The loss of earning capacity must not be 

caused by a work-related accident. Coverage is extended for 

up to 12 months after employment ceases if the insured has 

6 months of contributions in the last year of employment.

Regional medical commissions assess the degree of 

disability.

Guaranteed minimum pension: Paid with at least 10 years 

of contributions; at least 2 years of contributions in the 

5 years before the disability began; or was making contributions when the disability began. The guarantee is paid 

if the insured’s pension is less than the minimum pension 

(89,715.87 pesos for a pensioner younger than age 70; 

98,097.40 pesos from age 70 to age 75; or 104,666.62 pesos 

if older than age 75).

Survivor pension: The insured was in covered employment 

(coverage is extended for up to 12 months after employment 

ceases if the insured had 6 months of contributions in the 

last year of employment) or was a pensioner at the time of 

death.

Eligible survivors are a widow or disabled widower who 

was married to the insured for at least 6 months (at least 

3 years if the insured was a pensioner); the mother of the 

deceased’s extramarital children; children younger than 

age 18 (age 24 if a student, no age limit if disabled); and 

parents in the absence of other eligible survivors.

Guaranteed minimum pension: Paid if the deceased had at 

least 10 years of contributions; at least 2 years of contributions in the 5 years before death; was making contributions 

at the time of death if the death was a result of an accident; 

or was a pensioner at the time of death.

Social insurance

Old-age pension: Wage earners must be age 65 with 

1,040 weeks of contributions (men); 800 weeks of contributions including 50% of the weeks since coverage began 

(men); or age 60 with 520 weeks of contributions (women).

Salaried employees must be age 65 with at least 10 years 

of contributions (men) or age 60 with at least 10 years of 

contributions (women).

Salaried employees must cease all gainful activity.

The normal retirement age for insured persons with 

1,020 weeks of contributions is reduced by 1 year (2 years 

for workers in mining or smelting) for each 5-year period of 

work under arduous conditions. The maximum reduction of 

the normal retirement age is 5 years (10 years for workers in 

mining or smelting).

Disability pension: Wage earners must be assessed as totally 

or partially disabled and be younger than age 65 (men) or 

younger than age 60 (women) when the disability begins. 

Additionally, they must have at least 50 weeks of contributions, including 40% of the weeks in the last 5 years and 

50% of the weeks since coverage began (women are exempt 

from this last condition, as are men with a total of at least 

400 weeks of coverage).

Wage earners are assessed as totally disabled with a loss 

in earning capacity of at least 70%; partial disability is 

assessed as a loss in earning capacity of between 30% and 

69%.

Salaried employees younger than age 65 (men) or age 60 

(women) must be assessed as 2/3 disabled with at least 

3 years of contributions.

Preventive and disability medical commissions assess 

the degree of disability for wage earners and salaried 

employees.

Survivor pension: If the deceased was previously a wage 

earner, he or she must have had at least 400 weeks of paid 

coverage; or at least 50 weeks of paid coverage, including 

40% of the weeks in the last 5 years and 50% of the weeks 

since coverage began (women are exempt from this last 

condition).

Eligible survivors are a widow who was married for at least 

6 months to the insured who was an active contributor at the 

time of death (at least 3 years if the insured was a pensioner); the mother of the deceased’s extramarital children; 

and children younger than age 18 (age 24 if a student, no 

limit if disabled).

If the deceased was previously a salaried employee, he or 

she must have had at least 3 years of contributions.
78 ♦ SSPTW: The Americas, 2007

Chile

Eligible survivors are a widow or a disabled widower; the 

mother of the deceased’s extramarital children; children 

younger than age 18 (age 24 if a student, no limit if disabled); and the deceased’s parents in the absence of other 

eligible survivors.

Funeral grant: The grant is paid to the widow(er), children, 

or parents.

Social assistance

Old-age assistance pension: Age 65 (men and women) with 

at least 3 years of residence and no entitlement to a pension. 

Family income must be lower than 50% of the minimum 

monthly old-age pension (44,857.94 pesos).

Disability assistance pension: Must be assessed as physically or mentally disabled with at least 3 years of residence 

and no entitlement to a pension. Family income must 

be lower than 50% of the minimum disability pension 

(44,857.94 pesos).

Old-Age Benefits

Mandatory individual account

Old-age pension: The value of the pension is dependent 

on the insured’s contributions plus accrued interest, minus 

administrative fees. At retirement, the accumulated capital 

can be used to provide an immediate life annuity, temporary 

income with a deferred life annuity, programmed withdrawals, or an immediate life annuity with programmed 

withdrawals. (The value of accrued rights under the social 

insurance system is combined with the individual account 

balance.)

Guaranteed minimum pension: The monthly pension is 

89,715.87 pesos for a pensioner younger than age 70; 

98,097.40 pesos from age 70 to age 75; or 104,666.62 pesos 

if older than age 75.

Benefit adjustment: Automatic annual adjustment according to variations in the value of the UF. The UF is equal to 

18,624.17 pesos and is adjusted daily according to changes 

in the consumer price index.

Social insurance

Old-age pension: Wage earners receive a monthly pension 

equal to 50% of the base wage, plus 1% of wages for each 

50-week period of contributions exceeding 500 weeks.

The base wage is equal to the average monthly wage in the 

last 5 years, with the first 2 years adjusted for wage changes.

Salaried employees receive a monthly pension equal 

to 1/35 of the base salary times the number of years of 

contributions.

The base salary is equal to the average monthly salary in 

the last 5 years, with the first 2 years adjusted for salary 

changes.

Salaried woman’s child supplement: A supplement of 1/35 

of the base salary is paid for each dependent child to a 

woman with more than 20 years of contributions; 2/35 of 

the base salary if a widow.

The minimum monthly pension is 89,715.87 pesos for 

a pensioner younger than age 70; 98,097.40 pesos from 

age 70 to age 75; or 104,666.62 pesos if older than age 75.

Winter grant: A lump sum of 34,571 pesos is paid in May.

Benefit adjustment: Automatic annual adjustment of pensions for changes in the consumer price index; may be 

earlier if the variation of the consumer price index within 

the year is at least 15%.

Social assistance

Old-age assistance pension: The monthly pension is 

45,091.81 pesos for a pensioner younger than age 70; 

48,069.08 pesos from age 70 to age 75; or 52,559.29 pesos 

if older than age 75.

Benefit adjustment: Benefits are adjusted annually.

Permanent Disability Benefits

Mandatory individual account

Disability pension: Following an initial level of assessment and certification by the medical commission, the AFP 

finances a benefit for up to 3 years. The monthly benefit is 

equal to 70% of the base salary for a total disability or 50% 

for a partial disability.

The base salary is equal to the insured’s average monthly 

wage in the last 10 years.

Long-term pension: Following a second level of assessment and certification, the pension is financed through 

the individual account. (Disability insurance tops-up the 

accumulated capital in the individual account if the balance 

is less than the required minimum to finance the permanent 

disability pension.)

Guaranteed minimum pension: The monthly pension is 

89,715.87 pesos for a pensioner younger than age 70; 

98,097.40 pesos from age 70 to age 75; or 104,666.62 pesos 

if older than age 75.

Benefit adjustment: Automatic annual adjustment according to variations in the value of the UF. The UF is equal to 

18,624.17 pesos and is adjusted daily according to changes 

in the consumer price index.

Social insurance

Disability pension: For a total disability, wage earners 

receive a monthly pension equal to 50% of the base wage, 

plus 1% of wages for every 50-week period of contributions 

exceeding 500 weeks.

The base wage is equal to the average monthly wage in the 

last 5 years, with the first 2 years adjusted for wage changes.

The minimum monthly disability pension is 89,715.87 pesos 

for a pensioner younger than age 70; 98,097.40 pesos from 

age 70 to age 75; or 104,666.62 pesos if older than age 75.

Partial disability: 50% of the total disability pension.
SSPTW: The Americas, 2007 ♦ 79

Chile

Salaried employees receive a monthly pension equal to 70% 

of the base salary, plus 2% of the salary for every year of 

contributions exceeding 20 years.

The base salary is equal to the average monthly salary in 

the last 5 years, with the first 2 years adjusted for salary 

changes.

Salaried woman’s child supplement: A supplement of 1/35 

of the base salary is paid for each dependent child to a 

woman with more than 20 years of contributions; 2/35 of 

the base salary if a widow.

Civil servant supplement: A supplement of 1/30 of the base 

salary is paid for each dependent child to a woman with 

more than 20 years of contributions; 2/30 of the base salary 

if a widow.

The minimum disability pension is 89,715.87 pesos for 

a pensioner younger than age 70; 98,097.40 pesos from 

age 70 to age 75; or 104,666.62 pesos if older than age 75.

Benefit adjustment: Automatic annual adjustment of pensions for changes in the consumer price index; may be 

earlier if the variation of the consumer price index within 

the year is at least 15%.

Social assistance

Disability assistance pension: The monthly pension is 

43,252.91 pesos for a pensioner younger than age 70; 

84,277.26 pesos from age 70 to age 75; or 88,213.76 pesos 

if older than age 75.

Benefit adjustment: Benefits are adjusted annually.

Survivor Benefits

Mandatory individual account

Survivor pension: A widow or a disabled widower without 

eligible children receives a monthly pension equal to 60% 

of the deceased’s pension (43% for a partially disabled 

widower); 50% if a pension is also paid to children (36% for 

a partially disabled widower). The mother of the insured’s 

extramarital children receives 36% of the deceased’s pension; 30% if the children are younger than age 18 (age 24 if 

a student, no limit if disabled). Each orphan younger than 

age 18 (age 24 if a student, no limit if disabled) receives 

15% of the deceased’s pension; 11% for each partially disabled orphan older than age 24.

Other eligible survivors (in the absence of the above): A parent receives 50% of the deceased’s monthly pension.

If the deceased was actively contributing to an individual 

account, survivor pensions are calculated according to a reference pension equal to 70% of the average monthly wage 

in the last 10 years.

The pension paid as the result of the death of an insured 

person or a temporary disability beneficiary is financed with 

the deceased’s individual account balance; if the deceased 

was a pensioner, the type of benefit depends on the type of 

pension that the deceased chose. (Life insurance tops-up the 

accumulated capital in the deceased’s individual account if 

the balance is less than the required minimum to finance the 

survivor pension.)

The minimum monthly widow(er)’s pension varies from 

39,309.05 pesos to 88,213.76 pesos, depending on the 

survivor’s age and the number of eligible children.

The minimum monthly orphan’s pension varies from 

8,855.59 pesos to 13,232.66 pesos.

There is no maximum survivor pension.

Benefit adjustment: Automatic annual adjustment according to variations in the value of the UF. The UF is equal to 

18,624.17 pesos and is adjusted daily according to changes 

in the consumer price index.

Funeral grant: A withdrawal of 15 UFs (262,365 pesos) from 

the deceased’s individual account is granted to the relative who paid for the funeral expenses. The UF is equal to 

18,624.17 pesos and is adjusted daily according to changes 

in the consumer price index.

Social insurance

Survivor pension (wage earner): The monthly pension paid 

to a wage earner’s widow of any age or a disabled widower 

is equal to 50% of the base wage (50% of the disability 

pension payable to the deceased) and the pension increases 

to 60% if there are no children. Each orphan receives 20% 

of the base wage or average monthly pension in the preceding year. The mother of the deceased’s extramarital children 

receives 60% of the widow’s pension.

The pension is suspended if the widow(er) remarries.

A widow younger than age 55 receives a lump sum equal to 

2 years’ pension.

The minimum monthly widow(er)’s pension is 

58,219.76 pesos for a survivor younger than age 70 without children; 72,643.73 pesos from age 70. The minimum 

monthly widow(er)’s pension is 48,699.38 pesos for a 

survivor younger than age 70 with children; 62,729.66 pesos 

from age 70.

The minimum monthly orphan’s pension is 13,457.38 pesos.

Benefit adjustment: Automatic annual adjustment of pensions for changes in the consumer price index; may be 

earlier if the variation of the consumer price index within 

the year is at least 15%.

Funeral grant: For the funeral of a wage earner or pensioner, the grant is equal to three times the monthly minimum income used for funeral grant calculation purposes 

(278,691 pesos).

Survivor pension (salaried employee): For a salaried 

employee’s widow or dependent widower, the monthly 

pension is equal to 50% of the deceased’s base salary (the 

average monthly wage in the last 5 years) or the deceased’s 

pension. If there are no children, the pension is increased to 

60% of the deceased base salary. Each orphan and dependent parent receives 15% of the base salary or deceased’s 
80 ♦ SSPTW: The Americas, 2007

Chile

pension. The mother of the deceased’s extramarital children 

receives 60% of the widow’s pension.

The pension ceases if the widow(er) remarries. A widow 

younger than age 55 receives a lump sum equal to 2 years’ 

pension.

The minimum monthly widow(er)’s pension is 

58,219.76 pesos for a survivor younger than age 70 without children; 72,643.73 pesos from age 70. The minimum 

monthly widow(er)’s pension is 48,699.38 pesos for a 

survivor younger than age 70 with children; 62,729.66 pesos 

from age 70.

The minimum monthly orphan’s pension is 13,457.38 pesos.

Benefit adjustment: Automatic annual adjustment of pensions for changes in the consumer price index; may be 

earlier if the variation of the consumer price index within 

the year is at least 15%.

Funeral grant: For the funeral of a salaried employee or pensioner, the grant is equal to three times the monthly minimum income used for funeral grant calculation purposes 

(278,691 pesos).

Administrative Organization

Mandatory individual account

Superintendent of Pension Fund Management Companies 

(http://www.safp.cl) provides general supervision.

Individual pension fund management companies (AFPs) 

administer individual capitalization accounts.

Social insurance

Ministry of Labor and Social Welfare, through the Superintendent of Social Security (http://www.suseso.cl), provides 

general supervision.

Institute of Social Security Normalization (http://www.inp.

cl) administers the program and pays social security and 

social assistance benefits.

Sickness and Maternity

Regulatory Framework

First law: 1924.

Current laws: 1979 (national health system), with 2004 

amendment; 1985 (public health system), implemented in 

1986; 1990 (private health system); and 2004 (health guarantees), implemented in 2005.

Type of program: Social insurance and private insurance 

system.

Note: Insured persons may opt out of the public national 

health system and contract with a private social security 

health institute.

Coverage

Public and private systems: All public- and private-sector 

workers; self-employed persons; contract workers; pensioners; persons receiving work injury, unemployment, or social 

assistance benefits; persons entitled to family allowances; 

and pregnant women. (Persons without earnings, beneficiaries of social assistance pensions, and pregnant women and 

mothers up to 6 months after childbirth are covered by the 

public system.)

Those who opt out of the public system must sign a contract 

with a private health institution.

Source of Funds

Public system

Insured person: 7% of covered earnings; pensioners, 7% 

of the pension; voluntary contributors, 7% of declared 

earnings.

The minimum monthly earnings for contribution purposes 

for persons aged between 18 and 65 are equal to the minimum monthly wage (144,000 pesos); 107,509 pesos for 

insured persons younger than age 18 or older than age 65.

The minimum monthly declared earnings for contribution 

purposes are 92,892 pesos.

The maximum monthly earnings for contribution purposes 

are equal to 60 UFs (unidad de fomento). The UF is equal to 

18,624.17 pesos and is adjusted daily according to changes 

in the consumer price index.

Self-employed person: 7% of declared earnings.

The minimum monthly declared earnings for contribution 

purposes are 92,892 pesos.

Employer: None.

Government: Subsidizes maternity benefits and meets any 

deficit.

Private system

Insured person: At least 7% of gross earnings, depending on 

the health plan.

The minimum monthly earnings for contribution purposes 

for persons aged between 18 and 65 are equal to the minimum monthly salary (144,002 pesos); 107,509 pesos for 

insured persons younger than age 18 or older than age 65.

The minimum monthly declared earnings for contribution 

purposes are 92,892 pesos.

Self-employed person: At least 7% of gross earnings, 

depending on the health plan.

Employer: None.

Government: Finances part of the cost of sickness benefits.
SSPTW: The Americas, 2007 ♦ 81

Chile

Qualifying Conditions

Cash sickness benefits (public and private systems):

Employees must have at least 6 months of contributions 

including 3 months of contributions in the last 6 months; 

contract workers must have a total of 6 months of contributions including 30 days of contributions in the last 

12 months; and self-employed persons must have at least 

12 months of coverage with 6 months of paid contributions 

in the last 12 months.

There are no qualifying conditions for an incapacity that is 

the result of an accident.

Cash maternity benefits (public and private systems):

Employees must have at least 6 months of contributions 

including 3 months of contributions in the last 6 months; 

contract workers must have a total of 6 months of contributions including 30 days of contributions in the last 

12 months; and self-employed persons must have at least 

12 months of coverage with 6 months of paid contributions 

in the last 12 months.

Medical benefits (public and private systems): Must be 

currently covered.

Sickness and Maternity Benefits

Sickness benefit (public and private systems): For 

public-sector employees, the benefit is equal to 100% of 

net earnings before the incapacity began. For private-sector employees, the benefit is equal to average monthly net 

earnings in the last 3 months. For self-employed persons, 

the benefit is equal to average monthly declared earnings in 

the last 6 months.

Sickness benefits are paid retroactively from the first day if 

the sick-leave period is longer than 10 days; from the fourth 

day if the sick-leave period is shorter than 10 days. The 

employer is not required to pay benefits for the first 3 days, 

unless established under a collective agreement.

The duration of benefit is the same as the period of sick 

leave.

The minimum daily sickness benefit is 1,548.28 pesos.

Maternity benefit (public and private systems): For public 

sector employees the monthly benefit is equal to 100% of 

earnings. For private sector employees, the monthly benefit 

is equal to average monthly net earnings in the 3 months 

before the expected date of childbirth. For self-employed 

persons, the monthly benefit is equal to average monthly 

declared earnings in the last 6 months. The benefit is paid 

for 6 weeks before and 12 weeks after the expected date of 

childbirth.

The minimum daily maternity benefit is 1,548.28 pesos.

Maternity benefit is also paid for the adoption of a child 

younger than 6 months. The benefit is paid for 12 months.

Workers’ Medical Benefits

Public system

Medical benefits: Benefits are provided to patients through 

public or private health institutions and professionals 

registered with the National Health Fund. Benefits include 

general and specialist care, periodic medical examinations, 

hospitalization, medicines, dental care, and maternity care.

There is no limit to duration.

General Scheme of Health Guarantees establishes the minimum benefits to be provided by the public system.

There is no cost-sharing for primary assistance and for 

low-income persons, beneficiaries of assistance pensions or 

family allowances, and persons older than age 60.

Private system

Medical benefits: The insured signs a minimum 12-month 

contract with a private health institute. The insured may 

choose among open or closed plans or preferred doctor 

plans. Benefits, as well as cost sharing, vary by contract 

but must be at least equal to those provided by the public 

system.

Dependents’ Medical Benefits

Public system

Medical benefits: Benefits include general and specialist 

care, periodic medical examinations, hospitalization, medicines, dental care, and maternity care.

There is no limit to duration.

General Scheme of Health Guarantees establishes the minimum benefits to be provided by the public system.

There is no cost sharing for primary assistance and for 

low-income persons, beneficiaries of assistance pensions or 

family allowances, and persons older than age 60.

Private system

Medical benefits: Benefits, as well as cost sharing, vary by 

contract but must be at least equal to those provided by the 

public system.

The widow(er) and children are covered for a year after the 

insured’s death.

Administrative Organization

Ministry of Health (http://www.minsal.cl) provides general 

supervision of the system.

Superintendent of Health (http://www.superintendenciadesalud.cl) oversees the public and private schemes and public 

and private health providers.

National Health Fund (http://www.fonasa.gov.cl) administers cash benefits and the public system.

Health Institutions (http://www.isapre.cl) administer the 

private system.
82 ♦ SSPTW: The Americas, 2007

Chile

Work Injury

Regulatory Framework

First law: 1916.

Current law: 1968 (work injury and professional diseases).

Type of program: Social insurance system.

Coverage

All public- and private-sector workers, domestic workers, contract and temporary workers, students, some 

self-employed persons, apprentices, and trade union 

representatives.

Exclusions: Some self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: 0.95% of declared income, plus up 

to 3.4% of declared earnings, depending on the activity.

The minimum monthly declared earnings for contribution 

purposes are 92,987 pesos.

The maximum monthly earnings for contribution purposes 

are equal to 60 UFs (unidad de fomento). The UF is equal to 

18,624.17 pesos and is adjusted daily according to changes 

in the consumer price index.

Employer: 0.95% of covered payroll, plus up to 3.4% of 

covered payroll according to the industry and the assessed 

degree of risk.

The minimum monthly earnings for contribution purposes 

are 92,897 pesos.

The maximum monthly earnings for contribution purposes 

are equal to 60 UFs. The UF is equal to 18,624.17 pesos and 

is adjusted daily according to changes in the consumer price 

index.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. Accidents that occur while commuting to and from 

work are covered.

Self-employed persons must have paid all due contributions.

Temporary Disability Benefits

For public-sector employees, the monthly benefit is equal 

to 100% of net earnings. For private-sector employees, the 

monthly benefit is equal to average monthly net earnings 

in the 3 months before the disability began. The benefit is 

paid from the day of injury for up to 12 months (may be 

extended up to 24 months).

Benefit adjustment: Benefits are adjusted according to wage 

increases.

Permanent Disability Benefits

Permanent disability pension: With an assessed degree of 

disability of at least 70% (total disability), the monthly pension is equal to 70% of the base salary.

The base salary is equal to average monthly net earnings in 

the 6 months before the disability began.

In most cases, Preventive and Disability Medical Commissions assess the degree of disability. The degree of disability 

is reassessed once every 2 years in the 8 years after the pension is awarded.

Constant-attendance allowance: The pension is increased by 

30% of the base salary.

Child’s supplement: The pension is increased by 5% for 

the third and each subsequent child entitled to family 

allowances.

Partial disability: With an assessed degree of disability of 

between 40% and 69%, the monthly pension is equal to 35% 

of the base salary. A lump sum of up to 15 months’ base 

salary is paid for an assessed degree of disability of at least 

15%.

Benefit adjustment: Automatic annual adjustment of pensions for changes in the price index; may be earlier if the 

variation of the price index within the year is at least 15%.

Workers’ Medical Benefits

Benefits include necessary medical, surgical, dental, and 

pharmaceutical services; hospitalization; prostheses; rehabilitation; transfer costs, and occupational retraining. Benefits 

are provided from the first day after the disability began or 

the diagnosis of the occupational disease.

There is no limit to duration.

There is no cost sharing.

Survivor Benefits

Survivor pension: A monthly benefit equal to 50% of the 

deceased’s pension is paid to a widow older than age 44 

(at any age if disabled or caring for a child) or a disabled 

widower. If there are no eligible children, the pension is 

increased to 60% of the deceased’s pension.

A widow younger than age 45 receives a limited pension for 

a year. If a widow caring for a child reaches age 45 during 

the eligible period, the benefit becomes payable for life.

The minimum monthly pension is 50,017.65 pesos for 

a widow(er) younger than age 70 without children; 

62,409.54 pesos from age 70. The minimum monthly pension is 41,838.53 pesos for a widow(er) younger than age 70 

with children; 53,892.19 pesos from age 70.

The pension ceases if the widow(er) remarries, and a lump 

sum equal to 2 years’ pension is paid.

Orphan’s pension: A monthly pension equal to 20% of the 

deceased’s pension is paid for each orphan younger than 
SSPTW: The Americas, 2007 ♦ 83

Chile

age 18 (age 24 if a student, no limit if disabled); 50% for 

each full orphan.

The minimum monthly orphan’s pension is 11,561.48 pesos.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Benefit adjustment: Automatic annual adjustment of pensions for changes in the consumer price index; earlier if the 

variation of the price index within the year is at least 15%.

Education grant: Eligible orphans who are students with 

an assessed degree of disability of between 15% and 70% 

and with earnings lower than the minimum monthly wage 

(127,500 pesos) receive a monthly benefit equal to 22.3% of 

the monthly minimum wage.

The minimum monthly wage is 144,000 pesos.

Funeral grant: For the funeral of a wage earner, a salaried 

employee, or a pensioner, the grant is equal to three times 

the monthly minimum income used for funeral grant calculation purposes (234,150 pesos); 44.5% of the minimum 

monthly wage (127,500 pesos) for a student.

Administrative Organization

Ministry of Labor and Social Welfare, through the Superintendent of Social Security (http://www.suseso.cl), provides 

general supervision.

Institute of Social Security Normalization (http://www.inp.

cl) and three employers’ mutual societies administer the 

program.

Unemployment

Regulatory Framework

First law: 1937.

Current laws: 1981 (unemployment), implemented in 1982; 

and 2001 (severance account system), implemented in 2002.

Type of program: Employment-related and mandatory 

individual severance account system.

Coverage

Employment-related system: Employed persons.

Individual severance account: Employed persons; new 

entrants to the labor force aged 18 or older and workers who 

sign a new work agreement after October 1, 2002.

Voluntary coverage is possible.

Exclusions: Persons younger than age 18, domestic workers, apprentices, pensioners (unless partially disabled), 

self-employed persons, civil servants, and armed forces 

personnel.

Source of Funds

Employment-related system

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost is met through the Unified Family Allowances and Unemployment Fund.

Individual severance account

Insured person: 0.6% of covered monthly earnings (plus an 

administrative fee) for up to 11 years for each job; voluntary 

contributors, 0.6% of covered monthly earnings (plus an 

administrative fee). Workers employed under a fixed-term 

contract do not contribute.

The maximum monthly earnings for contribution purposes 

are equal to 90 UFs (unidad de fomento). The UF is equal to 

19,480 pesos and is adjusted daily according to changes in 

the consumer price index.

Self-employed person: Not applicable.

Employer: 2.4% of covered payroll a month for up to 

11 years (1.6% to the insured’s individual account and 0.8% 

to the Solidarity Severance Fund). If an employee has more 

than one employment contract, each employer must contribute (3% of earnings for workers employed under a fixedterm contract).

The maximum monthly earnings for contribution purposes 

are equal to 90 UFs (unidad de fomento). The UF is equal to 

19,480 pesos and is adjusted daily according to changes in 

the consumer price index.

Government: Annual contribution to the Solidarity Severance Fund.

Qualifying Conditions

Unemployment benefits

Employment-related system: The insured must be involuntarily unemployed with at least 12 months or 52 weeks of 

contributions in the previous 2 years, registered for employment, and able and willing to work. The receipt of benefit 

with an individual severance account benefit is not possible.

Individual severance account: The insured must be voluntarily or involuntarily unemployed with at least 12 months 

of contributions; insured persons with fixed-term contracts 

must have 6 months of contributions since they first joined 

the system or since the individual account was last fully 

drawn down. The benefit is suspended if the insured starts a 

new job.

If the balance in the individual account is insufficient to 

pay a benefit, the insured is eligible for a benefit under the 

Solidarity Severance Fund provided that unemployment 

was involuntary and the insured had contributed 12 months 

before unemployment began, was not employed on a fixed-
84 ♦ SSPTW: The Americas, 2007

Chile

term contract, and had not refused a suitable job offer. The 

receipt of benefits from the Solidarity Severance Fund is 

possible only twice in any 5-year period.

Unemployment Benefits

Unemployment benefit

Employment-related system: For the first 90 days, the 

benefit is equal to 17,338 pesos a month; between 91 days 

and 180 days, 11,500 pesos a month; between 181 days and 

360 days, 8,669 pesos a month.

Persons who are eligible for benefits may also continue to 

receive family allowances, maternity benefits, and medical 

benefits.

If benefit ceases because the insured has started a new job 

before 360 days of benefits have been paid, but the insured 

subsequently becomes unemployed again, the insured may 

continue receiving the benefit for the remaining period, up 

to the maximum of 360 days.

Individual severance account: The benefit paid depends on 

the individual account balance, plus accrued interest. The 

benefit decreases each month and lasts from 1 to 5 months 

depending on the length of the contribution period: with 

at least 12 months and up to 17 months of contributions, 

1 month of benefit is paid; with 18 to 29 months, 2 months; 

with 30 to 41 months, 3 months; with 42 to 53 months, 

4 months; and with 54 months, 5 months.

The first monthly benefit is calculated as a percentage of 

total contributions, and the amounts of the second and 

following payments are 90%, 80%, and 70% of the first 

monthly amount, respectively. The fifth payment is equal to 

the remaining balance in the individual account.

If the insured is eligible to receive a benefit from the Solidarity Severance Fund, the fund may top up the individual 

account benefit. The first monthly benefit is equal to 50% of 

average earnings in the last 12 months; 45% for the second; 

40% for the third; 35% for the fourth; and 30% for the fifth 

month.

Insured persons leaving employment under a fixed-term 

contract or who retire (not under temporary disability 

benefit) are entitled to a single lump-sum payment equal to 

the total accumulated capital in the individual account, plus 

interest. If the insured dies before retirement, the accumulated capital is transferred to a named survivor.

The insured can opt to stop receiving benefits in order to 

safeguard the accumulated capital for a future period of 

unemployment. Persons who are eligible for benefits may 

also continue to receive family allowances, maternity benefits, and medical benefits.

The minimum monthly benefit for insured workers entitled 

to a Solidarity Severance Fund benefit is 67,292 pesos for 

the first payment, decreasing gradually to 31,058 pesos for 

the fifth payment.

The maximum monthly benefit for insured workers entitled 

to a Solidarity Severance Fund benefit is 129,408 pesos for 

the first payment, decreasing gradually to 77,645 pesos for 

the fifth payment.

Benefits are paid 10 days after the claim is accepted.

Benefit adjustment: The minimum and maximum benefits 

provided under the Solidarity Severance Fund are adjusted 

annually in February according to the consumer price index.

Administrative Organization

Employment-related system: Ministry of Labor and Social 

Welfare, through the Superintendent of Social Security 

(http://www.suseso.cl), provides general supervision.

Institute of Social Security Normalization (http://www.inp.

cl) and Family Allowance Compensation Funds administers 

the program.

Individual severance account: Superintendent of Pension 

Fund Management Companies (http://www.safp.cl) provides 

general supervision.

Society of Severance Fund Managers (http://afcchile.cl), 

instituted by the six pension fund management companies, 

administers the program.

Family Allowances

Regulatory Framework

First laws: 1937 (salaried employees) and 1953 (wage 

earners).

Current laws: 1981 (low-income persons), with 1996 

amendment; and 1981 (wage earners and salaried employees), implemented in 1982, with 1999 amendment.

Type of program: Employment-related (unified program for 

wage and salaried workers) system.

Note: A social assistance program provides cash benefits to 

persons assessed as needy.

Coverage

All public- and private-sector workers; some self-employed 

persons; pensioners; persons receiving work injury, temporary disability, or unemployment benefits; and persons 

maintained or cared for in state institutions.

Exclusions: Some self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost is met through the Unified 

Family Allowances and Severance Pay Fund.
SSPTW: The Americas, 2007 ♦ 85

Chile

Qualifying Conditions

Family allowances (income-tested): The child must 

be younger than age 18 (age 24 if a student; no limit if 

disabled); benefit is also payable from the fifth month of 

pregnancy.

Allowances are also paid for a wife, a disabled husband, 

a widowed mother, stepchildren, orphaned or abandoned 

grandchildren and great-grandchildren, orphans, and parents 

older than age 65 or disabled. All beneficiaries must be the 

insured’s dependent.

Maternity allowance (income-tested): Paid from childbirth 

for up to 9 months.

Family Allowance Benefits

Family allowances (income-tested): A monthly allowance is paid for each dependent, depending on the 

insured’s income: 5,393 pesos with monthly earnings up to 

135,124 pesos; 4,223 pesos with earnings between 135,125 

and 264,667 pesos; and 1,375 pesos with earnings between 

264,668 and 412,791 pesos.

All monthly allowances are doubled for disabled 

dependents.

Income test: No allowance is paid with monthly earnings of 

412,791 pesos or more.

Maternity allowance (income-tested): An allowance is paid 

for 9 months, depending on the insured’s income. 

Income test: No allowance is paid with monthly earnings of 

373,703 pesos or more.

Benefit adjustment: Benefits are adjusted periodically.

Administrative Organization

Ministry of Labor and Social Welfare, through the Superintendent of Social Security (http://www.suseso.cl), provides 

general supervision.

Institute of Social Security Normalization (http://www.inp.

cl) and Family Allowance Compensation Funds administer 

the program.
86 ♦ SSPTW: The Americas, 2007

Colombia

Colombia

Exchange rate: US$1.00 equals 1,902.20 pesos.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1946, implemented in 1965.

Current law: 1993 (social insurance), implemented in 1994, 

with 2003 amendments.

Type of program: Social insurance and mandatory individual account system.

Note: The insured may choose either the social insurance 

system or the system of mandatory individual accounts 

and may switch membership every 5 years up to the last 

10 years before retirement.

Coverage

All employees, including public-sector employees, domestic 

workers, and new employees joining the state oil company 

(Ecopetrol) after January 29, 2003; and self-employed 

persons. (The program is being gradually extended to 

all regions.) The labor code requires larger employers to 

provide generally similar benefits to employees in regions 

where either program has not yet been extended.

Exclusions: Agricultural employees in some regions.

Voluntary coverage is possible.

Special systems for employees of the state oil company 

(Ecopetrol) who joined before January 30, 2003; teachers; 

armed forces personnel; and national police personnel.

Source of Funds

Insured person: 3.875% of covered earnings, plus 1% of 

covered earnings for income greater than four times the 

minimum wage and between 0.2% and 1.0% of covered 

earnings for income greater than 16 times the minimum 

wage to finance the solidarity fund, which subsidizes low 

earners. (Insured persons who opt for the individual account 

also contribute up to a maximum of 1.5% of covered earnings for disability and survivor insurance and up to a maximum of 1.5% of covered earnings for administrative fees.)

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (433,700 pesos); half 

the legal monthly minimum wage for domestic workers.

The maximum earnings for contribution purposes are 

equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

Self-employed person: 15.5% of declared earnings. (Selfemployed persons who opt for the individual account also 

contribute up to a maximum of 1.5% of declared earnings 

for disability and survivor insurance and up to a maximum 

of 1.5% of declared earnings for administrative fees.)

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (433,700 pesos).

Employer: 11.625% of covered payroll.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (433,700 pesos).

The maximum earnings for contribution purposes are 

equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

Government: A partial subsidy to the solidarity fund; contributes as an employer.

Qualifying Conditions

Old-age pension

Note: Insured persons who were aged 40 or older (men) or 

aged 35 or older (women) and workers with 15 years of contributions when the mandatory individual account system 

was implemented receive social insurance benefits.

Social insurance old-age pension: Age 60 (men) or age 55 

(women) with 1,050 weeks of contributions.

Beginning January 2006, the required number of weeks of 

contributions increases by 25 weeks each year, up to a maximum of 1,300 weeks by 2015.

Special pension: Aged 50 to 55 with 1,050 weeks of contributions for certain hazardous forms of employment, according to specified qualifying conditions.

Social insurance old-age settlement: Paid if the insured does 

not meet the full qualifying conditions for a social insurance 

old-age pension.

Mandatory individual account: Paid if the accumulated 

capital in the individual account is sufficient to purchase an 

annuity greater than 110% of the minimum wage.

Guaranteed minimum pension: Age 62 (men) or age 57 

(women) with 1,150 weeks of contributions and the pension 

(based on the value of the accumulated capital plus accrued 

interest) is less than the minimum pension set by law.

Disability pension: If younger than age 20, the insured 

must be assessed with at least a 50% loss in normal earning capacity and have 26 weeks of contributions in the year 

before the disability began. If aged 20 or older, the insured 

must have at least 50 weeks of contributions in the last 

3 years and contributions for 20% of the period between 

age 20 and the date the disability began.

The assessed degree of disability is reviewed every 3 years.
SSPTW: The Americas, 2007 ♦ 87

Colombia

Disability settlement: Paid if the insured does not meet the 

qualifying conditions for a disability pension.

Survivor pension: If the deceased was younger than age 20, 

he or she must have had at least 50 weeks of contributions at 

the time of death. If the deceased was aged 20 or older, he or 

she must have had at least 50 weeks of contributions in the 

last 3 years and contributions for 25% of the period between 

age 20 and the date of death if the death was the result of an 

illness; 20% of the period if the death was the result of an 

accident.

Survivor settlement: Paid if the deceased did not meet the 

qualifying conditions for a pension.

Old-Age Benefits

Old-age pension

Social insurance old-age pension: The pension is equal to 

between 55% and 65% of the basic monthly wage, plus 

1.5% for each 50-week period of contributions, up to a 

maximum of 80% of the basic monthly wage.

The basic monthly wage is based on the insured’s average 

earnings in the last 10 years before receiving the pension.

The minimum earnings for benefit calculation purposes are 

equal to the legal monthly minimum wage (433,700 pesos).

The maximum earnings for benefit calculation purposes 

are equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

The minimum social insurance pension is equal to the legal 

monthly minimum wage (433,700 pesos).

Schedule of payments: Thirteen or fourteen payments a 

year, according to the value of the pension.

Benefit adjustment: Benefits are adjusted annually for 

changes in the consumer price index.

Social insurance old-age settlement: If the insured does not 

meet the contributions qualifying condition at the normal 

retirement age, a pension is provided.

Mandatory individual account: The pension is based on the 

value of the insured’s contributions plus accrued interest. At 

retirement, the insured may make periodic withdrawals from 

the individual account to guarantee income for the expected 

lifespan, buy an annuity from a private insurance company, 

or a combination of the two. (The value of accrued rights 

under the social insurance system is combined with the 

individual account balance.)

Guaranteed minimum pension: If the pension is less than the 

minimum pension set by law, the government makes up the 

difference.

Permanent Disability Benefits

Disability pension: For an assessed degree of disability 

greater than 66%, the pension is equal to 54% of the basic 

monthly wage, plus 2% of earnings for each 50-week period 

of contributions exceeding 800 weeks. For an assessed 

degree of disability of between 50% and 66%, the pension 

is equal to 45% of the basic monthly wage, plus 1.5% of 

earnings for each 50-week period of contributions exceeding 

500 weeks. (Disability insurance tops-up the accumulated 

capital in the individual account if the balance is less than 

the required minimum to finance the permanent disability 

pension.)

The basic monthly wage is based on the insured’s average 

earnings in the last 10 years before receiving the pension.

The minimum earnings for benefit calculation purposes are 

equal to the legal monthly minimum wage (433,700 pesos).

The maximum earnings for benefit calculation purposes 

are equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

The minimum pension is equal to the legal monthly minimum wage (433,700 pesos).

The maximum pension is equal to 75% of the basic monthly 

wage.

Schedule of payments: Thirteen or fourteen payments a 

year, according to the value of the pension.

Benefit adjustment: Benefits are adjusted annually for 

changes in the consumer price index.

Disability settlement: If the insured does not meet the contributions requirements for a disability pension, a pension is 

provided.

Survivor Benefits

Survivor pension: The pension is equal to 45% of the 

deceased’s monthly earnings, plus 2% for each 50-week 

period of contributions exceeding 500 weeks, up to a 

maximum of 75% of the deceased’s monthly earnings. (Life 

insurance tops-up the accumulated capital in the deceased’s 

individual account if the balance is less than the required 

minimum to finance the survivor pension.)

Monthly earnings are based on the deceased’s average earnings in the last 10 years.

Orphan’s pension: Each orphan younger than age 18 

(age 25 if a student, no limit if disabled) receives 20% of the 

deceased’s pension; 30% for a full orphan. (Life insurance 

tops-up the accumulated capital in the deceased’s individual 

account if the balance is less than the required minimum to 

finance the survivor pension.)

The minimum earnings for benefit calculation purposes are 

equal to the legal monthly minimum wage (433,700 pesos).

The maximum earnings for benefit calculation purposes 

are equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

The minimum survivor pension is equal to the legal monthly 

minimum wage (433,700 pesos).
88 ♦ SSPTW: The Americas, 2007

Colombia

The maximum survivor pension is equal to 100% of the 

deceased’s pension.

Schedule of payments: Thirteen or fourteen payments a 

year, according to the value of the pension.

Survivor settlement: A pension is provided to dependents.

Funeral grant: The cost of the funeral is paid up to the 

value of the monthly old-age pension or the last wage, but 

not less than five times and not greater than 10 times the 

legal monthly minimum wage (433,700 pesos).

Administrative Organization

Social insurance: Ministry of Labor and Social Security 

(http://www.minproteccionsocial.gov.co) provides general 

supervision.

Social Security Institute (http://www.iss.gov.co) administers 

the program nationally.

Regional funds and local offices, established and supervised 

by the Social Security Institute, administer contributions and 

benefits locally.

Mandatory individual account: National Banking Superintendent (http://www.superbancaria.gov.co) provides general 

supervision.

Individual pension fund management companies (SAFPs) 

administer individual accounts.

Sickness and Maternity

Regulatory Framework

First law: 1938.

Current laws: 1993 (social insurance), implemented in 

1994, with 2003 amendments; and 2002 (parental leave).

Type of program: Social insurance system.

Coverage

All employees residing in Colombia, including pensioners, 

students, and apprentices; self-employed persons and persons residing in Colombia with earnings greater than twice 

the legal minimum monthly wage (433,700 pesos).

Coverage is to be extended gradually to all, regardless of the 

individual’s ability to contribute.

Special systems for armed forces personnel and national 

police personnel.

Source of Funds

Insured person: 4% of earnings.

The minimum earnings for contribution purposes are equal 

to the legal minimum monthly wage (433,700 pesos); half 

the legal minimum monthly wage for domestic workers.

Self-employed person: 12% of declared earnings.

Declared earnings for contribution purposes are equal 

to 1.5 or 2 times the legal minimum monthly wage 

(433,700 pesos), depending on trade union affiliation.

Employer: 12.5% of payroll.

The minimum earnings for contribution purposes are equal 

to the legal minimum monthly wage (433,700 pesos).

Government: Finances the program for low earners through 

the solidarity fund and through additional government contributions; contributes as an employer.

Qualifying Conditions

Cash sickness and medical benefits: The insured must 

have at least 4 weeks of contributions immediately before 

the claim, except in the event of an emergency.

Cash maternity benefits: The insured must have at least 

9 months of contributions before the expected date of 

childbirth. (Benefits are also paid to the parents of adopted 

children.)

Paternity leave: Fathers must have at least 100 weeks of 

contributions.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 66.6% of the 

insured’s earnings in the month before the incapacity began 

and is paid after a 4-day waiting period for up to 180 days.

Maternity benefit: The benefit is equal to 100% of the 

insured’s earnings and is paid for 84 days.

Paternity leave: The benefit is equal to 100% of the 

insured’s earnings for up to 4 days of paid leave; 8 days if 

both parents are insured.

Workers’ Medical Benefits

The insured may choose either public or private health care. 

Benefits and facilities vary depending on the health plan. 

Benefits include medical, surgical, hospital, pharmaceutical, 

maternity, and dental care and related services. Preexisting 

conditions must be covered, although they may be subject to 

a waiting period; no waiting period for pregnant women.

Dependents’ Medical Benefits

The insured may choose either public or private health care. 

Benefits and facilities vary depending on the health plan. 

Benefits include medical, surgical, hospital, pharmaceutical, 

maternity, and dental care and related services. Preexisting 

conditions must be covered, although they may be subject to 

a waiting period; no waiting period for pregnant women and 

children younger than age 1.

Administrative Organization

Superintendent of Health (http://www.supersalud.gov.co) 

provides general supervision.
SSPTW: The Americas, 2007 ♦ 89

Colombia

Ministry of Labor and Social Security (http://www.minproteccionsocial.gov.co) and the National Social Security 

Council on Health administer the program.

State Social Enterprises (ESSs) and private health institutions (IPSs) provide health services.

Work Injury

Regulatory Framework

First law: 1915.

Current laws: 1993 (social insurance), implemented in 

1994, with 2003 amendments; and 1994 (work injury), with 

2003 amendment.

Type of program: Social insurance system.

Coverage

All employees, including new employees joining the state 

oil company (Ecopetrol) after January 29, 2003; student 

placements; and casual workers.

Voluntary coverage for self-employed persons.

Special systems for employees of the state oil company 

(Ecopetrol), who joined before January 30, 2003; teachers; 

armed forces personnel; and national police personnel.

Source of Funds

Insured person: None.

Self-employed person: 0.348% to 8.7% of declared covered earnings, according to the assessed degree of risk.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (433,700 pesos).

The maximum earnings for contribution purposes are 

equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

Employer: 0.348% to 8.7% of covered payroll, according to 

the assessed degree of risk. (1% of the employer’s contribution finances the work injury fund, which promotes health 

and safety for workers.)

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (433,700 pesos).

The maximum earnings for contribution purposes are 

equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

Government: Contributes to the work injury fund from 

general revenue; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. If the employer delays the payment of contributions 

for 2 consecutive months, the employer is automatically 

disqualified from the program.

Temporary Disability Benefits

The benefit is equal to 100% of the insured’s covered earnings, and is paid from the day after the work injury occurred 

or the occupational disease was diagnosed. The benefit is 

paid until rehabilitation, the award of a permanent disability 

benefit, or death.

Permanent Disability Benefits

Permanent disability pension: For an assessed degree of 

disability of more than 66%, the pension is equal to 75% 

of base earnings; for an assessed degree of disability of 

between 50% and 66%, the pension is equal to 60% of base 

earnings.

Base earnings are equal to average earnings in the last 

6 months for a benefit for a work accident or in the last 

12 months for a benefit for an occupational disease.

Constant-attendance allowance: Equal to 15% of the 

pension.

Partial disability: For an assessed degree of disability 

between 5% and 49%, the pension paid varies from a 

minimum of one times base earnings up to a maximum of 

24 times base earnings.

The minimum earnings for benefit calculation purposes are 

equal to the legal monthly minimum wage (433,700 pesos).

The maximum earnings for benefit calculation purposes 

are equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

The minimum pension is equal to the legal minimum wage 

(433,700 pesos).

The maximum pension is equal to 20 times the legal minimum wage (8,674,000 pesos).

Benefit adjustment: Benefits are adjusted annually for 

changes in the consumer price index.

Workers’ Medical Benefits

Benefits include medical, surgical, and hospital care; medicines; appliances; rehabilitation; and transportation.

Survivor Benefits

Survivor pension: The survivor pension is equal to 45% 

of the deceased’s monthly earnings, plus 2% for each 50-

week period of contributions exceeding 500 weeks, up to a 

maximum of 75% of the deceased’s monthly earnings. (The 

survivor benefit complements the individual account balance when the funds are insufficient to finance a pension.)

Monthly earnings are based on the deceased’s average earnings in the last 10 years.

Eligible survivors are a widow or partner who lived with the 

deceased for at least 5 years or who had children with the 

deceased, a dependent disabled widower, children younger 

than age 18 (age 25 if a student, no limit if disabled), dependent parents, or a disabled brother or sister.
90 ♦ SSPTW: The Americas, 2007

Colombia

Orphan’s pension: Each orphan younger than age 18 

(age 25 if a student, no limit if disabled) receives 20% of 

the deceased’s pension; 30% for a full orphan. (The survivor 

benefit complements the individual account balance when 

the funds are insufficient to finance a pension.)

The minimum earnings for benefit calculation purposes are 

equal to the legal monthly minimum wage (433,700 pesos).

The maximum earnings for benefit calculation purposes 

are equal to 25 times the legal monthly minimum wage 

(10,842,500 pesos).

The minimum pension is equal to the legal monthly minimum wage (433,700 pesos).

The maximum pension is equal to 100% of the deceased’s 

pension.

Schedule of payments: Thirteen or fourteen payments a 

year, according to the value of the pension.

Administrative Organization

Ministry of Labor and Social Security, National Finance 

Superintendent, and the National Health Superintendent 

provide general supervision.

Social Security Institute (http://www.iss.gov.co) and life 

insurance companies authorized by the National Banking 

Superintendent administer the program nationally.

Unemployment

Regulatory Framework

First and current law: 1990 (severance).

Type of program: Mandatory individual severance account 

system.

Note: Beginning January 1, 1991, acquired rights under the 

previous public system were transferred to the new private 

severance pay program.

Coverage

All private-sector employees.

Voluntary coverage for public-sector employees and selfemployed persons.

Source of Funds

Insured person: None.

Self-employed person: Voluntary contributions of 8.3% of 

annual declared earnings.

Employer: 8.3% of the insured’s annual salary.

Government: None; contributes as an employer.

Qualifying Conditions

Unemployment benefits: The insured must be unemployed 

or retired.

Unemployment Benefits

The benefit is equal to 1 monthly wage for each year of 

employment; a reduced benefit is paid for less than a year 

of employment. (The insured may make authorized partial 

withdrawals from the individual account to meet specified 

contingencies.)

Administrative Organization

Mandatory individual accounts are administered by Severance Pay Funds (SAFCs).

National Banking Superintendent (http://www.superbancaria.gov.co) supervises the SAFCs.

Juntas Directives, involving employer and employee representatives, monitor the SAFCs.

Family Allowances

Regulatory Framework

First law: 1957.

Current law: 1982 (family allowances), with 2002 

amendment.

Type of program: Employment-related system.

Coverage

All employees.

Voluntary coverage for pensioners, self-employed persons, 

and unemployed persons.

Exclusions: Occasional workers.

Special systems for armed forces personnel and national 

police personnel.

Source of Funds

Insured person: None. Voluntary contributors pay 2% of 

the legal monthly minimum wage or the pension; 0.6% of 

the legal monthly minimum wage for reduced allowances.

The legal monthly minimum wage is 433,700 pesos.

Self-employed person: 2% of declared earnings; 0.6% of 

the legal monthly minimum wage for reduced allowances.

The legal monthly minimum wage is 433,700 pesos.

Employer: 4% of payroll.

Government: None; contributes as an employer.

Qualifying Conditions

Family allowances (income-tested): The child must be 

younger than age 18 (age 23 if a student, no limit if disabled). The parent must be older than age 60 or assessed as 

60% disabled; must have completed 60 days of continuous 

employment with the same employer of which not less than 

96 hours were credited during the last 25 working days.
SSPTW: The Americas, 2007 ♦ 91

Colombia

Income test: Monthly income must not exceed four times 

the legal monthly minimum wage (433,700 pesos).

Family Allowance Benefits

Family allowances: Benefit amounts vary among funds and 

may be paid in cash or in kind. A child assessed as at least 

60% disabled receives a double allowance.

Surviving spouse allowance: Twelve monthly allowances 

are paid to a widow or the guardian of dependent children. If 

the surviving spouse or guardian dies, the surviving children 

receive a lump sum equal to 12 months’ benefit.

Administrative Organization

Superintendent for Family Subsidies (http://www.ssf.gov.co) 

supervises family allowance funds.
92 ♦ SSPTW: The Americas, 2007

Costa Rica

Costa Rica

Exchange rate: US$1.00 equals 516.70 colones.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1941 (social insurance fund).

Current laws: 1992 (pensions), 1995 (self-employed), 1995 

(mandatory individual accounts), 2000 (workers’ protection), and 2005 (old-age, disability, and survivors).

Type of program: Social insurance and mandatory individual account system.

Note: In 2000, a system of mandatory private individual 

accounts was introduced to complement the social insurance 

old-age pension program.

Coverage

Social insurance: Public- and private-sector employees and 

self-employed persons.

Special systems for teachers and employees of the justice 

department.

Mandatory individual account: Public- and private-sector 

employees.

Source of Funds

Social insurance

Insured person: 2.5% of gross earnings.

The minimum monthly earnings for contribution purposes 

are 101,000 colones.

There are no maximum earnings for contribution purposes.

Self-employed person: Between 4.75% and 7.25% of gross 

declared earnings.

The minimum monthly earnings for contribution purposes 

are 101,000 colones.

There are no maximum earnings for contribution purposes.

Employer: 4.75% of payroll.

The minimum monthly earnings for contribution purposes 

are 101,000 colones.

There are no maximum earnings for contribution purposes.

Government: 0.25% of the gross income of all workers.

Mandatory individual account

Insured person: 1% of earnings, plus up to a maximum of 

0.19% of gross earnings for administrative fees.

Self-employed person: Not applicable.

Employer: 3.25 of payroll.

Government: None.

Qualifying Conditions

Old-age pension

Old-age pension (social insurance): Age 61 and 11 months 

(men) with at least 300 months of contributions or age 59 

and 11 months (women) with at least 300 months of 

contributions.

Retirement from covered employment is not necessary, 

except for state employees.

The old-age pension is payable abroad.

Reduced old-age pension: Age 65 with at least 15 years of 

contributions.

Deferred pension: A deferred pension is possible.

Old-age pension (mandatory individual account): Age 61 

and 11 months (men) or age 59 and 11 months (women). 

The insured must also submit proof of eligibility for benefits 

under the social insurance program.

Old-age benefit (noncontributory): See Family Allowances, below.

Disability pension (social insurance): The insured must 

be assessed with a loss of 2/3 of normal earning capacity. 

The total number of required contributions varies by age: 

the minimum number of required monthly contributions for 

an insured person up to age 24 is 12; the maximum number 

of required contributions for an insured person between 

ages 52 and 65 is 120.

The disability pension is payable abroad.

Disability grant (social insurance): The insured must be 

assessed with a loss of 2/3 of normal earning capacity and 

have made at least 60 contributions.

Disability benefit (noncontributory): See Family Allowances, below.

Survivor pension (social insurance): The deceased was 

eligible for the old-age pension or disability pension, had 

made 12 contributions in the last 24 months, or had made a 

total of 180 contributions.

Survivor settlement: The deceased had paid at least 12 contributions but did not satisfy the other qualifying conditions 

for the survivor pension.

Survivor benefit (noncontributory): See Family Allowances, below.

Old-Age Benefits

Old-age pension

Old-age pension (social insurance): The pension is based on 

the length of the total contribution period and average earnings in the last 240 months.
SSPTW: The Americas, 2007 ♦ 93

Costa Rica

Deferred pension: An increment is paid to insured persons 

who retire after the normal retirement age.

Earnings adjustment: Earnings are adjusted according to 

changes in the consumer price index.

The basic benefit is increased by 0.0835% of average earnings for each month of contributions exceeding 240 months, 

plus an increment of 1.6% of the pension for each year 

exceeding 20 years.

The minimum monthly pension is 65,000 colones; if the 

calculated pension amount is lower, a lump sum is paid.

The maximum monthly pension is 933,156 colones.

Deferred pension: The pension is increased by 0.133% of 

average earnings for each month of deferred retirement 

beyond the normal pensionable age.

The maximum deferred pension is 1 million colones 

(November 2005).

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted twice a year, in 

January and July, according to changes in the cost of living.

Old-age pension (mandatory individual account): The value 

of the pension depends on the insured’s contributions plus 

accrued interest. The insured can choose to draw down the 

accumulated capital in programmed periodic withdrawals 

or to purchase an annuity at retirement. In most cases, the 

withdrawal of funds before retirement is not permitted.

Deferred pension: The value of the pension depends on the 

insured’s contributions plus accrued interest.

Old-age benefit (noncontributory): See Family Allowances, below.

Permanent Disability Benefits

Disability pension (social insurance): The pension is 

equal to 60% of average earnings.

Average earnings are based on the last 240 months’ 

earnings.

The basic benefit is increased by 0.0835% of average earnings for each month of contributions exceeding 240 months.

The minimum monthly pension is 65,000 colones; if the 

computed pension amount is lower, a lump sum is paid.

The maximum monthly pension is 933,156 colones; may be 

higher if the insured has deferred retirement.

Schedule of payments: Thirteen payments a year.

Disability grant (social insurance): A lump sum is paid 

equal to 7 months’ average earnings.

Benefit adjustment: Benefits are adjusted twice a year, in 

January and July, according to changes in the cost of living.

Disability benefit (noncontributory): See Family Allowances, below.

Survivor Benefits

Survivor pension (social insurance): A widow(er) or 

partner younger than age 50 receives 50% of the deceased’s 

pension; 60% if aged 50 or older but younger than age 60; 

70% if aged 60 or older or disabled.

Orphan’s pension (social insurance): Each orphan 

younger than age 18 (age 25 if a student) or disabled 

receives 30% of the deceased’s pension; 60% for a full 

orphan.

Other eligible survivors (social insurance): Dependent 

parents and dependent brothers and sisters receive 20% of 

the deceased’s pension each; dependents older than age 55 

receive 60% of the deceased’s pension each.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Benefit adjustment: Benefits are adjusted twice a year, in 

January and July, according to changes in the cost of living.

Survivor settlement: A lump sum is paid equal to 1/12 of 

the deceased’s average monthly earnings for each month of 

coverage. The settlement must be no less than the minimum 

monthly old-age pension.

Survivor benefit (noncontributory): See Family Allowances, below.

Administrative Organization

Social insurance: Directed by an executive president and a 

nine-member board, the Costa Rican Social Insurance Fund 

(http://www.ccss.sa.cr) administers the program.

State auditor supervises the financial operations of the fund.

Mandatory individual account: Superintendent of Pensions 

(http://www.supen.fi.cr) regulates and supervises pension 

operators and service providers.

National Council for the Supervision of the Financial System provides regulatory oversight.

Pension operators (OPCs) manage the individual accounts.

Sickness and Maternity

Regulatory Framework

First laws: 1941 and 1943.

Current laws: 1961; 1973 (health); and 1993 (social insurance), implemented in 1997.

Type of program: Social insurance system.

Coverage

Cash sickness benefits: Employed persons, including 

self-employed persons, indigent persons, prisoners, and 

pensioners.
94 ♦ SSPTW: The Americas, 2007

Costa Rica

Cash maternity benefits: Employed persons, including 

self-employed persons, indigent persons, prisoners, and 

pensioners.

Medical benefits: All persons residing in Costa Rica; international agreements provide emergency medical care for 

visitors to the country.

Source of Funds

Insured person: 5.5% of gross earnings. Pensioners contribute 5% of the pension (plus a subsidy financed by the 

Social Insurance Fund equal to 8.75% of the pension).

The minimum earnings for contribution purposes are 

88,847 colones.

Self-employed person: Between 4.75% and 7.75% of 

declared earnings.

The minimum earnings for contribution purposes are 

88,847 colones.

Employer: 9.25% of payroll. (The total cost of maternity 

benefits is split evenly between the employer and the Social 

Insurance Fund.)

Government: 0.25% of total covered earnings.

Qualifying Conditions

Cash sickness benefits: The insured must have contributed in the month before the incapacity began and be 

insured when the incapacity began.

Cash maternity benefits and maternity care: The insured 

must have at least 26 weeks of contributions in the last 

52 weeks; the wife of an insured man is eligible for maternity care if the insured contributed in the month before the 

date of childbirth.

Medical benefits: Must be insured.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 60% of the 

insured’s earnings in the last 3 months and is paid after a 

3-day waiting period for up to 52 weeks; may be extended 

in special cases.

Maternity benefit: The benefit is equal to 50% of the 

insured’s earnings and is paid for 30 days before and 

90 days after the expected date of childbirth.

Funeral grant: 80,000 colones is paid for the funeral of the 

insured or his or her spouse or partner.

Workers’ Medical Benefits

Medical services are normally provided directly to patients 

through the medical facilities of the Social Insurance Fund. 

Benefits include general, specialist, and maternity care; 

hospitalization; medicines; dental, auditory, and limited 

optometry services; and appliances (at a reduced cost).

Dependents’ Medical Benefits

Medical services are normally provided directly to patients 

through the medical facilities of the Social Insurance Fund. 

Benefits include general, specialist, and maternity care; 

hospitalization; medicines; dental, auditory, and limited 

optometry services; and appliances (at a reduced cost).

Administrative Organization

Costa Rican Social Insurance Fund (http://www.ccss.sa.cr) 

administers the program.

Costa Rican Social Insurance Fund owns and operates 29 

hospitals and 152 clinics and is gradually extending jurisdiction over other hospitals and clinics.

Work Injury

Regulatory Framework

First law: 1925.

Current law: 1982 (labor code).

Type of program: Employer-liability system, involving 

compulsory and voluntary insurance with a public carrier.

Coverage

Employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost is met through insurance premiums that vary according to the assessed degree of risk.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 75% of the insured’s daily earnings 

for the first 45 days; thereafter, 100% of the legal minimum 

wage plus 75% of the insured’s earnings that exceed this 

amount. The benefit is paid from the date the disability 

began for up to 2 years.

The minimum benefit is equal to the legal minimum wage at 

the time disability began.

Permanent Disability Benefits

Permanent disability pension: For an assessed degree of 

disability of more than 67% (total disability), the monthly 

pension is equal to 100% of the minimum wage plus 90% of 

the insured’s earnings that exceed this amount.
SSPTW: The Americas, 2007 ♦ 95

Costa Rica

Constant-attendance allowance: 78,275 colones is paid for 

a total permanent disability; an additional 44,547 colones is 

paid for a severe disability.

Grants may be awarded to disabled insured persons in order 

to purchase, rent, or modify a house.

Partial disability: If the assessed degree of disability is 

between 50% and 67%, the benefit is equal to 67% of earnings and is paid for up to 10 years. If the assessed degree of 

disability is between 0.5% and 49%, the benefit is equal to 

the assessed degree of disability times annual earnings and 

is paid for up to 5 years. The benefit may be extended for 

additional 5-year periods on a means-tested basis.

Workers’ Medical Benefits

Benefits include medical and surgical care, hospitalization, 

medicines, appliances, and rehabilitation.

Survivor Benefits

Survivor pension: 40% of the deceased’s earnings is paid 

to a widow or to a disabled widower. The pension is paid for 

10 years; may be extended for additional 5-year periods in 

special cases.

The maximum widow(er) pension is equal to 40% of 

the deceased’s earnings; 30% if there are other eligible 

dependents.

Orphan’s pension: 15% to 40% of the deceased’s earnings 

is paid for up to three orphans younger than age 18 (age 25 

if a student, no limit if disabled).

Other eligible survivors: 20% of the deceased’s earnings is 

paid to the deceased’s mother (30% if there are no dependent children) for a period of 10 years. A pension is also 

paid to a dependent father or other dependent adults, including those aged 60 or older and unable to work.

All survivor benefits combined must not exceed 75% of the 

deceased’s earnings.

Funeral grant: 75,000 colones, plus transportation costs 

(15,000 colones if the death occurred in Cost Rica; 

60,000 colones if the death occurred abroad), is paid.

Administrative Organization

Ministry of Labor and Social Security (http://www.ministrabajo.go.cr) provides general supervision.

National Insurance Institute administers the program.

Unemployment

Regulatory Framework

No statutory benefits are provided.

Labor law requires employers to contribute 1.5% of payroll 

to finance a mandatory severance pay scheme.

Family Allowances

Regulatory Framework

First and current law: 1974 (family allowances and social 

development).

Type of program: Social assistance system.

Coverage

Indigent persons who are not entitled to a contributory 

pension.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Family allowances (means-tested): Allowances are paid to 

persons older than age 65, persons living below the poverty 

line, disabled persons, widows with dependents younger 

than age 18 or disabled, widows older than age 50 without 

dependents, and orphans younger than age 18.

Earnings test: Family or individual income is less than the 

basic food basket defined by the government.

Family Allowance Benefits

Family allowances (means-tested): The monthly pension 

is 50,000 colones. The pension is increased by 10% for 1 

dependent, 20% for 2 dependents, and 30% for 3 dependents 

or more.

Schedule of payments: Thirteen payments a year.

Administrative Organization

Ministry of Labor and Social Security (http://www.ministrabajo.go.cr) provides general supervision.

Social Development and Family Allowances Fund directs 

the program.

Directed by an executive president and a nine-member 

board, the Costa Rican Social Insurance Fund (http://www.

ccss.sa.cr) administers the program.
96 ♦ SSPTW: The Americas, 2007

Cuba

Cuba

Exchange rate: US1.00 equals 0.92 peso.

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1963 and 1964.

Current law: 1979, implemented in 1980.

Type of program: Social insurance and social assistance 

system.

Coverage

All wage earners.

Special systems for armed forces personnel, interior ministry staff, self-employed persons, artists, and members of 

agricultural cooperatives.

Source of Funds

Insured person: None.

Self-employed person: 10% of declared earnings; certain 

artists contribute 12% of declared earnings.

There are no minimum or maximum monthly earnings for 

contribution purposes.

The above contributions also finance sickness and maternity 

benefits and work injury benefits.

Employer: 14% of gross payroll.

There are no minimum or maximum monthly earnings for 

contribution purposes.

The above contributions also finance sickness and maternity 

benefits and work injury benefits.

Government: Finances the cost of burial services and any 

deficit and guarantees minimum pensions; contributes as an 

employer.

There are no minimum or maximum monthly earnings for 

contribution purposes.

Qualifying Conditions

Old-age pension: Age 60 (men) or age 55 (women) with 

25 years of work.

Age 55 (men) or age 50 (women) if the last 12 years or 75% 

of employment was in dangerous or arduous work.

Partial pension: Age 65 (men) or age 60 (women) with 

15 years of work.

Early pension: There is no early pension.

Deferred pension: A deferred pension is possible, subject to 

the insured’s physical and mental health. 

Retirement is not necessary, but total income must not 

exceed former income.

The pension is not payable abroad.

Old-age social assistance (means-tested): Cash or inkind benefits are payable to any person of pensionable age, 

subject to assessed needs.

Disability pension: The insured must be assessed with a 

partial, total, or severe disability. The full pension is paid if 

assessed as physically or mentally incapable of work.

The Expert Medical Labor Commission assesses the degree 

of disability.

Partial pension: If younger than age 23, the insured must 

be assessed as unable to perform usual work and have been 

employed when the disability began. If aged 23 or older, the 

number of years of employment needed to qualify increases 

with age. (A partial pension at age 28 or older requires 

3 years of employment.)

The disability pension is not replaced by the old-age pension 

at pensionable age.

The pension is not payable abroad.

Disability social assistance (means-tested): Cash or inkind benefits are payable to any person assessed as disabled, 

subject to assessed needs.

Survivor pension: The deceased was a pensioner at the 

time of death or employed 6 months before the date of death 

and for 75% of his or her adult life.

Eligible survivors are a widow (or partner), a needy widower (or partner) aged 60 or older or disabled, orphans 

younger than age 17 or disabled, and needy parents.

The pension is not payable abroad.

Survivor social assistance (means-tested): Cash or inkind benefits are payable to any survivor, subject to assessed 

needs.

Old-Age Benefits

Old-age pension: The monthly pension is equal to 50% 

of average earnings (the portion of earnings exceeding 

3,000 pesos a year is reduced by 50%) in the best 5 out 

of the last 10 years, plus 1% of earnings for each year of 

employment exceeding 25 years (1.5% for each year of 

dangerous or arduous work).

Partial pension: The monthly pension is equal to 40% of 

average earnings, plus 1% of earnings for each year of 

employment exceeding 15 years.

Deferred pension: The pension is increased by 1.5% to 4% 

for each year of deferral between ages 60 and 65 (men) and 

between ages 55 and 60 (women); thereafter, by 1% a year. 

The maximum pension is equal to 90% of the insured’s 

salary.
SSPTW: The Americas, 2007 ♦ 97

Cuba

The minimum monthly pension is 164 pesos.

The maximum pension is equal to 90% of the insured’s 

average earnings, if average earnings were greater than 300 

pesos.

Old-age social assistance (means-tested): Benefits may 

be paid periodically or as a lump sum.

Benefit adjustment: Benefits are adjusted according to government decree, based on social and economic factors.

Permanent Disability Benefits

Disability pension: For an assessed total disability, the 

monthly pension is equal to 50% of average annual earnings (the portion of earnings exceeding 3,000 pesos a year is 

reduced by 50%) if the insured has 25 years of work; 40% 

of average annual earnings with less than 15 years of work. 

The minimum monthly pension is 164 pesos.

The maximum pension is equal to 90% of the insured’s 

average earnings, if average earnings were greater than 300 

pesos.

Partial disability: The pension is equal to between 30% and 

50% of lost earnings, depending on the number of years of 

work up to a maximum of 25 years: 30% with less than 9 

years; 40% with more than 9 years up to 14 years; 50% with 

more than 14 years. The pension is increased by 1% for each 

year of employment exceeding 25 years. During rehabilitation, the pension is equal to 70% of the insured’s former 

earnings. 

If the insured is unemployed as the result of a common disability, a pension is paid equal to 50% of former earnings in 

the first year; thereafter, 25% of former earnings. 

Disability social assistance (means-tested): Benefits may 

be paid periodically or as a lump sum.

Benefit adjustment: Benefits are adjusted according to government decree, based on social and economic factors.

Survivor Benefits

Survivor pension: If the deceased was employed at the 

time of death, the pension is equal to 100% of earnings for 

the first month and 50% of earnings for the next 2 months. 

If the deceased was a pensioner, then the pension is equal 

to 100% of the deceased’s pension for 3 months; thereafter, 

70%, 85%, or 100% of the deceased’s pension for one, two, 

or three or more dependent survivors, respectively (80%, 

90%, or 100% of the deceased’s pension if the pension is 

less than 60 pesos a month). The pension is split equally 

among all eligible dependents.

Eligible survivors are a widow (or partner), a needy widower (or partner) aged 60 or older or disabled, orphans 

younger than age 17 or disabled, and needy parents.

The minimum monthly pension is 164 pesos.

The maximum pension for a working widow is equal to 

25% of the survivor pension.

Unemployed widows aged 40 or older receive the full pension. A nonworking widow younger than age 40 without 

dependents receives the full pension for a limited period of 

2 years.

Free burial services are provided by the government for all 

residents of Cuba.

Survivor social assistance (means-tested): Benefits may 

be paid periodically or as a lump sum.

Benefit adjustment: Benefits are adjusted according to government decree, based on social and economic factors.

Administrative Organization

Ministry of Labor and Social Security administers the program through the National Institute of Social Security.

Municipal social security offices and work centers process 

applications.

Pensions are paid through the Popular Savings Bank.

Sickness and Maternity

Regulatory Framework

First law: 1934 (maternity benefits).

Current laws: 1979 (sickness) and 2003 (maternity).

Type of program: Social insurance (cash benefits) and universal (medical benefits) system.

Coverage

Cash sickness and maternity benefits: Employed persons, 

members of agricultural cooperatives, armed forces personnel, interior ministry staff, self-employed persons, and 

artists.

Medical benefits: All residents of Cuba.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above. The cost of medical benefits and 

services.

Qualifying Conditions

Cash sickness benefits: The insured must be currently 

employed or self-employed.

Cash maternity benefits: The insured must be currently 

employed with at least 75 days of employment in the 
98 ♦ SSPTW: The Americas, 2007

Cuba

12 months before maternity leave. Maternity leave must 

start no later than the 34th or 32nd (for a multiple birth) 

week of pregnancy.

Medical benefits: Resident in Cuba.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 60% of average 

daily earnings in the last 6 months; if hospitalized, 50% of 

earnings. The benefit is paid after a 3-day waiting period 

(if hospitalized, no waiting period) until medical certification expires (new certification by a medical committee is 

required every 26 weeks) or a disability pension is payable.

The minimum benefit is 1.5 pesos a day (80% of earnings if 

the wage is less than 1.65 pesos a day).

The maximum benefit is equal to 90% of earnings.

Tuberculosis benefit: The benefit is equal to 100% of earnings until cured.

Maternity benefit: The benefit is equal to 100% of earnings and is paid for 6 weeks before and 12 weeks after the 

expected date of childbirth.

The minimum maternity benefit is 20 pesos a week.

Maternity social benefit: Beginning 12 weeks after the 

birth, the benefit is equal to 60% of earnings if the mother is 

unable to work as the result of having to care for the child. 

The benefit is paid until the child is aged 12 months or earlier if the mother returns to work.

Workers’ Medical Benefits

Free medical services are provided by public medical centers. Benefits include medical, dental, and maternity care; 

prenatal and postnatal care; hospitalization; medicines during hospitalization; and rehabilitation. Benefits are provided 

until recovery.

Dependents’ Medical Benefits

Free medical services are provided by public medical centers. Benefits include medical, dental, and maternity care; 

prenatal and postnatal care; hospitalization; medicines during hospitalization; and rehabilitation. Benefits are provided 

until recovery.

Administrative Organization

Ministry of Labor and Social Security administers the program through the National Institute of Social Security.

Work centers assume the costs and pay short-term cash 

benefits.

Ministry of Public Health supervises the administration of 

medical services provided by public medical and hospital 

centers.

Work Injury

Regulatory Framework

First law: 1916.

Current law: 1979, implemented in 1980.

Type of program: Social insurance (cash benefits) and universal (medical care) system.

Coverage

Employed persons, civilian personnel of the armed forces 

and interior ministry, self-employed persons, artists, and 

members of agricultural cooperatives.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period but the insured must be employed when the disability 

begins.

Temporary Disability Benefits

The benefit is equal to 80% of the insured’s earnings; if 

hospitalized, 70% of earnings. The benefit is paid from 

the first day of disability until medical certification expires 

(new certification by a medical committee is required every 

26 weeks) or until a permanent disability pension is payable.

The minimum benefit is 1.5 pesos a day (80% of earnings if 

the wage is less than 1.65 pesos a day).

The maximum benefit is equal to 90% of the insured’s 

earnings.

Benefit adjustment: Benefits are adjusted according to government decree, based on social and economic factors.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to 

50% of the insured’s average earnings in the best 5 out of 

the last 10 years, plus 1% of earnings for each year of work 

exceeding 25 years.

Work injury or occupational disease supplement: Equal to 

10% of the pension.

Heroic act supplement: Equal to 20% of the pension.
SSPTW: The Americas, 2007 ♦ 99

Cuba

Constant-attendance allowance: Equal to 20% of the 

pension.

The minimum monthly pension is 164 pesos.

The maximum pension is equal to 90% of the insured’s 

average earnings.

Partial disability: The pension is equal to between 30% and 

50% of lost earnings, depending on the number of years of 

work up to a maximum of 25 years: 30% with less than 9 

years; 40% with more than 9 years up to 14 years; 50% with 

more than 14 years. The pension is increased by 1% for each 

year of employment exceeding 25 years. 

Work injury or occupational disease supplement: Equal to 

10% of the pension.

During rehabilitation, the pension is equal to 70% of the 

insured’s former earnings.

If the insured is unemployed as a result of a work-related 

disability, a pension is paid equal to 70% of former earnings 

in the first year; thereafter, 35% of former earnings.

Benefit adjustment: Benefits are adjusted according to government decree, based on social and economic factors.

Workers’ Medical Benefits

Free medical services are provided by public medical centers. Benefits include medical and dental care, hospitalization, medicines, appliances, and rehabilitation. Benefits are 

provided until recovery.

Survivor Benefits

Survivor pension: If the deceased was employed at the 

time of death, the pension is equal to 100% of earnings for 

the first month and 50% of earnings for the next 2 months. If 

the deceased was a pensioner, the pension is equal to 100% 

of the deceased’s pension for 3 months; thereafter, 70%, 

85%, or 100% of the deceased’s pension for one, two, or 

three or more dependent survivors, respectively (80%, 90%, 

or 100% of the deceased’s pension if the pension is less than 

60 pesos a month). The pension is spit equally among all 

eligible survivors.

Eligible survivors are a widow (or partner), a needy widower (or partner) aged 60 or older or disabled, orphans 

younger than age 17 or disabled, and needy parents.

The maximum pension for a working widow is equal to 

25% of the survivor pension.

Unemployed widows aged 40 or older receive the full pension. A nonworking widow younger than age 40 without 

dependents receives the full pension for a limited period of 

2 years.

Free burial services are provided by the government.

Benefit adjustment: Benefits are adjusted according to government decree, based on social and economic factors.

Administrative Organization

Ministry of Labor and Social Security administers the program through the National Institute of Social Security.

Work centers assume the costs and pay short-term cash 

benefits.

Ministry of Public Health supervises the administration of 

medical services provided by public medical and hospital 

centers.

Family Allowances

Regulatory Framework

Dependents of young workers conscripted into military 

service are eligible for assistance from the Social Security 

Fund.
100 ♦ SSPTW: The Americas, 2007

Dominica

Dominica

Exchange rate: US$1.00 equals

2.70 East Caribbean dollars (EC$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1970 (provident fund).

Current law: 1975 (social security).

Type of program: Social insurance system.

Note: Government-financed social assistance benefits are 

administered by the Division of Social Welfare.

Coverage

Employees, self-employed persons, voluntary contributors, 

and apprentices aged 16 to 60.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: 4% of covered earnings.

There are no minimum earnings for contribution purposes.

The maximum annual earnings for contribution purposes are 

EC$60,000.

The insured’s contributions also finance sickness and maternity benefits.

Self-employed person: 8.65% of declared net earnings.

The minimum declared annual earnings for contribution 

purposes are EC$600.

The maximum annual earnings for contribution purposes are 

EC$60,000.

Employer: 6.75% of covered payroll. (Employers also contribute on their own behalf as self-employed persons.)

There are no minimum earnings for contribution purposes.

The maximum annual earnings for contribution purposes are 

EC$60,000.

The employer’s contributions also finance sickness and 

maternity benefits.

Government: None; contributes as an employer.

Qualifying Conditions

Old-age pension: Aged 60 or older with at least 500 weeks 

of paid or credited contributions, including at least 150 paid 

contributions.

Early pension: There is no early pension.

Deferred pension: A deferred pension is possible.

Old-age grant: Aged 60 or older with at least 50 weeks of 

contributions, but does not meet the qualifying conditions 

for a pension.

Old-age benefits are payable abroad.

Disability pension: The insured must be assessed as permanently incapable of work, be younger than age 60, and have 

at least 150 weeks of paid or credited contributions.

Disability grant: The insured must be assessed as permanently incapable of work, be younger than age 60, but does 

not meet the contributions qualifying condition for a disability pension.

Incapacity for work is assessed by a medical referee. 

Reviews of the assessed incapacity for work may be 

requested by the medical referee.

Disability benefits are payable abroad if the purpose of 

travel is to receive medical treatment.

Survivor pension: The deceased met the qualifying conditions for an old-age pension or disability pension or was a 

pensioner at the time of death.

Eligible survivors are the spouse and dependent children 

younger than age 18 if unmarried and unemployed; dependent parents in the absence of either a spouse or dependent 

children.

Survivor grant: The deceased did not meet the qualifying conditions for a pension but had at least 150 weeks of 

contributions.

Survivor benefits are payable abroad.

Funeral grant: The insured must satisfy the qualifying conditions for any benefit. The grant is paid for the death of the 

insured, the insured’s noninsured spouse, and the insured’s 

dependent children younger than age 18 if unmarried and 

unemployed.

Old-Age Benefits

Old-age pension: The pension is equal to 30% of the 

insured’s average earnings, plus 2% for each 50-week 

period of contributions between 500 weeks and 750 weeks 

and 1% for each 50-week period exceeding 750 weeks.

Average earnings are based on the insured’s 3 best years of 

earnings in the last 10 years.

The minimum monthly old-age pension is EC$35.

The maximum monthly old-age pension is equal to 60% of 

the insured’s average monthly earnings.

Early pension: There is no early pension.

Deferred pension: The pension is increased by 6% for each 

complete year of deferral.

Old-age grant: A lump sum is paid equal to three times the 

insured’s average weekly covered earnings for each 50-

week period of paid or credited contributions.
SSPTW: The Americas, 2007 ♦ 101

Dominica

Average weekly covered earnings are based on total 

covered earnings divided by the total number of weeks of 

contributions.

Permanent Disability Benefits

Disability pension: The pension is equal to 30% of the 

insured’s average earnings, plus 2% for each 50-week 

period of contributions between 500 weeks and 750 weeks 

and 1% for each 50-week period exceeding 750 weeks.

Average earnings are based on the insured’s 3 best years of 

earnings in the last 10 years.

The maximum monthly pension is equal to 60% of average 

earnings.

Disability grant: A lump sum is paid equal to three times 

the insured’s average weekly covered earnings for each 50-

week period of paid or credited contributions.

Average weekly covered earnings are based on total 

covered earnings divided by the total number of weeks of 

contributions.

Survivor Benefits

Survivor pension: 50% of the deceased’s pension is paid 

to a widow(er) aged 50 or older. If the surviving spouse was 

married to the deceased for less than 3 years or is younger 

than age 50, the widow(er) receives a limited survivor 

pension for 1 year or for as long as caring for dependent 

children.

The pension ceases if the surviving spouse remarries or 

cohabits.

Orphan’s pension: The pension is equal to 25% of the 

deceased’s pension for each of the first two orphans (33% 

if a full orphan or disabled). If there are more than two 

orphans, the total pension amount is split equally between 

them.

The minimum monthly orphan’s pension is EC$50.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Survivor grant: A lump sum is paid equal to three times the 

deceased’s average weekly covered earnings for each 50-

week period of paid or credited contributions.

Weekly covered earnings are based on total covered earnings divided by the total number of weeks of contributions.

Funeral grant: A lump sum is paid to the person who meets 

the cost of the funeral. EC$2,000 is paid for the death of the 

insured; EC$1,680 for the death of a noninsured spouse; and 

EC$840 for the death of a dependent child.

Administrative Organization

Ministry of Health and Social Security provides general 

supervision.

Governed by the Social Security Board, Dominica Social 

Security administers the social insurance program.

Division of Social Welfare administers social assistance 

benefits.

Sickness and Maternity

Regulatory Framework

First and current law: 1975 (social security).

Type of program: Social insurance system. Cash benefits 

only.

Coverage

Employed persons and apprentices aged 16 to 60.

Exclusions: Self-employed persons.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

13 weeks of insured employment immediately before the 

onset of incapacity, including 8 weeks of paid contributions.

Cash maternity benefits: The insured must have at least 

13 weeks of contributions, including 20 weeks in the 30-

week period before the start of maternity leave.

Cash maternity grant: Paid to an insured woman or a noninsured spouse of an insured man with at least 26 weeks of 

paid contributions in the 52-week period before the expected 

date of childbirth.

Medical benefits: The insured must be the holder of a 

Social Security card.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 60% of average 

weekly earnings in the last 13 weeks and is paid from the 

first day of incapacity if the incapacity lasts beyond 4 days. 

The benefit is paid for up to 26 weeks.

Maternity benefit: The benefit is equal to 60% of average 

weekly earnings in the last 30 weeks and is payable 6 weeks 

before and 6 weeks after the expected date of childbirth; 
102 ♦ SSPTW: The Americas, 2007

Dominica

in certain cases, the benefit may be payable from 3 weeks 

before and up to 9 weeks after the date of childbirth.

Maternity grant: A lump sum of EC$500 is paid.

Workers’ Medical Benefits

Benefits include a reduction on medical bills, subject to 

government-stipulated costs and conditions.

Dependents’ Medical Benefits

No statutory benefits are provided.

Administrative Organization

Ministry of Health and Social Security provides general 

supervision.

Governed by the Social Security Board, Dominica Social 

Security administers the program.

Work Injury

Regulatory Framework

First law: 1938 (workmen’s compensation).

Current law: 1985 (employment injury and occupational 

diseases).

Type of program: Employer-liability system.

Coverage

Employed persons and apprentices aged 16 to 60.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost. The cost of the program is equal 

to 1% of employees’ gross earnings.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. The disability must last at least 4 days.

Temporary Disability Benefits

The benefit is equal to 60% of average earnings in the last 

13 weeks and is paid until the disability ends, subject to a 

maximum of 26 weeks. For an insured person with less than 

13 weeks of covered earnings, the benefit is calculated on 

the basis of average earnings for the total number of covered 

weeks, with a minimum number of 2 weeks used as the 

divisor.

Permanent Disability Benefits

Permanent disability benefit: The benefit is based on 60% 

of average earnings in the last 13 weeks and the assessed 

degree of disability. For an insured person with less than 

13 weeks of covered earnings, the benefit is calculated on 

the basis of average earnings for the total number of covered 

weeks, with a minimum number of 2 weeks used as the 

divisor.

There is no maximum period for which the benefit is 

payable.

Constant-attendance allowance: If the insured is assessed as 

100% disabled, the allowance is equal to 50% of the benefit. 

The allowance is suspended if the insured is hospitalized.

A lump sum is paid if the assessed degree of disability is 

greater than 1% but less than 30%.

Incapacity for work is assessed by a medical referee. 

Reviews of the assessed incapacity for work may be 

requested by the medical referee.

Workers’ Medical Benefits

Medical expenses are reimbursed up to a maximum of 

EC$5,000 for local and overseas treatment.

Survivor Benefits

Survivor pension: 50% of the deceased’s pension is paid to 

a fully or partially dependent widow(er) aged 50 or older.

The pension ceases if the surviving spouse remarries or 

cohabits.

Orphan’s pension: The pension is equal to 25% of the 

deceased’s pension (33% if a full orphan or disabled) for 

each of the fist two dependent children younger than age 18 

if unmarried and unemployed. If there are more than two 

orphans, the total pension amount is split equally among 

them.

The minimum monthly orphan’s pension is EC$50.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Funeral grant: A lump sum is paid to the person who meets 

the cost of the funeral. EC$2,000 is paid for the death of the 

insured; EC$1,680 for the death of a noninsured spouse; 

and EC$840 for the death of a dependent child younger than 

age 18 if unmarried and unemployed.

Administrative Organization

Ministry of Health and Social Security provides general 

supervision.

Governed by the Social Security Board, Dominica Social 

Security administers the program.
SSPTW: The Americas, 2007 ♦ 103

Dominican Republic

Dominican Republic

Exchange rate: US$1.00 equals 32.15 pesos.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1947.

Current laws: 2001 (social security), implemented in 2003; 

and 2002 (pensions regulation).

Type of program: Mandatory individual account and social 

assistance system.

Note: The 2001 law is being implemented in stages. A 

system of individual accounts for public- and private-sector 

workers began in June 2003. Subsidized individual accounts 

for self-employed people are yet to be implemented. The 

old social insurance system, which covers current pensioners and public-sector employees who opt not to join the new 

system, is being phased out.

Coverage

Mandatory individual account: All public- and privatesector workers, employers, and Dominican citizens living 

abroad. During the transition, mandatory coverage for all 

private-sector workers younger than age 45 in 2003 and 

voluntary coverage for workers aged 45 or older in 2003 

and current public-sector employees.

Exclusions: Self-employed persons.

Mandatory individual account (subsidized): Selfemployed persons with income above the minimum wage.

Exclusions: Self-employed persons with income below the 

minimum wage.

Social assistance: Severely disabled, indigent, unemployed, or self-employed persons with income below the 

minimum wage.

Source of Funds

Mandatory individual account

Insured person: 2.87% of covered earnings, plus a fixed 1% 

of covered earnings for disability and survivor insurance.

In addition, 0.5% of covered earnings for administrative 

fees for the pension fund management companies (AFPs) 

and 0.07% of covered earnings for operating costs for the 

Superintendent of Pensions, the supervisory organization.

The minimum earnings for contribution purposes are equal 

to the minimum wage.

The maximum earnings for contribution purposes are equal 

to 20 times the minimum wage.

Self-employed person: None.

Employer: 7.10% of covered payroll; includes 0.4% of covered payroll to finance minimum pensions (Social Solidarity 

Fund).

The minimum earnings for contribution purposes are equal 

to the minimum wage.

The maximum earnings for contribution purposes are equal 

to 20 times the minimum wage.

Government: Finances the subsidized mandatory individual 

account and guarantees the minimum pension.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Old-age pension (mandatory individual account): Age 60 

with at least 30 years of contributions; age 55 if the individual account balance is sufficient to finance a pension equal 

to the minimum pension.

Pensioners are not required to cease gainful activity.

Early pension: Aged 57 or older, unemployed, and with 

at least 300 months of contributions; with less than 

300 months, the insured can receive a pension based on the 

accumulated funds or continue contributing until reaching 

300 months.

The pension is not payable abroad.

Old-age pension (subsidized mandatory individual 

account): Age 65 with at least 25 years of contributions.

The pension is not payable abroad.

Social assistance old-age pension (income-tested):

Age 60 and indigent.

Disability pension (mandatory individual account): The 

insured has a chronic illness or injury (nonwork- or workrelated) and has exhausted entitlement to sickness benefits 

or work injury benefits. A total disability is defined as a loss 

of at least 2/3 of earning capacity; partial disability, between 

1/2 and 2/3 loss of earning capacity.

The insured’s degree of disability is assessed by a regional 

medical committee. The national medical committee may 

revise, validate, or reject the decision of a regional medical 

committee. 

The pension is not payable abroad.

Social assistance disability pension (income-tested):

Paid at any age if assessed as severely disabled and indigent.

Survivor pension (mandatory individual account): The 

deceased was insured or a pensioner at the time of death.
104 ♦ SSPTW: The Americas, 2007

Dominican Republic

Eligible survivors are a widow(er) or partner and unmarried 

children younger than age 18 (up to age 21 if a full-time 

student, no limit if disabled).

The pension is not payable abroad.

Social assistance survivor pension (income-tested):

Payable to indigent survivors.

Eligible survivors are a widow(er) or partner and unmarried 

children younger than age 18 (age 21 if a full-time student, 

no limit if disabled).

Old-Age Benefits

Old-age pension (mandatory individual account): The 

pension is based on the value of the accumulated capital 

plus accrued interest. The accumulated capital can be used 

to purchase a price-indexed annuity or to make programmed 

withdrawals. (The value of accrued rights under the old 

system is combined with the individual account balance.)

Early pension: The minimum old-age pension is paid until 

age 60. The maximum early pension is equal to the insured’s 

final salary.

The minimum old-age pension is equal to the lowest legal 

minimum wage.

There is no maximum old-age pension.

Benefit adjustment: Benefits are adjusted according to 

changes in the minimum public-sector wage.

Old-age pension (subsidized mandatory individual 

account): The pension is based on the value of the accumulated capital plus accrued interest. The accumulated capital 

can be used to purchase a price-indexed annuity or to make 

programmed withdrawals.

The minimum old-age pension (subsidized) is equal to 70% 

of the private-sector minimum wage.

Benefit adjustment: Benefits are adjusted according to 

changes in the consumer price index.

Social assistance old-age pension: The pension is equal 

to 60% of the minimum public-sector wage (plus a Christmas bonus).

Benefit adjustment: Benefits are adjusted according to 

changes in the consumer price index.

Permanent Disability Benefits

Disability pension (mandatory individual account): For a 

total disability, the pension is equal to 60% of the insured’s 

indexed average earnings in the 3 years immediately before 

the disability began. The disability pension ceases at the 

normal pensionable age and the old-age pension is paid. 

(Disability insurance tops-up the accumulated capital in the 

individual account if the balance is less than the required 

minimum to finance the permanent disability pension.)

Partial disability: The pension is equal to 30% of the 

insured’s indexed average earnings in the 3 years immediately before the disability began.

There is no minimum disability pension.

There is no maximum disability pension.

Benefit adjustment: Benefits are adjusted according to 

changes in the consumer price index.

Social assistance disability pension: The pension is equal 

to 60% of the minimum public-sector wage (plus a Christmas bonus).

Benefit adjustment: Benefits are adjusted according to 

changes in the consumer price index.

Survivor Benefits

Survivor pension (mandatory individual account): The 

pension is equal to 60% of the deceased’s indexed average 

earnings in the previous 3 years. (Life insurance tops-up the 

accumulated capital in the deceased’s individual account if 

the balance is less than the required minimum to finance the 

survivor pension.)

A spouse older than age 55 receives the pension for life; 

a spouse between ages 50 and 55 receives a pension for 

6 years only (5 years if younger than age 50).

If there are orphans younger than age 18 (up to age 21 if a 

full-time student, no limit if disabled), the pension is split 

between the spouse and the orphans.

There is no minimum survivor pension.

Benefit adjustment: Benefits are adjusted according to 

changes in the consumer price index.

Social assistance survivor pension: The pension is equal 

to 60% of the minimum public-sector wage (plus a Christmas bonus).

Benefit adjustment: Benefits are adjusted according to 

changes in the consumer price index.

Administrative Organization

National Social Security Board (CNSS) (http://www.cnss.

gov.do) provides overall governance of the social security 

system.

Mandatory individual account: Superintendent of Pensions (SIPEN) (http://www.sipen.gov.do) provides general 

supervision.

Individual pension fund management companies (AFPs) 

administer the individual accounts.

Sickness and Maternity

Regulatory Framework

First law: 1947.
SSPTW: The Americas, 2007 ♦ 105

Dominican Republic

Current laws: 1948 (social insurance), implemented in 

1949, with 1966 and 1988 amendments; and 2001 (social 

security), implemented in 2003.

Type of program: Social insurance (cash benefits) and universal (medical benefits) system.

Coverage

Cash and medical benefits (nonsubsidized): Employed 

persons and their spouses or partners, the insured’s children 

up to age 21 if a full-time student (no limit if disabled), and 

pensioners.

Cash and medical benefits (subsidized): Pensioners 

receiving subsidized benefits and self-employed persons and 

home workers and their dependents.

Source of Funds

Insured person: 2.86% of covered earnings. (To be raised 

gradually to 3% of covered earnings by 2008.)

There are no minimum earnings for contribution purposes.

The maximum earnings for contribution purposes are equal 

to 10 times the minimum wage.

Self-employed person: Part of the cost for the subsidized 

program.

Employer: 6.67% of covered payroll. (To be raised gradually to 7% of covered payroll by 2008.)

There are no minimum earnings for contribution purposes.

The maximum earnings for contribution purposes are equal 

to 10 times the minimum wage.

Government: The total cost of social assistance and part of 

the cost for the subsidized program and the pediatric health 

care program.

Qualifying Conditions

Cash sickness benefits (nonsubsidized): The insured 

must have at least 12 months of contributions or be a 

pensioner.

Cash maternity benefits (nonsubsidized): The insured 

must have at least 8 months of contributions in the 

12 months before childbirth or have been without paid work 

in the 12 months before childbirth.

Medical benefits

Basic health plan: Resides in Dominican Republic.

Pediatric health care: Resides in Dominican Republic.

Sickness and Maternity Benefits

Sickness benefit (nonsubsidized): The benefit is equal 

to 60% of earnings in the last 6 months (40% if hospitalized) and is payable after a 3-day waiting period, for up to 

26 weeks.

Maternity benefit (nonsubsidized): The total benefit is 

equal to 3 months’ insured earnings and is payable for 

6 weeks before and 6 weeks after the expected date of 

childbirth.

Nursing allowance: If the insured’s salary is less than three 

times the minimum national wage, an allowance is paid for 

up to 12 months after the child’s birth.

Workers’ Medical Benefits

Benefits under the basic health plan include preventive, 

inpatient and outpatient, pediatric, and specialist care; medicines; and prostheses for disabled persons, according to the 

schedule in law.

Cost sharing: The insured is reimbursed for 70% of the cost 

of some medicines.

Social assistance beneficiaries receive basic medicines free 

of charge.

Dependents’ Medical Benefits

Benefits under the basic health plan include preventive, 

inpatient and outpatient, pediatric, and specialist care; 

medicines; dental treatment for children; and prostheses for 

disabled persons, according to the schedule in law.

Pediatric health care: Provided from the 45th day after birth 

until age 5. Benefits include nutrition, pediatric care, and 

child development programs.

Administrative Organization

National Health Insurance (http://www.senasa.gov.do) and 

Health Risk Management Companies administer the basic 

health plan.

Health Risk Management Companies may be private, public, or mixed entities.

Superintendent of Health and Labor Risks (http://www.

sisalril.gov.do) supervises the National Health Insurance and 

Health Risk Management Companies.

Superintendent of Health and Labor Risks supervises the 

pediatric health care program.

Social Insurance Institute (IDSS) (http://www.idss.org.do) 

administers pediatric health care.

Work Injury

Regulatory Framework

First law: 1932.

Current law: 2001 (social security).

Type of program: Social insurance system.

Coverage

All insured workers.
106 ♦ SSPTW: The Americas, 2007

Dominican Republic

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost is met through contributions that 

vary according to the assessed degree of risk. The average 

contribution is 1.2% of covered payroll.

There are no minimum earnings for contribution purposes.

The maximum earnings for contribution purposes are equal 

to 10 times the minimum average national wage.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The labor law requires that cash benefits are provided for 

temporary disability.

Permanent Disability Benefits

Permanent disability pension: Benefits are provided 

according to four degrees of assessed disability.

Severe total disability (totally disabled and in need of 

constant attendance),

Permanent total disability (unable to perform any 

occupation),

Permanent total disability for usual occupation (unable 

to perform usual occupation), and

Permanent partial disability for current occupation (the 

loss of at least 50% of earning capacity).

All benefits are calculated using the base salary. The base 

salary is equal to the insured’s average covered earnings 

in the 6 months before the onset of injury or occupational 

disease. For insured workers with less than 6 months of 

covered earnings, the base salary is 50% of total covered 

earnings.

•

•

•

•

For a severe total disability, a monthly pension is paid equal 

to 100% of the base salary. For an assessed degree of disability of at least 67%, a monthly pension is paid equal to 

70% of the base salary. For an assessed degree of disability 

of more than 50% and up to 67%, a monthly pension is paid 

equal to 50% of the base salary. For an assessed degree of 

disability of more than 15% and up to 50%, a lump sum is 

paid equal to between 5 and 10 times the base salary.

Workers’ Medical Benefits

Medical benefits are the same as provided under the basic 

health plan. Benefits include general, specialist, and surgical 

care; hospitalization; medicines; and prostheses.

Survivor Benefits

Survivor pension: 50% of the deceased’s pension is paid to 

a widow(er) aged 45 or older or disabled.

The pension ceases on remarriage, and a lump sum equal to 

2 years’ pension is paid.

A widow(er) younger than age 45 receives a lump sum 

equal to 2 years’ pension.

Orphan’s pension: 20% of the deceased’s pension is paid 

to each orphan younger than age 18 (age 21 if a full-time 

student, no limit if disabled).

Administrative Organization

Superintendent of Health and Labor Risks (http://www.sisalril.gov.do) supervises, monitors, and controls the program.

Family Allowances

Regulatory Framework

Benefits are payable to unemployed single mothers with 

unmarried children younger than age 18 (age 21 if a fulltime student, no limit if disabled) who are without sufficient resources to meet basic needs. (The social assistance 

benefits are provided under the Old Age, Disability, and 

Survivors program).
SSPTW: The Americas, 2007 ♦ 107

Ecuador

Ecuador

Exchange rate: Uses the US dollar (US$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1928.

Current law: 2001 (social security).

Type of program: Social insurance and social assistance 

system.

Note: The provision under the 2001 law to create a system 

of individual accounts to complement the social insurance 

old-age pension program was not implemented.

A government-financed program provides basic social assistance cash benefits to needy persons aged 65 or older and 

persons aged 18 to 65 assessed as at least 70% disabled.

Coverage

Social insurance: Employees in industry, commerce, and 

agriculture; government employees; domestic workers; and 

self-employed persons.

Voluntary coverage for the President and Vice-President of 

the Republic, government ministers, and persons not mandatorily covered.

Special systems for small farmers, builders, and armed 

forces and police personnel.

Social assistance: Needy elderly and disabled persons.

Source of Funds

Insured person: 6.64% and 8.64% of gross earnings for 

private- and public-sector employees, respectively; 9.74% 

of gross earnings for voluntary contributors.

The minimum earnings for contribution purposes are equal 

to the legal minimum wage (US$170 a month). The legal 

minimum wage varies according to the nature of employment or work.

There are no maximum earnings for contribution purposes.

The insured’s contributions also finance sickness and 

maternity benefits, work injury benefits, and unemployment 

benefits (individual severance account).

Self-employed person: 6.64% of gross declared earnings.

The minimum earnings for contribution purposes are equal 

to the legal minimum wage (US$170 a month). The legal 

minimum wage varies according to the nature of employment or work.

There are no maximum earnings for contribution purposes.

The self-employed person’s contributions also finance sickness and maternity benefits and work injury benefits.

Employer: 3.10% and 1.10% of gross payroll for privateand public-sector employees, respectively.

The minimum earnings for contribution purposes are equal 

to the legal minimum wage (US$170 a month). The legal 

minimum wage varies according to the nature of employment or work.

There are no maximum earnings for contribution purposes.

The employer’s contributions also finance unemployment 

benefits (individual severance account).

Government: Finances 40% of the cost of social insurance 

pensions; the total cost of social assistance pensions; contributes as an employer; 

Qualifying Conditions

Social Insurance

Old-age pension: Paid at any age with at least 480 months of 

contributions; age 60 with at least 360 months of contributions; age 65 with at least 180 months of contributions; or 

age 70 with at least 120 months of contributions.

Disability pension: The insured must have at least 60 months 

of contributions including the 6 months before the disability 

began and an assessed loss of more than 50% of earning 

capacity; 120 months of contributions and not be in receipt 

of an old-age pension if the disability began within 2 years 

after the termination of employment.

Survivor pension: The deceased had at least 60 months of 

contributions or was a pensioner at the time of death.

Eligible survivors include a widow(er), a partner who 

had children with the deceased or who cohabited with the 

deceased for at least 2 years before his or her death, dependent children younger than age 18 (no limit if disabled), and 

a dependent mother and father.

Funeral grant: The deceased had at least 6 months of contributions in the last 12 months or was a pensioner.

Social assistance

Noncontributory old-age pension (means-tested): Age 70 

and not eligible to receive a social insurance old-age 

pension.

Noncontributory disability pension (means-tested): Must 

be assessed as disabled and not eligible to receive a social 

insurance disability pension.

Old-Age Benefits

Social insurance

Old-age pension: The monthly pension is equal to a percentage of the insured’s average monthly earnings in the 

5 best years of earnings. The percentage varies according 

to the total number of years of contributions from 50% for 
108 ♦ SSPTW: The Americas, 2007

Ecuador

10 years up to 100% for 40 years. The percentage amount is 

increased by 1.25% for each year of contributions exceeding 

40 years.

The maximum monthly pension is US$810.

Employed old-age pensioners may combine pension 

income with earnings (except if the employer in the first 

year of retirement was the pensioner’s last employer before 

retirement).

Schedule of payment: Fourteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to budget resources.

Social assistance

Noncontributory old-age pension: The monthly pension is 

equal to the difference between the legal monthly minimum 

wage and the beneficiary’s monthly earnings.

Permanent Disability Benefits

Social insurance

Disability pension: The monthly pension is equal to a percentage of the insured’s average monthly earnings in the 

5 best years of earnings. The percentage varies according 

to the total number of years of contributions from 50% for 

10 years up to 100% for 40 years. The percentage amount is 

increased by 1.25% for each year of contributions exceeding 

40 years.

The maximum monthly pension is US$810.

Schedule of payment: Fourteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to budget resources.

Social assistance

Noncontributory disability pension: The monthly pension is 

equal to the difference between the legal monthly minimum 

wage and the beneficiary’s monthly earnings.

Survivor Benefits

Social insurance

Survivor pension: 40% of the deceased’s pension is paid to a 

widow(er) or partner.

The pension ceases on remarriage.

Orphan’s pension: Each orphan younger than age 18 (no 

limit if disabled) receives 20% of the deceased’s pension; 

40% for a full orphan.

Other dependent’s pension: A mother or father receives 20% 

of the deceased’s pension.

The minimum survivor pension is equal to the legal minimum wage, plus income support for a family group.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension for a family group.

Funeral grant: Up to US$450 is paid.

Administrative Organization

Social Security Institute (http://www.iess.gov.ec), through 

its Directive Council, regulates and administers the 

program.

Ministry of Social and Economic Inclusion (http://www.

mbs.gov.ec) is responsible for the social assistance program.

Sickness and Maternity

Regulatory Framework

First law: 1935.

Current law: 2001 (social security).

Type of program: Social insurance system.

Coverage

Employees in industry, commerce, and agriculture; government employees; domestic workers; self-employed persons; 

and beneficiaries of old-age, disability, survivor, or work 

injury benefits.

Voluntary coverage for persons not mandatorily covered.

Source of Funds

Insured person: See source of funds under Old Age, 

Disability, and Survivors, above; beneficiaries of survivor 

pensions contribute 4.15% of the pension; voluntary contributors, 5.71% of gross earnings.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: 5.71% of payroll.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

6 months of contributions before the date the incapacity 

began.

Cash maternity benefits: The insured must have at least 

360 days of contributions in the year before giving birth or 

at least 378 days of contributions in the 16 months before 

giving birth. Prenatal care is provided with at least 6 months 

of contributions.

Medical benefits: The insured must have at least 180 days 

of consecutive contributions in the 6 months before the 

illness began or at least 189 days of contributions in the 

8 months before the illness began. The voluntarily insured 

must have at least 360 days of consecutive contributions in 

the 12 months before the illness began or at least 378 days 

of contributions in the 16 months before the illness began. 
SSPTW: The Americas, 2007 ♦ 109

Ecuador

Coverage continues for 60 days after the insured ceases to 

pay contributions.

Sickness and Maternity Benefits

Sickness benefit: For the first 10 weeks, the benefit is equal 

to 75% of the insured’s average earnings in the 3 months 

before the incapacity began. The benefit is paid after a 4-day 

waiting period for up to 70 days; thereafter, 66% of earnings 

for up to a maximum of 182 days.

Maternity benefit: The benefit is equal to 75% of the 

insured’s last earnings and is paid 2 weeks before and 

10 weeks after the expected date of childbirth. (The 

employer pays 25% of the insured’s last earnings for the 

same period.)

Workers’ Medical Benefits

Medical services are ordinarily provided directly to patients 

through the medical facilities of the Social Security Institute. Medical care in private clinics is possible under certain 

conditions. A refund for the cost of medical care provided 

through medical facilities not belonging to the Social Security Institute is possible in certain cases. Benefits include 

general and specialist care, home care, surgery, hospitalization, medicines, appliances, rehabilitation, laboratory 

services, and dental care.

Dependents’ Medical Benefits

Full medical care is provided for infants during their first 

year.

Administrative Organization

Social Security Institute (http://www.iess.gov.ec), through 

its Directive Council, regulates and administers the 

program.

Social Security Institute (http://www.iess.gov.ec) operates 

its own clinics, dispensaries, and hospitals.

Work Injury

Regulatory Framework

First law: 1921.

Current law: 2001 (social security).

Type of program: Social insurance system.

Coverage

Employees in industry, commerce, and agriculture; government employees; domestic workers; and self-employed 

persons.

Voluntary coverage for persons not mandatorily covered.

Exclusions: Small farmers.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above; voluntary contributors, 0.55% 

of gross earnings.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: 0.55% of payroll.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Occupational disease benefits: The insured must have at 

least 6 months of contributions; 12 months for voluntary 

contributors.

Temporary Disability Benefits

For the first 10 weeks, the benefit is equal to 75% of average earnings in the 10 weeks before the disability began; 

thereafter, 66% of average earnings until the end of the 

12th month. If the disability lasts for more than a year, the 

benefit is increased to 80% of average earnings. Benefits are 

paid from the day after the disability began for a work injury 

and after a three-day waiting period for an occupational 

disease.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to 

80% of average earnings (100% if constant attendance is 

required) in the last year or in the previous 5 years if earnings were higher.

Partial disability: A percentage of the full pension is paid 

according to the assessed degree of disability, based on the 

schedule in law.

Schedule of payments: Fifteen payments a year.

Benefit adjustment: Benefits are adjusted annually according 

to budget resources.

Workers’ Medical Benefits

Benefits include medical and surgical care, hospitalization, 

appliances, medicines, and rehabilitation.

Survivor Benefits

Survivor pension: 40% of the deceased’s pension is paid to 

a widow(er) or partner.

The pension ceases on remarriage.

Orphan’s pension: Each orphan younger than age 18 (no 

limit if disabled) receives 20% of the deceased’s pension; 

40% for a full orphan.
110 ♦ SSPTW: The Americas, 2007

Ecuador

Other dependent’s pension: A mother or father receives 

20% of the deceased’s pension.

The minimum survivor pension is equal to the legal minimum wage, plus income support for a family group.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension for a family group.

Funeral grant: Up to US$450 is paid.

Administrative Organization

Social Security Institute (http://www.iess.gov.ec), through 

its Directive Council, regulates and administers the 

program.

Unemployment

Regulatory Framework

First law: 1951.

Current laws: 1958 and 2001 (social security).

Type of program: Individual severance account and social 

insurance system.

Note: In 2001, a system of individual severance accounts 

was introduced. Participation is mandatory for workers 

younger than age 40 when the program was implemented. 

The previous social insurance system providing lump-sum 

benefits is being phased out.

Coverage

Individual severance account: Employees in the private 

and public sectors.

Social insurance: Employees in the private and public 

sectors.

Exclusions: Volunteer workers.

Source of Funds

Individual severance account

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, 

and Survivors, above.

Social insurance

Insured person: 2% of earnings.

Self-employed person: Not applicable.

Employer: 1% of payroll.

Government: None; contributes as an employer.

Qualifying Conditions

Unemployment benefits

Individual severance account: The insured must be involuntarily unemployed with at least 48 months of contributions.

Social insurance: The insured must have at least 60 months 

of contributions. The benefit is paid after 90 days of unemployment or if unemployment is the result of a permanent 

disability.

Unemployment Benefits

Individual severance account: A lump sum is paid equal to 

three times the insured’s average wage in the last 12 months. 

(The total accumulated capital can be drawn down if the 

insured retires or is assessed as disabled, or by survivors in 

the event of the insured’s death.)

The maximum benefit is equal to the accumulated capital in 

the individual account, plus interest.

Benefit adjustment: Benefit amounts are fixed annually.

Unemployment benefit (social insurance): A lump sum is 

paid equal to three times the insured’s average wage in the 

last 12 months.

Survivor benefit (social insurance): A lump sum is paid 

to a widow, a disabled widower, and children younger than 

age 21. In the absence of a spouse and children, certain 

other surviving relatives of an insured person born before 

November 30, 1961, may be eligible.

Benefit adjustment: Benefit amounts are fixed annually.

Administrative Organization

Individual severance account: Individual savings management institutions (EDAPs) manage the accounts.

Banking Superintendent (http://www.superban.gov.ec) 

supervises the EDAPs.

Social insurance: Under the direction of the Ministry of 

Social and Economic Inclusion (http://www.mbs.gov.ec), 

the Advisory Council provides general supervision.

Social Security Institute (http://www.iess.gov.ec) administers the program.

Family Allowances

Regulatory Framework

No statutory benefits are provided.

Mothers assessed as needy with at least one child (younger 

than age 18) and low-income families receive a monthly 

allowance under the Bono de Desarrollo Humano program.
SSPTW: The Americas, 2007 ♦ 111

El Salvador

El Salvador

Exchange rate: Uses the US dollar (US$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1953, implemented in 1969.

Current law: 1996 (individual account), implemented in 

1998.

Type of program: Mandatory individual account and social 

insurance system.

Note: A system of mandatory individual accounts was 

introduced in 1998. Workers entering the labor force after 

April 30, 1999, must join the new system. The social insurance system is being phased out.

Coverage

Mandatory individual account: All employees in the private and public sectors not covered under social insurance.

Voluntary coverage for self-employed persons, owners 

of small enterprises, and citizens of El Salvador residing 

abroad.

Social insurance: All insured persons who were older than 

age 55 (men) or age 50 (women) in 1998.

Voluntary coverage for those who were aged 36 or older in 

1998.

Source of Funds

Mandatory individual account

Insured person: 6.25% of covered earnings, plus up to a 

maximum of 1.28% of earnings for disability and survivor 

insurance and up to a maximum of 1.71% of earnings for 

administrative fees.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (US$174.30).

The maximum earnings for contribution purposes are equal 

to gross monthly earnings. Gross monthly earnings must not 

exceed the national public-sector maximum wage.

Self-employed person: A voluntary contribution of 13% of 

declared covered earnings, plus up to a maximum of 2.7% 

of declared covered earnings for disability and survivor 

insurance and for administrative fees.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (US$174.30).

The maximum earnings for contribution purposes are equal 

to gross monthly earnings. Gross monthly earnings must not 

exceed the national public-sector maximum wage.

Employer: 4.05% of covered payroll, plus up to a maximum 

of 2.7% of covered payroll for disability and survivor insurance and for administrative fees.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (US$174.30).

The maximum earnings for contribution purposes are equal 

to gross monthly earnings. Gross monthly earnings must not 

exceed the national public-sector maximum wage.

Government: Subsidizes the guaranteed minimum pension.

Social insurance

Insured person: 7% of earnings.

Self-employed person: Not applicable.

Employer: 7% of payroll.

Government: The government finances an indexed bond 

provided to individuals covered by the mandatory individual account system. (The bond represents the value of the 

insured’s contributions to the old social insurance system 

plus interest.)

Qualifying Conditions

Mandatory individual account

Old-age pension: Age 60 (men) or age 55 (women) with 

25 years of contributions. Retirement is permitted before the 

normal retirement age if the pension is at least equal to 60% 

of the base salary (average earnings in the last 120 months 

of contributions) and 160% of the current minimum 

pension.

Guaranteed minimum pension: Age 60 (men) or age 55 

(women) with 25 years of contributions. The pension (based 

on the value of the accumulated capital plus accrued interest) is less than the minimum pension set by law and the 

insured has no other income.

Disability pension: The insured was actively contributing to 

an individual account before the disability began and had 

at least 6 months of contributions in the 12 months before 

the disability began; unemployed persons whose disability 

began in the 12-month period following the last contribution 

and who had made at least 6 months of contributions in the 

12-month period before the last contribution.

The degree of loss in working capacity is assessed by the 

Disability Commission.

Guaranteed minimum pension: The insured had 10 years of 

contributions; 3 years of contributions in the 5 years before 

the disability began (resulting from a disease); the insured 

was actively contributing to an individual account before 

the disability began (as the result of an accident) and had 

at least 6 months of contributions in the 12 months before 
112 ♦ SSPTW: The Americas, 2007

El Salvador

the disability began. The pension (based on the value of the 

accumulated capital plus accrued interest) is less than the 

minimum pension set by law.

Constant-attendance supplement: Paid if the insured requires 

the constant attendance of another person.

Survivor pension: The insured was actively contributing to 

an individual account at the time of death and had at least 

6 months of contributions in the 12 months before death; 

unemployed persons who died in the 12-month period following the last contribution who had made at least 6 months 

of contributions in the 12-month period before the last 

contribution.

Eligible survivors are the deceased’s spouse or cohabiting 

partner, children younger than age 18 (age 24 if a student, 

no limit if disabled), and dependent parents.

Guaranteed minimum pension: The deceased had 10 years 

of contributions; 3 years of contributions in the 5 years 

before death; the insured was actively contributing to an 

individual account, had at least 6 months of contributions in 

the 12-month period before death, and his or her death was 

the result of an accident. The survivor pension (based on the 

value of the accumulated capital plus accrued interest) is 

less than the minimum pension set by law.

Social insurance

Old-age pension: Age 60 (men) or age 55 (women) with at 

least 25 years of contributions. There is no age requirement 

if the insured has at least 30 years of contributions.

Disability pension: The insured must be younger than age 60 

(men) or age 55 (women) and assessed as disabled with at 

least 36 months of contributions, including 18 months in the 

36 months before the disability began.

The degree of disability is assessed by the Disability 

Commission.

Survivor pension: The deceased was a pensioner or had at 

least 5 years of contributions; 10 years with no contributions 

in the last 12 months.

Old-Age Benefits

Mandatory individual account

Old-age pension: The pension is equal to the insured’s contributions plus accrued interest. At retirement, the insured 

may either make periodic withdrawals from the individual 

account to guarantee income for the duration of the expected 

lifespan or buy an annuity from a private insurance company, or use a combination of both. (The value of accrued 

rights under the social insurance system is combined with 

the individual account balance.)

Guaranteed minimum pension: US$119.70 a month.

Social insurance

Old-age pension: The pension is equal to 30% of the base 

salary for the first 3 years’ contributions, plus 1.5% for each 

additional year.

The base salary is equal to the insured’s average earnings in 

the last 120 months.

The minimum monthly pension is US$119.70.

The maximum monthly pension is equal to 100% of the 

base salary.

Permanent Disability Benefits

Mandatory individual account

Disability pension: If assessed with a total loss in working 

capacity (66% or more), the pension is equal to 70% of the 

base salary. (Disability insurance tops-up the accumulated 

capital in the individual account if the balance is less than 

the required minimum to finance the permanent disability 

pension.)

Constant-attendance supplement: Equal to 20% of the 

pension.

Partial disability: With an assessed loss in working capacity of 50% to 65%, the pension is equal to 50% of the base 

salary.

The base salary is equal to the insured’s average earnings in 

the last 120 months.

Guaranteed minimum pension: US$119.70 a month for a 

total disability; US$83.79 a month for a partial disability.

The minimum disability pension is replaced by the minimum old-age pension at the normal retirement age.

Social insurance

Disability pension: The pension is equal to 30% of the base 

salary for the first 3 years’ contributions, plus 1.5% for each 

additional year.

The base salary is equal to the insured’s average earnings in 

the last 120 months.

The minimum monthly pension is US$119.70.

The minimum disability pension is replaced by the minimum old-age pension at the normal retirement age.

Survivor Benefits

Mandatory individual account

Survivor pension: 50% of the deceased’s pension is paid 

to a spouse (or partner) with children; 60% if there are no 

eligible children. (Life insurance tops-up the accumulated 

capital in the deceased’s individual account if the balance 

is less than the required minimum to finance the survivor 

pension.)

Orphan’s pension: Each eligible child receives 25% of the 

deceased’s pension; 40% for full orphans.
SSPTW: The Americas, 2007 ♦ 113

El Salvador

Parent’s pension: Each parent receives 20% of the 

deceased’s pension; 30% if there is only one surviving parent; 80% if there are no other survivors.

Guaranteed minimum pension: US$119.70 a month.

The minimum survivor pension is a percentage of the minimum old-age pension.

All survivor benefits combined must not exceed 100% of the 

deceased’s old-age pension.

Social insurance

Survivor pension: 50% of the deceased’s pension is paid to a 

widow who was married to the insured for at least 6 months 

(or who is pregnant or had a child with the deceased) or is 

disabled, a female partner who cohabited with the deceased 

for the last 3 years (or who is pregnant or had a child with 

the deceased) or is disabled, or a disabled widower.

Orphan’s pension: Each eligible child receives 25% of the 

deceased’s pension; 40% for a full orphan.

Other eligible survivors (in the absence of the above): 30% 

of the deceased’s pension is paid to a mother aged 55 or 

older; 30% to a father aged 60 or older; 40% if there is only 

one surviving eligible parent.

The minimum survivor pension is a percentage of the minimum old-age pension.

All survivor benefits combined must not exceed 100% of the 

deceased’s old-age pension.

Administrative Organization

Mandatory individual account: Superintendent of Pensions (http://www.spensiones.gob.sv) provides general 

supervision.

Individual pension fund management companies (AFPs) 

administer individual accounts.

Social insurance: Superintendent of Pensions (http://www.

spensiones.gob.sv) provides general supervision.

Supervised by a board of 12 directors including the Minister 

of Labor, representatives of other ministries, the Director of 

Social Insurance, and representatives of management, labor, 

and other professional groups, the Social Insurance Institute 

plans, manages, and administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1949.

Current laws: 1953 and 1993.

Type of program: Social insurance system.

Coverage

Employed and self-employed persons in industry and commerce and pensioners.

Exclusions: Agricultural, domestic, and casual employees.

Source of Funds

Insured person: 3% of covered earnings. Pensioners contribute 7.8% of the old-age pension or disability pension and 

6% of work injury disability or survivor pension.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (US$174.30).

The maximum earnings for contribution purposes are 

US$685.71.

The insured’s contributions also finance work injury 

benefits.

Self-employed person: 10.5% of declared income.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (US$174.30).

The maximum earnings for contribution purposes are 

US$685.71.

The self-employed person’s contributions also finance work 

injury benefits.

Employer: 7.5% of covered payroll.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (US$174.30).

The maximum earnings for contribution purposes are 

US$685.71.

The employer’s contributions also finance work injury 

benefits.

Government: An annual subsidy.

The government subsidy also finances work injury benefits.

Qualifying Conditions

Cash sickness benefits: The insured is currently 

employed. There is no minimum qualifying period.

Cash maternity benefits: The insured must have at least 

12 weeks of contributions in the 12 months before the 

expected date of childbirth.

Medical benefits: There is no minimum qualifying period if 

the insured is currently employed; if unemployed, 8 weeks 

of contributions in the last 4 months.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 75% of average 

monthly earnings and is paid after a 3-day waiting period 

for up to 26 weeks for the same incapacity; may be extended 

up to 52 weeks.
114 ♦ SSPTW: The Americas, 2007

El Salvador

Maternity benefit: The benefit is equal to 75% of average earnings and is paid for up to 12 weeks; other benefits 

include a milk allowance for up to 12 weeks (with a medical 

prescription) and a layette (clothing and other necessities for 

the newborn).

Workers’ Medical Benefits

Benefits include complete medical and maternity care, hospitalization, medicines, auxiliary services for diagnosis and 

treatment, and dental care (except for cosmetic reasons).

Dependents’ Medical Benefits

The insured’s wife receives prenatal and postnatal care and 

in-kind benefits and medical and dental benefits. Children 

up to age 12 receive basic medical care.

Administrative Organization

Supervised by a board of 12 directors including the Minister 

of Labor, representatives of other ministries, the Director of 

Social Insurance, and representatives of management, labor, 

and other professional groups, the Social Insurance Institute 

plans, manages, and administers the program.

Social Insurance Institute operates its own clinics and hospitals and contracts services from the Ministry of Health and 

the private sector where required.

Work Injury

Regulatory Framework

First law: 1949.

Current laws: 1953 and 1993.

Type of program: Social insurance system.

Coverage

Public- and private-sector employees and self-employed 

persons in industry and commerce.

Exclusions: Domestic and casual employees, rural workers, 

and teachers.

Source of Funds

Insured person: See source of funds under Sickness and 

Maternity, above.

Self-employed person: See source of funds under Sickness 

and Maternity, above.

Employer: See source of funds under Sickness and Maternity, above.

Government: See source of funds under Sickness and 

Maternity, above.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 75% of the insured’s average 

monthly earnings in the first 3 of the last 4 months. The 

benefit is paid from the day after the disability began for up 

to 52 weeks.

Permanent Disability Benefits

Permanent disability pension: With an assessed degree of 

disability greater than 66%, the pension is equal to 70% of 

the insured’s average monthly earnings in the last year.

The minimum monthly pension is US$83.79.

Constant-attendance supplement: Up to 50% of the pension 

is paid.

Partial disability: If the assessed degree of disability is 

between 35% and 66%, a percentage of the full pension is 

paid according to the assessed degree of disability. If the 

assessed degree of disability is between 20% and 34%, a 

pension equal to double the amount of the permanent disability pension based on the assessed degree of disability is 

paid for a limited period of up to 3 years.

Workers’ Medical Benefits

Benefits include complete medical care, hospitalization, 

drugs, auxiliary services for diagnosis and treatment, and 

dental care.

Survivor Benefits

Survivor pension: 60% of the deceased’s pension is paid to 

a spouse.

Orphan’s pension: Each child receives 30% of the 

deceased’s pension.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Funeral grant: Equal to twice the deceased’s average 

monthly salary.

Administrative Organization

Supervised by a board of 12 directors including the Minister 

of Labor, representatives of other ministries, the Director of 

Social Insurance, and representatives of management, labor, 

and other professional groups, the Social Insurance Institute 

plans, manages, and administers the program.

Social Insurance Institute operates its own clinics and 

hospitals.
SSPTW: The Americas, 2007 ♦ 115

Grenada

Grenada

Exchange rate: US$1.00 equals

2.70 East Caribbean dollars (EC$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1969 (provident fund).

Current law: 1983 (social insurance), with 1988 

amendments.

Type of program: Social insurance system.

Coverage

All private- and public-sector employees and self-employed 

persons aged 16 to 59.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: 4% of covered earnings.

There are no minimum earnings for contribution purposes.

The maximum monthly earnings for contribution purposes 

are EC$3,000.

The insured’s contributions also finance sickness benefits, 

maternity benefits, and work injury benefits.

Self-employed person: 9% of monthly covered earnings.

There are no minimum earnings for contribution purposes.

The maximum monthly earnings for contribution purposes 

are EC$3,000.

The self-employed person’s contributions also finance sickness benefits, maternity benefits, and work injury benefits.

Employer: 5% of covered payroll.

There are no minimum earnings for contribution purposes.

The maximum monthly earnings for contribution purposes 

are EC$3,000.

The employer’s contributions also finance sickness benefits, 

maternity benefits, and work injury benefits.

Government: None; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 60 with at least 500 weeks of coverage, including at least 150 weeks of paid contributions.

Partial pension: Age 60 with at least 260 weeks of coverage, 

including at least 150 weeks of paid contributions.

Early pension: There is no early pension.

Deferred pension: There is no deferred pension.

Old-age grant: Age 60 with at least 50 weeks of paid or 

credited contributions, but does not meet the qualifying 

conditions for the old-age pension.

Old-age benefits are payable abroad.

Disability pension: Younger than age 60 with at least 

150 weeks of paid contributions and an assessed degree of 

disability of at least 30%.

The degree of disability is assessed by the insured’s doctor 

only once.

Disability grant: Younger than age 60 with an assessed 

degree of disability of less than 30%. There are no qualifying conditions for contributions.

The degree of disability is assessed by a doctor only once.

Disability benefits are payable abroad.

Survivor pension: The deceased was a pensioner or was 

eligible for a pension at the time of death.

Survivor grant: The deceased was eligible for an old-age 

grant or a disability grant at the time of death.

Eligible survivors are a widow(er) aged 50 or older who 

was married to the deceased for at least 3 years, children 

younger than age 16 (age 18 if a full-time student), and 

dependent parents.

Survivor benefits are payable abroad.

Funeral grant: The grant is paid for the funeral of the 

insured, the insured’s spouse, and the insured’s children.

Old-Age Benefits

Old-age pension: The pension is equal to 30% of average 

weekly earnings, plus 1% of earnings for each 50-week 

period of contributions exceeding 500 weeks. (If an insured 

person who satisfies the qualifying conditions fails to apply 

for the old-age pension until after age 60, he or she may 

receive up to a maximum of 5 years’ pension for any retroactive payments due since age 60; thereafter, the old-age 

pension is paid.)

The minimum weekly pension is EC$46.40.

The maximum weekly pension is EC$311.50.

Partial pension: The pension is equal to 16% of average 

weekly earnings, plus 1% of average weekly earnings for 

each 25-week period of contributions exceeding 150 weeks 

up to a maximum of 499 weeks.

Average weekly earnings are based on average annual earnings in the best 4 years divided by 52. (Beginning 2008, 

average weekly earnings will be based on average annual 

earnings in the best 5 years divided by 52.)

Early pension: There is no early pension.

Deferred pension: There is no deferred pension.
116 ♦ SSPTW: The Americas, 2007

Grenada

Old-age grant: A lump sum is paid equal to five times average weekly covered earnings for each 50-week period of 

contributions.

Average weekly covered earnings are based on the sum 

of weekly earnings for the relevant period divided by the 

number of weeks.

Benefit adjustment: Benefits are reviewed periodically.

Permanent Disability Benefits

Disability pension: The pension is equal to 30% of average 

weekly earnings, plus 1% of average weekly earnings for 

each 50-week period of contributions exceeding 500 weeks.

Average weekly earnings are based on average annual earnings in the best 4 years divided by 52. (Beginning 2008, 

average weekly earnings will be based on average annual 

earnings in the best 5 years divided by 52.)

The minimum weekly pension is EC$46.40.

The maximum weekly pension is equal to 60% of average 

earnings.

Disability grant: A lump sum equal to five times average 

weekly covered earnings is paid for each 50-week period of 

contributions.

Average weekly covered earnings are based on the sum 

of weekly earnings for the relevant period divided by the 

number of weeks.

Benefit adjustment: Benefits are reviewed periodically.

Survivor Benefits

Survivor pension: The widow(er) receives 75% of the 

deceased’s pension. A limited pension is paid for a year to a 

widow(er) who is younger than age 50.

If the surviving spouse is eligible for an old-age pension and 

a survivor pension, he or she will receive 100% of the oldage pension plus 50% of the survivor pension.

Orphan’s pension: 25% of the deceased’s pension is paid 

for each eligible child; 50% if the child is disabled or a full 

orphan.

The minimum weekly orphan’s pension is EC$9.90; 

EC$19.90 if the child is disabled or a full orphan.

Parent’s pension: Up to 25% of the deceased’s pension 

is paid for a dependent parent if the combined value of the 

spouse pension and orphan’s pension does not exceed 100% 

of the deceased’s pension.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Survivor grant: A lump sum is paid equal to five times 

average weekly covered earnings for each 50-week period 

of contributions.

Average weekly covered earnings are based on the sum of 

the weekly earnings for the relevant period divided by the 

number of weeks.

Funeral grant: A lump sum is paid to the person who meets 

the cost of the funeral. EC$2,320 is paid for the insured’s 

funeral; EC$1,740 for the funeral of the insured’s spouse; 

and EC$870 for the funeral of the insured’s child.

Benefit adjustment: Benefits are reviewed periodically.

Administrative Organization

Ministry of Health, Social Security, the Environment, and 

Ecclesiastical Relations provides general supervision.

National Insurance Board (http://www.nisgrenada.org) 

administers the program.

Sickness and Maternity

Regulatory Framework

First and current laws: 1980 (maternity leave); and 1983 

(social insurance), with 1988 amendments.

Type of program: Social insurance system. Cash benefits 

only.

Coverage

All private- and public-sector employees and self-employed 

persons aged 16 to 59.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness benefits: The insured must have been 

employed on the day before the incapacity began and 

have at least 13 weeks of contributions, including 8 of the 

13 weeks before the incapacity began.

Cash maternity benefits: The insured must have at least 

30 weeks of contributions, including 20 weeks in the 30-

week period ending 6 weeks before the expected date of 

childbirth.

Maternity leave: Provided by employers to insured 

employees.
SSPTW: The Americas, 2007 ♦ 117

Grenada

Maternity grant: The grant is paid to the uninsured wife of 

an insured man.

Funeral grant: The grant is paid for the funeral of the 

insured, the insured’s spouse, and the insured’s children.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 65% of average 

weekly covered earnings. The benefit is paid from the first 

day of incapacity for up to 26 weeks; for up to 52 weeks 

with at least 75 weeks of paid or credited contributions in 

the last 3 years.

Average weekly covered earnings are equal to the sum of 

weekly covered earnings in the 13 weeks before the week 

the incapacity began divided by the number of weeks 

worked for which contributions were paid.

Maternity benefit: The benefit is equal to 65% of average 

weekly covered earnings in the 30 weeks before the start of 

the claim. The benefit is paid for a maximum of 12 weeks, 

beginning 6 weeks before the expected date of childbirth 

and up to 6 weeks after.

The minimum maternity benefit is EC$522.

Maternity leave: The employer provides an additional 40% 

of average covered earnings for 2 months of the 3-month 

maternity leave period.

Maternity grant: The minimum grant is EC$522.

Funeral grant: A lump sum is paid to the person who meets 

the cost of the funeral. EC$2,320 is paid for the insured’s 

funeral; EC$1,740 for the funeral of the insured’s spouse; 

and EC$870 for the funeral of the insured’s child.

Benefit adjustment: Benefits are reviewed periodically.

Workers’ Medical Benefits

No statutory benefits are provided.

Dependents’ Medical Benefits

No statutory benefits are provided.

Administrative Organization

Ministry of Health, Social Security, the Environment, and 

Ecclesiastical Relations provides general supervision.

National Insurance Board (http://www.nisgrenada.org) 

administers the program.

Work Injury

Regulatory Framework

First and current laws: 1982 (workmen’s compensation), 

with 1982 amendment; and 1983 (social insurance), with 

1998 amendment.

Type of program: Social insurance system.

Coverage

All private- and public-sector employees, including children 

younger than age 16 in holiday jobs and workers aged 60 or 

older.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: None.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: 1% of the total 5% of covered payroll paid under 

Old Age, Disability, and Survivors, above.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 70% of average weekly covered earnings in the last 13 weeks. The benefit is paid from the day 

of the accident or certified onset of the occupational disease 

until recovery, up to a maximum of 26 weeks.

The degree of disability is assessed by the insured’s doctor 

only once.

Benefit adjustment: Benefits are reviewed periodically.

Permanent Disability Benefits

Permanent disability benefit: If the insured is assessed 

as 100% disabled, the benefit is equal to 70% of average weekly covered earnings in the last 13 weeks. For an 

assessed degree of disability of less than 100%, the benefit 

is proportionately reduced. The degree of assessed disability 

must be greater than 1%.

There is no maximum period for which the benefit is 

payable.

Constant-attendance allowance: If the insured is assessed as 

100% disabled, the allowance is equal to 50% of the benefit.

A lump sum is paid if the assessed degree of disability is 

greater than 1% but less than 30%.

The degree of disability is assessed by the insured’s doctor 

only once.

Benefit adjustment: Benefits are reviewed periodically.

Workers’ Medical Benefits

Benefits include medical, surgical, dental, and hospital treatment; skilled nursing services; the cost of medicines; prostheses; overseas treatment; and the cost of transportation.
118 ♦ SSPTW: The Americas, 2007

Grenada

Survivor Benefits

Survivor pension: 75% of the deceased’s pension is paid to 

a widow(er) for life.

The pension ceases on remarriage.

Orphan’s pension: Each child younger than age 16 (age 18 

if a full-time student) receives 25% of the deceased’s pension; 50% each if disabled or a full orphan.

The minimum weekly orphan’s pension is EC$9.90; 

EC$19.90 if the child is disabled or a full orphan.

Other dependent’s pension: 50% of the deceased’s pension is paid if the survivor was totally dependent on the 

insured; 25% if partially dependent. The pension is paid for 

a maximum of 52 weeks from the insured’s date of death.

The minimum weekly dependent’s pension is EC$9.90; 

EC$19.90 if a disabled child or a full orphan.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Funeral grant: A lump sum is paid to the person who meets 

the cost of the funeral. EC$2,320 is paid for the insured’s 

funeral; EC$1,740 for the funeral of the insured’s spouse; 

and EC$870 for the funeral of the insured’s child.

Benefit adjustment: Benefits are reviewed periodically.

Administrative Organization

Ministry of Health, Social Security, the Environment, and 

Ecclesiastical Relations provides general supervision.

National Insurance Board (http://www.nisgrenada.org) 

administers the program.
SSPTW: The Americas, 2007 ♦ 119

Guatemala

Guatemala

Exchange rate: US$1.00 equals 7.66 quetzales.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1969, implemented on a national level in 1977.

Current law: 2003 (old-age, disability, and survivors).

Type of program: Social insurance system.

Note: Beginning September 2007, a means-tested flat-rate 

pension will be paid to all eligible persons aged 65 or older. 

Administered by the Ministry of Labor and Social Welfare, 

the pension will be financed by contributions paid by workers and employers and by an annual state budget allocation.

Coverage

Employees, including agricultural workers and some publicsector employees.

Voluntary coverage for self-employed persons.

Special system for other public-sector employees.

Source of Funds

Insured person: 1.83% of covered earnings.

There are no minimum earnings for contribution purposes.

The maximum monthly earnings for contribution and benefit 

purposes are 6,000 quetzales.

Self-employed person: Voluntary contributions of 5.5% of 

declared earnings.

There are no minimum earnings for contribution purposes.

The maximum monthly earnings for contribution and benefit 

purposes are 6,000 quetzales.

Employer: 3.67% of covered payroll.

There are no minimum earnings for contribution purposes.

The maximum monthly earnings for contribution and benefit 

purposes are 6,000 quetzales.

Government: 25% of the cost of benefits paid; also contributes as an employer. The minimum monthly pension is not 

guaranteed by government.

Qualifying Conditions

Old-age pension: Age 60 with at least 180 months of contributions. If the insured does not fully meet the qualifying 

conditions, no pension or other cash benefit is paid.

Early pension: There is no early pension.

Deferred pension: There is no deferred pension.

The pension is not payable abroad.

Disability pension: The insured must be assessed as disabled, have at least 36 months of contributions in the last 

6 years, and be younger than age 45; at least 60 months of 

contributions in the last 9 years and aged 45 to 54; at least 

120 months of contributions in the last 12 years and aged 55 

(younger in certain cases) or older.

The disability pension is awarded according to two degrees 

of disability: total disability, involving the loss of 2/3 of 

earning capacity; and severe disability, involving the complete loss of earning capacity and the need for the constant 

attendance of another person.

The pension is not payable abroad.

Survivor pension: The deceased had at least 36 months of 

contributions in the last 6 years or was receiving a pension 

or qualified for the old-age pension at the time of death.

Old-Age Benefits

Old-age pension: The pension is equal to 50% of the 

insured’s average earnings in the last 60 months, plus an 

additional 0.5% for each 6-month period of contributions 

exceeding 120 months.

Dependent’s supplement: 10% of the insured’s pension is 

paid for a wife or partner or a disabled husband, for each 

child younger than age 18 or disabled, and for a dependent 

mother and a dependent disabled father.

The minimum monthly pension, including supplements, is 

340 quetzales.

The maximum monthly pension, including supplements, is 

4,800 quetzales.

The maximum pension received by a family is 80% of the 

insured’s earnings, up to 6,000 quetzales.

Schedule of payments: Twelve payments a year.

Benefit adjustment: Benefits are adjusted at least every 

3 years according to an actuarial assessment.

Permanent Disability Benefits

Disability pension: For a total disability, the pension is 

equal to 50% of the insured’s average earnings in the last 

36 months, plus an additional 0.5% for each 6-month period 

of contributions exceeding 120 months. If the insured has 

worked for less than 36 months, the pension is equal to 50% 

of average earnings for the total number of months worked.

Dependent’s supplement: 10% of the insured’s pension is 

paid for a wife or partner or a disabled husband, for each 

child younger than age 18 or disabled, and for a dependent 

mother and a dependent disabled father.

The minimum monthly pension, including supplements, is 

340 quetzales.

The maximum monthly pension, including supplements, is 

4,800 quetzales.
120 ♦ SSPTW: The Americas, 2007

Guatemala

Constant-attendance supplement: 25% of the insured’s pension is paid for a severe disability.

Schedule of payments: Twelve payments a year.

Benefit adjustment: Benefits are adjusted at least every 

3 years according to an actuarial assessment.

Survivor Benefits

Survivor pension: The spouse’s pension is equal to 50% of 

the total disability or old-age pension paid or payable to the 

deceased.

The minimum monthly pension for a spouse is 

170 quetzales.

The pension ceases on remarriage, and a lump sum is paid.

Remarriage settlement: A lump sum is paid equal to 

12 months’ pension.

Orphan’s pension: Each orphan receives 25% of the 

deceased’s pension; 50% for each full orphan.

The minimum monthly orphan’s pension is 85 quetzales; 

170 quetzales for a full orphan.

Dependent parent’s pension: Each receives 25% of the 

deceased’s pension.

The minimum monthly pension for a dependent parent is 

85 quetzales.

Schedule of payments: Twelve payments a year.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension; the sum of the minimum monthly pensions must not exceed 340 quetzales.

Funeral grant: Up to 10% of the deceased’s basic monthly 

earnings is paid to the person who paid for the funeral.

Benefit adjustment: Benefits are adjusted at least every 

3 years according to an actuarial assessment.

Administrative Organization

Ministry of Labor and Social Welfare (http://www.mintrabajo.gob.gt) provides general supervision.

Social Security Institute (http://www.igssgt.org) administers 

the program.

Sickness and Maternity

Regulatory Framework

First law: 1952 (maternity and children).

Current law: 1964 (sickness and maternity), implemented in 

1968, with 2003 amendment.

Type of program: Social insurance system.

Coverage

Employees of firms with three or more workers. Freight or 

passenger transport enterprises with one or more workers.

Exclusions: Self-employed persons.

Source of Funds

Insured person: 2% of gross earnings.

There are no maximum earnings for contribution purposes.

Self-employed person: Not applicable.

Employer: 4% of gross payroll.

There are no maximum earnings for contribution purposes.

Government: 2% of gross payroll.

There are no maximum earnings for contribution purposes.

Qualifying Conditions

Cash sickness and maternity benefits: The insured must 

have 3 months of contributions in the 6 months before the 

incapacity began.

Medical benefits: The insured must be in covered 

employment.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 2/3 of average 

earnings (according to the applicable formula) and is paid 

after a 3-day waiting period for up to 26 weeks; may be 

extended to 39 weeks. The receipt of benefits for multiple 

periods of illness must not exceed 52 weeks in a 24-month 

period.

The maximum monthly benefit is 2,400 quetzales.

Maternity benefit: The benefit is equal to 100% of earnings 

and is paid for 30 days before and 54 days after the expected 

date of childbirth. Nursing mothers are also permitted 1 hour 

a day at work to nurse their child, for up to a maximum of 

10 months.

Benefit adjustment: Benefits are adjusted at least every 

3 years according to an actuarial assessment.

Workers’ Medical Benefits

Benefits include general, specialist, and maternity care; 

surgery; hospitalization; pharmaceuticals; laboratory services; X-rays; appliances; transportation; rehabilitation; and 

retraining. Medical services are normally provided directly 

to patients through the medical facilities of the Social Security Institute.

Free medical benefits for accidents, sickness, and maternity 

care are provided for pensioners through the old-age, disability, and survivors program in 19 departments.

Dependents’ Medical Benefits

The wife or companion of an insured man receives the same 

maternity care as an insured woman and in 19 departments 

also receives sickness and accident benefits.
SSPTW: The Americas, 2007 ♦ 121

Guatemala

Free medical benefits for accidents, sickness, and maternity 

care are provided for pensioners through the old-age, disability, and survivors program in 19 departments.

Administrative Organization

Ministry of Labor and Social Welfare (http://www.mintrabajo.gob.gt) provides general supervision.

Social Security Institute (http://www.igssgt.org) administers 

the program and operates 24 hospitals, 35 clinics, 16 firstaid stations, and other medical services.

Work Injury

Regulatory Framework

First law: 1947.

Current law: 1994, implemented in 1995, with 2003 

amendment.

Type of program: Social insurance system.

Note: Work injury benefits are administered as part of the 

old-age, disability, and survivor program.

Coverage

All insured workers in the country.

Exclusions: Self-employed persons.

Source of Funds

Insured person: 1% of gross earnings.

There are no minimum and maximum earnings for contribution purposes.

Self-employed person: Not applicable.

Employer: 3% of gross payroll.

There are no minimum and maximum earnings for contribution purposes.

Government: 1.5% of gross payroll.

There are no minimum and maximum earnings for contribution purposes.

Qualifying Conditions

Work injury benefits: The insured must have 3 months of 

contributions before the onset of the work injury or occupational disease.

Temporary Disability Benefits

The benefit is equal to 2/3 of earnings and is paid after a 

1-day waiting period.

The minimum daily benefit is 8 quetzales.

The maximum monthly benefit is 2,400 quetzales.

Benefit adjustment: Benefits are adjusted at least every 

3 years according to an actuarial assessment.

Permanent Disability Benefits

Permanent disability benefit: A lump sum of between 

495 quetzales and 4,950 quetzales is paid according to the 

assessed degree of disability.

Benefit adjustment: Benefits are adjusted at least every 

3 years according to an actuarial assessment.

Workers’ Medical Benefits

Benefits include medical treatment, surgery, hospitalization, 

medicines, appliances, transportation, rehabilitation services, X-rays, laboratory tests, and retraining.

Survivor Benefits

Funeral grant: A lump sum of 412.50 quetzales is paid 

toward the cost of funeral expenses.

Benefit adjustment: Benefits are adjusted at least every 

3 years according to an actuarial assessment.

Administrative Organization

Ministry of Labor and Social Welfare (http://www.mintrabajo.gob.gt) provides general supervision.

Social Security Institute (http://www.igssgt.org) administers 

contributions and benefits and provides medical benefits 

through its 24 hospitals and 35 clinics as well as through 

private clinics.
122 ♦ SSPTW: The Americas, 2007

Guyana

Guyana

Exchange rate: US$1.00 equals

200.30 Guyana dollars (G$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1944 (old-age assistance).

Current law: 1969 (social security), with amendments.

Type of program: Social insurance system.

Note: Social Security and Senior Citizens Welfare Department administers social assistance benefits to persons 

aged 65 or older, the indigent, the infirm, and orphans 

younger than age 16.

Coverage

All public- and private-sector employees and self-employed 

persons between ages 16 and 59.

Voluntary coverage is possible for previously insured persons until age 60.

Exclusions: Employed persons earning less than G$7.50 a 

week, casual employees, and family labor.

Source of Funds

Insured person: 5.2% of covered earnings. The voluntarily 

insured contribute 9.3% of average weekly earnings in the 

last 2 years before covered employment ceased.

The maximum weekly earnings for contribution and benefit 

purposes are G$24,064. The maximum covered earnings for 

contribution and benefit purposes are adjusted annually.

Contributions are paid weekly or monthly, depending on the 

nature of employment.

The insured’s contributions also finance cash sickness, 

maternity, and work injury benefits.

Self-employed person: 11.5% of declared income, up to a 

maximum.

Contributions are paid weekly or monthly, depending on the 

nature of employment.

The self-employed person’s contributions also finance cash 

sickness and maternity benefits.

Employer: 7.8% of covered monthly payroll.

The maximum weekly earnings for contribution and benefit 

purposes are G$24,064. The maximum covered earnings for 

contribution and benefit purposes are adjusted annually.

The employer’s contributions also finance cash sickness, 

maternity, and work injury benefits.

Government: None; contributes as an employer; provides 

loans to cover any deficits.

Qualifying Conditions

Old-age pension: Age 60 with 750 weeks of paid or 

credited contributions, including at least 150 weeks of paid 

contributions; 25 weeks of contributions are credited for 

each year that the insured was older than age 35 in 1969, up 

to a maximum credit of 600 weeks.

Retirement is not necessary.

Old-age grant: Paid if the insured does not satisfy the 

qualifying conditions for an old-age pension but had at least 

50 weeks of contributions before age 60.

Old-age benefits are not payable abroad.

Disability pension: Aged 16 to 59 with an assessed degree 

of permanent disability of at least 15%. There are no contribution requirements.

The assessed degree of disability is reviewed by the 

National Insurance Medical Board when required.

Disability grant: Aged 16 to 59 with an assessed degree of 

permanent disability of less than 15%. There are no contribution requirements.

Disability benefits are not payable abroad.

Survivor pension: The deceased was a pensioner or was 

eligible for an old-age pension or disability pension at 

the time of death; or aged 16 to 59 with a minimum of 

250 weekly paid or credited contributions, including at least 

150 paid contributions.

Eligible survivors are the widow(er) and orphans younger 

than age 18.

Survivor grant: Paid if the deceased would have been eligible for an old-age grant or a disability grant.

Eligible survivors are the widow(er) and orphans younger 

than age 18.

Survivor benefits are not payable abroad.

Funeral grant: The insured had paid at least 50 weeks of 

contributions. The grant is paid to help meet the cost of the 

funeral for the insured or his or her spouse.

Old-Age Benefits

Old-age pension: The pension is equal to 40% of the 

insured’s average weekly covered earnings, plus 1% of average weekly covered earnings for each 50-week period of 

contributions exceeding 750.

Average weekly covered earnings are based on the insured’s 

best 3 years of earnings in the last 5 years before age 60.

The maximum weekly earnings for benefit calculation purposes are G$24,064.

The minimum pension is equal to 50% of the minimum 

wage.
SSPTW: The Americas, 2007 ♦ 123

Guyana

The public sector minimum wage is G$26,070.

The maximum pension is equal to 60% of the insured’s 

average weekly covered earnings.

Old-age grant: The grant is equal to 1/12 of the insured’s 

average annual covered earnings for each 50-week period of 

paid or credited contributions.

Average weekly covered earnings are based on the insured’s 

best 3 years of earnings in the last 5 years before age 60.

Permanent Disability Benefits

Disability pension: The pension is equal to 30% of the 

insured’s average weekly covered earnings, plus 1% of average weekly covered earnings for each 50-week period of 

contributions exceeding 250.

Average weekly covered earnings are based on the insured’s 

best 3 years of earnings in the last 5 years before the disability began.

The maximum weekly earnings for benefit calculation purposes are G$24,064.

The minimum pension is equal to 40% of the minimum 

wage.

The public sector minimum wage is G$26,070.

The maximum pension is equal to 60% of the insured’s 

average weekly covered earnings.

Constant-attendance allowance: G$200 a day is paid if the 

insured is dependent on the care and attendance of another 

person for carrying out daily activities.

Disability grant: The grant is equal to 1/12 of the insured’s 

average annual covered earnings for each 50-week period of 

paid or credited contributions.

Average weekly covered earnings are based on the insured’s 

best 3 years of earnings in the last 5 years before the disability began.

Survivor Benefits

Survivor pension: The widow(er)’s pension is equal to 50% 

of the pension paid or payable to the deceased.

Child’s supplement: 16.6% of the deceased’s pension is paid 

for each child, up to a maximum of three children.

Full orphan’s pension: Each full orphan receives a pension equal to 33.3% of the pension paid or payable to the 

deceased, up to a maximum of three orphans.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Survivor grant: A lump sum is paid if the deceased did not 

meet the qualifying conditions for a pension but would have 

been entitled to an old-age grant or disability grant.

Funeral grant: G$15,565 is paid to the person who meets 

the cost of the funeral.

Administrative Organization

Minister of Finance provides general supervision.

Ministry of Labor, Human Services, and Social Security 

(http://www.sdnp.org.gy/mohss) administers the program.

Sickness and Maternity

Regulatory Framework

First and current law: 1969 (social security).

Type of program: Social insurance system. Cash benefits 

only.

Coverage

All public- and private-sector employees and self-employed 

persons between ages 16 and 59.

Exclusions: Employed persons earning less than G$7.50 a 

week, casual employees, and family labor.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: None; contributes as an employer; provides 

loans to cover any deficits.

Qualifying Conditions

Cash sickness benefits: The insured must be younger 

than age 60, have been in covered employment in 8 of the 

13 weeks before the incapacity began, and have 50 weeks of 

contributions.

Cash maternity benefits: The insured must have at 

least 15 weeks of contributions, including 7 in the 26-

week period ending 6 weeks before the expected date of 

childbirth.

Cash maternity grant: Paid to an insured woman who 

does not satisfy the contributions qualifying condition for a 

maternity benefit but whose insured husband does.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 70% of average 

weekly covered earnings and is paid from the fourth day of 

incapacity for a maximum of 26 weeks.

Average weekly covered earnings are calculated on the basis 

of the best 8 weeks of earnings in the 13 weeks before the 

incapacity began.
124 ♦ SSPTW: The Americas, 2007

Guyana

Maternity benefit: The benefit is equal to 70% of average 

weekly covered earnings and is paid for 13 weeks, including the week of childbirth plus 6 weeks before and 6 weeks 

after; may be extended for up to 13 additional weeks in the 

event of complications arising out of childbirth.

Average weekly covered earnings are calculated on the basis 

of the best 7 weeks of earnings in the 26 weeks before the 

start of the benefit.

Maternity grant: A lump sum of G$2,000 is paid.

Workers’ Medical Benefits

Medical benefits: No statutory benefits are provided.

Medical care is available in public hospitals and health 

centers. Medical care involves cost sharing on an incometested basis.

Dependents’ Medical Benefits

Medical benefits for dependents: No statutory benefits are 

provided.

Medical care is available in public hospitals and health 

centers. Medical care involves cost sharing on an incometested basis.

Administrative Organization

Minister of Finance provides general supervision.

Ministry of Labor, Human Services, and Social Security 

(http://www.sdnp.org.gy/mohss) administers the program.

Work Injury

Regulatory Framework

First law: 1916.

Current law: 1969 (social security).

Type of program: Social insurance system.

Coverage

All public- and private-sector employees.

Exclusions: Employed persons earning less than G$7.50 a 

week, casual employees, family labor, and self-employed 

persons.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above; also contributes an additional 1.53% 

of covered earnings to finance work injury benefits for 

workers younger than age 16 or older than age 59.

Government: None; contributes as an employer; provides 

loans to cover any deficits.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 70% of average weekly covered 

earnings and is paid retrospectively after the first day if the 

injury lasts for more than 3 days, for up to 26 weeks.

Average weekly covered earnings are calculated on the basis 

of the best 8 weeks of earnings in the 13 weeks before the 

disability began.

Permanent Disability Benefits

Permanent disability pension: For a total disability 

(100%), the pension is equal to 70% of average weekly 

covered earnings.

Average weekly covered earnings are calculated on the basis 

of the best 8 weeks of earnings in the 13 weeks before the 

disability began.

Constant-attendance allowance: G$200 a day is paid if the 

insured is dependent on the care and attendance of another 

person for carrying out daily activities.

Partial disability: If the assessed degree of disability is 

at least 15%, a reduced pension is paid according to the 

assessed degree of disability. If the assessed degree of 

disability is less than 15%, a lump sum is paid equal to 

260 times the weekly disability benefit times the assessed 

degree of disability.

The assessed degree of disability is reviewed by the 

National Insurance Medical Board when required.

Workers’ Medical Benefits

Benefits include hospitalization, general and specialist care, 

medicines, and transportation.

Survivor Benefits

Survivor pension: The pension is equal to 35% of the 

deceased’s weekly earnings for a widow(er) or parent and 

11.6% for each other dependent, up to a maximum of 70% 

of the deceased’s weekly earnings.

Eligible survivors are the deceased’s spouse, a dependent 

parent, and any other dependent person.

The minimum pension for a widow(er) or parent is equal 

to 50% of the old-age or disability minimum pension; for a 

child, 16.6% of the old-age or disability minimum pension.

Full orphan’s pension: Each full orphan younger than 

age 18 receives a pension equal to 23.3% of the deceased’s 

weekly earnings.
SSPTW: The Americas, 2007 ♦ 125

Guyana

The minimum orphan’s pension is equal to 33.3% of the 

old-age or disability minimum pension.

Death benefit: Up to G$250 is paid to the insured’s creditors or estate, in the absence of any dependents.

Administrative Organization

Minister of Finance provides general supervision.

Under the direction of the National Insurance Board, the 

National Insurance Scheme administers the program.
126 ♦ SSPTW: The Americas, 2007

Haiti

Haiti

Exchange rate: US$1.00 equals 35.90 gourdes.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1965 (old-age insurance).

Current law: 1967.

Type of program: Social insurance system.

Coverage

Employees of industrial, commercial, or agricultural firms.

Exclusions: Unpaid family labor, self-employed persons, 

members of religious communities, and foreign diplomats.

Special system for public-sector employees.

Source of Funds

Insured person: 6% of earnings.

Self-employed person: Not applicable.

Employer: 6% of earnings.

Government: Subsidies as needed.

Qualifying Conditions

Old-age pension: Age 55 with at least 20 years of 

contributions.

Old-age settlement: Paid if the insured does not satisfy the 

qualifying conditions for a pension.

Disability pension: The insured must be assessed as totally 

incapable of work and have at least 10 years of contributions. The disability must not be caused by a work injury.

Survivor pension: The insured was a pensioner or was 

eligible for a pension at the time of death.

Eligible survivors are the widow, orphans younger than 

age 18 (no limit if a student or disabled), and other 

dependents.

Survivor settlement: Paid if the insured did not satisfy the 

qualifying conditions for a pension at the time of death.

Old-Age Benefits

Old-age pension: The monthly pension is equal to 33% of 

the insured’s average monthly earnings in the last 10 years.

Average earnings are not adjusted for inflation.

Benefit adjustment: Benefits are not indexed.

Old-age settlement: A refund of contributions, without 

accrued interest, is paid.

Permanent Disability Benefits

Disability pension: The monthly pension is equal to 1/60 

of the insured’s average monthly earnings for each year of 

coverage in the 10 years before the disability began.

Average earnings are not adjusted for inflation.

Benefit adjustment: Benefits are not indexed.

Survivor Benefits

Survivor pension: The pension is equal to 50% of the pension paid or payable to the deceased. The pension is split 

among the widow, orphans younger than age 18 (no limit if 

a student or disabled), and other dependents.

Benefit adjustment: Benefits are not indexed.

Survivor settlement: A refund of contributions, without 

accrued interest, is paid.

Administrative Organization

Ministry of Social Affairs provides general supervision.

National Office of Old-Age Insurance of the Social Insurance Institute administers the program.

Social Insurance Institute is managed by a tripartite board 

and a director general.

Work Injury

Regulatory Framework

First law: 1951.

Current law: 1967.

Type of program: Social insurance system.

Coverage

Public-sector employees and employees of industrial, commercial, or agricultural firms in specified districts.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 2% of payroll (commerce), 3% of payroll 

(industry, construction, and agriculture), or 6% of payroll 

(mining).

Government: None; contributes as an employer.
SSPTW: The Americas, 2007 ♦ 127

Haiti

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 66.6% of the insured’s earnings and 

is paid after a 3-day waiting period for the duration of the 

incapacity. The employer pays benefits during the waiting 

period. The insured must be younger than age 55.

Permanent Disability Benefits

Permanent disability pension: For a total disability, the 

monthly pension is equal to 66.6% of the insured’s monthly 

earnings. The insured must be younger than age 55.

Partial disability: For an assessed degree of disability of at 

least 10%, a percentage of the total pension is paid according to the assessed degree of disability. For an assessed 

degree of disability of less than 10%, a lump sum is paid.

All disability pensions may be paid as a lump sum.

Benefit adjustment: Benefits are not indexed.

Workers’ Medical Benefits

Benefits include medical and dental care, surgery, hospitalization, medicines, and appliances. Benefits are provided 

until full recovery or the stabilization of the disability.

Survivor Benefits

Survivor pension: 50% of the deceased’s total disability pension is paid to a widow or a dependent disabled 

widower.

Orphan’s pension: 30% of the deceased’s total disability 

pension is paid for each orphan younger than age 21.

Dependent parent’s or grandparent’s pension (in the 

absence of the above): 40% of the deceased’s total disability pension is paid.

All survivor benefits combined must not exceed 80% of the 

deceased’s total disability pension.

Funeral grant: The grant is equal to the deceased’s monthly 

earnings.

Benefit adjustment: Benefits are not indexed.

Administrative Organization

Ministry of Social Affairs provides general supervision.

Office of Work Accidents and Sickness and Maternity 

Insurance of the Social Insurance Institute administers the 

program.

Social Insurance Institute operates its own dispensaries and 

hospital in Port-au-Prince.

Social Insurance Institute is managed by a tripartite board 

and a director general.
128 ♦ SSPTW: The Americas, 2007

Honduras

Honduras

Exchange rate: US$1.00 equals 18.95 lempiras.

Old Age, Disability, and Survivors

Regulatory Framework

First and current law: 1959 (social security), implemented 

in 1971, with 2001 amendment.

Type of program: Social insurance system.

Coverage

Employed persons in private- and public-sector enterprises 

in specified regions.

Coverage is being extended gradually to additional regions.

Exclusions: Domestic workers, temporary workers, and 

some groups of agricultural workers.

Source of Funds

Insured person: 1% of covered earnings.

The minimum monthly earnings for contribution purposes 

are 144 lempiras.

The maximum monthly earnings for contribution purposes 

are 4,800 lempiras.

Self-employed person: Not applicable.

Employer: 2% of covered payroll.

The minimum monthly earnings for contribution purposes 

are 144 lempiras.

The maximum monthly earnings for contribution purposes 

are 4,800 lempiras.

Government: 0.5% of covered payroll; also contributes as 

an employer. 

The minimum monthly earnings for contribution purposes 

are 144 lempiras.

The maximum monthly earnings for contribution purposes 

are 4,800 lempiras.

Qualifying Conditions

Old-age pension: Age 65 (men) or age 60 (women) with at 

least 180 months of contributions.

Retirement from covered employment is necessary.

Old-age settlement: Age 65 (men) or age 60 (women) with 

less than 180 months of contributions.

Disability pension: The insured must be assessed with 

a loss of 2/3 of earning capacity in the usual occupation 

and have 36 months of contributions in the last 6 years; 

8 months of contributions in the last 24 months in the event 

of a nonoccupational accident. (Men aged 45 or older and 

women aged 40 or older in 1971 must have contributed for 

5 years or 60 months at the time they joined the system.)

Disability settlement: The insured must be assessed as 

disabled but does not meet the qualifying conditions for a 

pension.

Survivor pension: In the case of a death resulting from 

a common illness, the deceased had at least 36 months of 

contributions in the last 6 years; 8 months of contributions 

in the 24 months before the injury resulting in a nonoccupational accident-related death.

Eligible survivors are a widow(er) or partner aged 65 or 

older or disabled and orphans younger than age 14 (age 18 

if a student, no limit if disabled); in the absence of a 

widow(er) or partner or orphans, a mother of any age and a 

father older than age 65 or disabled.

Old-Age Benefits

Old-age pension: The pension is equal to 40% of the 

insured’s basic monthly earnings, plus an additional 1% of 

earnings for each 12-month period of contributions exceeding 60 months.

Basic monthly earnings for pension calculation purposes 

are equal to 1/36 or 1/60 of insured earnings in the last 3 or 

5 years before the month of entitlement, whatever is greater.

Deferred pension: An additional 3% of basic monthly earnings is paid for each year of contributions after age 65 (men) 

or age 60 (women).

The minimum pension is equal to 50% of basic monthly 

earnings.

The maximum pension is equal to 80% of basic monthly 

earnings.

Old-age settlement: The total contributions are refunded as 

a lump sum.

Permanent Disability Benefits

Disability pension: The pension is equal to 40% of the 

insured’s basic monthly earnings, plus an additional 1% of 

earnings for each 12-month period of contributions exceeding 60 months.

Basic monthly earnings for pension calculation purposes 

are equal to 1/36 or 1/60 of insured earnings in the last 3 or 

5 years before the month of entitlement, whatever is greater.

Constant-attendance supplement: If assessed as more than 

50% disabled, up to a maximum of 50% of the pension is 

paid.

The maximum pension is equal to 80% of covered earnings.

Disability settlement: The total contributions are refunded 

as a lump sum.
SSPTW: The Americas, 2007 ♦ 129

Honduras

Survivor Benefits

Survivor pension: A widow(er) receives 40% of the pension paid or payable to the deceased.

The pension ceases on remarriage.

Remarriage settlement: A widow(er) receives a lump sum 

equal to 12 months’ pension.

Orphan’s pension: Each orphan receives 20% of the 

deceased’s pension; 40% for a full orphan.

Dependent parent’s pension (in the absence of the 

above): 20% of the deceased’s pension is paid to each 

eligible parent.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension and is split as follows: a widow(er) or 

partner receives 40%; orphans younger than age 14 receive 

a total of 60%.

Funeral grant: Equal to 50% of the deceased’s basic 

monthly earnings. The minimum funeral grant is 250 lempiras if the deceased made at least one contribution in the last 

6 months; 100 lempiras if the beneficiary is not a member of 

the deceased’s family.

Administrative Organization

Ministry of Labor and Social Welfare provides general 

supervision.

Managed by a board of directors and director general, the 

Social Security Institute (http://www.ihss.hn) administers 

the program.

Sickness and Maternity

Regulatory Framework

First and current law: 1959 (social security), implemented 

in 1962, with 2001 amendment.

Type of program: Social insurance system.

Coverage

Public-sector employees and employees of firms in industry and commerce with one or more workers in specified 

regions; disability pensioners; old-age pensioners; and 

insured persons’ children younger than age 11.

Unemployed female workers are eligible for medical care 

while pregnant and during childbirth but are not eligible for 

cash maternity benefits.

Coverage is being extended gradually to additional regions. 

The labor code is still in force in regions to which social 

insurance has not yet been extended.

Exclusions: Agricultural, domestic, family, and temporary 

workers.

Source of Funds

Insured person: 2.5% of covered earnings.

The minimum monthly earnings for contribution and benefit 

purposes are 360 lempiras.

The maximum monthly earnings for contribution and benefit 

purposes are 4,800 lempiras.

The insured’s contributions also finance work injury 

benefits.

Self-employed person: Not applicable.

Employer: 5% of covered payroll.

The minimum monthly earnings for contribution and benefit 

purposes are 360 lempiras.

The maximum monthly earnings for contribution and benefit 

purposes are 4,800 lempiras.

The employer’s contributions also finance work injury 

benefits.

Government: Contributes as an employer, plus 0.5% of 

total covered earnings. (The contribution on total covered 

earnings has never been paid.)

The minimum monthly earnings for contribution and benefit 

purposes are 360 lempiras.

The maximum monthly earnings for contribution and benefit 

purposes are 4,800 lempiras.

The government’s contributions also finance work injury 

benefits.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

35 days of contributions in the 3 months before the incapacity began.

Cash maternity benefits: The insured must have at least 

75 days of contributions in the last 10 months.

Medical benefits: Must be in insured employment or unemployed. For maternity medical benefits the insured must 

have at least 10 months of contributions before the expected 

date of childbirth or at least 12 months of contributions in 

the last 18 months.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 66% of the 

insured’s earnings in the last 3 months and is paid after a 

3-day waiting period for up to 26 weeks; may be extended 

to 52 weeks.

The labor code requires employers to provide sick leave to 

employees not covered by social insurance.

Maternity benefit: The benefit is equal to 66% of the 

insured’s earnings and is paid for 6 weeks before and 

6 weeks after the expected date of childbirth.
130 ♦ SSPTW: The Americas, 2007

Honduras

The labor code requires employers to provide maternity 

leave to employees not covered by social insurance.

Workers’ Medical Benefits

Medical services are provided directly to patients through 

the health facilities of the Social Security Institute. Benefits 

include general and specialist care, surgery, hospitalization, 

necessary medicines, laboratory services, appliances, dental 

care, and maternity care including postnatal care for up to 

42 days.

The period of duration is dependent on continuing to meet 

the contribution requirements. If the insured person is unemployed, benefits are limited to 60 days of general care and 

6 months of specialized care.

Dependents’ Medical Benefits

Benefits include maternity care for the insured’s wife, 

including postnatal care for up to 45 days; pediatric care for 

the insured’s children until age 5 and 30 days or for up to 

26 weeks after the insured’s death.

Administrative Organization

Ministry of Labor and Social Welfare provides general 

supervision.

Managed by a board of directors and director general, the 

Social Security Institute (http://www.ihss.hn) administers 

the program.

Social Security Institute operates its own hospitals and outpatient clinics and contracts the services of private clinics.

Work Injury

Regulatory Framework

First and current law: 1959 (social security), implemented 

in 1971, with 2001 amendment.

Type of program: Social insurance system.

Coverage

Public-sector employees and employees of firms in industry and commerce with one or more workers in specified 

regions.

Coverage is being extended gradually to additional regions. 

The labor code is still in force in regions to which social 

insurance has not yet been extended.

Exclusions: Agricultural, domestic, family, and temporary 

workers.

Source of Funds

Insured person: See source of funds under Sickness and 

Maternity, above.

Self-employed person: Not applicable.

Employer: See source of funds under Sickness and Maternity, above.

Government: See source of funds under Sickness and 

Maternity, above.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Survivor benefits: The deceased must have worked for at 

least a month in insured employment.

Temporary Disability Benefits

The benefit is equal to 100% of the insured’s daily wage and 

is paid after a 3-day waiting period until recovery or certification of permanent disability.

The maximum daily wage for benefit calculation purposes is 

4,800 lempiras.

Permanent Disability Benefits

Permanent disability pension: If the assessed degree of 

disability is greater than 65%, the pension is equal to 70% 

of the insured’s basic monthly earnings.

Basic monthly earnings for pension calculation purposes 

are equal to 1/36 or 1/60 of insured earnings in the last 3 

or 5 years before the month of entitlement, whichever is 

greater.

Constant-attendance supplement: Up to a maximum of 50% 

of the insured’s pension is paid.

Partial disability: If the assessed degree of disability is 

greater than 15%, a percentage of the full pension is paid 

according to the assessed degree of disability. If the calculated monthly pension is less than 10 lempiras, a lump sum 

is paid.

Workers’ Medical Benefits

Benefits include medical, surgical, and hospital care; medicines; and appliances.

Survivor Benefits

Survivor pension: A widow(er) older than age 65 or 

disabled receives 40% of the pension paid or payable to the 

deceased.

Orphan’s pension: Each orphan younger than age 14 

(age 18 if a student, no limit if disabled) receives 20% of the 

deceased’s pension; 40% for a full orphan.

Dependent parent’s pension (in the absence of the 

above): 20% of the deceased’s pension is paid to a mother 

of any age or a father older than age 65 or disabled.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.
SSPTW: The Americas, 2007 ♦ 131

Honduras

Funeral grant: Equal to 50% of the deceased’s basic 

monthly earnings. The minimum funeral grant is 125 lempiras if the deceased had made at least one contribution in the 

last 6 months.

Administrative Organization

Ministry of Labor and Social Welfare provides general 

supervision.

Managed by a board of directors and director general, the 

Social Security Institute (http://www.ihss.hn) administers 

the program.

Social Security Institute operates its own outpatient clinics 

and hospitals.
132 ♦ SSPTW: The Americas, 2007

Jamaica

Jamaica

Exchange rate: US$1.00 equals

68.25 Jamaican dollars (J$).

Old Age, Disability, and Survivors

Regulatory Framework

First law and current law: 1965 (national insurance), with 

amendments.

Type of program: Social insurance system.

Note: Government-financed social assistance benefits of 

J$530 a month are provided to low-income and vulnerable 

persons older than age 60 and to low-income and vulnerable 

disabled persons.

Coverage

Employed and self-employed persons.

Voluntary coverage is possible, if older than age 18 and 

younger than the normal retirement age.

Exclusions: Casual workers and unpaid family labor.

Source of Funds

Insured person: Employees contribute 2.5% of covered 

earnings. Domestic workers, Jamaica Defense Force personnel, and the voluntarily insured contribute a flat-rate J$20 a 

week.

The maximum earnings for employee contribution purposes 

are J$9,620 a week or J$500,000 a year. (There are no 

maximum earnings for contribution purposes for domestic 

workers or Jamaica Defense Force personnel.)

The insured’s contributions also finance cash maternity 

benefits.

Contributions are paid weekly or monthly, depending on 

how the employee is paid.

Self-employed person: J$20 a week, plus a maximum of 

5% of covered annual earnings.

The maximum earnings for contribution purposes are 

J$9,620 a week or J$500,000 a year.

Employer: 2.5% of covered payroll.

The maximum earnings for contribution purposes are 

J$9,620 a week or J$500,000 a year.

The employer’s contributions also finance cash maternity 

benefits and work injury benefits.

Contributions are paid weekly or monthly, depending on 

how employees are paid.

Government: None; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 65 (men) or age 60 (women) with at 

least 1,443 weeks of paid contributions, including an annual 

average of 39 weeks of paid or credited contributions.

Partial pension: A reduced pension is paid for annual average contributions of between 10 and 38 weeks.

Early pension: There is no early pension.

Deferred pension: A deferred pension is possible.

Old-age settlement: Paid if the insured does not satisfy the 

qualifying conditions for a pension but has at least 52 weeks 

or 1 year of contributions. Substantial retirement is necessary until age 70 (men) or age 65 (women).

Old-age benefits are payable abroad if the insured resides 

abroad for at least a year and has expressed the need for the 

benefit to be paid overseas.

Disability pension: The insured must be assessed as permanently incapable of work and have at least 156 weeks of 

paid contributions, up to a maximum.

The disability is assessed by an independent medical advisor 

appointed by the Minister of Labor and Social Security. The 

independent medical advisor recommends the frequency of 

any reassessment of the disability.

Disability settlement: Paid if the insured does not meet the 

qualifying conditions for a pension but has at least 52 weeks 

or 1 year of paid contributions.

The disability is assessed by a doctor appointed by the Minister of Labor and Social Security.

Disability benefits are payable abroad for a limited period 

if the insured is absent from Jamaica to receive medical 

treatment.

Survivor pension: The deceased had an annual average of 

39 weeks of paid or credited contributions or was a pensioner at the time of death.

Eligible survivors are a widow(er) aged 55 or older or caring 

for children younger than age 18 and full orphans younger 

than age 18. If eligible, widows may receive duplicate 

benefits based on their own earnings. A widow(er) younger 

than age 55 without children receives a limited pension for 

1 year.

Survivor benefits are payable abroad if the survivor resides 

abroad for at least a year and has expressed the need for the 

benefit to be paid overseas.

Survivor settlement: Paid if the deceased did not satisfy the 

qualifying conditions for a pension but had at least 52 weeks 

of contributions. The survivor must have been married or 

cohabiting with the deceased for at least 3 years.

Special child’s benefit: Paid to a guardian caring for an 

illegitimate child younger than age 18 who is orphaned 

and whose deceased mother was eligible for a pension and 

whose father is dead or his whereabouts are unknown; a 
SSPTW: The Americas, 2007 ♦ 133

Jamaica

lump sum is paid if the deceased mother was not eligible for 

a pension.

Funeral grant: Paid if the deceased or the deceased’s spouse 

was a pensioner or eligible to receive a pension at the time 

of death.

Old-Age Benefits

Old-age pension: A basic benefit of J$1,500 a week is paid 

with an annual average of 39 weeks of paid or credited 

contributions (reduced to J$1,125 a week with annual average contributions of between 26 and 38 weeks; J$750 with 

between 10 and 25 weeks), plus an earnings-related benefit 

of J$0.06 a week for every J$13 of employer/employee 

contributions paid during the working lifetime.

Spouse’s supplement: J$500 a week is paid for a dependent 

wife aged 55 or older or a disabled husband aged 60 or 

older.

Early pension: There is no early pension.

Deferred pension: Calculated in the same way as the old-age 

pension.

Old-age settlement: A lump sum of J$20,000 is paid.

Permanent Disability Benefits

Disability pension: If the insured has an assessed degree of 

disability of at least 10%, a basic benefit of between J$150 

and J$2,015 a week is paid.

The maximum benefit is paid with an assessed degree of 

disability of 100%.

Disability settlement: A lump sum is paid equal to nine 

times the maximum weekly basic old-age pension.

Survivor Benefits

Survivor pension: A basic benefit of J$1,500 a week is 

paid if the deceased had an annual average of 39 weeks of 

paid or credited contributions (reduced to J$1,125 a week 

with annual average contributions of between 26 weeks and 

38 weeks; J$750 with between 10 and 25 weeks), plus an 

earnings-related benefit of J$0.03 a week for every J$13 of 

employer/employee contributions paid during the working 

lifetime.

The pension ceases if the widow(er) remarries or cohabits, 

and a lump sum is paid.

Remarriage settlement: A lump sum equal to a year’s pension is paid.

Survivor settlement: A lump sum of J$20,000 is paid.

Orphan’s pension: J$2,625 a week is paid for full orphans 

younger than age 18.

Orphan’s settlement: A lump sum of J$30,000 is paid for 

full orphans younger than age 18.

Special child’s benefit: J$2,625 is paid each week until 

the child is age 18; a lump sum of J$30,000 is paid if the 

deceased mother was not eligible for a pension.

Funeral grant: A lump sum of J$50,000 is paid to the 

person who meets all or part of the cost of the funeral. The 

funeral grant is normally not paid for a death occurring 

abroad.

Administrative Organization

Ministry of Labor and Social Security (http://www.mlss.

gov.jm/pub/index.php) administers the program through its 

National Insurance Division and local offices.

Public Assistance Division of the Ministry of Labor and 

Social Security (http://www.mlss.gov.jm/pub/index.php) 

assesses eligibility and administers social assistance benefits 

as part of The Programme of Advancement Through Health 

and Education (PATH).

Sickness and Maternity

Regulatory Framework

First and current laws: 1965 (national insurance), with 

amendments; and 2003 (national health insurance).

Type of program: Social insurance system. Cash maternity 

benefits and medical benefits.

Coverage

Cash maternity benefits: Female employees aged 18 or 

older who are residents of Jamaica.

Exclusions: Self-employed women.

Medical benefits: All residents of Jamaica.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: None for cash maternity benefits.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Medical benefits are financed mainly from general taxation, 

with a small portion financed through cost-sharing copayments. The complementary universal National Health Fund 

is financed by a percentage of the total contributions made 

to the social insurance program and by earmarked taxes on 

tobacco and alcohol. The National Insurance Gold program 

for social insurance pensioners is funded by contributions 

made to the social insurance program only.
134 ♦ SSPTW: The Americas, 2007

Jamaica

Qualifying Conditions

Cash sickness benefits: No statutory benefits are provided.

Cash maternity benefits: The insured must have at least 

26 weeks of paid contributions in the 52 weeks before the 

expected date of childbirth.

Medical benefits: Must be resident in Jamaica.

Sickness and Maternity Benefits

Sickness benefit: No statutory benefits are provided.

Maternity benefit: The benefit is equal to the national minimum weekly wage and is paid for 8 weeks.

The national minimum weekly wage is J$3,200.

Workers’ Medical Benefits

Medical care is provided free or at a nominal cost in public 

dispensaries and hospitals. The National Health Fund gives 

universal complementary coverage for prescription drugs 

for some chronic illnesses.

A complementary health insurance program, National 

Insurance Gold, offers additional health coverage for social 

insurance pensioners.

Dependents’ Medical Benefits

Medical care is provided free or at a nominal cost in public 

dispensaries and hospitals. The National Health Fund gives 

universal complementary coverage for prescription drugs 

for some chronic illnesses.

A complementary health insurance program, National 

Insurance Gold, offers additional health coverage for social 

insurance pensioners.

Administrative Organization

Ministry of Labor and Social Security (http://www.mlss.

gov.jm/pub/index.php) administers the program through its 

National Insurance Division and local offices.

Work Injury

Regulatory Framework

First law: 1938 (workmen’s compensation).

Current law: 1965 (national insurance), implemented in 

1970, with amendments.

Type of program: Social insurance system.

Coverage

Employees aged 18 to 70 (men) or aged 18 to 65 (women).

Exclusions: Domestic workers, unpaid family labor, selfemployed persons, and Jamaica Defense Force personnel.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The minimum weekly benefit is J$2,015 and is paid after a 

3-day waiting period, for up to 52 weeks.

The maximum weekly benefit is J$2,015.

Permanent Disability Benefits

Permanent disability pension: If the insured has an 

assessed degree of disability of at least 10%, a basic weekly 

benefit of between J$150 and J$2,015 is paid.

The maximum benefit is paid with an assessed degree of 

disability of 100%.

The disability is assessed by a medical board or medical 

appeal tribunal.

Workers’ Medical Benefits

Benefits include necessary medical, surgical, and rehabilitative treatment; appliances; hospitalization; and drugs.

Survivor Benefits

Survivor pension: The maximum permanent disability 

pension is paid for the first 52 weeks to a widow(er) of any 

age; in the absence of a widow(er), to a child or children or 

a dependent mother aged 55 or older; thereafter, if the contribution conditions are satisfied, a survivor pension is paid 

under Old Age, Disability, and Survivors, above.

The minimum survivor pension is J$750 a week.

The maximum survivor pension is J$1,500 a week.

Funeral grant: A lump sum of J$50,000 is paid to the 

person who meets all or part of the cost of the funeral. The 

funeral grant is normally not paid for a death occurring 

abroad.

Administrative Organization

Ministry of Labor and Social Security (http://www.mlss.

gov.jm/pub/index.php) administers the program through its 

National Insurance Division and local offices.
SSPTW: The Americas, 2007 ♦ 135

Jamaica

Family Allowances

Regulatory Framework

First law: 1941.

Current law: 2001.

Type of program: Social assistance system.

Coverage

Low-income and vulnerable persons.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Family allowances: Children younger than age 18, pregnant 

women, and nursing mothers. (Social assistance is also provided to persons older than age 60 or disabled, see Old Age, 

Disability, and Survivors, above.)

Benefits for school-age children are conditional on maintaining an 85% attendance level at school.

Benefits for pregnant women and nursing mothers are conditional on maintaining regular visits to health centers.

Family Allowance Benefits

Family allowances: Each eligible family member receives 

J$530 a month.

Eligible persons are also entitled to receive in-kind benefits, 

including free school lunches, exemption for secondary 

school tuition fees, and free medical care at public health 

centers and hospitals.

Administrative Organization

Public Assistance Division of the Ministry of Labor and 

Social Security (http://www.mlss.gov.jm/pub/index.php) 

assesses eligibility and administers social assistance benefits 

as part of the Programme of Advancement Through Health 

and Education (PATH).
136 ♦ SSPTW: The Americas, 2007

Mexico

Mexico

Exchange rate: US$1.00 equals

10.74 new pesos (NP).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1943.

Current laws: 1973 (social insurance); and 1995 (social 

security), implemented in 1997, with 2001, 2004, 2005, and 

2006 amendments.

Type of program: Mandatory individual account and social 

insurance system.

Note: Beginning July 1, 1997, all workers must join the 

mandatory individual account system, and the social insurance system is being phased out. There are no contributors 

to the social insurance system. At retirement, employees 

covered by the social insurance system before 1997 can 

choose to receive benefits from either the social insurance 

system or the mandatory individual account system.

Coverage

Mandatory individual account: All private-sector employees and cooperative members entering the labor force on or 

after January 1, 1997.

Voluntary coverage for public-sector employees not covered 

by other laws and self-employed persons.

Social insurance: Employees and members of producers’, 

agricultural, and credit union cooperatives who were first 

covered before 1997.

Special systems for petroleum workers, public-sector 

employees, and military personnel.

Source of Funds

Insured person: 1.125% of covered earnings for old-age 

benefits, plus an average 0.625% of covered earnings for 

disability and survivor benefits and an additional amount for 

administrative fees.

The minimum earnings for contribution purposes are equal 

to the minimum monthly wage in Mexico City (The minimum daily wage in Mexico City is 50.50 pesos).

The maximum earnings for contribution purposes are equal 

to 25 times the minimum monthly wage in Mexico City.

Self-employed person: 6.275% of declared earnings for 

old-age benefits; 2.375% of declared earnings for disability 

and survivor benefits and an additional amount for administrative fees.

Declared earnings for contribution purposes are equal to 

the minimum monthly wage in Mexico City (The minimum 

daily wage in Mexico City is 50.50 pesos).

Employer: 5.15% of covered payroll for old-age benefits, 

plus an average 1.75% of covered payroll for disability and 

survivor benefits.

The minimum earnings for contribution purposes are equal 

to the regional minimum wage.

The maximum earnings for contribution purposes are equal 

to 25 times the minimum monthly wage in Mexico City.

Government: 0.225% of salary for social insurance old-age 

benefits, plus 0.125% of covered earnings for disability and 

survivor benefits, plus a flat-rate amount equal to 2.95 pesos 

on behalf of persons actively contributing to an individual 

account; also finances the guaranteed minimum pension.

Qualifying Conditions

Mandatory individual account

Old-age pension: Age 65 (men and women) with at least 

1,250 weeks of contributions; with less than 1,250 weekly 

contributions, the insured may continue contributing or a 

lump-sum benefit is paid.

Early pension: Payable at any age if the accumulated balance in the individual account is sufficient to purchase an 

annuity that is at least 30% greater than the value of the 

minimum guaranteed pension.

Guaranteed minimum pension: Age 65 (men and women) 

with at least 1,250 weeks of contributions and the pension 

(based on the value of the accumulated capital plus accrued 

interest) is less than the minimum pension.

Unemployed worker’s pension: Aged 60 to 64 (men and 

women), unable to find suitable paid employment, and with 

at least 1,250 weekly contributions; with less than 1,250 

weekly contributions, a lump-sum benefit is paid.

Disability pension: The insured has at least 150 weeks of 

contributions with an assessed loss of at least 75% in normal 

earning capacity; at least 250 weeks of contributions with an 

assessed loss of between 50% and 75% of normal earning 

capacity.

Guaranteed minimum pension: The insured is eligible for a 

disability pension and the pension (based on the value of the 

accumulated capital plus accrued interest) is less than the 

minimum pension.

The Mexican Social Security Institute assesses the loss of 

normal earning capacity.

Survivor pension: The insured was a pensioner or had at 

least 150 weeks of contributions at the time of death. The 

death must not be the result of an occupational injury.

Eligible survivors are a widow(er) or cohabiting partner 

with children; a widow(er) without children who was married to the deceased for at least 6 months, subject to the 
SSPTW: The Americas, 2007 ♦ 137

Mexico

deceased being younger than age 55 at the date of marriage; 

if the deceased was aged 55 or older at the date of marriage or if the deceased was a pensioner, the marriage must 

have lasted at least 12 months. Other eligible survivors are 

a cohabiting partner without children who lived with the 

deceased for at least 5 years; children up to age 16 (age 25 

if a student); and parents in the absence of other eligible 

survivors. All eligible survivors must have been dependent 

on the deceased.

Social insurance

Old-age pension: Age 65 (men and women) with at least 

500 weeks of contributions.

Unemployed worker’s pension: Aged 60 to 64 (men or 

women) with at least 500 weeks of contributions.

Retirement from covered employment is necessary.

Old-age benefits are payable abroad; if leaving Mexico 

permanently, the pensioner may request a lump sum equal to 

2 years’ pension.

Disability pension: The insured must be assessed with a 50% 

reduction in normal earning capacity and have 150 weeks of 

contributions. The insured may continue to work in a different job.

The Mexican Social Security Institute assesses the level of 

reduced earning capacity.

Survivor pension: The insured was a pensioner or had at 

least 150 weeks of contributions at the time of death. The 

death must not be the result of an occupational injury.

Eligible survivors are a widow(er) or cohabiting partner 

with children; a widow(er) without children who was married to the deceased for at least 6 months, subject to the 

deceased being younger than age 55 at the date of marriage; 

if the deceased was aged 55 or older at the date of marriage or if the deceased was a pensioner, the marriage must 

have lasted at least 12 months. Other eligible survivors are 

a cohabiting partner without children who lived with the 

deceased for at least 5 years; children up to age 16 (age 25 

if a student); and parents in the absence of other eligible 

survivors. All eligible survivors must have been dependent 

on the deceased.

Funeral grant: The deceased had 12 weeks of contributions 

in the last 9 months or was a pensioner at the time of death.

Old-Age Benefits

Old-age pension

Mandatory individual account: The monthly benefit depends 

on the value of the accumulated capital plus accrued interest. At retirement, the insured can either purchase an annuity 

or make programmed withdrawals based on life expectancy.

Early pension: The monthly benefit is dependent on the 

value of the accumulated capital plus accrued interest. At 

retirement, the insured can either purchase an annuity or 

make programmed withdrawals based on life expectancy.

Guaranteed minimum pension: The guaranteed minimum 

pension is equal to 1,753.76 NP.

Unemployed worker’s pension: The monthly benefit depends 

on the value of the accumulated capital plus accrued interest. At retirement, the insured can either purchase an annuity 

or make programmed withdrawals based on life expectancy.

Old-age pensions are payable abroad under bilateral 

agreement.

Benefit adjustment: Benefits are adjusted annually in February for changes in the price index.

Social insurance: The monthly benefit is a variable percentage (inversely proportional to earnings) of the insured’s 

average earnings in the last 250 weeks of contributions, plus 

an increment for each year of contributions exceeding 500 

weeks. The pension is increased by 15% if the insured is 

assessed as requiring assistance.

Dependent’s supplement: 15% of the insured’s pension is 

paid for a wife or partner and 10% is paid for each child 

younger than age 16 (age 25 if a student, no limit if disabled). In the absence of a wife or partner or children, 10% 

is paid for each dependent parent.

Unemployed worker’s pension: Calculated in the same way 

as the social insurance old-age pension.

The minimum monthly pension is equal to 1,753.76 NP.

Christmas bonus: Equal to a month’s pension without 

supplements.

Benefit adjustment: Benefits are adjusted annually in February for changes in the price index.

Permanent Disability Benefits

Disability pension

Mandatory individual account: The monthly benefit is equal 

to 35% of the insured’s average adjusted earnings in the last 

500 weeks of contributions.

Dependent’s supplement: 15% of the insured’s pension is 

paid for a wife or partner and 10% is paid for each child 

younger than age 16 (age 25 if a student, no limit if disabled). In the absence of a wife or partner or children, 10% 

is paid for each dependent parent.

Constant-attendance allowance: Up to 20% of the insured’s 

pension is paid.

The minimum monthly pension is equal to 1,753.76 NP.

Guaranteed minimum pension: If the insured is eligible for 

a disability pension and the pension (based on the value of 

the accumulated capital plus accrued interest) is higher than 

the minimum pension, the insured may withdraw the sum 

exceeding the amount needed for the minimum pension.

Christmas bonus: Equal to a month’s pension without 

supplements.
138 ♦ SSPTW: The Americas, 2007

Mexico

Benefit adjustment: Benefits are adjusted annually in February for changes in the price index.

Social insurance: The monthly pension is a variable percentage (inversely proportional to earnings) of the insured’s 

average earnings in the last 250 weeks of contributions, 

plus an increment for each year of contributions exceeding 

500 weeks. The pension is increased by 15% if the insured 

is assessed as requiring assistance.

Constant-attendance allowance: Up to 20% of the insured’s 

pension is paid.

Dependent’s supplement: 15% of the insured’s pension is 

paid for a wife or partner and 10% is paid for each child 

younger than age 16 (age 25 if a student, no limit if disabled). In the absence of a wife, partner, or children, 10% is 

paid for each dependent parent.

The minimum monthly pension is equal to 1,753.76 NP.

Christmas bonus: Equal to a month’s pension without 

supplements.

Benefit adjustment: Benefits are adjusted annually in February for changes in the price index.

Survivor Benefits

Survivor pension (mandatory individual account and 

social insurance): The monthly pension is equal to 90% of 

the pension based on the individual account paid or payable 

to the deceased.

The survivor pension ceases if the widow(er) or partner 

remarries or cohabits with a new partner, and a lump sum is 

paid.

Remarriage settlement: A lump sum equal to 3 years’ pension is paid.

Constant-attendance allowance: Up to 20% of the pension 

may be paid to a widow(er) or a partner.

Orphan’s pension (mandatory individual account and 

social insurance): 20% of the deceased’s pension is paid 

for each orphan younger than age 16 (age 25 if a student, 

no limit if disabled); 30% for a full orphan. When eligibility 

ceases, orphans receive a final benefit equal to 3 months of 

the deceased’s pension.

Other eligible survivors (mandatory individual account 

and social insurance): In the absence of a widow(er) or 

partner and children, 20% of the deceased’s pension is paid 

for each other eligible survivor.

The amount paid may be recalculated if the number of eligible survivors changes.

All survivor benefits combined must not exceed 100% of the 

pension paid or payable to the deceased.

Survivor pensions are payable abroad under bilateral 

agreement.

Funeral grant: A lump sum is paid equal to twice the minimum monthly wage in Mexico City (The minimum daily 

wage in Mexico City is 50.50 pesos).

Benefit adjustment: Benefits are adjusted annually in February for changes in the price index.

Administrative Organization

Mandatory individual account: Managed by a general 

assembly, technical council, oversight commission, and 

director general, the Mexican Social Security Institute 

(http://www.imss.gob.mx) administers the program.

National Commission for the Retirement Savings System 

(CONSAR) (http://www.consar.gob.mx) supervises the pension fund management companies (AFOREs).

Social insurance: Managed by a general assembly, technical council, oversight commission, and director general, the 

Mexican Social Security Institute (http://www.imss.gob.mx) 

administers the program through regional and local boards.

Sickness and Maternity

Regulatory Framework

First law: 1943.

Current law: 1995 (social insurance), implemented in 1997, 

with 2001, 2004, 2005, and 2006 amendments.

Type of program: Social insurance system.

Note: The Mexican Social Security Institute also administers the Oportunidades program, a state financed social 

assistance program providing medical services to needy persons without access to social security services in rural and 

marginal urban areas. Benefits are provided through rural 

hospitals and medical units and include reproductive health, 

gynecology, and chronic disease care; medical services for 

infants and youths; nutrition; and vaccinations.

Coverage

Employees, members of cooperatives, pensioners, and the 

dependents of insured persons.

Voluntary coverage for self-employed persons and publicsector employees not covered by other laws.

Special systems for petroleum workers, public-sector 

employees, and military personnel.

Source of Funds

Insured person

Cash benefits: 0.25% of covered monthly earnings.

Medical benefits: None; 0.56% of covered earnings exceeding 3 times the minimum monthly wage in Mexico City. 

Pensioners contribute 0.375% of covered monthly earnings.
SSPTW: The Americas, 2007 ♦ 139

Mexico

Voluntary contributors pay a flat rate equal to 22.4% of the 

minimum monthly wage in Mexico City.

The minimum earnings for contribution purposes are equal 

to the minimum monthly wage in Mexico City (The minimum daily wage in Mexico City is 50.50 pesos).

The maximum earnings for contribution purposes are equal 

to 25 times the minimum monthly wage in Mexico City.

Self-employed person

Cash benefits: 0.95% of declared earnings.

Medical benefits: A flat rate equal to 19.75% of the minimum monthly wage in Mexico City. Self-employed working 

pensioners contribute 1.425% of covered earnings.

The minimum earnings for contribution purposes are equal 

to the minimum monthly wage in Mexico City (The minimum daily wage in Mexico City is 50.50 pesos).

The maximum earnings for contribution purposes are equal 

to 25 times the minimum monthly wage in Mexico City.

Employer

Cash benefits: 0.7% of covered monthly payroll.

Medical benefits: A flat rate equal to 19.75% of the minimum monthly wage in Mexico City per employee; plus 

1.59% of covered earnings greater than three times the 

minimum monthly wage in Mexico City. Pensioners who 

are employers contribute 1.05% of covered earnings.

The minimum earnings for contribution purposes are equal 

the minimum monthly wage in Mexico City (The minimum 

daily wage in Mexico City is 50.50 pesos).

The maximum earnings for contribution purposes are equal 

to 25 times the minimum monthly wage in Mexico City.

Government

Cash benefits: 0.05% of covered earnings.

Medical benefits: A monthly amount equal to 13.90% of the 

minimum monthly wage in Mexico City; 0.75% of covered 

earnings on behalf of pensioners.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

4 weeks of contributions immediately before the incapacity 

began; for casual workers, at least 6 weeks of contributions 

in the last 4 months.

Coverage is extended for up to 8 weeks after covered 

employment ceases if the insured had at least 8 continuous 

weeks of contributions.

Cash maternity benefits: The insured must have at least 

30 weeks of contributions in the 12 months before the benefit is first paid.

Medical benefits: Must be currently insured, a pensioner, or 

an eligible dependent.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 60% of the 

insured’s last daily earnings and is paid after a 3-day waiting 

period for up to 52 weeks; may be extended in some cases 

to 78 weeks.

Maternity benefit: The benefit is equal to 100% of the 

insured’s last daily earnings and is paid for 42 days before 

and 42 days after the expected date of childbirth.

Nursing allowance: In-kind assistance is provided for up 

to 6 months after childbirth. A layette (clothing and other 

necessities for the newborn) is also provided.

Workers’ Medical Benefits

Medical services are normally provided directly to patients 

through the health facilities of the Mexican Social Security 

Institute; the costs of services are reimbursed by the Institute 

when it cannot provide them directly. Benefits include 

general, maternity, dental, and specialist care; surgery; 

hospitalization or care in a convalescent home; medicines; 

laboratory services; rehabilitation and preventive programs; 

and appliances. Benefits are paid for 52 weeks; may be 

extended in some cases to 104 weeks.

Dependents’ Medical Benefits

Medical services are normally provided directly to patients 

through the health facilities of the Mexican Social Security 

Institute; the costs of services are reimbursed by the Institute 

when it cannot provide them directly. Benefits include 

general, maternity, dental, and specialist care; surgery; 

hospitalization or care in a convalescent home; medicines; 

laboratory services; rehabilitation and preventive programs; 

and appliances. Benefits are paid for 52 weeks; may be 

extended in some cases to 104 weeks.

Administrative Organization

Managed by a general assembly, technical council, oversight commission, and director general, the Mexican Social 

Security Institute (http://www.imss.gob.mx) administers the 

program through regional and local boards.

Mexican Social Security Institute (http://www.imss.gob.mx) 

operates its own hospitals, clinics, pharmacies, and other 

medical facilities and also contracts for the use of some 

facilities.

Work Injury

Regulatory Framework

First law: 1943.

Current law: 1995 (social insurance), implemented in 1997, 

with 2001, 2004, 2005, and 2006 amendments.

Type of program: Social insurance system.
140 ♦ SSPTW: The Americas, 2007

Mexico

Coverage

Employees, members of cooperatives, pensioners, and the 

dependents of insured persons.

Voluntary coverage for public-sector employees not covered 

by other laws.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost; contributions vary between 0.50% 

and 15% of payroll according to the total payroll and the 

assessed degree of risk.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. Accidents that occur while commuting to and from 

work are covered.

Temporary Disability Benefits

The benefit is equal to 100% of the insured’s earnings before 

the disability began. The benefit is paid from the first day of 

disability for a maximum of 52 weeks or until the insured is 

certified as permanently disabled.

Occupational disease benefit: The benefit is equal to 

100% of the insured’s average earnings in the last 52 weeks.

Permanent Disability Benefits

Permanent disability pension: If totally disabled (100%), 

the monthly benefit is equal to 70% of the insured’s earnings 

before the disability began.

Partial disability: With an assessed degree of disability 

greater than 50%, a percentage of the full pension is paid 

according to the assessed degree of disability. If the assessed 

degree of disability is between 26% and 50%, a percentage 

of the full pension is paid according to the assessed degree 

of disability or a lump sum is paid. If the assessed degree 

of disability is 25% or less, a lump sum is paid equal to 5 

years’ pension.

Christmas bonus: A supplement equal to 15 days’ pension is 

paid if the assessed degree of disability is greater than 50%.

An initial pension is paid for 2 years; thereafter, payment is 

dependent on the disability being certified as permanent.

Benefit adjustment: Benefits are adjusted annually in February for changes in the price index.

Workers’ Medical Benefits

Benefits include preventive, general, surgical, and hospital 

care; medicines; rehabilitation; transport; appliances; and 

orthopedics.

Survivor Benefits

Survivor pension: The monthly pension paid to a 

widow(er) or partner is equal to 40% of the deceased’s disability pension.

The pension ceases if the widow(er) or partner remarries or 

cohabits with a new partner, and a lump sum is paid.

Remarriage settlement: A lump sum is paid equal to 3 years’ 

pension.

Orphan’s pension: 20% of the deceased’s pension is paid 

for each orphan younger than age 16 (age 25 if a student, 

no limit if disabled); 30% for a full orphan. When eligibility 

ceases, orphans receive a final benefit equal to 3 months of 

the deceased’s pension.

Other eligible survivors (in the absence of the above):

Each eligible survivor receives 20% of the deceased’s 

pension.

The amount paid may be recalculated if the number of eligible survivors changes.

Christmas bonus: A supplement equal to 15 days’ pension is 

paid.

All survivor benefits combined must not exceed 100% of the 

deceased’s disability pension.

Survivor pensions are payable abroad under bilateral 

agreement.

Funeral grant: A lump sum is paid equal to 2 minimum 

monthly wages in Mexico City.

Benefit adjustment: Benefits are adjusted annually in February for changes in the price index.

Administrative Organization

Managed by a general assembly, technical council, oversight 

commission, and director general, the Mexican Social Security Institute (http://www.imss.gob.mx) administers contributions and benefits through regional and local boards.

Unemployment

Regulatory Framework

Labor law requires employers to pay dismissed employees a 

lump sum equal to 3 months’ pay plus 20 days’ pay for each 

year of service.

Unemployed persons may withdraw an amount equal to 

75 days of their covered earnings for contribution purposes 

in the last 250 weeks of contributions or 10% of the individual account balance, whichever is lower, after 46 consecutive days of unemployment. One withdrawal is permitted 

every 5 years.
SSPTW: The Americas, 2007 ♦ 141

Mexico

Family Allowances

Regulatory Framework

First law: 1973.

Current laws: 1973 (labor); and 1995 (social insurance), 

implemented in 1997, with 2001 and 2004 amendments.

Type of program: Social insurance system.

Coverage

Family assistance: Persons assessed as needy.

Exclusions: Self-employed persons, domestic workers, 

public-sector employees not covered by other laws, family 

labor, and employers.

Day care center: Insured mothers who are employed, widowers or divorced fathers who have not remarried and who 

have the legal custody of children, and employed persons 

who have legal custody of children and are unable to provide day care.

Children must be between the ages of 43 days and age 4.

Marriage grant: Insured men and women.

Social benefits: All persons residing in Mexico.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1% of covered payroll.

The minimum earnings for contribution purposes are equal 

to the regional minimum wage.

The maximum earnings for contribution purposes are equal 

to 25 times the minimum monthly wage in Mexico City.

Government: None.

Qualifying Conditions

Family assistance (means-tested): The person or family 

must be assessed as needy.

Day care center: The parent is in covered employment; 

may be extended for up to 4 weeks after leaving covered 

employment. Care is provided for a child from the 43rd day 

after birth up to age 4.

Marriage grant: Paid to an insured man or woman with at 

least 150 weeks of contributions. Coverage is extended up 

to 90 days after the last day of contributions.

Social benefits: The person must reside in Mexico.

Family Allowance Benefits

Family assistance (means-tested): Cash benefits are 

provided.

Day care center: Child day care facilities are provided.

Marriage grant: A lump sum equal to the minimum monthly 

wage in Mexico City is financed by the individual account.

Social benefits: Preventive health care services are 

provided.

Administrative Organization

Managed by a general assembly, technical council, oversight commission, and director general, the Mexican Social 

Security Institute (http://www.imss.gob.mx) administers the 

program.
142 ♦ SSPTW: The Americas, 2007

Nicaragua

Nicaragua

Exchange rate: US$1.00 equals 18.33 córdobas.

Old Age, Disability, and Survivors

Regulatory Framework

First law and current law: 1955 (social security), with 2005 

amendment.

Type of program: Social insurance system.

Coverage

All persons receiving remuneration for work or services 

rendered.

Voluntary coverage for self-employed persons, workers who 

were previously covered by the program, clergy, employers, and unpaid family members working for family-owned 

companies.

Exclusions: Seasonal agricultural workers, armed forces 

personnel, and domestic workers.

Noncontributory system for miners, indigents, those who 

have performed services for the country, and war victims.

Source of Funds

Insured person: 4% of covered earnings.

The minimum earnings for contribution purposes are equal 

to the minimum wage.

The maximum earnings for contribution purposes are 

35,525 córdobas.

The insured’s contributions also finance family allowances.

Self-employed person: Voluntary contributions of either 

10% of declared earnings (old-age, disability, and survivor 

benefits and dependent supplements) or 18.25% of declared 

earnings (old-age, disability, and survivor benefits and 

dependent supplements; sickness and maternity benefits; 

and family allowances).

The maximum earnings for contribution purposes are 

35,525 córdobas.

Employer: 6% of covered payroll.

The minimum earnings for contribution purposes are equal 

to the minimum wage.

The maximum earnings for contribution purposes are 

35,525 córdobas.

The employer’s contributions also finance family 

allowances.

Government: Subsidizes benefits for voluntarily covered 

self-employed persons.

The Nicaraguan Institute of Social Security finances any 

deficit for the provision of war pensions and special pensions (see source of funds under Work Injury, below).

Qualifying Conditions

Old-age pension: Age 60 (age 55 for persons with a 

certified physical or mental disability) with 750 weeks of 

contributions. Qualifying conditions are reduced for those 

who joined the social insurance system after age 45, with 

contributions required only for half the number of weeks 

from the date coverage began until the pensionable age.

Age 60 years with 15 years of contributions for selfemployed persons. Age 55 for miners and teachers with 

30 years of service (men) or 15 years of service (women).

A working pensioner may receive a pension and a salary but 

must pay contributions to the program.

Old-age pensions are not payable abroad.

Disability pension: The insured must be assessed with a 

loss of 67% of earning capacity in the usual or a similar 

occupation (total disability) and have at least 150 weeks of 

contributions in the last 6 years; for the loss of at least 50% 

but less than 67% of usual earning capacity (partial disability), with at least 150 weeks of contributions in the last 

6 years.

The disability pension is replaced by the old-age pension at 

age 60. If the insured is ineligible for the old-age pension, 

a partial disability pension is increased to the value of the 

total disability benefit at age 60 on the condition that the 

beneficiary retires from all gainful employment.

The assessed loss of earning capacity is reviewed every 

3 years.

Disability pensions are not payable abroad.

Survivor pension: The deceased had at least 150 weeks of 

contributions in the last 6 years.

Eligible survivors include a widow or a dependent disabled 

widower and orphans.

Survivor pensions are not payable abroad.

Funeral grant: The deceased had at least 4 weeks of contributions in the 26 weeks before death.

Noncontributory pension: War victims’ pensions are 

paid to persons who have never contributed to the social 

insurance system but who have performed services for the 

country; special pensions are paid to other groups, including 

indigent persons, miners, and public servants.

Old-Age Benefits

Old-age pension: The pension is equal to 40% of the 

insured’s average earnings (45% if average earnings are 

less than twice the minimum wage), plus 1.365% (1.59% if 

average earnings are less than twice the minimum wage) for 

each additional 50-week period of contributions exceeding 
SSPTW: The Americas, 2007 ♦ 143

Nicaragua

150 weeks. An additional 1% of earnings is paid for each 

year of work after age 60, up to a maximum of 5%.

The insured’s average earnings are equal to the average of the insured’s last 250 weeks of contributions (or 

the 250 weeks before the last 250 weeks if earnings were 

higher) times 4 1/13.

For insured persons with at least 1,000 weeks of contributions but less than 1,250 weeks of contributions, the 

insured’s average earnings may be calculated on the basis of 

the average of the insured’s last 200 weeks of contributions 

times 4 1/13; with at least 1,250 weeks of contributions, the 

average of the last 150 weeks of contributions times 4 1/13.

Dependent’s supplement: 15% of the old-age pension is paid 

for a wife or partner; 10% each for children younger than 

age 15 (age 21 if student, no limit if disabled); and 10% for 

uninsured parents older than age 60 or disabled.

The minimum monthly benefit is 1,032.70 córdobas.

The maximum monthly pension is 80% of average earnings 

if the insured’s average earnings are more than twice the 

minimum wage; 100% if the insured’s average earnings are 

less than twice the minimum wage.

Schedule of payments: Benefits are paid monthly, with an 

additional payment made each Christmas.

Benefit adjustment: Benefits are adjusted periodically for 

wage changes, depending on national economic conditions.

Noncontributory pension: War victims’ pensions and special pensions are provided.

Permanent Disability Benefits

Disability pension: The pension is equal to 40% of the 

insured’s average earnings (45% if average earnings are 

less than twice the minimum wage), plus 1.365% (1.59% if 

average earnings are less than twice the minimum wage) for 

each additional 50-week period of contributions exceeding 

150 weeks.

The insured’s average earnings are equal to the average of 

the insured’s last 250 weeks of contributions before the disability began (or the 250 weeks before the last 250 weeks if 

earnings were higher) times 4 1/13.

For insured persons with at least 1,000 weeks of contributions but less than 1,250 weeks of contributions, the 

insured’s average earnings may be calculated on the basis 

of the average of the insured’s last 200 weeks of contributions before the disability began times 4 1/13; with at 

least 1,250 weeks of contributions, the average of the last 

150 weeks of contributions before the disability began times 

4 1/13.

If the insured has a spouse and children, the total disability 

pension must not be less than 50% of the insured’s average 

earnings.

Constant-attendance allowance: Equal to 20% of the total 

disability pension.

Dependent’s supplement (total disability): 15% of the pension is paid for a wife or partner; 10% each for children 

younger than age 15 (age 21 if student, no limit if disabled); and 10% for uninsured parents older than age 60 or 

disabled.

Partial disability: Equal to 50% of the total disability 

pension.

The maximum partial disability pension must be higher 

than 33% but less than 50% of the minimum wage in the 

insured’s occupation.

Schedule of payments: Benefits are paid monthly, with an 

additional payment made each Christmas.

Benefit adjustment: Benefits are adjusted periodically for 

wage changes, depending on national economic conditions.

Noncontributory pension: War victims’ pensions and special pensions are provided for total and partial disability.

Survivor Benefits

Survivor pension: 50% of the deceased’s pension is paid to 

a widow aged 45 or older or disabled or to a dependent disabled widower. A pension is paid to a widow younger than 

age 45 for a limited period of 2 years or for as long as she is 

caring for a child receiving an orphan’s pension.

Orphan’s pension: Each orphan younger than age 15 

(age 21 if a student, no limit if disabled) receives 25% of the 

deceased’s pension; 50% for a full orphan.

The maximum survivor pension payable to a widow(er) 

with two or more children must not exceed 100% of the 

deceased’s pension.

Funeral grant: The cost of the funeral or an amount equal to 

50% of the deceased’s monthly wage is paid.

Benefit adjustment: Benefits are adjusted periodically for 

wage changes, depending on national economic conditions.

Noncontributory pension: War victims’ pensions and 

special pensions are provided for spouses, orphans, and 

dependent parents.

Administrative Organization

Managed by technical and managing councils, the Nicaraguan Institute of Social Security (http://www.inss.org.ni) 

administers the program.

Sickness and Maternity

Regulatory Framework

First law and current law: 1955 (social security), with 2005 

amendment.

Type of program: Social insurance (cash benefits) and universal (medical benefits) system.
144 ♦ SSPTW: The Americas, 2007

Nicaragua

Coverage

Cash benefits: All persons receiving remuneration for work 

or services rendered.

Voluntary coverage for self-employed persons, clergy, 

employers, ranchers, and unpaid family members working 

for family-owned companies.

Exclusions: Armed forces personnel.

Medical benefits: Insured persons and their dependents 

(the wife of an insured man receives prenatal and postnatal 

care; children receive benefits up to age 12) and old-age 

pensioners.

Source of Funds

Insured person: 6.25% of covered earnings.

The minimum earnings for contribution purposes are equal 

to the minimum wage.

The maximum earnings for contribution purposes are 

35,525 córdobas.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: 15% of covered payroll.

The minimum earnings for contribution purposes are equal 

to the minimum wage.

The maximum earnings for contribution purposes are 

35,525 córdobas.

Government: 0.25% of covered earnings; contributes as an 

employer.

The minimum earnings for contribution purposes are equal 

to the minimum wage.

The maximum earnings for contribution purposes are 

35,525 córdobas.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

8 weeks of contributions in the last 22 weeks. Insured persons with 8 weekly contributions in the last 22 weeks who 

become unemployed are covered for 14 weeks after the end 

of employment.

No benefits are payable if the insured is caring for a sick 

family member.

Cash maternity benefits: The insured must have at least 

16 weeks of contributions in the 39 weeks before the 

expected date of childbirth. Insured women with 8 weekly 

contributions in the last 22 weeks who become unemployed 

are covered for 14 weeks after the end of employment.

Medical benefits: The insured must have at least 4 weeks of 

contributions, even if they are not consecutive; receiving a 

contributory or noncontributory old-age pension.

Sickness and Maternity Benefits

Sickness benefit: The monthly benefit is equal to 60% of 

the insured’s average earnings in the last 8 weeks and is paid 

after a 3-day waiting period (waived if hospitalized) for up 

to 52 weeks.

Maternity benefit: The benefit is equal to 60% of the 

insured’s average earnings in the last 8 weeks and is paid 

according to eight wage classes. The benefit is paid for 

4 weeks before and 8 weeks after the expected date of 

childbirth.

Nursing allowance: Forty-five pounds of milk are provided 

in the first 6 months of the child’s life.

Workers’ Medical Benefits

Medical services are provided directly to patients, depending on available resources.

There is no limit to duration.

Dependents’ Medical Benefits

Medical services are provided directly to patients, depending on available resources. The wife of an insured man 

receives prenatal and postnatal care. Benefits are provided 

for children up to age 12. Old-age pensioners (contributory 

and noncontributory) receive medical care for 77 illnesses 

and 7 types of surgical treatment, according to the schedule 

in law.

Administrative Organization

Managed by technical and managing councils, the Nicaraguan Institute of Social Security (http://www.inss.org.ni) 

administers the program.

Medical care and cash benefits are delivered through public 

and private institutions.

Work Injury

Regulatory Framework

First law: 1945 (labor code).

Current law: 2005 (social security).

Type of program: Social insurance system.

Coverage

All persons receiving remuneration for work or services 

rendered.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1.5% of covered payroll (plus 1.5% of covered 

payroll for war victims’ pensions).
SSPTW: The Americas, 2007 ♦ 145

Nicaragua

The maximum earnings for contribution purposes are 

35,525 córdobas.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 60% of earnings in the last 8 weeks 

of contributions. The benefit is paid from the day after the 

disability began until medical care ceases or the insured is 

certified as permanently disabled. (The employer pays the 

benefit for the first day of disability.)

Permanent Disability Benefits

Permanent disability pension: The pension is equal to 

60% of the insured’s earnings if the insured has a wife and 

two or more children; 50% if there are no dependents.

Dependent’s supplement (total disability): 15% of the pension is paid for a wife or partner; 10% each for children 

younger than age 15 (age 21 if student, no limit if disabled).

Partial disability: A percentage of the full pension is paid 

according to the assessed degree of disability.

Noncontributory pension: Special pensions are provided 

for total and partial disability for prescribed categories of 

worker.

Workers’ Medical Benefits

Medical benefits are provided for work injuries and occupational diseases.

Survivor Benefits

Survivor pension: The minimum pension is equal to 50% 

of the deceased’s earnings used to calculate the permanent 

disability pension. The pension is paid to a widow or a 

dependent disabled widower.

Orphan’s pension: Each orphan younger than age 15 

(age 21 if a student, no limit if disabled) receives 25% of the 

deceased’s pension; 50% for a full orphan.

Other dependent survivors (in the absence of the 

above): Each survivor receives 25% of the deceased’s 

pension.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Funeral grant: 50% of the deceased’s average monthly salary is paid.

Administrative Organization

Managed by technical and managing councils, the Nicaraguan Institute of Social Security (http://www.inss.org.ni) 

administers the program.

Family Allowances

Regulatory Framework

First and current law: 1955 (social security), implemented 

in 1956, with 2005 amendment.

Type of program: Social insurance system.

Coverage

All persons receiving remuneration for work or services 

rendered.

Voluntary coverage for self-employed persons, workers who 

were previously covered by the program, clergy, employers, and unpaid family members working for family-owned 

companies.

Exclusions: Seasonal agricultural workers and armed forces 

personnel.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Family allowances (earnings-tested): The child must be 

younger than age 15; age 21 if a student.

Family Allowance Benefits

Family allowances (earnings-tested): Monthly allowances 

vary according to family earnings and the age of the child.

Administrative Organization

Managed by technical and managing councils, the Nicaraguan Institute of Social Security (http://www.inss.org.ni) 

administers the program.
146 ♦ SSPTW: The Americas, 2007

Panama

Panama

Exchange rate: US$1.00 equals 1.00 balboa.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1941.

Current law: 2005 (social insurance).

Type of program: Social insurance system.

Note: A system of mandatory individual accounts was introduced to complement the social insurance system in January 2008. The system covers all new entrants to the labour 

force in 2008 and self-employed persons who were younger 

than age 35 on January 1, 2007. Employees who were first 

employed in 2006 or 2007 and all other self-employed persons may opt to join. Insured persons who were aged 35 on 

January 1, 2006, could opt to join until December 31, 2007.

Coverage

Employees in public- and private-sector employment, 

including occasional, seasonal, and domestic workers.

Voluntary coverage for self-employed persons.

Source of Funds

Insured person: 7.25% of gross earnings (8% from 2008, 

9% from 2011, and 9.75% from 2013).

The minimum earnings for contribution purposes are equal 

to either the monthly minimum pension (175 balboas) or 

100 balboas for employees with earnings above this level.

There are no maximum earnings for contribution purposes.

The insured’s contributions also finance sickness and maternity benefits.

Self-employed person: A voluntary contribution of 9.5% of 

declared earnings (11% from 2008, 12.5% from 2011, and 

13.5% from 2013).

The minimum declared earnings for contribution purposes 

are 300 balboas.

There are no maximum earnings for contribution purposes.

Employer: 10.75% of gross payroll (11.5% from 2008, 12% 

from 2011, and 12.25% from 2013).

The minimum earnings for contribution purposes are equal 

to either the monthly minimum pension (175 balboas) or 

100 balboas for employees with earnings above this level.

There are no maximum earnings for contribution purposes.

The employer’s contributions also finance sickness and 

maternity benefits.

Government: 0.8% of earnings, declared earnings, and pensions paid to state pensioners; the proceeds of an earmarked 

tax on beverages and tobacco; a subsidy of 20.5 million 

balboas a year; and 10% of income received from optical 

fibre concessions.

Government contributions also finance sickness and maternity benefits.

Qualifying Conditions

Old-age pension: Age 62 (men) or age 57 (women) with 

180 months of contributions. Retirement is necessary. 

Beginning 2008, the retirement age will decrease to age 60 

(men) or age 55 (women).

Early pension: There is no early pension.

Deferred pension: A deferred pension is possible. There is 

no maximum age of deferral.

The pension is payable abroad.

Old-age settlement: Paid at the normal retirement age if 

the insured does not meet the contribution conditions for a 

pension.

Disability pension: Paid for a loss of 2/3 of earning capacity. The insured must have at least 36 months of contributions, including 18 months in the last 3 years; or a total of 

180 months of contributions. The pension is paid for 2 years 

(may be extended) and the assessed degree of disability may 

be reviewed at any time at the request of the insured or the 

Social Insurance Fund.

The Medical Qualification Commission assesses the degree 

of disability.

The disability pension is payable abroad.

The disability pension is not replaced by the old-age pension 

at the normal retirement age.

Disability grant: Paid if the insured does not meet the qualifying conditions for a full pension but has at least 12 months 

of contributions, including 6 months in the year before the 

disability began.

Survivor pension: The insured met the qualifying conditions for the disability pension or was a pensioner at the 

time of death.

The survivor pension is payable abroad.

Old-Age Benefits

Old-age pension: The pension is equal to 60% of the 

insured’s average earnings in the best 7 years of earnings, 

plus 1.25% of earnings for each 12-month period of contributions exceeding 180 months.

Early pension: There is no early pension.

Deferred pension: An additional 2% of earnings is paid 

for each 12-month period of contributions after the normal 

retirement age.
SSPTW: The Americas, 2007 ♦ 147

Panama

Dependent’s supplement (at the normal retirement age): 

Twenty balboas a month is paid for a wife and 10 balboas 

for each child younger than age 18 (no limit if disabled), up 

to a maximum of 100 balboas.

The minimum monthly pension is 175 balboas.

The maximum monthly pension is 1,000 balboas; 1,500 balboas with 25 years of coverage and average monthly earnings of 1,500 balboas in a 15-year period.

The pension plus supplements must not exceed 100% of the 

insured’s average earnings used for the pension calculation.

Benefit adjustment: Benefits are adjusted on an ad hoc basis 

depending on economic conditions.

Old-age settlement: A lump sum is paid equal to 1 month’s 

pension for each 6-month period of contributions.

Permanent Disability Benefits

Disability pension: The pension is equal to 60% of the 

insured’s average earnings in the best 7 years of earnings, 

plus 1.25% of earnings for each 12-month period of contributions exceeding 180 months. If the total contribution 

period is less than 7 years, the pension is based on 60% of 

average earnings in the period credited.

Dependent’s supplement: Twenty balboas a month is paid 

for a wife and 10 balboas for each child younger than age 18 

(no limit if disabled), up to a maximum of 100 balboas.

The minimum monthly pension is 175 balboas.

The maximum monthly pension is 1,000 balboas; 1,500 balboas with 25 years of coverage and average monthly earnings of 1,500 balboas in a 15-year period.

Benefit adjustment: Benefits are adjusted on an ad hoc basis 

depending on economic conditions.

Disability grant: A lump sum is paid equal to 1 month’s 

pension for each 6-month period of contributions.

Survivor Benefits

Survivor pension: 50% of the pension paid or payable to 

the deceased is paid to a widow aged 57 or older or disabled 

or caring for a child. A limited pension is paid to other widows for 5 years only. The pension is also paid to a dependent disabled widower.

Orphan’s pension: 20% of the deceased’s pension is paid 

for each orphan younger than age 14 (age 18 if a student, no 

limit if disabled); 50% for a full orphan.

Other dependents (in the absence of the above): The 

deceased’s mother or aged or disabled father receives 30% 

of the deceased’s pension; eligible brothers and sisters 

receive 20% of the deceased’s pension until age 14.

The minimum pension is equal to 87.50 balboas for a 

widow, 35 balboas for half orphans, 52.50 for parents in the 

absence of widow and orphans; 35 balboas for brothers and 

sisters in the absence of widow, orphans, and parents. 

All survivor benefits combined must not exceed 100% of the 

deceased’s pension, up to a maximum of 1,500 balboas.

Benefit adjustment: Benefits are adjusted on an ad hoc basis 

depending on economic conditions.

Funeral grant: A lump sum of 300 balboas is paid.

Administrative Organization

Managed by a board of directors with tripartite representation and a director general with an advisory board for technical advice, the Social Insurance Fund (http://www.css

.org.pa) administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1941.

Current law: 2005 (social insurance).

Type of program: Social insurance system.

Coverage

Employees in public- and private-sector employment, 

including occasional, seasonal and domestic workers, and 

pensioners.

Voluntary coverage for self-employed persons.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: A voluntary contribution of 8.5% of 

declared gross earnings. 

The minimum declared earnings for contribution purposes 

are 300 balboas.

There are no maximum earnings for contribution purposes.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

6 months of contributions in the last 9 months.

Cash maternity benefits: The insured must have at least 

9 months of contributions in the 12 months before the 7th 

month of pregnancy.

Medical benefits: Must be currently insured or a pensioner; 

if the insured becomes unemployed, coverage continues 

for 3 months after the end of employment (24 months for 

insured persons with at least 180 months of contributions).
148 ♦ SSPTW: The Americas, 2007

Panama

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 70% of the 

insured’s average earnings in the last 2 months. The benefit 

is paid after a 3-day waiting period for up to 52 weeks for 

any one incapacity; may be extended for up to 26 additional weeks for the same incapacity with a possible further 

extension of up to a year with the agreement of the Social 

Insurance Fund.

There are no minimum or maximum benefits.

Maternity benefit: The benefit is equal to 100% of the 

insured’s average earnings in the last 9 months and is paid 

for up to 6 weeks before and 8 weeks after the expected date 

of childbirth.

There is no provision of paid parental leave.

Workers’ Medical Benefits

Benefits include general and specialist care, surgery, hospitalization, laboratory services, medicines, dental care, and 

maternity care.

Medical services are normally provided directly through the 

facilities of the Social Insurance Fund or are provided by 

the Ministry of Health, with the cost reimbursed. In special 

cases, including those in which the Fund or Ministry have 

no facilities, the cost of private care obtained in the country or abroad may be reimbursed in part or in full, with the 

authorization of the Fund.

There is no limit to duration if the medical service is 

necessary.

Dependents’ Medical Benefits

Benefits include general and specialist care, surgery, hospitalization, laboratory services, medicines, and dental care. 

Benefits are provided to the insured’s wife and children 

younger than age 18 (age 25 if a student or disabled), a 

dependent mother, a disabled father, or parents older than 

age 60.

Administrative Organization

Managed by a board of directors with tripartite representation and a director general with an advisory board for 

technical advice, the Social Insurance Fund (http://www.css.

org.pa) administers the program.

Social Insurance Fund operates its own hospitals and other 

medical facilities in larger cities.

Ministry of Health (http://www.minsa.gob.pa) is responsible 

for national health policy.

Work Injury

Regulatory Framework

First law: 1916.

Current laws: 1970 (occupational risks) and 2005 (social 

insurance).

Type of program: Employer-liability system, involving 

compulsory insurance with a public carrier.

Coverage

Employees in public- and private-sector employment, 

including occasional, seasonal, and domestic workers.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost is met through the payment of 

insurance premiums. The cost of premiums varies with the 

assessed degree of risk. The average premium is 1.7% of 

payroll.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. Accidents that occur while commuting to and from 

work are covered.

Temporary Disability Benefits

Temporary disability benefit: The monthly benefit is equal 

to 100% of the insured’s earnings for the first 2 months; 

thereafter, 60% of earnings from the 3rd to the 12th month.

Permanent Disability Benefits

Permanent disability pension: If assessed as 100% disabled, the pension is equal to 60% of the insured’s earnings.

The minimum monthly pension is 175 balboas.

The maximum monthly pension is 1,000 balboas.

Partial disability: A percentage of the full pension is paid 

according to the assessed degree of disability. The pension may be increased if the assessed degree of disability is 

greater than 35%; may be paid as a lump sum if the assessed 

degree of disability is 35% or less.

The Medical Qualification Commission assesses the 

disability.

The permanent disability pension may be replaced by the 

old-age pension at the normal retirement age if the insured 

meets the qualifying conditions for the old-age pension.

The pension is payable abroad.

Benefit adjustment: Benefits are reviewed every 2 years.
SSPTW: The Americas, 2007 ♦ 149

Panama

Workers’ Medical Benefits

Benefits include general and specialist care, surgery, medicines, hospitalization, and appliances.

Survivor Benefits

Survivor pension: A widow or a disabled widower receives 

a pension equal to 25% of the deceased’s earnings; 30% if 

the survivor is the sole beneficiary or is disabled.

Orphan’s pension: The pension for one orphan younger 

than age 18 is equal to 15% of the deceased’s earnings; 

for two orphans, 25%; for three orphans, 35%; for four or 

more orphans, 40%. A sole full orphan receives 30% of the 

deceased’s earnings; for two or more full orphans, 15% of 

the deceased’s earnings each.

Other dependent’s pension (in the absence of the 

above): In order of priority, the deceased’s mother receives 

between 20% and 30% of the deceased’s earnings. The pension is paid for up to 10 years. Brothers or sisters younger 

than age 18 (no limit if disabled) and disabled or elderly 

relatives, including great grandparents, receive 10% each, 

up to a maximum of 30%. The pension is paid for up to 

6 years.

If the value of all survivor benefits combined exceeds 

75% of the deceased’s earnings, the benefits are reduced 

proportionately.

The pension is payable abroad.

Funeral grant: A lump sum of 300 balboas is paid.

Administrative Organization

Managed by a board of directors with tripartite representation and a director general with an advisory board for technical advice, the Social Insurance Fund (http://www.css

.org.pa) administers the program.

Social Insurance Fund operates its own hospitals and other 

medical facilities in larger cities.

Ministry of Health (http://www.minsa.gob.pa) is responsible 

for national health policy.

Unemployment

Regulatory Framework

No statutory benefits are provided.

Under the 1972 Labor Code, employers are required to 

provide workers with a severance payment at the end of the 

labor contract.
150 ♦ SSPTW: The Americas, 2007

Paraguay

Paraguay

Exchange rate: US$1.00 equals

5,030 guaraníes.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1943.

Current law: 1992 (unified pension scheme), with 1994, 

1995, 2002, 2003, and 2005 amendments.

Type of program: Social insurance system.

Coverage

Employed persons, including employees of decentralized 

state entities and enterprises partially owned by the state and 

municipal workers, and apprentices.

Exclusions: Self-employed persons and domestic workers.

Special systems for public-sector employees (including civil 

servants, police and military personnel, justice employees, 

and public teachers), railroad employees, bank employees, 

elected parliamentary representatives, municipal workers, 

employees of Itaipu (a binational electricity generating company), and domestic workers.

Source of Funds

Insured person: 9% of gross earnings.

The minimum monthly earnings for contribution 

purposes are equal to the monthly minimum wage 

(1,219,795 guaraníes).

There are no maximum earnings for contribution purposes.

The insured’s contributions also finance sickness and maternity benefits and work injury benefits.

Self-employed person: Not applicable.

Employer: 14% of gross payroll.

The minimum monthly earnings for contribution 

purposes are equal to the monthly minimum wage 

(1,219,795 guaraníes).

There are no maximum earnings for contribution purposes.

The employer’s contributions also finance sickness and 

maternity benefits and work injury benefits.

Government: 1.5% of gross earnings; contributes as an 

employer.

The minimum monthly earnings for contribution 

purposes are equal to the monthly minimum wage 

(1,219,795 guaraníes).

There are no maximum earnings for contribution purposes.

Government contributions also finance sickness and maternity benefits and work injury benefits.

Qualifying Conditions

Old-age pension: Age 60 (men and women) with at least 

25 years of contributions.

Insured persons may claim a pension under the old scheme 

if they were aged 60 and had at least 15 years of contributions on February 28, 1999.

Early pension: Age 55 (men and women) with at least 

30 years of contributions.

Disability pension: The insured must be assessed with a 

loss of 2/3 of earning capacity, have at least 150 weeks of 

contributions, and be younger than age 55; have between 

150 weeks and 250 weeks of contributions if at least 

aged 55 but younger than age 60; have between 250 weeks 

and 400 weeks of contributions if at least aged 60 but 

younger than age 65.

A medical commission and three doctors assess the degree 

of disability. The degree of disability is reviewed at least 

once every 5 years.

Survivor pension: The insured was a pensioner at the time 

of death or had 750 weeks of contributions.

Eligible survivors include a widow(er) or a partner who 

lived with the deceased for at least 5 years (2 years if they 

had children); a child younger than age 18 (no limit if 

disabled); and dependent parents in the absence of other 

eligible survivors.

Survivor grant: The deceased had less than 750 weeks of 

contributions.

Funeral grant: In the absence of any eligible survivors, paid 

to the person who pays for the funeral.

Old-Age Benefits

Old-age pension: The monthly pension is equal to 100% of 

the insured’s average earnings.

Early pension: The monthly pension is equal to 80% of the 

insured’s average earnings, plus 4% of average earnings for 

each year the insured is older than age 55, up to age 59.

Average earnings are based on earnings in the last 

36 months, but excluding the last month, before retirement.

The minimum monthly old-age pension is 

300,000 guaraníes.

The maximum monthly old-age pension is equal to 

300 times the minimum daily wage. (The minimum monthly 

wage is 1,219,795 guaraníes.)

All gainful activity must cease.

Old-age benefits are payable abroad under bilateral or multilateral agreement.
SSPTW: The Americas, 2007 ♦ 151

Paraguay

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost-of-living index.

Permanent Disability Benefits

Disability pension: The monthly pension is equal to 50% of 

the insured’s average earnings in the last 36 months before 

the disability began, plus 1.5% of average earnings for each 

50-week period of contributions exceeding 150 weeks, up to 

a maximum of 100%.

The minimum monthly disability pension is 

300,000 guaraníes.

The maximum disability pension is 300 times the 

minimum daily wage. (The minimum monthly wage is 

1,219,795 guaraníes.)

Disability benefits are payable abroad under bilateral or 

multilateral agreement.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost-of-living index.

Survivor Benefits

Survivor pension: The monthly pension is equal to 60% 

of the pension paid or payable to the deceased. The pension 

is split equally between a widow(er) or partner older than 

age 40 and children younger than age 18.

A widow(er) or partner younger than age 40 receives a lump 

sum equal to three times the annual pension paid or payable 

to the deceased.

If the widow(er) or partner remarries or cohabits, the 

pension ceases and a lump sum is paid equal to twice the 

deceased’s annual pension.

Other eligible survivors (in the absence of the above):

The pension is paid to the deceased’s parents.

Survivor grant: A lump sum is paid equal to 1 month’s 

minimum wage for each year of contributions.

Survivor benefits are payable abroad under bilateral or multilateral agreement.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost-of-living index.

Funeral grant: A lump sum is paid equal to 75 times the 

minimum daily wage. (The minimum monthly wage is 

1,219,795 guaraníes.)

Administrative Organization

Managed by a tripartite council and a director general, the 

Social Insurance Institute (http://www.ips.gov.py) administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1943.

Current laws: 1992 (unified pension scheme), with 1994, 

1995, 2002, 2003, and 2005 amendments; and 1996 (medical benefits).

Type of program: Social insurance system.

Coverage

Employed persons, including employees of decentralized 

state entities and enterprises partially owned by the state, 

and apprentices.

Pensioners are covered for medical benefits.

Exclusions: Public-sector employees (including civil servants, police and military personnel, and justice employees), 

railroad employees, bank employees, elected parliamentary 

representatives, municipal workers, employees of Itaipu 

(a binational electricity generating company), and selfemployed persons.

Special systems for domestic workers and teachers.

Source of Funds

Insured person: See source of funds under Old Age, 

Disability, and Survivors. (Pensioners contribute 6% of 

pensions.)

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors.

Government: See source of funds under Old Age, Disability, and Survivors.

Qualifying Conditions

Cash sickness and maternity benefits: The insured must 

have at least 6 weeks of contributions in the last 4 months 

(insured women cannot receive cash maternity benefits and 

cash sickness benefits at the same time).

Medical benefits: Must be currently insured.

Sickness and Maternity Benefits

Sickness benefit: The monthly benefit is equal to 50% of 

the insured’s average earnings in the last 4 months before 

the incapacity began. The benefit is paid from the day after 

the incapacity began, for up to 26 weeks; may be extended 

to 50 weeks in special cases. The benefit is reduced by half 

during periods of hospitalization if there are no dependents.
152 ♦ SSPTW: The Americas, 2007

Paraguay

Maternity benefit: The monthly benefit is equal to 50% of 

the insured’s average earnings in the last 4 months immediately before the maternity leave and is paid for 3 weeks 

before and 6 weeks after the expected date of childbirth.

Benefits in-kind: Milk vouchers are provided for up to 

8 months if the mother is unable to nurse the child.

Workers’ Medical Benefits

Medical services are provided directly to patients through 

the facilities of the Social Insurance Institute. Benefits 

include general and specialist care, hospitalization, laboratory services, medicines, prostheses, dental care (with 8 

weeks of recent contributions), and maternity care.

The duration of benefits is 26 weeks for any one illness; 

may be extended to 52 weeks in special cases.

Dependents’ Medical Benefits

Medical services are provided directly to patients through 

the facilities of the Social Insurance Institute. Benefits 

include general and specialist care, hospitalization, laboratory services, medicines, prostheses, dental care (with 

8 weeks of recent contributions), and maternity care.

The duration of benefits is 26 weeks for any one illness; 

may be extended to 52 weeks in special cases.

Eligible dependents include the spouse of the insured or 

pensioner (or a partner who has lived with the insured or 

pensioner for at least 2 years); an unemployed spouse of 

an insured woman; the spouse of a female pensioner, if he 

is needy, unemployed, and older than age 60; unmarried 

children younger than age 18 (no limit if disabled); and the 

insured’s dependent parents older than age 60.

Administrative Organization

Managed by a tripartite council and a director general, the 

Social Insurance Institute (http://www.ips.gov.py) administers the program.

Social Insurance Institute operates its own clinics and 

hospitals.

Work Injury

Regulatory Framework

First law: 1927.

Current law: 1992 (unified pension scheme), with 1994, 

1995, 2002, 2003, and 2005 amendments.

Type of program: Social insurance system.

Coverage

Employed persons, including employees of decentralized 

state entities and enterprises partially owned by the state, 

and apprentices.

Exclusions: Public-sector employees (including civil servants, police and military personnel, and justice employees), 

railroad employees, bank employees, elected parliamentary 

representatives, municipal workers, employees of Itaipu 

(a binational electricity generating company), and selfemployed persons.

Special systems for domestic workers and teachers.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors.

Government: See source of funds under Old Age, Disability, and Survivors.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 75% of the insured’s average earnings in the last 4 months or the total contribution period if 

shorter. The benefit is paid from the day after the disability 

began, for up to 52 weeks.

A medical commission and three doctors assess the degree 

of disability. The degree of disability is reviewed at least 

once every 5 years.

Permanent Disability Benefits

Permanent disability pension: The pension varies between 

22% and 100% of the insured’s average earnings in the last 

36 months before the disability began, according to the 

length of the insured’s contribution period and the assessed 

degree of disability.

Total disability supplement: The supplement is equal to 20% 

of the insured’s average earnings in the last 3 years, plus 

0.5% for each year of coverage exceeding 3 years.

Partial disability: If the assessed degree of disability is 

greater than 30%, the pension is equal to 60% of lost 

earnings, according to the schedule in law. If the value of 

the partial disability pension is less than 30% of the total 

disability pension, a lump sum is paid equal to 5 years’ 

pension.

Partial disability supplement: A percentage of the total disability supplement is paid according to the assessed degree 

of disability.

A medical commission and three doctors assess the degree 

of disability. The degree of disability is reviewed at least 

once every 5 years.
SSPTW: The Americas, 2007 ♦ 153

Paraguay

Workers’ Medical Benefits

Benefits include general and specialist care, hospitalization, 

medicines, and prostheses.

Survivor Benefits

Survivor pension: A widow(er) or partner aged 40 or older 

receives a monthly pension equal to 40% of the pension 

paid or payable to the deceased.

If the widow(er) or partner remarries or cohabits, the benefit 

ceases and a lump sum is paid equal to twice the annual 

pension paid or payable to the deceased.

A widow(er) or partner younger than age 40 receives a lump 

sum equal to three times the annual pension paid or payable 

to the deceased.

Orphan’s pension: Each child younger than age 16 (no 

limit if disabled) receives 20% of the pension paid or payable to the deceased.

Survivor supplement: 75% of the deceased’s total disability 

supplement is paid to eligible survivors.

Other eligible survivors (in the absence of the above):

The pension is paid to the deceased’s parents.

Survivor supplement: 75% of the deceased’s total disability 

supplement is paid to eligible survivors.

All survivor benefits combined must not exceed 100% of the 

pension paid or payable to the deceased.

Survivor benefits are payable abroad under bilateral or multilateral agreement.

Survivor grant: If the insured had less than 750 weeks of 

contributions at the time of death, a lump sum is paid equal 

to 1 month’s minimum wage for each year of contributions.

Survivor benefits are payable abroad under bilateral or multilateral agreement.

Benefit adjustment: Benefits are adjusted annually according 

to changes in the cost-of-living index.

Funeral grant: A lump sum is paid equal to 75 times the 

minimum daily wage. (The minimum monthly wage is 

1,219,795 guaraníes.)

Administrative Organization

Managed by a tripartite council and a director general, the 

Social Insurance Institute (http://www.ips.gov.py) administers the program.

Social Insurance Institute operates its own clinics and 

hospitals.

Family Allowances

Regulatory Framework

No statutory benefits are provided.

The 1993 labor code requires employers to provide specified 

maternity benefits and family allowance benefits based on 

the number of children.
154 ♦ SSPTW: The Americas, 2007

Peru

Peru

Exchange rate: US$1.00 equals

3.17 nuevos soles.

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1936 (wage earners) and 1962 (salaried 

employees).

Current laws: 1973 (unified social security), 1992 (mandatory individual account), 2002 (early retirement), and 2007 

(early retirement for unemployed).

Type of program: Social insurance and mandatory individual account system.

Note: When public- and private-sector employees enter 

the workforce, they may choose between the mandatory 

individual account system (SPP) and the public social 

insurance system (SNP). Insured persons who do not make 

a choice become SPP members. SNP members may switch 

to the SPP but may not switch back, except under certain 

circumstances.

Coverage

Social insurance (SNP): Wage earners and salaried 

employees in the private and public sectors, employees 

of worker-owned and cooperative enterprises, teachers, 

self-employed drivers, artists, domestic workers, seamen, 

journalists, tannery workers, and self-employed agricultural 

workers.

Special systems for fishermen and military and police 

personnel.

Voluntary coverage for certain self-employed persons, for 

those who are economically active but no longer in covered 

employment (a minimum of 18 months’ previous coverage 

is required), and housewives.

Mandatory individual account (SPP): Private- and publicsector employees.

Voluntary coverage for self-employed persons.

Source of Funds

Social insurance (SNP)

Insured person: 13% of gross earnings.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (500 nuevos soles).

There are no maximum earnings for contribution purposes.

Self-employed person: 13% of gross declared earnings.

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (500 nuevos soles).

There are no maximum earnings for contribution purposes.

Employer: None.

Government: None; the government finances the minimum 

pension.

Mandatory individual account (SPP)

Insured person: 10% of gross earnings for old-age benefits, 

plus an average 0.91% of covered earnings for disability and 

survivor insurance and an average 1.81% of gross earnings 

for administrative fees.

The maximum monthly earnings for contribution purposes 

for disability and survivor benefits are 6,707.59 nuevos 

soles. There are no maximum earnings for contribution 

purposes for old-age benefits.

Self-employed person: 10% of gross earnings for old-age 

benefits, plus an average 0.91% of gross earnings for disability and survivor insurance and an average 1.81% of 

gross earnings for administrative fees.

The maximum monthly earnings for contribution purposes 

for disability and survivor benefits are 6,707.59 nuevos 

soles. There are no maximum earnings for contribution 

purposes for old-age benefits.

Employer: None.

Government: The government finances the guaranteed minimum pension.

Qualifying Conditions

Social insurance (SNP)

Old-age pension: Age 60 with at least 20 years of contributions (men and women).

Early pension: Age 55 with at least 30 years of contributions (men) or age 50 with at least 25 years of contributions 

(women); age 55 with at least 20 years of contributions 

(men or women) in the event of a collective lay-off from 

employment.

Disability pension: The insured is assessed with a loss of 2/3 

of earning capacity and was employed when the disability 

began; with at least 36 months of contributions, including 

18 in the last 36 months; at least 12 months of contributions 

in the last 36 months with a total of 3 to 15 years of contributions; or 15 years or more of contributions.

Survivor pension: The insured was a pensioner or satisfied 

the qualifying conditions for a pension at the time of death.

Eligible survivors are a widow, a dependent widower older 

than age 60 or disabled, children younger than age 18 

(age 21 if a student, no limit if disabled), and a father older 

than age 60 or disabled and a mother older than age 55 or 

disabled.
SSPTW: The Americas, 2007 ♦ 155

Peru

Funeral grant: The deceased had at least 3 months of contributions before the date of death or a total of 4 months of 

contributions in the 8 months before the date of death.

Mandatory individual account (SPP)

Old-age pension: Age 65; a pension is paid at any age if 

the individual account has accumulated assets that will 

replace at least 50% of average indexed earnings in the last 

120 months.

Guaranteed minimum pension: The insured was born no 

later than December 31, 1945, is at least age 65, has at least 

20 years of contributions paid on earnings at least equal to 

the minimum wage, and the pension payable (based on the 

value of the accumulated capital plus accrued interest) is 

less than the minimum pension (415 nuevos soles).

Disability pension: Paid if the insured is not receiving an 

old-age pension and is assessed with at least a 50% loss of 

earning capacity.

The degree of disability is assessed by a medical committee 

or the Superintendent of Banks, Insurance, and AFPs.

Survivor pension: The deceased was a pensioner or satisfied 

the qualifying conditions for a pension at the time of death.

Eligible survivors are a widow or partner, children younger 

than age 18 (no limit if disabled), and a father or mother 

older than age 60.

Old-Age Benefits

Social insurance (SNP)

Old-age pension: Men and women born after December 31, 

1946, receive between 30% and 45% of average earnings in 

the last 60 months, according to the insured’s age on June 

14, 2002 (30% if younger than age 31, 35% if aged 31 to 39, 

40% if aged 40 to 49, or 45% if older than age 49), plus 2% 

for each additional year of contributions exceeding 20, up to 

a maximum of 100%.

Men born after December 18, 1932, and women born after 

December 18, 1937, but not later than December 31, 1946, 

receive 50% of the reference salary, plus 4% for each additional year of contributions exceeding 20 years.

The reference salary with between 20 and 25 years of 

contributions is equal to average earnings in the last 5 years; 

with between 25 and 30 years, average earnings in the last 

4 years; with more than 30 years, average earnings in the 

last 3 years.

Men born up to December 18, 1932, and women born up 

to December 18, 1937, receive 50% of the reference salary, 

plus 2% (men) or 2.5% (women) for each additional year of 

contributions exceeding 15 and 13 years, respectively.

The reference salary is equal to average earnings in the last 

12 months.

Early pension: The pension is reduced by 4% for each year 

that the pension is taken before the normal pensionable age.

Dependent’s supplement: Between 2% and 10% of earnings 

is paid for a spouse and between 2% and 5% is paid for each 

child.

The minimum monthly pension is 415 nuevos soles.

The maximum monthly pension is 857.36 nuevos soles.

Constant-attendance supplement: A monthly amount is paid 

equal to the minimum wage (500 nuevos soles).

Pensioners may continue in paid employment and receive 

both the salary and the pension if their total monthly income 

does not exceed 1,725 nuevos soles.

Benefit adjustment: Benefits are adjusted periodically 

according to budget resources.

Mandatory individual account (SPP)

Old-age pension: The value of the pension depends on 

the insured’s contributions to the individual account plus 

accrued earnings, minus administrative fees. (The value of 

accrued rights under the social insurance system is combined with the individual account balance.)

At retirement, the accumulated capital can be used to make 

programmed withdrawals from the individual’s account or 

to purchase a personal annuity, a joint survivor life annuity, 

or a deferred annuity combined with temporary programmed 

withdrawals.

Guaranteed minimum pension: 415 nuevos soles a month.

Permanent Disability Benefits

Social insurance (SNP)

Disability pension: The pension is equal to 50% of the 

reference salary, plus 1.5% for each year of contributions 

exceeding 3 years. For a contribution period of between 1 

and 3 years, 1/6 of average earnings is paid for each year of 

contributions.

The reference salary is equal to average earnings in the last 

12 months; for voluntarily insured self-employed persons, 

the reference salary is equal to average earnings in the last 

60 months.

The minimum monthly pension is 415 nuevos soles.

Dependent’s supplement: 2% to 10% of earnings is paid for 

a spouse and 2% to 5% is paid for each child. The amount 

is reduced if earnings plus pension income exceed the 

insured’s former average earnings.

Constant-attendance supplement: An amount equal to the 

minimum wage (500 nuevos soles a month) is paid.

Benefit adjustment: Benefits are adjusted periodically 

according to budget resources.

Mandatory individual account (SPP)

Disability pension: The pension is calculated on the basis of 

the insured’s average monthly earnings and is proportional 

to the assessed degree of disability. (Disability insurance 

tops-up the accumulated capital in the individual account if 
156 ♦ SSPTW: The Americas, 2007

Peru

the balance is less than the required minimum to finance the 

permanent disability pension.)

Survivor Benefits

Social insurance (SNP)

Survivor pension: 50% of the pension paid or payable to the 

deceased is paid to a widow or a dependent widower older 

than age 60 or disabled.

The pension ceases if the widow(er) remarries or if a disabled widower is assessed as capable of work.

The minimum monthly pension is 270 nuevos soles.

Orphan’s pension: 50% of the pension paid or payable to the 

deceased is paid to orphans younger than age 18 (age 21 if a 

student, no limit if disabled).

The minimum monthly pension is 270 nuevos soles.

Other eligible survivors (in the absence of the above): Each 

dependent parent receives 20% of the deceased’s pension.

All survivor benefits combined must not exceed 100% of 

the monthly pension paid or payable to the deceased or 

857.36 nuevos soles a month, whichever is less.

Funeral grant: Up to 6 times the minimum wage (500 nuevos soles per month) or the reference salary is paid.

Constant-attendance supplement: An amount equal to the 

minimum monthly wage (500 nuevos soles) is paid if the 

survivor is disabled.

Benefit adjustment: Benefits are adjusted periodically 

according to budget resources.

Mandatory individual account (SPP)

Survivor pension: The pension for a spouse, orphans, 

and dependent parents is calculated on the basis of the 

deceased’s average monthly earnings, according to the 

schedule in law. (Life insurance tops-up the accumulated 

capital in the deceased’s individual account if the balance is 

less than the required minimum to finance the survivor pension. Life insurance may also help cover the cost of funeral 

grants.)

Funeral grant: Up to 3,041.68 nuevos soles financed by the 

life insurance or the deceased’s individual account.

Administrative Organization

Social insurance (SNP)

Comptroller General of the Republic (http://www.contraloria.gob.pe) provides general supervision.

Office of Social Security Normalization (http://www.sunat.

gob.pe) administers the program and some special regimes.

National Superintendent of Tax Administration (http://www.

sunat.gob.pe) collects contributions.

Mandatory individual account (SPP)

Superintendent of Banks, Insurance, and AFPs (http://www.

sbs.gob.pe) is responsible for licensing and supervising pension fund administrators and insurance companies.

Pension fund administrators (AFPs) administer the individual accounts.

Sickness and Maternity

Regulatory Framework

First laws: 1936 (wage earners) and 1948 (salaried 

employees).

Current laws: 1997 (modernizing health), 1999 (social 

security health insurance, EsSalud), 2003 (social security 

health insurance, EsSalud), 2002 (integrated health system), 

and 2004 (domestic workers).

Type of program: Social insurance and private insurance 

system.

Note: Insured persons and their dependents can opt out 

of the social security health insurance program (EsSalud) 

and receive health care from a private health care provider 

(EPS).

Coverage

EsSalud

Employed persons in the public and private sectors, 

employees of worker-owned and cooperative enterprises, 

professional artists, self-employed drivers, domestic workers, pensioners, self-employed persons and other persons 

who do not meet the requirements for regular affiliation, 

employed and self-employed persons in agriculture, spouses 

or partners of insured persons, and children.

Pensioners are covered for the nursing allowance and the 

funeral grant only.

Exclusions: Employees whose employers provide health 

services directly.

Special systems for fishermen, dock workers, and employees not covered under the national system.

EPS

All persons opting out of EsSalud and their dependents.

Source of Funds

Insured person: None; pensioners contribute 4% of the 

pension.

Self-employed person: Contributions vary, depending on 

the health plan chosen.

Employer: 9% of payroll. (Employers providing health 

services directly to their employees or who use services provided under contract by a private health care provider (EPS) 

receive a 25% credit toward the cost of contributions.)
SSPTW: The Americas, 2007 ♦ 157

Peru

The minimum earnings for contribution purposes are equal 

to the legal monthly minimum wage (500 nuevos soles).

Government: None; contributes as an employer.

Qualifying Conditions

Sickness cash benefits: The insured must have at least 

3 months’ consecutive contributions or 4 months of contributions in the 6 months before the incapacity began.

Maternity care and cash benefits: The insured was covered when the child was conceived.

Sickness and Maternity Benefits

Sickness benefit: The monthly benefit is equal to 100% of 

the insured’s average daily earnings in the last 4 months and 

is paid after a 20-day waiting period for up to 18 months. 

The employer pays the full salary during the waiting period.

Maternity benefit: The benefit is equal to 100% of earnings, 

up to a maximum. The benefit is paid for 45 days before and 

45 days after the expected date of childbirth; 30 additional 

days are payable in the event of multiple births.

Nursing allowance: Twice the minimum wage (1,000 nuevos soles) is paid from when the child is 8 months until 

14 months of age.

Funeral grant: Up to 6 times the minimum wage (500 nuevos soles a month) or the reference salary is paid.

Workers’ Medical Benefits

Benefits include general, specialist, maternity, and dental 

care; hospitalization; laboratory services; appliances; medicines; rehabilitation; health education; preventative care; 

and immunization.

Benefits are provided for up to 12 months; may be extended 

in certain cases.

Employees have the option of receiving medical benefits 

from EsSalud or from an EPS provider. In order to opt 

for an EPS provider, 51% of employees must agree to the 

change.

Medical benefits provided by an EPS provider require a 

copayment of 2% of monthly income, up to a maximum of 

10% of income or 240 nuevos soles, whichever is less. The 

insured may purchase additional coverage.

Dependents’ Medical Benefits

The insured’s spouse or partner receives the same benefits 

for sickness and maternity as the insured. Children younger 

than age 18 (no limit if disabled) are covered for medical 

care.

Administrative Organization

Comptroller General of the Republic (http://www.contraloria.gob.pe) provides general supervision.

Social Security Health Insurance (EsSalud) (http://www.

essalud.gob.pe) administers the program.

Superintendent of Private Health Providers (http://www.

seps.gob.pe) authorizes and supervises private health 

providers.

Private health care providers (EPS) under contract provide 

complementary and private medical care to employees and 

self-employed persons. Each EPS must provide a care plan 

at least equivalent to the statutory care provided by EsSalud.

Work Injury

Regulatory Framework

First laws: 1911 (work injury) and 1935 (occupational 

diseases).

Current law: 1997.

Type of program: Social insurance system.

Coverage

Employed persons in the public and private sectors and 

employees of worker-owned and cooperative enterprises 

working in high risk activities listed by the government.

Source of Funds

Insured person: None.

Self-employed person: A flat-rate contribution of between 

10 and 30 nuevos soles.

Employer: 0.63% to 1.84% of covered payroll, according to 

the assessed degree of risk and the reported accident rate.

The maximum earnings for contribution purposes are equal 

to six times the local minimum wage.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. Accidents that occur while commuting to and from 

work are not covered.

Temporary Disability Benefits

The benefit is equal to 100% of the insured’s covered 

earnings and is paid after a 20-day waiting period for up to 

11 months and 10 days or 340 days. The employer pays the 

insured’s full earnings during the waiting period.

The maximum duration of benefit is 18 months in a 36-

month period.

The maximum earnings for benefit calculation are equal to 

six times the local minimum wage.
158 ♦ SSPTW: The Americas, 2007

Peru

Permanent Disability Benefits

Permanent disability pension: If the insured is totally 

disabled with an assessed degree of disability greater than 

65%, the pension is equal to 80% of the insured’s average 

earnings (100% if the insured requires constant attendance).

Partial disability: If the insured is totally disabled with an 

assessed degree of disability of 40% to 65%, a reduced pension is paid according to the assessed degree of disability. 

If the assessed degree of disability is less than 40%, a lump 

sum is paid equal to 2 years’ pension.

Workers’ Medical Benefits

Benefits include necessary medical, surgical, and hospital 

care and appliances until full recovery or certification of 

permanent disability.

Survivor Benefits

Survivor pension: 50% of the pension paid or payable to 

the deceased is paid to a widow or a dependent widower 

older than age 60 or disabled.

The pension ceases if the widow(er) remarries or if a disabled widower is assessed as capable of work.

The minimum monthly pension is 270 nuevos soles.

Orphan’s pension: 50% of the pension paid or payable to 

the deceased is paid to orphans younger than age 18 (age 21 

if a student, no limit if disabled).

The minimum monthly pension is 270 nuevos soles.

Other eligible survivors (in the absence of the above):

Each dependent parent receives 20% of the deceased’s 

pension.

All survivor benefits combined must not exceed 100% of 

the monthly pension paid or payable to the deceased or 

857.36 nuevos soles a month, whichever is less.

Funeral grant: Up to 6 times the minimum wage (500 nuevos soles a month) or the reference salary.

Administrative Organization

Comptroller General of the Republic (http://www.contraloria.gob.pe) provides general supervision.

Office of Social Security Normalization (http://www.sunat.

gob.pe) administers the program.

Unemployment

Regulatory Framework

No statutory benefits are provided.

The labor code requires private-sector employers to provide 

a severance payment to employees at the end of the labor 

contract.
SSPTW: The Americas, 2007 ♦ 159

Saint Kitts and Nevis

Saint Kitts and Nevis

Exchange rate: US$1.00 equals 2.70 East 

Caribbean dollars (EC$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1968 (provident fund).

Current laws: 1977 (social security), implemented in 

1978, with 1996 and 2002 amendments; and 1998 (social 

assistance).

Type of program: Social insurance and social assistance 

system.

Coverage

Social insurance: Employed (including public-sector 

employees and apprentices) and self-employed persons 

aged 16 to 62.

Voluntary coverage for those who cease to be compulsorily 

covered but who have at least 2 years of contributions.

Exclusions: Unpaid family labor.

Special system for civil servants.

Social assistance: Elderly or disabled persons residing in 

Saint Kitts and Nevis.

Source of Funds

Social insurance

Insured person: 5% of weekly or monthly covered earnings; voluntarily insured persons, 5% of weekly or monthly 

covered earnings.

The maximum monthly earnings for contribution and benefit 

purposes are EC$6,500.

The insured’s contributions, except if voluntarily insured, 

also finance cash sickness and maternity benefits.

Self-employed person: 10% of monthly earnings, according 

to earnings categories ranging from EC$200 to EC$1,500 a 

week.

The self-employed person’s contributions also finance cash 

sickness and maternity benefits.

Employer: 5% of monthly covered payroll.

The maximum monthly earnings for contribution and benefit 

purposes are EC$6,500.

The employer’s contributions also finance cash sickness and 

maternity benefits.

Government: None; contributes as an employer.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Old-age pension (social insurance): Age 62 with at least 

500 weeks of paid or credited contributions, including 

150 weeks of paid contributions.

Old-age grant (social insurance): Age 62 with at least 

50 weeks of paid or credited contributions but does not satisfy the qualifying conditions for the old-age pension.

Old-age benefits are payable abroad under specific 

conditions.

Old-age social assistance (means-tested): Older than 

age 62, not in gainful employment, and does not satisfy the 

qualifying conditions for the old-age pension.

Social assistance benefits are not payable abroad.

Disability pension (social insurance): Younger than 

age 62, assessed as disabled, and with at least 150 weeks of 

paid contributions.

The degree of disability is assessed by the Social Security 

Medical Board at least every 3 years, or at any period subject to the advice of a medical practitioner.

Disability benefits are payable abroad under specific 

conditions.

Disability social assistance (means-tested): Assessed as 

disabled, between ages 16 and 62, and does not satisfy the 

qualifying conditions for the disability pension.

The degree of disability is assessed by the Social Security 

Medical Board at least every 3 years, or at any period subject to the advice of a medical practitioner.

Social assistance benefits are not payable abroad.

Survivor pension (social insurance): The deceased had at 

least 150 weeks of paid contributions or was receiving the 

old-age pension or disability pension.

Eligible survivors are a widow(er) who was married to, or 

cohabited with, the deceased for at least 3 years, orphans 

younger than age 16 (age 18 if a full-time student, no limit if 

disabled), and dependent parents.

Survivor benefits are payable abroad under specific 

conditions.

Survivor grant (social insurance): The deceased did not 

satisfy the qualifying conditions for a pension.

Eligible survivors are a widow(er) aged 45 or older who was 

married to, or cohabited with, the insured for at least 3 years 
160 ♦ SSPTW: The Americas, 2007

Saint Kitts and Nevis

and orphans younger than age 16 (age 18 if a full-time student, no limit if disabled).

Survivor benefits are payable abroad under specific 

conditions.

Funeral grant: The deceased had at least 26 weeks of paid 

contributions.

Old-Age Benefits

Old-age pension (social insurance): The monthly pension 

is equal to 30% of the insured’s average annual earnings, 

plus 2% for each 50-week period of paid or credited contributions exceeding 500, up to a maximum of 799 contributions, and 1% for each 50-week period of contributions 

exceeding 799. The pension is determined by dividing this 

sum by 52.

Average annual earnings are based on earnings in the 

3 years in which the insured made the most contributions in 

the last 15 contribution years.

The minimum monthly pension is EC$300.

The maximum monthly pension is equal to 60% of monthly 

earnings or EC$3,900, whichever is less.

Old-age grant (social insurance): The grant is equal to 

six times average weekly earnings for each 50-week period 

of paid or credited contributions, up to a maximum of 

499 contributions.

The insured person’s contributions are refunded if they have 

less than 50 weeks of contributions.

Old-age social assistance (means-tested): The monthly 

pension is EC$210.

Permanent Disability Benefits

Disability pension: The monthly pension is equal to 30% 

of the insured’s average annual earnings, plus 2% for each 

50-week period of paid or credited contributions exceeding 500, up to a maximum of 799 contributions, and 1% for 

each 50-week period of contributions exceeding 799. The 

pension is determined by dividing this sum by 52.

Average annual earnings are based on earnings in the 

3 years in which the insured made the most contributions in 

the last 15 contribution years.

The benefit is paid after entitlement to 26 weeks of sickness 

benefit has ended or after the disability has lasted for at least 

26 weeks, and is paid for as long as the disability continues.

The minimum monthly pension is EC$300.

The maximum monthly pension is equal to 60% of monthly 

earnings or EC$3,900, whichever is less.

Disability social assistance (means-tested): The monthly 

pension is EC$210.

Survivor Benefits

Survivor pension: The pension is equal to 50% of the 

deceased’s pension or half of 30% of the deceased’s average 

earnings in the 3 years in which he or she made the most 

contributions, whichever is higher.

A limited pension is paid for a year if the widow(er) is 

younger than age 45 or was married to, or cohabited with, 

the deceased for less than 3 years.

The survivor pension ceases if the spouse remarries or 

cohabits.

Orphan’s pension: The pension is equal to 1/6 of the 

deceased’s pension or 1/6 of 30% of the deceased’s average 

earnings in the 3 years in which he or she made the most 

contributions. If the orphan is disabled, the pension is equal 

to 1/3 of the maximum family survivor pension.

Parent’s pension: Up to 1/6 of the maximum family survivor pension is paid.

The minimum annual survivor pension is EC$720.

The maximum family survivor pension must not exceed 

100% of the deceased’s pension.

Survivor grant: The grant is equal to six times the 

deceased’s average weekly earnings for each 50-week 

period of paid or credited contributions.

The deceased’s contributions are refunded if the deceased 

had less than 50 weeks of contributions.

Funeral grant: EC$2,500 is paid for the funeral of the 

insured or his or her spouse; up to EC$1,600 for a dependent 

child, if aged 10 or older. The grant is paid to the person 

who pays for the funeral.

Administrative Organization

Social insurance: Ministry of Education, Youth, Social 

and Community Development, and Gender Affairs provides 

general supervision.

Social Security Board (http://www.socialsecurity.kn) administers the program.

Social assistance: Social Development Assistance Board 

administers the program.

Sickness and Maternity

Regulatory Framework

First and current law: 1977 (social security), with 

amendments.

Type of program: Social insurance system. Cash benefits 

only.

Coverage

Employed and self-employed persons aged 16 to 62.
SSPTW: The Americas, 2007 ♦ 161

Saint Kitts and Nevis

Voluntary coverage is not possible.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: None; contributes as an employer.

Qualifying Conditions

Cash sickness benefits: The insured must be younger than 

age 62, be employed the day before the incapacity began, 

and have 26 weeks of paid contributions including 8 in the 

13 weeks before the incapacity began.

Cash maternity benefit: The insured must have 39 weeks 

of contributions, including 20 weeks immediately before 

making the claim.

Maternity grant: Paid to an insured woman or the wife of an 

insured man, with a minimum of 39 weeks of contributions 

including 20 weeks of contributions in the 39 weeks before 

the expected date of childbirth.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 65% of average 

weekly covered earnings divided by six (daily rate) and is 

paid retroactively from the first day if the incapacity lasts 

for 4 or more days. The benefit is paid for up to 26 weeks.

Maternity benefit: The benefit is equal to 65% of average 

weekly covered earnings divided by six (daily rate) and 

is paid for 13 weeks, beginning up to 6 weeks before the 

expected date of childbirth.

Maternity grant: EC$450 is paid for each childbirth.

Workers’ Medical Benefits

No statutory benefits are provided.

Medical care is available at public hospitals and health 

centers.

Dependents’ Medical Benefits

No statutory benefits are provided.

Medical care is available at public hospitals and health 

centers.

Administrative Organization

Ministry of Education, Youth, Social and Community 

Development, and Gender Affairs provides general 

supervision.

Social Security Board (http://www.socialsecurity.kn) administers the program.

Work Injury

Regulatory Framework

First law: 1955 (workmen’s compensation).

Current law: 1985 (social security), implemented in 1986.

Type of program: Social insurance system.

Coverage

Employed persons regardless of age.

Voluntary coverage is not possible.

Exclusions: Unpaid family labor and self-employed persons.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1% of covered payroll.

The maximum monthly earnings for contribution and benefit 

purposes are EC$6,500.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period for a work injury or an occupational disease.

Temporary Disability Benefits

The benefit is equal to 75% of average weekly covered 

earnings and is paid retrospectively from the first day if the 

disability lasts for 4 or more days. The benefit is paid for up 

to 26 weeks.

Permanent Disability Benefits

Permanent disability benefit: If the insured is totally 

disabled (100%), the pension is equal to 75% of his or her 

average weekly covered earnings.

The degree of disability is assessed and reviewed periodically by the Social Security Medical Board.

Constant-attendance supplement: If the insured is totally 

disabled, the supplement should meet the reasonable cost of 

providing care.
162 ♦ SSPTW: The Americas, 2007

Saint Kitts and Nevis

Partial disability: If the assessed degree of disability is at 

least 20%, a percentage of the full pension is paid according 

to the assessed degree of disability. If the assessed degree of 

disability is less than 20%, a disability grant is paid for up to 

365 weeks.

Workers’ Medical Benefits

Benefits include the reimbursement of reasonable expenses 

for medical, surgical, dental, hospital, and nursing care; 

medicines; appliances; and transportation.

Survivor Benefits

Survivor pension: The widow(er)’s pension is equal to one 

half of 75% of the deceased’s average weekly earnings, or 

50% of the deceased’s permanent total disability pension if 

the deceased was a permanent disability pensioner.

Orphan’s pension: Each child younger than age 16 (age 18 

if a full-time student, no limit if disabled) receives up to 1/6 

of 75% of the deceased’s average weekly earnings.

Parent’s pension: Up to 1/6 of the maximum family survivor pension is paid.

The maximum family survivor pension must not exceed 

100% of the deceased’s permanent total disability pension.

Funeral grant: If the insured’s death was as a result of a 

work-related injury, EC$4,000 is paid to the person who 

pays for the cost of the insured’s funeral.

Administrative Organization

Ministry of Education, Youth, Social and Community 

Development, and Gender Affairs provides general 

supervision.

Social Security Board (http://www.socialsecurity.kn) administers the program.
SSPTW: The Americas, 2007 ♦ 163

Saint Lucia

Saint Lucia

Exchange rate: US$1.00 equals

2.70 East Caribbean dollars (EC$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1970 (provident fund).

Current laws: 2000 (national insurance corporation), with 

2002 amendment; and 2003 (national insurance).

Type of program: Social insurance system.

Note: A government-financed social assistance program provides EC$80 a month to persons of pensionable age, subject 

to conditions.

Coverage

Employed persons, self-employed persons, and apprentices 

aged 16 to 65.

Voluntary coverage is possible.

Exclusions: Civil servants were excluded until February 1, 

2003.

Special system for civil servants not covered by the National 

Insurance Corporation.

Source of Funds

Insured person: 5% of covered monthly earnings.

There are no minimum earnings for contribution purposes.

The maximum annual earnings for contribution purposes are 

EC$60,000.

The insured’s contributions also finance sickness and maternity benefits and work injury benefits.

Self-employed person: 5% of declared average monthly 

earnings.

There are no minimum earnings for contribution purposes.

The maximum annual earnings for contribution purposes are 

EC$60,000.

The self-employed person’s contributions also finance sickness and maternity benefits.

Employer: 5% of covered monthly payroll.

There are no minimum earnings for contribution purposes.

The maximum annual earnings for contribution purposes are 

EC$60,000.

The employer’s contributions also finance sickness and 

maternity benefits and work injury benefits.

Government: 5% of monthly payroll for contributing civil 

servants.

Qualifying Conditions

Old-age pension: Age 62 with at least 13 years of contributions. Retirement from gainful employment is necessary.

Early pension: Age 60 with at least 13 years of contributions. Retirement from gainful employment is necessary.

Deferred pension: The pension may be deferred until age 65.

Old-age grant: Age 62 and does not meet the qualifying 

conditions for the old-age pension.

All old-age benefits are payable abroad, subject to 

conditions.

Disability pension: Younger than age 62 with at least 

5 years of contributions, including 36 months in the last 

72 months before the disability began; a total of at least 

13 years of contributions. The insured must have an 

assessed degree of disability of 30% or more. If the assessed 

degree of disability is less than 30%, a disability grant is 

paid.

The degree of disability is assessed by a registered medical 

doctor at least every 2 years.

Disability grant: The insured must be assessed as disabled 

and does not meet the qualifying conditions for the disability pension.

The disability is assessed by a registered medical doctor.

All disability benefits are payable abroad, subject to 

conditions.

Survivor pension: The insured met the qualifying conditions for a pension or was a pensioner at the time of death.

Eligible survivors are a widow(er) (including a commonlaw spouse), children, parents, grandparents, and orphans 

younger than age 16 (age 18 if a full-time student).

Survivor grant: Paid to the widow(er) of an insured person 

who did not meet the qualifying conditions for a pension 

and had not received an old-age grant.

Funeral grant: Paid to an insured person for the death of a 

dependent child or spouse.

All survivor benefits are payable abroad, subject to 

conditions.

Old-Age Benefits

Old-age pension: The pension is equal to 40% of the 

insured’s average covered earnings, plus 0.1% of average 

covered earnings for each month of contributions exceeding 

156 months.

Average covered earnings are calculated on the basis of the 

insured’s earnings in the best 5 years.

The minimum monthly pension is EC$200.
164 ♦ SSPTW: The Americas, 2007

Saint Lucia

Early pension: The pension is reduced by 0.5% for each 

month the pension is taken before age 62.

Deferred pension: The pension is calculated in the same way 

as the old-age pension.

Old-age grant: A lump-sum refund of 50% of contributions 

is paid without interest. (For those covered previously by 

the provident fund, 100% of contributions are refunded, plus 

accrued interest.)

Permanent Disability Benefits

Disability pension: If the assessed degree of disability is at 

least 30%, a monthly pension is paid calculated according 

to the assessed degree of disability. If the assessed degree of 

disability is less than 30%, a disability grant is paid.

The minimum pension for an assessed degree of disability 

of at least 30% is equal to 65% of the insured’s average 

covered earnings in the month of the accident.

The maximum pension is equal to 100% of the insured’s 

average covered earnings in the month of the accident.

Disability grant: A lump sum is paid equal to 60 months’ 

benefit.

Survivor Benefits

Survivor pension: In the absence of any other survivors, 

75% of the deceased’s old-age pension or disability pension 

is paid to a widow(er) aged 62 or older. If there are other 

dependent survivors, the widow(er) receives 50% of the 

deceased’s pension.

The pension ceases is the widow(er) remarries of cohabits.

A limited pension is paid for a year to a widow(er) younger 

than age 62 who has no dependent children.

Orphan’s pension: 50% of the deceased’s pension (50% of 

each insured parent’s pension if a full orphan) is paid to a 

dependent child younger than age 16 (age 18 if a full-time 

student).

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Survivor grant: A lump sum is paid at least equal to the 

value of the old-age grant or disability grant that would have 

been paid to the deceased.

Funeral grant: The cost of the funeral is paid, up to a maximum of EC$1,750.

Administrative Organization

Minister of Finance (http://www.stlucia.gov.lc) provides 

general supervision.

National Insurance Corporation (http://www.stlucianis.org) 

administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1978 (national insurance).

Current laws: 2000 (national insurance corporation) and 

2003 (national insurance).

Type of program: Social insurance system. Cash benefits 

only.

Coverage

Employed persons, self-employed persons, and apprentices 

aged 16 to 65.

Exclusions: Civil servants were excluded until February 1, 

2003.

Special system for civil servants not covered by the National 

Insurance Corporation.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness benefits: The insured must have been 

employed on the day before the incapacity began and 

have at least 6 months of contributions, including 2 of the 

4 months immediately before the incapacity began.

Cash maternity benefits: The insured must have at least 

7 months of contributions in the 10 months immediately 

before the date of the claim.

Maternity grant: Paid to women receiving cash maternity benefits and to women whose husbands have at least 

7 months of contributions.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 65% of the 

insured’s average earnings and is paid after a 3-day waiting 

period for up to 26 weeks.

Average earnings are calculated on the basis of the insured’s 

earnings in the best 2 of the last 4 months.

Maternity benefit: The benefit is equal to 65% of the 

insured’s average earnings and is paid for up to 3 months, 

beginning 6 weeks before the expected month of childbirth.
SSPTW: The Americas, 2007 ♦ 165

Saint Lucia

Average earnings are calculated on the basis of the insured’s 

earnings in the best 7 of the last 10 months.

Maternity grant: A lump sum of EC$600 is paid.

Workers’ Medical Benefits

No statutory benefits are provided.

Dependents’ Medical Benefits

No statutory benefits are provided.

Administrative Organization

Minister of Finance (http://www.stlucia.gov.lc) provides 

general supervision.

National Insurance Corporation (http://www.stlucianis.org) 

administers the program.

Work Injury

Regulatory Framework

First law: 1964 (employer liability).

Current law: 2000 (national insurance corporation).

Type of program: Social insurance system.

Coverage

Employed persons and apprentices aged 16 to 65.

Exclusions: Self-employed persons; civil servants were 

excluded until February 1, 2003.

Special system for civil servants not covered by the National 

Insurance Corporation.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. Benefits are paid for work injuries and prescribed 

occupational diseases.

Temporary Disability Benefits

The benefit is equal to 65% of daily earnings and is paid 

from the day of injury until full recovery, for a maximum of 

52 weeks.

Permanent Disability Benefits

Permanent disability pension: For a total disability 

(100%), the monthly pension is equal to 65% of covered 

earnings; for an assessed degree of disability of less than 

100%, a percentage of the full pension is paid according to 

the assessed degree of disability.

A lump sum is paid for an assessed degree of disability less 

than 30%.

The disability is assessed every 6 months by an appointed 

medical board.

Pensions are payable abroad, subject to conditions.

Workers’ Medical Benefits

All medical expenses, including specialist care abroad if 

necessary, are paid up to a maximum of EC$20,000 per 

work injury or occupational disease.

Survivor Benefits

Survivor benefit: A benefit is paid to a widow(er) (including a common-law spouse), children, parents, and grandparents who were fully or largely dependent on the deceased.

If the spouse, parent, or grandparent is of pensionable age, 

the benefit is paid for life. If the spouse is younger than 

the pensionable age, a benefit is paid for a year or until the 

youngest child reaches age 16 (age 18 if a full-time student). 

If a survivor is disabled, the benefit is paid for the duration 

of the disability.

Funeral grant: The cost of the funeral is paid, up to a maximum of EC$1,750.

Administrative Organization

Minister of Finance (http://www.stlucia.gov.lc) provides 

general supervision.

National Insurance Corporation (http://www.stlucianis.org) 

administers the program.
166 ♦ SSPTW: The Americas, 2007

Saint Vincent and the Grenadines

Saint Vincent and the Grenadines

Exchange rate: US$1.00 equals

2.70 East Caribbean dollars (EC$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1970 (provident fund).

Current law: 1986 (social insurance), with amendments.

Type of program: Social insurance system.

Note: The Family Services Division of the Ministry of 

Social Development administers social assistance cash benefits for needy persons, including needy elderly persons, the 

disabled, and orphans.

Coverage

Employed and self-employed persons aged 16 to 59.

Voluntary coverage for citizens of St. Vincent and the 

Grenadines aged 16 to 59, who are no longer in covered 

employment or live abroad.

Source of Funds

Insured person: 2.5% of covered earnings; certain government workers contribute 2.29% of covered earnings; the 

voluntarily insured contribute 4.84% of declared income.

The minimum weekly earnings for contribution purposes are 

EC$15.

The maximum weekly earnings for contribution purposes 

are EC$1,000 (EC$4,330 a month).

The insured person’s contributions also finance sickness and 

maternity benefits.

Self-employed person: 5.5% of declared income, according to eight income categories.

The self-employed person’s contributions also finance sickness and maternity benefits.

Employer: 3% of monthly payroll.

The minimum weekly earnings for contribution purposes are 

EC$15.

The maximum weekly earnings for contribution purposes 

are EC$1,000 (EC$4,330 a month).

The employer’s contributions also finance sickness and 

maternity benefits.

Government: 3.25% or 3.5% of monthly payroll on behalf 

of government workers, depending on the category of work.

Government contributions also finance sickness and maternity benefits.

Qualifying Conditions

Old-age pension: Age 60 with at least 500 weeks of 

contributions.

Reduced age pension: Paid at age 60 to insured persons who 

were aged 37 or older on January 5, 1987. The insured must 

have at least 150 weeks of contributions, plus an additional 

25 weeks of contributions for each year the insured was 

younger than age 50 on January 5, 1987.

Old-age grant: Age 60 with at least 50 weeks of 

contributions.

Old-age benefits are payable abroad.

Disability pension: The insured must be younger than 

age 60, assessed as disabled, and have at least 150 weeks of 

contributions.

Disability grant: The insured must be younger than 

age 60, assessed as disabled, and have at least 50 weeks of 

contributions.

Disability benefits are payable abroad.

Survivor pension: The deceased had at least 150 weeks of 

contributions at the time of death.

Eligible survivors are a widow(er) and children younger 

than age 16 (age 18 if a student, no limit if disabled) or 

dependent parents aged 60 or older.

Survivor grant: The deceased did not satisfy the qualifying conditions for a pension but was eligible for an old-age 

grant or disability grant.

Eligible survivors are a widow(er) and children younger 

than age 16 (age 18 if a student, no limit if disabled) or 

dependent parents aged 60 or older.

Survivor benefits are payable abroad.

Funeral grant: The insured had paid at least 26 weeks of 

contributions. The grant is paid for the death of the insured, 

the insured’s spouse, and the insured’s dependent children 

younger than age 16 (age 18 if a full-time student, no limit 

if disabled).

Old-Age Benefits

Old-age pension: The minimum pension is equal to 30% 

of the insured’s average annual earnings with at least 

500 weeks of contributions. The pension is increased by 

0.5% of average annual earnings for each 25-week period of 

contributions exceeding 500 weeks.

Average annual earnings are based on the insured’s earnings 

in the best 3 of the last 15 years before the year in which the 

insured reached age 60. The annual amount is then divided 

by 52 to determine the weekly pension.

The maximum pension is equal to 60% of the insured’s 

average earnings.

Reduced age pension: The minimum pension is equal to 

16% of the insured’s average annual earnings in the best 
SSPTW: The Americas, 2007 ♦ 167

Saint Vincent and the Grenadines

3 of the last 15 years before the year in which the insured 

reached age 60. The pension is increased by 1% of average 

annual earnings for each 25-week period of contributions 

exceeding 150 weeks up to a maximum of 499 weeks.

The minimum pension is EC$40 a week. The pension is 

paid every 2 weeks.

Benefit adjustment: Benefits are adjusted for inflation every 

3 years, subject to an actuarial review.

Old-age grant: A lump sum is paid equal to six times average weekly covered earnings for each 50-week period of 

contributions.

Permanent Disability Benefits

Disability pension: The minimum pension is equal to 

30% of the insured’s average annual earnings with at least 

500 weeks of contributions. The pension is increased by 

0.5% of average annual earnings for each 25-week period of 

contributions exceeding 500 weeks.

Average annual earnings are based on the insured’s earnings 

in the best 3 of the last 15 years. The annual amount is then 

divided by 52 to determine the weekly pension.

The minimum weekly pension is EC$60. The pension is 

paid every 2 weeks.

The maximum pension is equal to 60% of average earnings.

Benefit adjustment: Benefits are adjusted for inflation every 

3 years, subject to an actuarial review.

Disability grant: A lump sum is paid equal to six times 

average weekly covered earnings for each 50-week period 

of contributions.

Survivor Benefits

Survivor pension: The widow(er)’s pension is equal to 75% 

of the pension paid or payable to the deceased at the time of 

death.

A limited pension is paid for a year to a widow(er) younger 

than the age 50 with no dependent children.

The pension ceases if the surviving spouse remarries or 

cohabits.

Orphan’s pension: Each dependent child younger than 

age 16 (age 18 if a full-time student, no limit if disabled) 

receives 25% of the pension paid or payable to the deceased; 

50% for a full orphan.

Dependent parent’s pension (in the absence of other 

eligible survivors): Each eligible parent receives up to 50% 

of the pension paid or payable to the deceased.

All survivor benefits combined must not exceed 100% of the 

deceased’s old-age pension or disability pension.

Survivor grant: A widow(er) receives a lump sum equal to 

75% of the old-age grant payable to the deceased; an orphan 

receives 25% (50% for a full orphan); each dependent parent (in the absence of other eligible survivors) receives 50%.

All survivor grants combined must not exceed 100% of the 

old-age grant payable to the deceased.

Funeral grant: EC$3,800 is paid to the person who meets 

all or part of the cost of the insured’s funeral. A reduced 

grant is paid for the funeral of a spouse or child.

Administrative Organization

National Insurance Board (http://www.nissvg.org) administers the program.

Sickness and Maternity

Regulatory Framework

First and current law: 1986 (social insurance), with 1986, 

1994, 1995, 1996, 1997, 2001, 2002, 2003, and 2004 

amendments.

Type of program: Social insurance system. Cash benefits 

only.

Coverage

Employed and self-employed persons aged 16 to 59.

Special systems for certain categories of civil servant.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, 

Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, 

and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness benefits: The insured must be currently 

employed with at least 26 weeks of contributions, including 8 weeks in the 13-week period immediately before the 

incapacity began.

Cash maternity benefits: The insured must have at least 

30 weeks of contributions, including 20 weeks in the 

30-week period immediately before the claim, or 6 weeks 

immediately before the expected date of child birth.

Maternity grant: The woman or her spouse must have 

30 weeks of contributions in the 30 weeks immediately 

before the birth of a living child.
168 ♦ SSPTW: The Americas, 2007

Saint Vincent and the Grenadines

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 65% of the 

insured’s average earnings in the 13 weeks before the incapacity began and is paid for up to 26 weeks.

Maternity benefit: The benefit is equal to 65% of the 

insured’s average earnings in the last 30 weeks of employment. The benefit is paid for 13 weeks, starting up to 

6 weeks before the expected date of childbirth.

Maternity grant: EC$550 is paid.

Workers’ Medical Benefits

No statutory benefits are provided.

Dependents’ Medical Benefits

No statutory benefits are provided.

Administrative Organization

National Insurance Board (http://www.nissvg.org) administers the program.

Work Injury

Regulatory Framework

First law: 1939.

Current law: 1997 (work injury).

Type of program: Social insurance system.

Coverage

Employed persons.

Voluntary coverage is not possible.

Exclusions: Self-employed persons.

There are no special systems for any groups of workers.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 0.5% of payroll.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: The insured must be employed. Benefits are paid for work injuries or prescribed occupational 

diseases.

Temporary Disability Benefits

The benefit is equal to 70% of average weekly covered earnings and is paid for a maximum of 52 weeks.

Average weekly covered earnings are based on the insured’s 

earnings in the last 13 weeks or, if less, the total number of 

weeks of employment before the disability began.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to 

70% of average weekly covered earnings times the assessed 

degree of disability. The assessed degree of disability must 

be greater than 30%, and the insured must have exhausted 

entitlement to the temporary disability benefit.

Average weekly insurable earnings are based on the 

insured’s earnings in the 13 weeks before the disability 

began.

The degree of disability is assessed by a medical doctor and 

reviewed every 26 weeks.

Constant-attendance allowance: Equal to 50% of the disability pension. The insured must be an outpatient receiving 

a permanent disability pension (100% disability) and must 

need the constant attendance of another person.

If the assessed degree of disability is 30% or less, a lump 

sum is paid equal to 365 times the insured’s average weekly 

covered earnings times the assessed degree of disability. 

The insured must have exhausted entitlement to a temporary 

disability benefit.

Workers’ Medical Benefits

Benefits include medical, surgical, dental and hospital 

treatment; skilled nursing services; medicines; prosthetic 

devices; and transportation costs.

Survivor Benefits

Survivor pension: 50% of the deceased’s permanent disability pension is paid to the widow(er).

The pension ceases on remarriage.

Orphan’s pension: Each dependent child younger than 

age 16 (age 18 if a full-time student) receives 16.6% of the 

deceased’s permanent disability pension (33.3% if disabled).

Other dependent’s pension: 16.66% of the deceased’s 

permanent disability pension is paid.

Eligible survivors are a widow(er), unmarried dependent 

children, and any other dependent person named by the 

deceased.

Funeral grant: EC$3,800 is paid to the person who met the 

cost of the funeral.

Administrative Organization

National Insurance Board (http://www.nissvg.org) administers the program.
SSPTW: The Americas, 2007 ♦ 169

Trinidad and Tobago

Trinidad and Tobago

Exchange rate: US$1.00 equals

6.27 Trinidad and Tobago dollars (TT$).

Old Age, Disability, and Survivors

Regulatory Framework

First and current laws: 1939 (social assistance); and 1971 

(social insurance), with amendments.

Type of program: Social insurance and social assistance 

system.

Coverage

Social insurance: Employed persons aged 16 to 64, including agricultural and domestic workers, apprentices, and 

public-sector employees.

Voluntary coverage for the old-age pension, survivor pension, and funeral grant for persons younger than age 60 who 

cease to work in covered employment.

Exclusions: Self-employed persons, persons who earn 

less than TT$120 a week or TT$520 a month, and persons 

employed by international organizations who are granted 

specific exemptions.

There are no special systems for any specified groups of 

employees.

Social assistance: Elderly and disabled persons with low 

income.

Source of Funds

Social insurance

Insured person: 3.11% of covered weekly or monthly earnings, according to 16 wage classes. The voluntarily insured 

contribute 10.50% of weekly covered earnings, according to 

16 wage classes.

The minimum weekly earnings for contribution purposes are 

TT$120.

The maximum weekly earnings for contribution purposes 

are TT$1,915.

Self-employed person: Not applicable.

Employer: 6.23% of covered weekly or monthly payroll, 

according to 16 wage classes.

The minimum weekly earnings for contribution purposes are 

TT$120.

The maximum weekly earnings for contribution purposes 

are TT$1,915.

Government: None; contributes as an employer.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Old-age pension (social insurance): Paid from age 60 

with at least 750 weeks of contributions paid or credited. 

An additional amount is paid for each 25-week period of 

contributions in excess of 750.

Retirement is not necessary if aged 65 or older.

Old-age settlement (social insurance): Paid from age 60 if 

the insured does not satisfy the qualifying conditions for an 

old-age pension.

Retirement is not necessary if aged 65 or older.

Old-age benefits are payable abroad under reciprocal agreements with other Caribbean territories and Canada.

Means-tested old-age pension (social assistance):

Aged 65 or older with at least 20 years’ residence in 

Trinidad and Tobago and monthly income not exceeding 

TT$2,500.

The social assistance pension is not payable abroad.

Disability pension (social insurance): Younger than 

age 60 and assessed as incapable of work with at least 

150 weeks of contributions, including 50 weeks of contributions in the 3 years immediately before the disability began; 

250 weeks of contributions in the last 7 years immediately 

before the disability began; or 750 weeks of contributions 

immediately before the disability began.

Disability benefits are payable abroad under reciprocal 

agreements with other Caribbean territories and Canada.

Means-tested disability pension (social assistance):

Must be medically certified as permanently disabled, with 

monthly income not exceeding TT$1,000.

The social assistance disability pension is not payable 

abroad.

Survivor pension (social insurance): The deceased had at 

least 50 contributions or was a pensioner.

Eligible survivors are a widow(er), children, and dependent 

parents.

Survivor benefits are payable abroad under reciprocal agreements with other Caribbean territories and Canada.

Funeral grant: The deceased had at least 25 contributions.

Old-Age Benefits

Old-age pension (social insurance): The pension is equal 

to between 30% and 48% of the insured’s average weekly 
170 ♦ SSPTW: The Americas, 2007

Trinidad and Tobago

earnings, according to 16 wage classes, plus between 0.56% 

and 0.71% of average weekly earnings for each 25-week 

period of contributions exceeding 750 weeks.

Average weekly earnings are based on career average earnings, according to 16 wage classes.

The minimum old-age pension is TT$2,000 (January 2008).

Old-age settlement (social insurance): A lump sum is paid 

equal to three times the total insured person and employer 

contributions.

The minimum old-age settlement is TT$2,000 

(January 2008).

Means-tested old-age pension (social assistance):

TT$1,550 or TT$1,650 a month is paid, depending on 

income.

Permanent Disability Benefits

Disability pension (social insurance): The pension is 

equal to between 30% and 48% of the insured’s average weekly earnings, according to 16 wage classes, plus 

between 0.56% and 0.71% of average weekly earnings for 

each 25-week period of contributions exceeding 750 weeks.

Average weekly earnings are based on career average earnings, according to 16 wage classes.

There is no minimum disability pension.

The disability pension is replaced by the old-age pension at 

age 60.

Means-tested disability pension (social assistance):

TT$1,100 a month is paid.

Survivor Benefits

Survivor pension (social insurance): A widow(er) 

receives 60% of the disability pension paid or payable to the 

deceased.

The minimum monthly widow(er) pension is TT$400 

(January 2008).

The pension ceases on remarriage, and a lump sum is paid.

Remarriage settlement: A lump sum is paid equal to 

52 weeks’ benefit.

Orphan’s pension (social insurance): Each orphan 

receives 30% of the deceased’s pension (60% if a full 

orphan) until age 16 (age 19 if a full-time student).

The minimum monthly orphan’s pension is TT$400 

(­January 2008); TT$800 for a full orphan (January 2008).

Dependent parent’s pension (social insurance): 30% of 

the deceased’s pension is paid to one dependent parent or is 

split equally between two dependent parents.

The minimum monthly dependent parent’s pension is 

TT$200 (January 2008).

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Funeral grant (social insurance): TT$5,000 is paid to the 

person who met the cost of the funeral (January 2008).

Administrative Organization

Ministry of Finance (http://www.finance.gov.tt) provides 

general supervision of the social insurance program.

National Insurance Board (http://www.nibtt.co.tt), a tripartite body comprising government, labor, and employer 

representatives, administers the social insurance program.

Ministry of Social Development, Social Welfare Division 

(http://www.socialservices.gov.tt), provides general supervision of the social assistance program.

Sickness and Maternity

Regulatory Framework

First and current laws: 1939 (social assistance); and 1971 

(social insurance), with amendments.

Type of program: Social insurance and social assistance 

system.

Coverage

Employed persons aged 16 to 64, including agricultural and 

domestic workers, apprentices, and public-sector employees.

Exclusions: Self-employed persons, persons who earn 

less than TT$120 a week or TT$520 a month, and persons 

employed by international organizations who are granted 

specific exemptions.

There are no special systems for any specified groups of 

employees.

Source of Funds

Insured person: 0.21% of covered weekly or monthly earnings, according to 16 wage classes.

The minimum weekly earnings for contribution purposes are 

TT$120.

The maximum weekly earnings for contribution purposes 

are TT$1,915.

Self-employed person: Not applicable.

Employer: 0.43% of covered weekly or monthly payroll, 

according to 16 wage classes.

The minimum weekly earnings for contribution purposes are 

TT$120.

The maximum weekly earnings for contribution purposes 

are TT$1,915.

Government: None; contributes as an employer.
SSPTW: The Americas, 2007 ♦ 171

Trinidad and Tobago

Qualifying Conditions

Cash sickness benefits: The insured must have at least 

10 weeks of contributions in the 13 weeks before the incapacity began.

Cash maternity benefits: The insured must have at least 

10 weeks of contributions in the 13 weeks before the last 

6 weeks before the expected date of childbirth; receiving 

sickness benefits in the 13 weeks before the last 6 weeks 

before the expected date of childbirth.

Maternity grant: Paid if the pregnancy lasts at least 

26 weeks. Also paid for each birth, in the case of multiple 

births. May be paid on the basis of the father’s contributions 

where the mother’s are insufficient.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 60% of average 

weekly earnings before the incapacity began, according to 

16 wage classes. The benefit is paid after a 3-day waiting 

period, for up to 52 weeks.

Average earnings are based on earnings in the 10 best weeks 

of contributions in the 13 weeks before the incapacity 

began.

Maternity benefit: The benefit is equal to 60% of average 

weekly earnings in the 13 weeks before the last 6 weeks 

before the expected date of childbirth, according to 16 wage 

classes. The benefit is paid for a maximum of 13 weeks.

Average earnings are based on earnings in the 10 best weeks 

of contributions in the 13 weeks before the expected date of 

childbirth.

Maternity grant: A lump sum of TT$2,500 is paid.

Workers’ Medical Benefits

No statutory social insurance benefits are provided for nonwork-related medical conditions.

Means-tested social assistance medical benefits are provided 

to persons receiving care in public hospitals and health 

centers.

Dependents’ Medical Benefits

Medical benefits for dependents: No statutory benefits are 

provided.

Means-tested social assistance medical benefits are provided 

to persons receiving care in public hospitals and health 

centers.

Administrative Organization

Ministry of Finance (http://www.finance.gov.tt) provides 

general supervision of the social insurance program.

National Insurance Board (http://www.nibtt.co.tt), a tripartite body comprising government, labor, and employer 

representatives, administers the social insurance program.

Ministry of Social Development, Social Welfare Division 

(http://www.socialservices.gov.tt), provides general supervision of the social assistance program.

Work Injury

Regulatory Framework

First and current law: 1976 (social insurance), with 

amendments.

Type of program: Social insurance system.

Coverage

Employed persons, including agricultural and domestic 

workers, apprentices, and public-sector employees.

Exclusions: Self-employed persons, persons who earn 

less than TT$120 a week or TT$520 a month, and persons 

employed by international organizations who are granted 

specific exemptions.

Source of Funds

Insured person: 0.18% of covered weekly or monthly earnings, according to 16 wage classes.

The minimum weekly earnings for contribution purposes are 

TT$120.

The maximum weekly earnings for contribution purposes 

are TT$1,915.

Self-employed person: Not applicable.

Employer: 0.36% of covered weekly or monthly payroll, 

according to 16 wage classes.

The minimum weekly earnings for contribution purposes are 

TT$120.

The maximum weekly earnings for contribution purposes 

are TT$1,915.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 66.6% of average weekly earnings, 

according to 16 wage classes. The benefit is paid for up to 

52 weeks. There is no waiting period.

Average weekly earnings are based on career average earnings, according to 16 wage classes.

Benefits are payable abroad under reciprocal agreements 

with other Caribbean territories and Canada.
172 ♦ SSPTW: The Americas, 2007

Trinidad and Tobago

Permanent Disability Benefits

Permanent disability pension: If the insured has an 

assessed degree of disability of at least 20%, the pension is 

calculated as a percentage of the temporary disability benefit, according to the assessed degree of disability.

The benefit is payable after the temporary disability benefit 

ceases.

The degree of disability is assessed by the insured’s doctor.

Partial disability benefit: If the insured has an assessed 

degree of disability of less than 20%, the benefit is calculated as a percentage of average weekly earnings, according 

to half the assessed degree of disability multiplied by the 

period of disability (up to a maximum of 365 weeks).

The minimum assessed degree of disability for partial disability benefit calculation purposes is 3%.

The benefit is payable after the temporary disability benefit 

ceases.

Average weekly earnings are based on career average earnings, according to 16 wage classes.

Benefits are payable abroad under reciprocal agreements 

with other Caribbean territories and Canada.

Workers’ Medical Benefits

Benefits include medical expenses, including doctor and 

specialist fees and hospital expenses, drugs and dressings, 

minor and major operations, and transportation costs.

Medical costs are reimbursed, up to a maximum of 

TT$22,500 per injury (January 2008).

The cost of magnetic resonance imaging is covered up to 

a maximum of TT$2,000 per examination per body part 

(January 2008).

Survivor Benefits

Survivor pension: A widow(er) receives 40% of the 

deceased’s average weekly earnings.

Average weekly earnings are based on career average earnings, according to 16 wage classes.

The pension ceases on remarriage, and a lump sum is paid.

Remarriage settlement: A lump sum is paid equal to 52 

weeks’ benefit.

Orphan’s pension: Each orphan receives 20% of the 

deceased’s average weekly earnings until age 19.

Average weekly earnings are based on career average earnings, according to 16 wage classes.

The minimum monthly orphan’s pension is TT$400 

(­January 2008); TT$800 for a full orphan (January 2008).

Dependent parent’s pension: 20% of the deceased’s average weekly earnings are paid to one dependent parent or 

split equally between two dependent parents.

Average weekly earnings are based on career average earnings, according to 16 wage classes.

Survivor benefits are payable abroad under reciprocal agreements with other Caribbean territories and Canada.

Funeral grant: TT$5,000 is paid (January 2008).

Administrative Organization

Ministry of Finance (http://www.finance.gov.tt) provides 

general supervision of the social insurance program.

National Insurance Board (http://www.nibtt.co.tt), a tripartite body comprising government, labor, and employer 

representatives, administers the social insurance program.

Family Allowances

Regulatory Framework

First and current law: 1939 (social assistance).

Type of program: Social assistance system.

Coverage

Individuals and families assessed as needy.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Family allowances (means-tested): Paid to needy individuals and families with little or no means of support.

Public assistance: Paid to families where the adult is unable 

to earn an income because of ill health, or on behalf of children if the father (or both parents) is deceased, incarcerated, 

disabled, or whose whereabouts is unknown.

Burial assistance: Paid to families to help pay for the cost of 

a burial.

Clothing grant: Paid to help purchase clothing, including 

school uniforms and shoes for children. The grant is paid for 

a maximum of four persons per household.

Dietary grant: Paid to help purchase prescribed foodstuffs 

for persons diagnosed with certain ailments, such as diabetes or heart disease.

Disability assistance: Paid to persons aged 18 to 65 who 

are certified as disabled by a doctor. The person must have 

resided in Trinidad and Tobago for the last 3 years and have 

annual income less than TT$12,000.
SSPTW: The Americas, 2007 ♦ 173

Trinidad and Tobago

Education grant: Paid to families to help meet the cost of 

school fees, school transportation, and other essentials. The 

grant is paid for a maximum of four children per household. 

Monthly family income must be less than TT$5,000.

Free bus pass: Provided to social assistance beneficiaries 

and citizens older than age 65.

House rent assistance: Paid to persons unable to pay housing rental payments.

Medical equipment grant: Paid to help purchase necessary 

medical aids, such as wheelchairs, eyeglasses, and hearing 

aids.

Home help grant: Paid to help finance short-term care at 

home.

School textbook grant: Paid to help purchase necessary textbooks and writing material for school. The grant is paid for 

a maximum of four children per household.

Special child grant: Paid to parents of children up to age 18 

with a mental or physical disability. The grant is paid for a 

maximum of four children per household.

Family Allowance Benefits

Family allowances (means-tested):

Public assistance: Up to TT$1,250 is paid.

Burial assistance: A lump sum of TT$3,450 is paid.

Clothing grant: Up to TT$200 per person is paid, for a maximum of four persons per household.

Dietary grant: Up to TT$150 a month is paid.

Disability assistance: A monthly grant of TT$1,100 is paid.

Education grant: Up to TT$140 a month per child is paid, 

for a maximum of four children per household.

Free bus pass: Entitled persons receive free travel on public 

transport.

House rent assistance: Up to TT$2,500 is paid in a 3-month 

period.

Medical equipment grant: Up to TT$5,000 is paid.

Home help grant: The selected caregiver receives TT$350 a 

month, for up to 3 months.

School textbook grant: TT$500 per child is paid, for a maximum of four children per household.

Special child grant: TT$300 a month is paid to parents, for a 

maximum of four children per household.

Administrative Organization

Ministry of Social Development, Social Welfare Division 

(http://www.socialservices.gov.tt), provides general supervision of the social assistance program.
174 ♦ SSPTW: The Americas, 2007

United States

United States

Exchange rate: US dollar (US$).

Old Age, Disability, and Survivors

Regulatory Framework

First and current law: 1935 (social security), with 

amendments.

Type of program: Social insurance system.

Coverage

Gainfully employed persons, including self-employed 

persons.

Exclusions: Casual agricultural, domestic, and election 

employees; some categories of self-employed persons 

(when annual net income is below $400); and certain federal 

employees hired before January 1, 1984.

Voluntary coverage for employees of state and local governments (mandatory coverage for employees of state and local 

governments not covered under a retirement system, effective July 1, 1991) and clergy. Voluntary coverage applies in 

the United States, Puerto Rico, Northern Mariana Islands, 

Virgin Islands, Guam, and American Samoa, and to citizens 

and residents employed abroad by U.S. employers.

Special systems for railroad employees, federal employees, 

and many employees of state and local governments.

Source of Funds

Insured person: 6.2% of covered earnings.

The maximum annual earnings for contribution and benefit 

purposes are $97,500. (The maximum earnings for contribution and benefit purposes are automatically adjusted to wage 

levels.)

Self-employed person: 12.4% of covered earnings.

The maximum annual earnings for contribution and benefit 

purposes are $97,500. (The maximum earnings for contribution and benefit purposes are automatically adjusted to wage 

levels.)

Employer: 6.2% of covered payroll.

The maximum annual earnings for contribution and benefit 

purposes are $97,500. (The maximum earnings for contribution and benefit purposes are automatically adjusted to wage 

levels.)

Government: The total cost of means-tested supplemental 

income benefits.

Qualifying Conditions

Old-age pension: Effective for workers retiring at age 65 in 

2007, the full retirement age required for a nonreduced pension has been raised from age 65 to age 65 and 10 months. 

(The full retirement age will increase gradually to age 67 by 

2027.) The insured must have 40 quarters of coverage.

Early pension: A reduced pension is payable from age 62.

Deferred pension: The pension may be deferred up to 

age 70.

Pensions are payable abroad to noncitizens under reciprocal agreement. However, noncitizens’ dependents who were 

first eligible after 1984 generally must meet a residency test.

Old-age supplemental income benefit (means-tested):

Aged 65 or older with low income and limited resources. 

The means test is based on earned and unearned income, 

including benefits.

Disability pension: The insured must be assessed as incapable of substantial gainful activity as the result of a physical or mental impairment that is expected to last at least a 

year or result in death. The insured must have a quarter of 

coverage for each year since age 21 up to the year the disability began, up to a maximum of 40 quarters of coverage. 

The insured must also have 20 quarters of coverage in the 

10-year period before the disability began.

The qualifying conditions for young and blind persons are 

more liberal.

Pensions are payable abroad to noncitizens under reciprocal agreement. However, noncitizens’ dependents who were 

first eligible after 1984 generally must meet a residency test.

Disability supplemental income benefit (means-tested):

Paid to disabled and blind persons younger than age 65 with 

low income and limited resources. The means test is based 

on earned and unearned income, including benefits. Certain impairment-related work expenses are deductible from 

income.

Survivor pension: The deceased was a pensioner or had a 

quarter of coverage for each year since age 21 up to the year 

before the year of death, up to a maximum of 40 quarters of 

coverage.

For orphans or a nonaged widow(er) with an eligible 

dependent orphan, the deceased had 6 quarters of coverage 

in the 13 quarters ending with the quarter in which the death 

occurred.

Eligible survivors are a widow(er) (or a surviving divorced 

spouse, if the marriage lasted at least 10 years), orphans 

younger than age 18 or aged 18 to 19 and attending elementary or secondary school full time (no limit if disabled 

before age 22), and dependent parents aged 62 or older and 

at least 50% dependent on the deceased.
SSPTW: The Americas, 2007 ♦ 175

United States

Pensions are payable abroad to noncitizens under reciprocal 

agreement. However, noncitizens’ survivors who were first 

eligible after 1984 generally must meet a residency test.

Old-Age Benefits

Old-age pension: The pension is based on the insured’s 

average covered earnings since 1950 (or age 21, if later) 

and indexed for past wage inflation, up to age 62 (or death, 

if earlier) excluding the 5 years with the lowest earnings. 

(Earnings in years outside this period may be substituted, if 

higher.)

Early pension: The pension is payable from age 62 but is 

reduced for each month of receipt before the full retirement 

age.

There is no minimum pension for insured persons reaching 

age 62 after 1981.

The maximum monthly pension for workers retiring in 2007 

at the full retirement age is $2,116.

Deferred pension: An increment is provided for each month 

the insured defers retirement after the full retirement age, 

up to age 70. The increment amount depends on the year the 

insured person reached age 62. In 2007, the annual increment is 8% for those aged 62.

Benefit adjustment: Benefits are adjusted automatically for 

changes in the cost of living.

Dependent’s allowance: 50% of the insured’s primary insurance amount is paid to a wife or a husband (or an unmarried 

divorced spouse, if the marriage lasted at least 10 years) at 

the full retirement age (reduced from age 62 up to the full 

retirement age) or to a wife or a husband at any age caring 

for a child younger than age 16 or disabled; to each child (or 

dependent grandchild) younger than age 18 or aged 18 to 19 

and attending elementary or secondary school full time (no 

age limit if disabled before age 22).

The primary insurance amount is derived from the insured’s 

covered lifetime earnings and is the basis for determining 

benefit amounts for the insured and the insured’s family 

members.

The maximum family pension ranges from 150% to 188% 

of the insured’s primary insurance amount.

The maximum monthly family pension for an insured person retiring in 2007 at the full retirement age is $3,703.

Old-age supplemental income benefit (means-tested):

The maximum monthly benefit is $623 for an individual; 

$934 for a couple.

Benefit adjustment: Benefits are adjusted automatically for 

changes in the cost of living.

Permanent Disability Benefits

Disability pension: The pension is based on the insured’s 

average covered earnings since 1950 (or age 21, if later) and 

indexed for past wage inflation, up to the onset of disability, 

excluding up to 5 years with the lowest earnings.

There is no minimum pension for insured persons who 

became disabled after 1981.

The maximum monthly pension for insured persons who 

became disabled at age 50 in 2006 is $2,205. The maximum 

pension for insured persons disabled at any other age is 

computed on the basis of that age.

Dependent’s allowance: 50% of the insured’s pension is paid 

to a wife or a husband (or an unmarried divorced spouse 

aged 62 or older, if the marriage lasted at least 10 years) at 

the full retirement age (reduced from age 62 up to the full 

retirement age) or to a wife or a husband at any age caring 

for a child younger than age 16 or disabled; to each child (or 

dependent grandchild) younger than age 18 or aged 18 to 19 

and attending elementary or secondary school full time (no 

age limit if disabled before age 22).

The maximum family benefit ranges from 100% to 150% of 

the insured’s primary insurance amount.

The maximum monthly family pension for an insured person who becomes disabled in 2006 is $3,307.

Benefit adjustment: Benefits are adjusted automatically for 

changes in the cost of living.

Disability supplemental income benefit (means-tested):

The maximum monthly benefit is $623 for an individual; 

$934 for a couple.

Benefit adjustment: Benefits are adjusted automatically for 

changes in the cost of living.

Survivor Benefits

Survivor pension: The pension is equal to 100% of the 

deceased’s primary insurance amount at the full retirement 

age (reduced if at least aged 60 and up to the full retirement 

age); a reduced pension is paid if the deceased was disabled 

at age 50 to 59 or received the early old-age pension.

The pension is paid to a widow(er) (or a surviving divorced 

spouse, if the marriage lasted at least 10 years); 75% of the 

insured’s primary insurance amount is paid for a widow(er) 

or surviving divorced spouse at any age caring for a child 

younger than age 16 or disabled.

The primary insurance amount is derived from the 

deceased’s covered lifetime earnings and is the basis for 

determining benefit amounts for survivors.

The pension is not payable before age 50 if the survivor is 

disabled.

The pension ceases if the survivor remarries before age 60.

Death benefit: A lump sum of $255 is also paid to a surviving spouse.

Orphan’s pension: Each child receives 75% of the 

deceased’s pension.
176 ♦ SSPTW: The Americas, 2007

United States

Dependent parent’s pension: The pension is equal to 

82.5% of the deceased’s pension at age 62; 150% for two 

eligible parents.

The maximum family pension ranges from 150% to 188% 

of the deceased’s primary insurance amount.

The maximum monthly family pension, if the insured died 

at age 40 in 2006, is $3,897.

Administrative Organization

Social Security Administration (http://www.socialsecurity.

gov), an independent agency within the executive branch, 

administers the program through regional program centers, 

district offices, and branch offices.

Treasury Department (http://www.treasury.gov) supervises 

the collection of Social Security taxes through the Internal 

Revenue Service and supervises the payment of benefits and 

the management of funds.

Administered by the Social Security Administration, the 

Supplemental Security Income (SSI) program provides 

means-tested benefits.

Sickness and Maternity

Regulatory Framework

First and current laws: 1965 (health insurance for older 

persons); 1972 (health insurance for the disabled); and 2003 

(prescriptions drugs), implemented in 2006.

Type of program: Social insurance system. Medical benefits only.

Coverage

Cash sickness and maternity benefits: There is no 

national program. Cash benefits may be provided at the state 

level. (Cash benefits for workers in industry and commerce 

are available in five states (Rhode Island, California, New 

Jersey, New York, and Hawaii) and Puerto Rico; agricultural 

workers are covered to varying degrees in three states (California, Hawaii, and New Jersey) and Puerto Rico. Contribution rates and benefits vary by jurisdiction.)

Special federal system for railroad employees.

Medical benefits

Hospitalization: Persons eligible for a pension and aged 65 

or older and certain others who qualify at age 65; persons 

who have been receiving disabled worker benefits for more 

than 2 years; and persons with end-stage renal disease.

Other medical services: Persons eligible for a pension and 

aged 65 or older and certain others who qualify at age 65; 

persons who have been receiving disabled worker benefits 

for more than 2 years; persons with end-stage renal disease; 

and all other persons aged 65 or older, through voluntary 

coverage.

Prescription drugs: Persons entitled to basic hospitalization 

coverage and persons enrolled in the voluntary physician 

and other services plan may enroll voluntarily in a Medicare 

stand-alone prescription drug plan or an integrated Medicare 

Advantage plan that offers drug coverage.

Separate federal and state systems for the medically 

indigent.

Source of Funds

Insured person

Cash benefits: There is no national program.

Hospitalization: 1.45% of gross earnings is paid by all workers covered for old-age, disability, and survivor benefits, 

plus some federal, state, and local employees.

There are no maximum earnings for contribution purposes 

for hospitalization.

Other medical services: Pensioners contribute $93.50 a 

month.

Prescription drugs: Pensioners pay a monthly premium 

that varies according to the plan they choose. Low income 

individuals may be eligible for premium or cost-sharing 

subsidies.

Self-employed person

Cash benefits: There is no national program.

Hospitalization: 2.9% of declared earnings.

There are no maximum earnings for contribution purposes 

for hospitalization.

Other medical services: Pensioners contribute $93.50 a 

month.

Prescription drugs: Pensioners pay a monthly premium 

that varies according to the plan they choose. Low income 

individuals may be eligible for premium or cost-sharing 

subsidies.

Employer

Cash benefits: There is no national program.

Hospitalization: 1.45% of gross payroll.

There are no maximum earnings for contribution purposes 

for hospitalization.

Other medical services: None.

Prescription drugs: Not applicable.

Government

Cash benefits: There is no national program.

Hospitalization: The total cost of hospitalization benefits for 

certain noninsured elderly persons.

Other medical services: The balance of the cost for voluntary insurance.
SSPTW: The Americas, 2007 ♦ 177

United States

Prescription drugs: The balance of the cost for voluntary 

insurance.

Qualifying Conditions

Cash sickness and maternity benefits: There is no 

national program. Cash benefits may be provided at the state 

level.

Medical benefits

Hospitalization: Pensioners aged 65 or older, disabled persons who have been entitled to disability benefits for at least 

2 years, or persons with end-stage renal disease.

Other medical services: Meets the requirement for hospitalization benefits, election of coverage, and payment of 

required premiums.

Prescription drugs: Must be entitled to hospitalization benefits or other medical services.

Sickness and Maternity Benefits

Sickness benefit: There is no national program. Cash benefits may be provided at the state level.

Maternity benefit: There is no national program. Cash benefits may be provided at the state level.

Workers’ Medical Benefits

Medical benefits

Hospitalization: Inpatient care is provided for stays of up 

to 90 days; the beneficiary is responsible for the first-day 

deductible of $992 (amount adjusted each year) and, for 

the 60th to the 90th day, $248 per day. For inpatient care 

longer than 90 days, coverage is available for up to 60 lifetime reserve days (may be used only once); the beneficiary 

is responsible for $496 per day. Posthospital skilled nursing facility care for an additional 100 days (the patient 

pays $124 for the 21st to the 100th day), laboratory and 

X-ray services for inpatients, and posthospital home health 

services.

Other medical services: Payment for 80% of medically 

necessary charges above $131 a year for physician’s services, outpatient diagnostic and physical therapy, laboratory 

services, appliances, and transportation.

Persons eligible for both hospitalization and other medical services under the regular Medicare program, except 

for those with end-stage renal disease, can as an alternative elect to participate in one of several types of Medicare 

Advantage plans if one is available in their jurisdiction.

Prescription drugs: The payment varies depending on the 

plan chosen. In general, the insured pays an annual taxdeductible premium, up to a maximum of $265. The plan 

and the insured share the cost of prescription drugs, up to a 

combined limit of $2,400. The insured pays the combined 

total cost of prescription drugs between $2,400 and $3,850. 

If the combined total cost of prescription drugs is greater 

than $3,850, the insured pays 5% of the costs and Medicare 

pays 95% of the costs for the insured year.

Federal and state assistance programs: Medical services are 

provided to medically indigent persons of any age.

Dependents’ Medical Benefits

Medical benefits for dependents

Benefits are only for persons aged 65 or older who satisfy 

other qualifying requirements or who have end-stage renal 

disease.

Hospitalization: Inpatient care is provided for stays of up 

to 90 days; the beneficiary is responsible for the first-day 

deductible of $992 (amount adjusted each year) and, for 

the 60th to the 90th day, $248 per day. For inpatient care 

longer than 90 days, coverage is available for up to 60 lifetime reserve days (may be used only once); the beneficiary 

is responsible for $496 per day. Posthospital skilled nursing facility care for an additional 100 days (the patient 

pays $124 for the 21st to the 100th day), laboratory and 

X-ray services for inpatients, and posthospital home health 

services.

Other medical services: Payment for 80% of medically 

necessary charges above $131 a year for physician’s services, outpatient diagnostic and physical therapy, laboratory 

services, appliances, and transportation.

Persons eligible for both hospitalization and other medical services under the regular Medicare program, except 

for those with end-stage renal disease, can as an alternative elect to participate in one of several types of Medicare 

Advantage plans if one is available in their jurisdiction.

Prescription drugs: Payment varies depending on the plan 

chosen. The plan and the insured share the cost of prescription drugs, up to a combined limit of $2,400. The insured 

pays the combined total cost of prescription drugs between 

$2,400 and $3,850. When the combined total cost of prescription drugs is greater than $3,850, the insured pays 5% 

of the costs and Medicare pays 95% of the costs for the rest 

of the calendar year.

Federal and state assistance programs: Medical services are 

provided to medically indigent persons of any age.

Administrative Organization

Medical benefits: Department of Health and Human 

Services provides general supervision. Centers for Medicare and Medical Services (CMS) (http://www.cms.hhs.

gov) provide the national administration of the program in 

cooperation with the Public Health Service, Social Security 

Administration, and state health departments.
178 ♦ SSPTW: The Americas, 2007

United States

Private carriers and public agencies, serving under contract 

as intermediary administrative agents, determine and make 

payments to providers of services or to patients.

Medical services are furnished by providers paid for directly 

by carriers, or through refunds to patients by carriers of part 

of the medical expenses.

Includes nonprofit Blue Cross and Blue Shield plans, commercial insurance companies, and group-practice prepayment plans.

CMS contracts with individual companies that provide prescription drugs directly to the insured.

Work Injury

Regulatory Framework

First laws: 1908 (federal employees) and 1911 (nine state 

laws).

Current laws: All states, Puerto Rico, District of Columbia, 

Guam, and Virgin Islands; federal employees, longshoremen, and harbor workers. Most laws were enacted before 

1920.

Type of program: Compulsory (elective for employers 

in one state) insurance through a public or private carrier 

(according to the state) or self-insurance.

Coverage

Employees in industry and commerce generally and most 

public-sector employees.

Exclusions: Common exemptions from coverage are domestic service workers, agricultural employees, small employers, and casual labor. However, 39 programs have some 

coverage for agricultural workers, and 25 programs have 

some coverage for domestic workers.

Special federal program for miners (pneumoconiosis).

Source of Funds

Insured person: Nominal contributions in a few states.

Self-employed person: Not applicable.

Employer: The total cost in most states and most of the cost 

in others, met through either insurance premiums varying 

with the assessed degree of risk or self-insurance. (The 

average cost in 2004 was 1.76% of payroll.) The total cost 

of pneumoconiosis benefits for insured persons who entered 

the workforce after 1973.

Government: None; contributes as an employer. The total 

cost of pneumoconiosis benefits for insured persons who 

entered the workforce before 1974.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period, except for exposure to occupational disease.

Temporary Disability Benefits

In most states, the benefit is equal to 66.6% of earnings. 

The benefit is paid after a waiting period of 3 to 7 days 

(depending on the state). Benefits are paid retroactively if 

the disability lasts a specified period, ranging from 4 days to 

6 weeks.

Dependent’s supplement: About 1/5 of all states provide 

supplements for dependents, in some instances as a lump 

sum.

The maximum weekly benefit varies by state.

Benefit adjustment: About 4/5 of all states increase benefits 

automatically according to increases in state wages.

Permanent Disability Benefits

Permanent disability pension: In most states, the pension 

is equal to 66.6% of earnings for a total disability. The pension is limited to between 312 days and 500 weeks in nine 

jurisdictions.

Partial disability: A reduced pension is paid according to the 

assessed loss of earning capacity, or at the full rate for fewer 

weeks in the case of scheduled injuries.

Pneumoconiosis pension: The basic monthly pension is 

$584. The maximum monthly family pension is $1,168.

Constant-attendance supplement: Provided in some states. 

The supplement is paid for life or for the duration of the 

disability in 4/5 of all states. Some states provide limited 

supplements for a duration of 104 to 500 weeks.

Dependent’s supplement: Provided in some states, the supplement is paid for life or for the duration of the disability 

in 4/5 of all states. Some states provide limited supplements 

for a duration of 104 to 500 weeks.

Workers’ Medical Benefits

Medical care is provided for as long as is required in all 

states.

Survivor Benefits

Survivor pension: The pension is equal to between 35% 

and 70% of the deceased’s earnings for a widow(er); 60% to 

80% for a widow(er) with dependent children.

Other eligible survivors (under some work injury laws) 

include dependent parents, brothers, and sisters.

Survivor pension (pneumoconiosis): The basic monthly 

pension is $584. The family maximum monthly is $1,168.

Other eligible survivors include dependent parents, brothers, 

and sisters.

Funeral grant: A lump sum is paid. The amount varies by 

state.
SSPTW: The Americas, 2007 ♦ 179

United States

Administrative Organization

Work injury: State workers’ compensation agencies administer the program in about 1/2 of all states, state Departments of Labor administer the program in about 3/8 of all 

states, and courts administer the program in three states.

Employers must insure with the state fund in six states; may 

insure with the state fund or a private carrier in 14 states and 

with a private carrier in the remainder.

Self-insurance by employers is also permitted under all but 

three state laws.

Pneumoconiosis: Department of Labor, Office of Workers’ 

Compensation Program, administers the program and pays 

benefits.

Unemployment

Regulatory Framework

Federal law: 1935.

State laws: All states, Puerto Rico, Virgin Islands, and 

District of Columbia have separate laws creating their own 

programs. State laws were first enacted between 1932 and 

1937.

Type of program: Social insurance system.

Coverage

Employees of firms in industry and commerce and employees of nonprofit organizations with four or more employees 

during 20 weeks in a year or that pay wages of $1,500 or 

more in any calendar quarter in a year. Almost all state and 

local government workers, domestics, and more than 3/4 

of farm workers are covered. Federal civilian and military 

employers are also covered.

Exclusions: Some agricultural employees, employees of 

religious organizations, casual employees, family labor, and 

self-employed persons.

Special federal system for railroad employees.

Source of Funds

Insured person: None, except in Alaska, New Jersey, and 

Pennsylvania.

Self-employed person: Not applicable.

Employer

Federal tax: 0.8% of taxable payroll. (The full amount is 

6.2%. However, there is a 5.4% credit if states meet all 

federal requirements; includes a temporary surcharge of 

0.2% on the first $7,000 earned by each worker in covered 

employment annually.)

State programs: The standard rate is 5.4% of taxable payroll. Actual rates vary from zero to 10% or more, according 

to the individual employer’s experience with laying off 

workers. The first $7,000 to $35,300 (varies according to 

the state) earned by each worker in covered employment is 

subject to this tax annually.

Government: Federal tax revenue is used for the administration of state unemployment compensation programs, 

loans to states to pay for unemployment benefits, or to 

finance the extended benefits program. State tax revenue is 

used for unemployment benefits.

Qualifying Conditions

Unemployment benefits: Most states require minimum 

earnings in the base period equal to a specified multiple 

of the weekly benefit amount or high-quarter wages, or 

a specified total amount of wages. A few states require a 

specified number of weeks of employment (for example, 

from 15 to 20 weeks). One state requires a certain number 

of hours of work. To be eligible, an unemployed worker 

must be registered with the employment service, be capable 

of and available for work, and must actively seek work. 

An unemployed worker will be disqualified for voluntarily 

leaving a job without good cause, being discharged from 

employment for misconduct, or refusing an offer of suitable 

work. Unemployed workers may be disqualified if they are 

participating in a labor dispute. The length of the disqualification period varies among states and depends on the reason 

for disqualification.

Unemployment Benefits

The benefit is equal to about 50% of the insured’s earnings 

(usually capped at around 50% of the state’s average weekly 

wage), according to diverse state formulas. The benefit is 

paid after a 1-week waiting period in most states, for up to a 

maximum of 26 weeks in most states.

Dependent’s supplement: About 1/4 of states provide from 

$1 to $125 a week for each child and sometimes for other 

dependents.

Federal law provides for up to 13 additional weeks of benefits in states with high levels of unemployment.

Unemployment assistance: Assistance is available in 

some states to workers who are ineligible for unemployment 

benefits because of insufficient periods of covered employment, to unemployed persons who have exhausted benefit 

rights under the federal and state assistance programs, and 

to unemployed persons participating in training programs.

Administrative Organization

Department of Labor (http://www.ows.doleta.gov/

unemploy) administers the program nationally through its 

Employment Training Administration and Office of Workforce Security.

State workforce agencies are responsible for the administration of individual state programs. More than half of agencies 

are within a department of the state government; the remainder are independent boards or commissions.
180 ♦ SSPTW: The Americas, 2007

United States

Family Allowances

Regulatory Framework

A federal and state system of aid (cash payments, social 

services, and job training) provides temporary assistance 

to needy families, and a system of liberalized refundable 

federal tax credits operates for low-income families with 

eligible children and for some single persons.
SSPTW: The Americas, 2007 ♦ 181

Uruguay

Uruguay

Exchange rate: US$1.00 equals

23.85 new pesos (NP).

Old Age, Disability, and Survivors

Regulatory Framework

First laws: Various laws for specified groups of workers 

from 1829 to 1954.

Current law: 1995 (social insurance and individual 

accounts), implemented in 1996.

Type of program: Social insurance, individual account, and 

social assistance system.

Note: The mixed social insurance and individual account 

system is mandatory for employed and self-employed persons born after April 1, 1956, with monthly earnings greater 

than 15,187 NP; the individual account is voluntary for 

those with monthly income of 15,187 NP or less.

Coverage

Social insurance: Employed and self-employed persons, 

including rural and domestic workers.

Special systems for bank employees, notaries, university graduates, armed forces personnel, and police force 

personnel.

Social insurance and individual account: Employed and 

self-employed persons, with monthly earnings greater than 

15,187 NP.

Voluntary coverage under the individual accounts system for 

employed and self-employed persons with monthly earnings 

of 15,187 NP or less.

Special systems for bank employees, notaries, university graduates, armed forces personnel, and police force 

personnel.

Social assistance: Needy elderly or disabled persons.

Source of Funds

Insured person

With gross monthly earnings of 15,187 NP or less, a mandatory contribution equal to 15% of earnings is paid to social 

insurance only. (Voluntary contributors to the individual 

account with gross monthly earnings of 15,187 NP or less, 

contribute 7.5% of earnings to social insurance and 7.5% of 

earnings to the individual account.)

With gross monthly earnings greater than 15,187 NP, 15% 

of 15,187 NP is paid to social insurance and 15% of the 

earnings above 15,187 NP (up to and including 45,562 NP) 

is paid to the individual account.

The insured’s contribution includes an average 0.97% of 

covered earnings for disability and survivor insurance and 

an average 1.86% of covered earnings for administrative 

fees if contributing to an individual account.

The maximum monthly earnings for contribution purposes 

are 45,562 NP.

Earnings for contribution purposes are adjusted according to 

the civil servants’ average wage index.

Self-employed person: 15% of declared covered earnings, 

including an average 0.97% of declared covered earnings 

for disability and survivor insurance and an average 1.86% 

of declared covered earnings for administrative fees if contributing to an individual account.

The maximum monthly earnings for contribution purposes 

are 45,562 NP.

Employer: 7.5% of covered payroll for social insurance 

only (contributions are waived for certain professional 

activities).

The maximum monthly earnings for contribution purposes 

are 45,562 NP.

Government: Earmarked proceeds of various taxes help 

finance pension deficits; pays the total cost of noncontributory benefits; contributes as an employer.

Qualifying Conditions

Old-age pension

Old-age pension (social insurance): Age 60 (men and 

women) with at least 35 years of coverage. Additional years 

of service are credited for hazardous occupations.

Deferred pension: With at least 35 years of coverage, the 

pension is increased for each year of deferral.

Old-age pension (individual account): Age 60 (men and 

women) with at least 35 years of coverage; age 65 with no 

coverage requirement.

Advanced-age pension (social insurance and individual 

account): Age 70 (men and women) with 15 years of service. Retirement from the current place of employment is 

necessary.

Noncontributory means-tested pension (social assistance):

Age 70 (men and women), assessed as needy, and with at 

least 15 years of residency.

Disability pension

Permanent disability pension (social insurance and individual 

account): The insured must be incapable of any work and 

have an assessed degree of disability of at least 66%. If 

the disability is the result of an accident, there are no other 

qualifying conditions. Alternatively, must have at least 

2 years of recognized service, including the 6 months before 

the disability began; at least 6 months of recognized service 

before the disability began if younger than age 26. Coverage 
182 ♦ SSPTW: The Americas, 2007

Uruguay

is extended for up to 2 years after employment ceases if the 

insured has at least 10 years of coverage.

Partial disability benefit (social insurance and individual 

account): The insured must be incapable of work in the 

usual job and have an assessed degree of disability of 50% 

to 66%. If the disability is the result of an accident, there are 

no other qualifying conditions. Alternatively, must have at 

least 2 years of recognized service, including the 6 months 

before the disability began; at least 6 months of recognized 

service before the disability began if younger than age 26. 

The benefit is paid on a temporary basis and is subject to a 

reassessment of the incapacity to work.

District medical commissions of the Social Security Bank 

assess the degree of incapacity to work.

Noncontributory means-tested pension (social assistance):

Must be assessed as totally and permanently disabled, 

needy, and have at least 15 years of residency in Uruguay.

Survivor pension

Survivor pension (social insurance and individual account):

The deceased was working; a pensioner; a beneficiary 

of partial disability benefits, sickness benefits, maternity 

benefits, or work injury benefits; unemployed and receiving 

unemployment benefits; or death occurred in the 12-month 

period after the unemployment benefit ceased. Coverage is 

extended for up to 12 months after employment ceases; no 

limit with at least 10 years of coverage.

Eligible survivors include a widow(er), a divorced spouse, 

orphans up to age 21 (no limit if disabled), and dependent 

disabled parents. A widow(er) or a divorced spouse younger 

than age 30 receives benefits for 2 years; from age 30 to 

age 39, for 5 years; or without limit if older than age 39. 

A widow(er) must have average monthly earnings in the 

12 months before the insured’s death of no more than 

45,562 NP; 26,198 NP for a divorced spouse.

Funeral grant: The grant is paid to eligible survivors or to 

the person who paid for the funeral. (If the funeral costs are 

paid by a pension scheme, only necessary additional funeral 

costs are paid.)

Old-Age Benefits

Old-age pension

Old-age pension (social insurance): The monthly benefit 

is equal to 50% of the insured’s average indexed earnings 

in the last 20 years, with at least 35 years of coverage. The 

pension is increased by 0.5% for each year of work exceeding 35 years, up to a maximum of 2.5%, and by 2% for each 

year of work after age 60 if the contribution condition was 

not met.

Deferred pension: The pension is increased by 3% for each 

year after age 60, up to a maximum of 30%.

The minimum monthly pension is 2,930 NP.

The maximum monthly pension is 26,198 NP.

The pension is payable abroad under bilateral or multilateral 

agreement only.

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Advanced-age pension (social insurance): The monthly benefit is equal to 50% of average indexed earnings in the last 

10 or 20 years, whichever is greater, plus 1% for each year 

of work exceeding 15 years, up to a maximum of 14%.

The pension is payable abroad under bilateral or multilateral 

agreement only.

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Old-age pension (individual account): The value of the pension depends on the insured’s contributions plus accrued 

interest, minus administrative fees. At retirement, the 

insured uses the accumulated capital to purchase an annuity 

from an insurance company.

The pension is payable abroad under bilateral or multilateral 

agreement only.

Advanced-age pension (individual account): The value of the 

pension depends on the insured’s contributions plus accrued 

interest, minus administrative fees. At retirement, the 

insured uses the accumulated capital to purchase an annuity 

from an insurance company.

The pension is payable abroad under bilateral or multilateral 

agreement only.

Noncontributory means-tested pension (social assistance):

2,930 NP a month is paid.

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Permanent Disability Benefits

Disability pension

Permanent disability pension (social insurance): The 

monthly pension is equal to 65% of the insured’s average 

indexed earnings in the 20 years before the disability began, 

or the total number of years worked if less than 20 years.

Special allowances: A lump sum of 1,125.59 NP is paid for 

transportation costs and a lump sum of 2,131.27 NP is paid 

for rehabilitation costs.

Partial disability benefit (social insurance): The monthly 

benefit is equal to 65% of the insured’s average indexed 

earnings in the 20 years before the disability began, or the 

total number of years worked if less than 10 years. The 

benefit is paid for up to 3 years.

The minimum monthly benefit is 2,930 NP.

The maximum monthly benefit is 26,198 NP.

Benefits are payable abroad under bilateral or multilateral 

agreement only.
SSPTW: The Americas, 2007 ♦ 183

Uruguay

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Permanent disability pension (individual account): The 

monthly pension is equal to 45% of the insured’s average 

indexed earnings in the 20 years before the disability began. 

(Disability insurance tops-up the accumulated capital in the 

individual account if the balance is less than the required 

minimum to finance the permanent disability pension.)

Partial disability benefit (individual account): The monthly 

pension is equal to 45% of the insured’s average indexed 

earnings in the 20 years before the disability began. The 

benefit is paid for up to 3 years.

Noncontributory means-tested pension (social assistance):

2,930 NP a month is paid.

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Survivor Benefits

Survivor pension

Survivor pension (social insurance and individual account):

A monthly pension equal to between 66% and 75% of the 

pension paid or payable to the deceased is paid, depending on the number of survivors. (Life insurance tops-up the 

accumulated capital in the deceased’s individual account if 

the balance is less than the required minimum to finance the 

survivor pension.)

Widow(er)s and divorced spouses share 100% of the pension if there are no other eligible survivors. Widow(er)s 

and divorced spouses share 70% of the total pension if they 

have children; 60% if there are no children but other eligible 

survivors. The remainder is split equally among other eligible survivors. In the absence of a widow(er) or a divorced 

spouse, 100% of the pension is split equally among other 

eligible survivors.

The pension ceases if the widow(er) or divorced spouse 

remarries.

For members of an individual account scheme, the accumulated capital in the individual account, equal to the insured’s 

contributions plus accrued interest, minus administrative 

fees, is transferred to an insurance company, which pays the 

pension.

Survivor pensions are payable abroad under bilateral or 

multilateral agreement only.

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Funeral grant: The cost of the funeral is paid, up to 

7,054 NP.

Administrative Organization

Ministry of Labor and Social Security (http://www.mtss.

gub.uy) provides general supervision.

Social Insurance Bank (http://www.bps.gub.uy) supervises 

and administers the social insurance program.

Central Bank of Uruguay (http://www.bcu.gub.uy) oversees 

pension fund management companies (AFAPs) and insurance companies.

AFAPs manage the individual accounts.

Sickness and Maternity

Regulatory Framework

First laws: 1958 (maternity benefits) and 1960 (sickness 

benefits for construction workers).

Current laws: 1975 (sickness), 1980 (maternity), 1981 

(maternity), 1995 (pensioners), 1999 (maternity), 2001 

(adoption), and 2007 (national health fund).

Type of program: Social insurance system.

Coverage

Sickness benefits: Employed persons in the private sector, 

self-employed persons, persons receiving unemployment 

benefits, employers with one employee, and pensioners.

Maternity benefits: Benefits are provided under the Family 

Allowances program, below.

Source of Funds

Insured person: From 3% to 6% of gross earnings.

Self-employed person: 8% of declared earnings.

Employer: 5% of payroll, plus additional insurance contributions. Employers with one employee contribute 8% of 

declared earnings.

Government: Earmarked proceeds of various taxes help 

finance maternity benefits and any deficits for sickness 

benefits.

Qualifying Conditions

Cash sickness benefits: The insured must have 3 months 

of contributions or 75 days of contributions in the last 

12 months.

Cash maternity benefits: See Family Allowances, below.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 70% of the 

insured’s earnings and is paid after a 3-day waiting period 

(no waiting period in case of hospitalization) for up to a 

year; may be extended for an additional year.

The maximum monthly benefit is 4,908 NP; 1,145 NP for 

self-employed persons.

Maternity benefit: See Family Allowances, below.
184 ♦ SSPTW: The Americas, 2007

Uruguay

Workers’ Medical Benefits

Medical services are available through mutual health institutions. Medical services include medical assistance, surgery, 

and pharmaceutical products.

Grants for eyeglasses, contact lenses, prostheses, orthopedic 

appliances, wheelchairs, and psychiatric hospitalization are 

provided by health institutions.

Prenatal and postnatal medical care is provided for insured 

women under Family Allowances, below.

Dependents’ Medical Benefits

Medical services are available through mutual health institutions. Medical services include medical assistance, surgery, 

and pharmaceutical products.

Grants for eyeglasses, contact lenses, prostheses, orthopedic 

appliances, wheelchairs, and psychiatric hospitalization are 

provided by health institutions.

Prenatal and postnatal medical care are provided for insured 

women under Family Allowances, below.

Maternity care for the wife of an insured man and pediatric 

care for the insured’s children up to age 6 (may be extended 

to age 14) are provided under Family Allowances, below.

Administrative Organization

Social Insurance Bank (http://www.bps.gub.uy) supervises 

and administers these benefits.

Collective medical assistance or mutual health institutions 

contracted by the Social Insurance Bank provide medical 

benefits.

Work Injury

Regulatory Framework

First law: 1914.

Current law: 1989 (work injury), with 1990 amendment.

Type of program: Compulsory insurance with a public 

carrier.

Coverage

Private-sector employees, including agricultural workers; 

certain public-sector workers; apprentices; and persons 

working with horses.

Exclusions: Self-employed persons, sportsmen, and actors.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost is met through contributions 

varying with the assessed degree of risk. For agricultural 

workers, assessments are made according to the land area 

the employer has under cultivation.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period. Accidents that occur while commuting to and from 

work are not covered.

Temporary Disability Benefits

For regular employees, the work injury benefit is equal to 

66% of earnings before the disability began; for workers 

in irregular employment, 66% of total adjusted earnings in 

the last 6 months divided by 150. The daily benefit is paid 

retroactively after a 4-day waiting period for the duration of 

the disability.

For an occupational disease, the benefit is equal to 100% 

of earnings before the disease was diagnosed. There is no 

waiting period.

An additional benefit equal to 3.607% of earnings is paid 

under sickness benefits.

The Social Insurance Bank assesses the degree of loss of 

earnings.

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Permanent Disability Benefits

Permanent disability pension: For an assessed degree of 

disability of 20% or more, the monthly pension is equal to 

the monthly loss of earnings; 115% of earnings before the 

disability began is paid if the insured needs the constant 

attendance of another person.

For an assessed degree of disability of 10% to 19%, a lump 

sum is paid equal to 36 times the monthly loss of earnings; 

for an assessed degree of disability less than 10%, a benefit 

is paid only if the assessed disability is the result of repeated 

accidents.

The Social Insurance Bank assesses the degree of loss of 

earnings.

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Workers’ Medical Benefits

Medical services are available through the Social Insurance 

Bank. Benefits include medical, surgical, and dental care; 

hospitalization; medicines; and appliances.

There is no limit to duration.

Survivor Benefits

Survivor pension: A monthly benefit equal to 75% of the 

deceased’s earnings is paid to a widow(er) or divorcee with 

dependents; 66% without dependents. The widow(er) must 
SSPTW: The Americas, 2007 ♦ 185

Uruguay

have been married to the deceased for a year; a partner must 

have cohabited with the deceased for at least a year. If the 

only eligible survivors are the divorcee or dependent parents 

of the deceased, the benefit is equal to 50% of the deceased 

earnings.

Orphan’s pension: In the absence of other eligible survivors, the pension is equal to 66% of the deceased earnings.

Benefit adjustment: Benefits are adjusted according to the 

civil servants’ average wage index.

Administrative Organization

Social Insurance Bank (http://www.bps.gub.uy) supervises 

and administers benefits.

Unemployment

Regulatory Framework

First law: 1934.

Current laws: 1981 (industry and commerce) and 2001 

(rural workers).

Type of program: Social assistance system.

Coverage

Private-sector employees and rural workers.

Exclusions: Domestic workers, bank employees, pensioners, 

and self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: None.

Government: Earmarked proceeds of various taxes help 

finance benefits.

Qualifying Conditions

Unemployment benefits: Workers who are paid monthly 

must have at least 6 months (150 days if paid daily) of work 

in the 12-month period before unemployment; workers who 

are paid at irregular intervals must have earned 8,892 NP in 

the last 12-month period.

Rural workers who are paid monthly must have at least 

12 months (250 days if paid daily) of work in the 24-month 

period before unemployment; rural workers who are paid at 

irregular intervals must have earned at least 19,632 NP in 

the last 12-month period.

Unemployment must not be the result of dismissal for disciplinary reasons.

Partial unemployment benefit: A benefit is paid to workers 

who are paid daily or at irregular intervals if working time is 

reduced by 25% or more.

Dependent’s supplement: Paid if the unemployed person 

is married, has children younger than age 21 (any age if 

disabled), or has disabled dependents.

There is a 12-month waiting period before a new claim for 

unemployment benefits can be made.

Unemployment Benefits

Workers who are paid monthly or at irregular intervals 

receive a benefit equal to 50% of average earnings in the 

6 months before unemployment.

Workers who are paid daily receive a monthly benefit equal 

to 12 days of earnings before unemployment.

Partial unemployment benefit: The monthly benefit is equal 

to 12 days of earnings before partial unemployment, minus 

the value of current monthly earnings.

Dependent’s supplement: Equal to 20% of the benefit.

The minimum unemployment benefit is 818 NP.

The maximum unemployment benefit is 4,908 NP.

Administrative Organization

Ministry of Labor and Social Insurance (http://www.mtss.

gub.uy) provides general supervision.

Social Insurance Bank (http://www.bps.gub.uy) supervises 

and administers the unemployment insurance program.

Family Allowances

Regulatory Framework

First law: 1943.

Current laws: 1980 (family allowances), implemented in 

1981, with 1999 amendment; 1995 (social security); 2002 

(multiple pregnancy); and 2004 (low-income families).

Type of program: Social assistance system.

Coverage

Private-sector employees, domestic workers, unemployment 

benefit recipients, newspaper vendors, small rural products 

vendors, and pensioners.

Exclusions: Self-employed persons.

Special system for civil servants.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: None.

Government: Earmarked proceeds of various taxes help 

finance benefits.
186 ♦ SSPTW: The Americas, 2007

Uruguay

Qualifying Conditions

Family allowances: The child must be younger than age 14 

(age 18 if a student, no limit if disabled). The benefit is paid 

from the day the pregnancy is confirmed.

Pensioners with benefits of 4,908 NP or more and employees with earnings of 16,360 NP or more do not receive 

family allowances. (For employees with earnings of 

16,360 NP or more and with three or more dependents, the 

earnings limit is increased to 1,568 NP for each additional 

dependent.)

Cash maternity benefit: Paid for the birth of a child.

Multiple birth allowance: Paid to a pregnant woman 

expecting more than one child. The benefit is paid from the 

day the pregnancy is confirmed.

Special paid leave: Paid to a salaried worker who adopts a 

child.

Low-income family allowance: Paid to eligible children in 

households with monthly earnings of 4,908 NP or less.

Family Allowance Benefits

Family allowances: The allowance is 261.76 NP 

(523.52 NP for a disabled child) for covered persons with 

income up to 9,816 NP; 130.88 NP (261.76 NP for a disabled child) with income between 9,817 NP and 16,360 NP.

For a family with children resulting from a multiple pregnancy, the allowance is paid at three times the standard rate 

until the children reach age 5, at twice the standard rate until 

the children reach age 12, and at the standard rate until the 

children reach age 18. The benefit is paid every 2 months.

Cash maternity benefit: The benefit is equal to 100% of 

average earnings in the last 6 months and is paid for the 

period 6 weeks before until 6 weeks after the expected date 

of childbirth. The benefit is paid on the expected date of 

childbirth.

Multiple birth allowance: The allowance is paid at three 

times the family allowance standard rate until the children 

reach age 5, at twice the standard rate until the children 

reach age 12, and at the standard rate until the children reach 

age 18. The benefit is paid every 2 months.

Special paid leave: Private-sector workers receive benefits 

equal to 6 months’ cash maternity benefit.

Low-income family allowance: 261.76 NP (523.52 NP for 

a disabled child) is paid.

In-kind benefits include pediatric care for children up to 

age 6, dental care for children up to age 9, and specialist 

medical care and transportation for children up to age 14. 

Medical examinations and medicines for children are free.

Administrative Organization

Social Insurance Bank (http://www.bps.gub.uy) supervises 

and administers benefits.

Collective medical assistance or mutual health institutions 

contracted by the Social Insurance Bank provide medical 

benefits.
SSPTW: The Americas, 2007 ♦ 187

Venezuela

Venezuela

Exchange rate: US$1.00 equals 2,150 bolivares.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1940.

Current laws: 1966, 1991, and 2002.

Type of program: Social insurance system.

Note: The 1990 labor code established supplementary pension funds financed by employer contributions only.

Coverage

Employees in the private and public sectors and members of 

cooperatives.

Voluntary coverage for persons who were previously covered, subject to conditions.

Special system for armed forces personnel.

Source of Funds

Insured person: The average contribution is 1.93% of 

covered earnings.

The maximum monthly earnings for contribution and benefit 

purposes are equal to five times the minimum urban wage.

The insured’s contributions also finance the marriage grant 

(See Family Allowances, below).

Self-employed person: Not applicable.

Employer: The average contribution is 4.82% of covered 

payroll.

The maximum monthly earnings for contribution and benefit 

purposes are equal to five times the minimum urban wage.

The employer’s contributions also finance the marriage 

grant (See Family Allowances, below).

Government: At least 1.5% of total covered earnings to 

cover the cost of administration; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 60 (men) or age 55 (women) with 

at least 750 weeks of contributions. The pensionable age is 

lower for those in unhealthy and arduous occupations. 

Retirement is not necessary.

The pension is payable abroad.

Old-age grant: Paid if the insured does not satisfy the qualifying conditions for the pension but has at least 100 weeks 

of contributions in the last 4 years.

Disability pension: Paid for the permanent or prolonged 

loss of over 2/3 of working capacity with at least 250 weeks 

of contributions (reduced by 20 contributions for each year 

the insured is younger than age 35), including 100 weeks 

in the last 3 years before the disability began. There is no 

qualifying period for a disability caused by an accident.

Partial disability pension: Paid for an assessed degree of disability of between 25% and 66.6%.

Disability grant: Paid for an assessed degree of disability of 

between 5% and 24%.

Survivor pension: The insured satisfied the qualifying 

conditions for a pension or was a pensioner at the time of 

death. There is no qualifying period if the death is caused by 

an accident.

Eligible survivors are a widow older than age 45 or at any 

age with children; a partner older than age 45 or at any age 

with children and who cohabited with the deceased for at 

least 2 years; a widower older than age 60 or disabled; and 

children younger than age 14 (age 18 if a student, no limit if 

disabled). A widow or partner younger than age 45 receives 

a lump sum.

Survivor grant: The insured did not satisfy the qualifying 

period for a pension but had at least 100 weeks of contributions during the last 4 years.

Eligible survivors are a widow older than age 45 or at any 

age with children; a partner older than age 45 or at any age 

with children and who cohabited with the deceased for at 

least 2 years; a widower older than age 60 or disabled; and 

children younger than age 14 (age 18 if a student, no limit if 

disabled).

Old-Age Benefits

Old-age pension: The pension is equal to 296,524.80 bolivares a month, plus 30% of average earnings in the last 

5 years or the average of the best 5 years in the last 10 years 

(whichever is higher), plus 1% of earnings for each 50-week 

period of contributions exceeding 750 weeks.

The minimum pension is equal to 40% of earnings.

Deferred pension: An additional 5% of the pension is paid 

for each year the pension is deferred after the pensionable 

age.

Benefit adjustment: Pensions are adjusted periodically for 

changes in prices and wages.

Old-age grant: The grant is equal to 10% of the insured’s 

total covered earning.

Benefit adjustment: Benefits are adjusted periodically for 

changes in prices and wages.

Permanent Disability Benefits

Disability pension: The pension is equal to 296,524.80 

bolivares a month, plus 30% of average earnings (payable 
188 ♦ SSPTW: The Americas, 2007

Venezuela

after 6 months of disability), plus 1% of earnings for each 

50-week period of contributions exceeding 750 weeks.

The minimum pension is equal to 40% of the insured’s 

earnings.

Constant-attendance supplement: Up to 50% of the pension 

is paid.

Partial disability: For an assessed degree of disability of 

between 25% and 66.6%, a percentage of the full pension 

is paid according to the assessed degree of disability (if the 

disability is the result of a nonoccupational accident).

Benefit adjustment: Pensions are adjusted periodically for 

changes in prices and wages.

Disability grant: The grant is equal to 36 months’ disability 

pension.

Benefit adjustment: Benefits are adjusted periodically for 

changes in prices and wages.

Survivor Benefits

Survivor pension: An eligible widow(er) or partner 

receives 40% of the pension paid or payable to the deceased. 

Other widows or partners receive a lump sum equal to 

2 years’ survivor pension.

Orphan’s pension: Each orphan younger than age 14 

(age 18 if a student, no limit if disabled) receives 20% of the 

deceased’s pension; the first full orphan receives 40% of the 

pension and other full orphans, 20%.

All survivor benefits combined must not exceed 100% of the 

deceased’s pension.

Other eligible survivors (in the absence of the above):

Brothers, sisters, and parents may receive an amount equal 

to 10% of the deceased’s total covered earnings.

Benefit adjustment: Pensions are adjusted periodically for 

changes in prices and wages.

Survivor grant: 10% of the deceased’s total covered earnings is paid.

Funeral grant: The grant must not be greater than five times 

the deceased’s monthly salary.

Benefit adjustment: Benefits are adjusted periodically for 

changes in prices and wages.

Administrative Organization

Ministry of Labor (http://www.mintra.gov.ve) provides 

general supervision.

Managed by a tripartite board and director general, the 

Social Insurance Institute (http://www.ivss.gov.ve) administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1940.

Current laws: 1966, 1991, and 2002.

Type of program: Social insurance system.

Coverage

Employees in the private and public sectors.

Source of Funds

Insured person: The average contribution is 1.79% of 

earnings.

The insured’s contributions also finance work injury 

benefits.

Self-employed person: Not applicable.

Employer: The average contribution is 3.46% of payroll.

The employer’s contributions also finance work injury 

benefits.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness and maternity benefits: Must be currently 

insured.

Medical benefits: Must be currently insured.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 66.6% of earnings 

and is paid after a 3-day waiting period for up to 52 weeks; 

may be extended under certain conditions. The benefit is 

reduced by 50% if the insured is hospitalized.

Maternity benefit: The benefit is equal to 66.6% of earnings 

in the last month before maternity leave and is paid for up to 

6 months.

Workers’ Medical Benefits

Free medical services are normally provided directly to 

patients by the medical facilities of the Social Security Institute for up to a maximum of 52 weeks; may be extended for 

another 52 weeks for convalescent care. Benefits include 

general and specialist care, hospitalization, laboratory 

services, medicines, dental care, maternity care, appliances, 

and transportation.

Dependents’ Medical Benefits

Free medical services are normally provided directly to 

patients by the medical facilities of the Social Security 

Institute. Benefits include general and specialist care, 
SSPTW: The Americas, 2007 ♦ 189

Venezuela

hospitalization, laboratory services, medicines, dental care, 

maternity care, appliances, and transportation.

The maximum duration of medical benefits for the dependents of pensioners is 26 weeks; survivors of pensioners are 

entitled to medical service benefits for up to 52 weeks.

Administrative Organization

Ministry of Labor (http://www.mintra.gov.ve) provides 

general supervision.

Managed by a tripartite board and director general, the 

Social Insurance Institute (http://www.ivss.gov.ve) administers the program.

Social Insurance Institute operates its own clinics and hospitals and contracts for other facilities.

Work Injury

Regulatory Framework

First law: 1923.

Current laws: 1966, 1991, and 2002.

Type of program: Social insurance system.

Coverage

Employees in the private and public sectors and members of 

cooperatives.

Source of Funds

Insured person: See source of funds under Sickness and 

Maternity, above.

Self-employed person: Not applicable.

Employer: See source of funds under Sickness and Maternity, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying 

period.

Temporary Disability Benefits

The benefit is equal to 66.6% of the insured’s earnings and 

is paid after a 3-day waiting period for up to 52 weeks; may 

be extended for an additional 52 weeks if recovery is likely.

Permanent Disability Benefits

Permanent disability pension: If the insured is assessed 

as totally disabled, the pension is equal to 66.6% of the 

insured’s earnings.

Constant-attendance supplement: Up to 50% of the pension 

is paid.

Partial disability: For an assessed degree of disability of 

between 25% and 66.6%, a percentage of the full pension 

is paid according to the assessed degree of disability. For 

an assessed degree of disability of between 6% and 24%, a 

lump sum is paid equal to 3 years’ pension.

Workers’ Medical Benefits

Benefits include free general and specialist care, hospitalization, medicines, laboratory services, appliances, and 

rehabilitation services.

Survivor Benefits

Survivor pension: An eligible widow(er) or partner 

receives 40% of the pension paid or payable to the deceased. 

Other widows or partners receive a lump sum equal to 

2 years’ survivor pension.

Eligible survivors are a widow older than age 45 or at any 

age with children; a partner older than age 45 or at any age 

with children and who cohabited with the deceased for at 

least 2 years; a widower older than age 60 or disabled; and 

children younger than age 14 (age 18 if a student, no limit if 

disabled).

Orphan’s pension: Each orphan younger than age 14 

(age 18 if a student, no limit if disabled) receives 20% of the 

deceased’s pension; the first full orphan receives 40% of the 

pension and other full orphans, 20%.

Other eligible survivors (in the absence of the above):

Brothers, sisters, and parents who were dependent on 

the deceased may receive an amount equal to 10% of the 

deceased’s total covered earnings.

Survivor settlement: 10% of the deceased’s total covered 

earnings is paid if the deceased did not satisfy the qualifying 

period for a pension but had at least 100 weeks of contributions in the last 4 years.

Funeral grant: 5,000 bolivares is paid.

Administrative Organization

Ministry of Labor (http://www.mintra.gov.ve) provides 

general supervision.

Managed by a tripartite board and director general, the 

Social Insurance Institute (http://www.ivss.gov.ve) administers the program.

Social Insurance Institute provides medical benefits through 

its own clinics and hospitals.

Unemployment

Regulatory Framework

First law: 1940.

Current laws: 1966, 1991, and 2002.

Type of program: Social insurance system.
190 ♦ SSPTW: The Americas, 2007

Venezuela

Coverage

Employees in the private and public sectors and members of 

cooperatives.

Source of Funds

Insured: 0.5% of covered earnings.

The maximum monthly earnings for contribution and benefit 

purposes are equal to five times the minimum urban wage.

The insured’s contributions also help finance health insurance for unemployed persons.

Self-employed person: Not applicable.

Employer: 1.7% of covered payroll.

The maximum monthly earnings for contribution and benefit 

purposes are equal to five times the minimum urban wage.

The employer’s contributions also help finance health insurance for unemployed persons.

Government: None.

Qualifying Conditions

Unemployment benefits: The insured must have at least 

52 weeks of contributions in the 18 months before unemployment began and be available for training or suitable 

employment.

Unemployment Benefits

The benefit is equal to 60% of the insured’s average weekly 

wage in the last 50 weeks and is paid for up to 18 weeks; 

may be extended to 26 weeks.

Unemployed persons are entitled to a transportation grant of 

200 bolivares, employment training, and guidance services.

Workers’ Medical Benefits

Unemployed insured persons and dependent family members are covered for health insurance for 26 weeks.

Administrative Organization

Ministry of Labor (http://www.mintra.gov.ve) provides 

general supervision.

Employment services administer training and guidance.

Social Insurance Institute (http://www.ivss.gov.ve) administers the program.

Family Allowances

Regulatory Framework

Marriage grant: A lump sum of 7,000 bolivares is paid with 

100 weekly contributions made in the 3 years before marriage. (The grant is provided under Old Age, Disability, and 

Survivors, above.)