Social Security Administration

Offi ce of Policy

Offi ce of Research, Evaluation, and Statistics

500 E Street, SW, 8th Floor

Washington, DC 20254

SSA Publication No. 13-11803

Released: March 2006

Social Security Programs

Throughout the World:

The Americas, 2005

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 2005, 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 or telephone 202-358-6274.

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.

Linda Drazga Maxfield

Associate Commissioner

for Research, Evaluation, and Statistics

March 2006

Contents

Guide to Reading the Country Summaries

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

Types of Programs

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

Universal ..................................................................................................................... 3

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....................................................................................................... 14

Tables

1. Types of social security programs.......................................................................... 16

2. Types of mandatory systems for retirement income ............................................... 18

3. Demographic and other statistics related to social security, 2005 .......................... 20

4. Contribution rates for social security programs, 2005 ............................................ 22

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 ........................................ 87

Costa Rica ...................................... 93

Cuba ............................................... 98

Dominica ........................................ 102

Dominican Republic ....................... 105

Ecuador .......................................... 109

El Salvador ..................................... 114

Grenada .......................................... 118

Guatemala ...................................... 122

Guyana ........................................... 125

Haiti................................................ 129

Honduras ....................................... 131

Jamaica ........................................... 135

Mexico ........................................... 139

Nicaragua....................................... 146

Panama ........................................... 150

Paraguay ........................................ 154

Peru ................................................ 158

Saint Kitts and Nevis ..................... 163

Saint Lucia ..................................... 167

Saint Vincent and the Grenadines .. 170

Trinidad and Tobago ..................... 174

United States ................................. 179

Uruguay ......................................... 185

Venezuela ....................................... 191

Country Summaries

Guide to Reading

the Country Summaries

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 2005

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 16.

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.

The terminology may therefore differ from national

concepts or usage.

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.

Sources of Information

Most of the information in this report was collated

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; and official publications, periodicals, and

selected documents received from social security

institutions. Information was also received from the

Organization for Economic Cooperation and Development, the World Bank, the International Monetary

Fund, and the United Nations Development

Programme. During the compilation process, international analysts at both SSA and the ISSA examined the

material for factual errors, ambiguous statements, and

contradictions in material from different sources.

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
2 ♦ SSPTW: The Americas, 2005

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

Countries in the Americas that Responded to the

Social Security Programs Throughout the World Survey

Antigua and Barbuda

Argentina

Barbados

Belize

Bermuda

Bolivia

Brazil

British Virgin Islands

Canada

Chile

Costa Rica

Cuba

Dominica

Dominican Republic

Grenada

Guatemala

Guyana

Haiti

Jamaica

Mexico

Nicaragua

Panama

Paraguay

Peru

Saint Kitts and Nevis

Saint Lucia

Saint Vincent and the Grenadines

Trinidad and Tobago

United States

Uruguay
SSPTW: The Americas, 2005 ♦ 3

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 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 meanstested 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
4 ♦ SSPTW: The Americas, 2005

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; 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
SSPTW: The Americas, 2005 ♦ 5

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 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 selfemployed 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 oldage 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

and 40 years. In recent years, several countries have
6 ♦ SSPTW: The Americas, 2005

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 earningsrelated pension.

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
SSPTW: The Americas, 2005 ♦ 7

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

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
8 ♦ SSPTW: The Americas, 2005

specified age or is disabled. Most widows’ benefits

also terminate on remarriage, although a final lumpsum 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

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 longterm 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
SSPTW: The Americas, 2005 ♦ 9

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 disability 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
10 ♦ SSPTW: The Americas, 2005

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 lump-sum 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.

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
SSPTW: The Americas, 2005 ♦ 11

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

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 powerdriven 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
12 ♦ SSPTW: The Americas, 2005

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 onehalf. 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.

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

one-third 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
SSPTW: The Americas, 2005 ♦ 13

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 shortterm 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, government subsidies may be quite large, amounting to as much as twothirds 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
14 ♦ SSPTW: The Americas, 2005

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 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
SSPTW: The Americas, 2005 ♦ 15

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 employment-related 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 continuation 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.
16 ♦ SSPTW: The Americas, 2005

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 XX 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 XX X X b X

Dominica X X b 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 XX 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
SSPTW: The Americas, 2005 ♦ 17

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.

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

Has no program or information is not available.

Family 

allowances

Medical benefits only.

Unemployment

Maternity benefits only.

Coverage is provided under other programs.

Table 1.

Continued

Country

Old age,

disability,

and

survivors

Sickness and maternity

Work

injury

SOURCE: Based on information in the country summaries in this volume.
18 ♦ SSPTW: The Americas, 2005

Country

FlatrateEarningsrelatedMeanstestedFlat-rate

universal

Provident

funds

Occupational 

retirement 

schemes

Individual 

retirement 

schemes

Antigua and Barbuda X X

Argentina X X X

Bahamas X X

Barbados X X

Belize X X

Bermuda X a X X

Bolivia X X

Brazil X X

British Virgin Islands X

Canada X X b

Chile X c X X d

Colombia X X d

Costa Rica X X X

Cuba X

Dominica X

Dominican Republic X c X e X

Ecuador X

El Salvador X c X d

Grenada X

Guatemala X

Guyana X

Haiti X

Honduras X

Jamaica X f X f

Mexico X c X d

Nicaragua X X

Panama X

Paraguay X

Peru X X d

Saint Kitts and Nevis X X

Saint Lucia X

Table 2.

Types of mandatory systems for retirement income

(Continued)
SSPTW: The Americas, 2005 ♦ 19

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 f X f

a.

b.

c.

d.

e.

f. The pension formula contains a flat-rate component as well as 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 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.

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 

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.

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 government provides a guaranteed minimum pension.

The means-tested pension has not been implemented.

Table 2.

Continued

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

The benefit increases with the length of the contribution period.

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 earnings-related social insurance system is closed to new entrants and is being phased out.
20 ♦ SSPTW: The Americas, 2005

Antigua and

Barbuda 0.081 4.5 48.3 68.9 73.7 60 60 c c 10,294

Argentina 38.7 10.2 58 71.6 79.1 65 60 60 55 12,106

Bahamas 0.323 6.2 53 69 75.3 65 65 60 60 17,159

Barbados 0.27 10 41 73.1 79.2 65.5 65.5 62 62 15,720

Belize 0.27 4.3 70 69.5 74.1 65 65 60 60 6,950

Bermuda 0.064 11.5 44.3 75.3 79.4 65 65 c c 36,000

Bolivia 9.1 4.5 74 63.4 67.7 65 65 c c 2,587

Brazil 186.4 6.1 51 68.2 75.7 65 d 60 d c c 7,790

British Virgin

Islands 0.022 5 36.7 75 77.1 65 65 c c 38,500

Canada 32.2 13.1 44 78.2 83.1 65 65 c c 30,677

Chile 16.2 8.1 49 75.5 81.5 65 60 c c 10,274

Colombia 45.6 5.1 57 70.3 76.3 60 55 c c 6,702

Costa Rica 4.3 5.8 52 76.5 81.2 61 59 c c 9,606

Cuba 11.2 10.8 43 76.8 80.3 60 55 c c 3,000

Dominica 0.079 7.9 55.5 71.2 77.1 60 60 c c 5,448

Dominican

Republic 8.9 4.1 58 65.4 72.3 60 60 57 57 6,823

Ecuador 13.2 5.8 62 72.1 78 55 55 c c 3,641

El Salvador 6.8 5.4 65 68.8 74.9 60 55 c c 4,781

Grenada 0.103 3.6 63.1 62.7 66.3 60 60 c c 7,959

Guatemala 12.6 4.3 91 64.9 72.1 60 60 c c 4,148

Guyana 0.75 5.2 53 62.3 68.4 60 60 c c 4,230

Haiti 8.5 4 71 52.9 54 55 55 c c 1,742

Honduras 7.2 3.9 76 67.2 71.4 65 60 c c 2,665

Jamaica 2.6 7.6 63 69.4 72.7 65 60 c c 4,104

Mexico 107 5.3 57 73.7 78.6 65 65 60 60 9,168

Nicaragua 5.4 3.3 73 68.7 73.5 60 60 c c 3,262

Panama 3.2 6 57 73 78.2 62 57 c c 6,854

Paraguay 6.1 3.7 70 69.7 74.2 60 60 55 55 4,684

Peru 27.9 5.3 60 68.7 73.9 65 65 55 50 5,260

Saint Kitts

and Nevis 0.043 8.5 60 68.7 74.5 62 62 c c 12,404

Saint Lucia 0.161 7.2 56 71.6 74.6 62 62 60 60 5,709

Table 3.

Demographic and other statistics related to social security, 2005

Men Men Men

Statutory

pensionable

age

Women

Early

pensionable

age b Total 

population 

(millions)

Percentage

65 or

older

Dependency 

ratio a Women

Life

expectancy

at birth (years)

Country Women

GDP

per

capita

(US$)

(Continued)
SSPTW: The Americas, 2005 ♦ 21

Saint Vincent

and the

Grenadines 0.119 6.5 56 69.3 74.8 60 60 c c 6,123

Trinidad and 

Tobago 1.3 7.4 41 67.7 72.5 60 60 c c 10,766

United States 298.2 12.3 49 75.2 80.6 65.5 65.5 62 62 37,562

Uruguay 3.4 13.2 60 72.7 79.8 60 60 c c 8,280

Venezuela 26.7 5.1 57 70.9 76.8 60 55 c c 4,919

a.

b.

c.

d.

Men Women

Early

pensionable

age b

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.

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

Urban workers.

NOTES: This edition of the current four-volume series uses updated demographic statistics.

GDP = gross domestic product.

Total 

population 

(millions)

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

The 2004 Revision Population Database , available at http://esa.un.org/unpp/index.asp?panel=1; Human Development 

Report 2005 , prepared for the United Nations Development Programme (New York: Oxford University Press, 2005); U.S. 

Central Intelligence Agency, The World Factbook, 2005 (Washington, DC: Central Intelligence Agency, 2005). Information 

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

Percentage

65 or

older

GDP

per

capita

Women (US$)

Life

expectancy

at birth (years)

Men Men Women

Table 3.

Continued

Country

Dependency 

ratio a

Statutory

pensionable

age
22 ♦ SSPTW: The Americas, 2005

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

Argentina 7 d 10.17 17.17 d 13 22.7 e 35.7 c

Bahamas 1.7 b 7.1 b 8.8 b 1.7 7.1 e 8.8 c

Barbados 7.43 7.43 14.86 8.18 8.18 16.36 c

Belize f f f f f f

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

Bolivia 10 d 1.71 11.71 d 10 11.71 e,h 21.71 c

Brazil 7.65 b 20 b 27.65 b 7.65 20 e 27.65 c,i

British Virgin Islands 3.25 3.25 6.5 4 4.5 8.5 c

Canada 4.95 4.95 9.9 6.9 j 8.68 e,j 15.58 c,j,k

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

Colombia 3.75 11.25 15 7.75 31.55 e 39.3 c

Costa Rica 3.5 d 6.25 9.75 d 9 20.5 e 29.5

Cuba 0 14 b 14 b 0 14 14

Dominica 3 b 6.75 b 9.75 b 3 6.75 e 9.75 c

Dominican Republic 2.28 5.72 8 4.98 12.02 e 17 c

Ecuador 9.15 b 9.15 b 18.3 b 11.15 10.15 21.3 c

El Salvador 3.25 d 6.75 10 d 6.25 14.25 20.5 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 c

Guyana 5.2 b 7.8 b 13 b 5.2 7.8 13 c

Haiti 6 6 12 6 6 e 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

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

Nicaragua 4 b 6 b 10 b 10.25 24 34.25

Panama 6.75 2.75 9.5 7.25 10.75 e 18

Paraguay 9 b 14 b 23 b 9 14 23 c

Peru 8 d 0 8 d 8 9 e 17 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

Country Employer

Insured

person

Table 4.

Contribution rates for social security programs, 2005 (in percent)

All social security programs a

Employer Total

Insured

person

Old age, disability, and survivors

Total

(Continued)
SSPTW: The Americas, 2005 ♦ 23

Saint Vincent and

the Grenadines 2.5 b 3.5 b 6 b 2.5 4 6.5 c

Trinidad and Tobago 2.8 5.6 8.4 3.3 6.6 9.9 c,k

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

Uruguay 15 d 12.5 d 27.5 d 18 17.5 e 35.5 c,i,k

Venezuela 1.93 4.82 6.75 4.22 9.98 14.2 c

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

l.

m.

Contribution rates may be higher in some provinces.

Government pays the cost of Family Allowances.

Plus flat-rate contributions for medical benefits.

Contribution rates may be higher or lower in some states.

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, or the country has a dual system with different contribution 

rates, either the average or the lowest rate in the range is used.

Also includes the contribution rates for other programs.

Total

Table 4.

Continued

Employer Total

Employers pay the total cost of Work Injury.

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

Plus flat-rate social insurance contributions.

Country

Old age, disability, and survivors

Contributions are subject to an upper earnings limit for some benefits.

Insured

person Employer

Employers pay the cost of Family Allowances.

Government pays the cost of Unemployment Benefits.

All social security programs a

Insured

person

The contribution rate is for old-age benefits only. Additional contributions are required for survivor and disability

Country

Summaries

SSPTW: The Americas, 2005 ♦ 27

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), 1977 (disability), and 1993 (social assistance).

Type of program: Social insurance and social assistance

system.

Coverage

Social insurance: Employees and self-employed persons

aged 16 to 59.

There is no voluntary insurance.

Exclusions: A married woman working for her husband,

certain family members working for a family business, and

casual workers with weekly earnings less than EC$7.50;

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 monthly earnings (private sector)

or 2% of 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 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 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 156 weeks of contributions starting before 1975.

Early pension: There is no early pension.

Deferred pension: There is no deferred pension.

Old-age settlement: Age 60 or older and does not meet 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: Age 77 or older; age 60 if blind or

disabled.

Disability pension: Younger than age 60 with 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: Younger than age 60 and does not

meet the qualifying conditions for the disability pension,

but has at least 52 weeks of contributions.

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

and a Social Security Board doctor.

Disability benefits are payable abroad.

Survivor pension: Payable 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: Payable if the deceased was eligible

for or was receiving an old-age grant or a disability grant.

Eligible survivors are a widow or a dependent disabled

widower 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

Antigua and Barbuda
28 ♦ SSPTW: The Americas, 2005

receiving sickness benefits, maternity benefits, an old-age

pension, or a disability pension.

Old-Age Benefits

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

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

period of contributions above 500 contributions, up to a

maximum of 50%.

Average earnings are based on earnings in the best-paid

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: The full pension is reduced in proportion to

the number of weeks of contributions.

Transitional pension: 25% of average earnings in the bestpaid 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.

Permanent Disability Benefits

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

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

period of contributions above 500 contributions, up to a

maximum of 50%.

Average earnings are based on earnings in the best-paid

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: 50% of the pension paid or payable to

the deceased is payable to a widow aged 50 or older or a

dependent disabled widower. 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.

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

a full orphan) is payable to an orphan younger than age 16

(age 18 if a student).

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 payable to the person who paid

for the funeral.

Administrative Organization

Ministry of Finance provides general supervision.

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.

There is no voluntary insurance.

Exclusions: A married woman working for her husband,

certain family members working for a family business, and

casual workers with weekly earnings less than EC$7.50;

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.

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: Must be insured for at least

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

Antigua and Barbuda
SSPTW: The Americas, 2005 ♦ 29

immediately before the onset of incapacity and was employed the day before the onset of incapacity. The incapacity is not the result of an occupational injury.

Cash maternity benefits: Must have 26 weeks of contributions in the year before the expected date of childbirth.

Maternity grant: The grant is payable 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 payable after a 3-

day waiting period. The benefit is payable for up to

26 weeks; may be extended for an additional 13 weeks.

Average insurable weekly earnings are based on earnings in

the 3 calendar months before the onset of incapacity.

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

insured’s average weekly earnings and is payable 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 insurable 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.

Workers’ Medical Benefits

No statutory benefits are provided.

Medical services are provided by the Ministry of Health

directly through public health facilities. Necessary medical

treatment is permitted abroad, up to a maximum of EC$2,000.

Dependents’ Medical Benefits

No statutory benefits are provided.

Medical services are provided by the Ministry of Health

directly through public health facilities. Necessary medical

treatment is permitted abroad, up to a maximum of EC$2,000.

Administrative Organization

Ministry of Finance provides general supervision.

Social Security Board (http://www.socialsecurity.gov.ag)

administers the program.

Antigua and Barbuda
30 ♦ SSPTW: The Americas, 2005

Argentina

Exchange rate: US$1.00 equals 2.88 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; 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 1994, the insured, including new

entrants, can opt to direct part of the contribution to an

individual account or to remain only in the social insurance

system.

Coverage

Social insurance and individual account: Employed and

self-employed persons; occasional workers with declared

earnings of 12,000 pesos or less in the previous year.

Voluntary coverage for some clergy, domestic workers, and

persons insured under professional provincial systems.

Exclusions: Armed forces, security forces, and police force

personnel; technical workers hired abroad who work in the

country for less than 2 years and are insured in another

country; and persons younger than age 18.

Special systems for civil servants of some provinces and

municipalities; armed forces, security forces, and police

force personnel; and certain other groups.

Social assistance: The needy elderly and disabled.

Source of Funds

Insured person: 11% of gross earnings if opting for social

insurance only; 7% of earnings, including an average 1.27%

of gross earnings for disability and survivor insurance and

an average 1.25% of gross earnings for administrative fees,

if opting into the individual account system.

Voluntary contributions are the same as those for the

insured person.

The minimum monthly earnings for contribution purposes

are equal to three MOPREs.

The maximum monthly earnings for contribution 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.

Contributions are paid monthly.

Self-employed person: 27% of earnings, according to a

fixed earnings reference scale. (Self-employed persons who

opt for the individual account also contribute an average

1.27% of earnings for disability and survivor insurance and

an average 1.25% of earnings for administrative fees.)

Occasional workers contribute 5% of each declared invoice.

Small contributors contribute a monthly lump sum between

92.44 pesos and 564.44 pesos (according to annual declared

earnings). The contribution includes value-added taxes and

income taxes, as well as the contributions for old-age,

disability, and survivor benefits and sickness benefits.

(Small contributors are 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 members.)

Contributions are paid monthly.

Employer: 10.17% or 12.71% of payroll, according to the

type of enterprise. (Additional contributions are made on

behalf of workers in hazardous or unhealthy occupations.)

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 2005.

There are no maximum monthly earnings for contribution

purposes after October 2005.

Employers of domestic workers contribute a monthly lump

sum of 20, 39, or 55 pesos (according to hours worked).

Contributions are paid monthly.

Government: Contributes through general revenue,

investment income, and certain earmarked taxes to 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 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 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

Argentina
SSPTW: The Americas, 2005 ♦ 31

and service, up to a maximum of 45 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 45 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 November 30, 2004. Persons

receiving the early pension must cease all gainful activity.

(No new claims for an early pension will be awarded as of

February 2007; thereafter, an existing claim 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): Payable only if the

individual account balance is sufficient to finance a

minimum monthly benefit specified by law.

Noncontributory old-age pension (social assistance):

Indigent residents aged 70 or older.

Disability pension

Disability pension (social insurance and individual

account): Payable 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

requirement for the old-age pension (basic universal) or

have paid 30 months of contributions in the last 36 months

before the onset of disability.

Nonregular contributors must meet 50% of the minimum

contribution requirement for the old-age pension (basic

universal) or have paid 12 months of contributions in the

60 months before the onset of disability or have paid

18 months of contributions in the 36 months before the

onset of disability.

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 loss of at least 66% of earning

capacity and 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.

Noncontributory disability pension (social assistance):

Indigent disabled residents.

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 meet the minimum contribution

requirement for the old-age pension (basic universal) or

have paid 30 months of contributions in the last 36 months

before the onset of disability.

Nonregular contributors must meet 50% of the minimum

contribution requirement for the old-age pension (basic

universal) or have paid 12 months of contributions in the

60 months before the onset of disability or have paid

18 months of contributions in the 36 months before the

onset of disability.

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 2005.

Compensatory pension (social insurance): The monthly

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

monthly salary in the last 10 years (weighted average

adjusted amounts for all periods if self-employed) with

contributions paid before July 1994, up to a maximum of

35 years.

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 2005.

Argentina
32 ♦ SSPTW: The Americas, 2005

Additional pension (social insurance): The monthly

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

monthly salary in the last 10 years (weighted average

adjusted amounts for all periods if self-employed) with

contributions paid after July 1994, up to a maximum of

35 years.

The maximum additional pension is 1,428 pesos a month.

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 390 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 pension is 390 pesos.

The combined minimum monthly advanced-age pension (the

sum of all contributory pensions) is 390 pesos.

The maximum monthly advanced-age pension (the sum of

the basic universal and social insurance pensions) is

3,100 pesos.

Schedule of payments: Pensions are payable monthly, with

a 13th payment equal to the regular monthly payment

divided in half and paid in June and December.

Pensions are payable abroad under bilateral or multilateral

agreement.

Benefit adjustment: Pensions are adjusted annually by

government, according to changes made to the MOPRE.

Old-age pension (individual account): The pension

depends on the value of the insured’s contributions plus

accrued interest. The pension is payable as a life pension

annuity, as programmed withdrawals, or as partial withdrawals.

The combined minimum old-age pension of 390 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, whichever is greater.

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.

Pensions are payable abroad under bilateral or multilateral

agreement.

Noncontributory old-age pension (social assistance): The

monthly pension is equal to 273 pesos (70% of the minimum

pension of 390 pesos). Additional benefits may be paid for

dependents under Family Allowances, below.

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.

Social assistance pensions are not payable abroad.

Benefit adjustment: Pensions are adjusted annually by

government, according to changes made to the MOPRE.

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) during the 5 years

before the onset of disability. (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 pension payable to insured persons who opted for the

individual account is subject to review after 3 years.

The minimum monthly disability pension is 390 pesos.

The maximum monthly disability pension is 3,100 pesos.

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.

The pension is payable abroad under bilateral or multilateral

agreement.

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

390 pesos.

The maximum monthly advanced-age disability pension is

3,100 pesos.

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.

The pension is payable abroad under bilateral or multilateral

agreement.

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 273 pesos (70% of the

Argentina
SSPTW: The Americas, 2005 ♦ 33

minimum pension of 390 pesos). Additional benefits may be

paid for dependents under Family Allowances, below.

The noncontributory disability pension is not payable

abroad.

Benefit adjustment: Pensions are adjusted annually by

government, according to changes made to the MOPRE.

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.)

In certain cases, both the deceased’s widow(er) and a

partner may be entitled to survivor benefits. A widow(er) or

partner without dependents receives 35% of the reference

payment or, if the deceased was a pensioner, the pension; a

widow(er) or partner with children receives 25%.

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 payable may be recalculated if the number of

eligible survivors changes.

The minimum monthly survivor pension is 390 pesos.

The maximum monthly survivor pension is 3,100 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. (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 maximum total survivor pension is equal to 100% of the

reference payment or 100% of the deceased’s 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 payable may be recalculated if the number of

eligible survivors changes.

Schedule of payments: Survivor pensions are paid monthly,

with a 13th payment equal to the regular monthly payment

divided in half and paid in June and December.

Survivor pensions are payable abroad under bilateral or

multilateral agreement.

Benefit adjustment: Pensions are adjusted annually by

government, according to changes made to the MOPRE.

Funeral grant (social insurance and individual account): A

lump sum of 450 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 program.

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

Retirement and Pension Fund Administrators (AFJPs)

administer the pension funds and benefits.

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: Domestic workers and the self-employed.

Medical benefits: Employed persons, small contributors,

the unemployed, and pensioners.

Voluntary coverage for other persons and domestic workers.

Exclusions: Military police, provincial and municipal publicsector employees, and beneficiaries of noncontributory or

social assistance benefits.

Source of Funds

Cash sickness benefits: No statutory benefits are

provided.

Argentina
34 ♦ SSPTW: The Americas, 2005

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 gross earnings, plus 1.5% of gross

earnings for each covered 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 60 MOPREs.

The MOPRE is an indexed figure determined once a year.

The value of the MOPRE is 80 pesos in 2005.

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 payroll

(including 1.5% or 1.62% of 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 2005.

There are no maximum monthly earnings for contribution

purposes after October 2005.

Government: Provides subsidies for persons who would

not otherwise qualify and provides tax incentives for selfemployed persons.

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: 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: 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.

Sickness and Maternity Benefits

Sickness benefit: No statutory benefits are provided.

(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 suffers from 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 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 the child until age 1;

and in cases of 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 the child up to age 1; in case of hospitalization; and for the treatment of tumors.

Dependents’ Medical Benefits

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.

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.

Argentina
SSPTW: The Americas, 2005 ♦ 35

Pharmaceutical products are free during pregnancy,

childbirth, and for postnatal care; for the child until age 1;

and in cases of 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 the child up to age 1; in cases of hospitalization; and for the treatment of tumors.

Administrative Organization

Ministry of Health and Environment (http://www.minsal

.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 taken with a work injury insurer (ART).

Coverage

Employed persons in the private and public sectors

(including provinces and municipalities).

There is no voluntary coverage.

Exclusions: Domestic workers, the self-employed, and

firemen.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: Total cost, met through a work injury insurer

(ART) or through self-insurance.

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 the insured’s average

earnings in the 12 months before the onset of disability and

is payable from the day after the onset of disability. The

employer pays the benefit for the first 10 days, with the

remaining period covered by the ART. The benefit is

payable 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 2005.

The disability is presumed to be permanent if it continues

beyond a year.

A medical commission assesses the degree of disability.

Permanent Disability Benefits

For an assessed degree of loss of earning capacity of 66%

or more, the benefit is equal to 70% of the insured’s average

earnings in the 12 months before the onset of disability,

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 2005.

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 salary (regular contributor) or 50% of average

salary (nonregular contributor) during the 5 years before the

onset of disability—is paid, plus an annuity based on

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

before the onset of disability multiplied by a coefficient

resulting from dividing 65 by the age of the worker at the

date of the onset of disability. The amount must not exceed

180,000 pesos, plus a lump-sum benefit of 40,000 pesos.

Constant-attendance allowance: For a severe permanent

total disability, an additional monthly benefit equal to three

MOPREs is paid by the ART for the assistance of another

person.

Argentina
36 ♦ SSPTW: The Americas, 2005

Permanent partial disability benefit: For an assessed degree

of loss of earning capacity lower than 66%, the benefit is

70% of the insured’s average earnings in the 12 months

before the onset of disability multiplied by the assessed

degree of loss of earning capacity, 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 2005.

A preliminary partial permanent benefit is paid for

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

about the final degree of loss of earning capacity.

When the partial disability is assessed as permanent with

an assessed degree of loss of earning capacity from 50% to

66%, the benefit is equal to the insured’s average earnings

in the 12 months before the onset of disability (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 degree of loss of earning capacity lower than

50%, a lump-sum benefit is paid equal to 53 times the

insured’s average earnings in the 12 months before the

onset of disability multiplied by the assessed degree of loss

of earnings capacity and a coefficient resulting from

dividing 65 by the age of the worker at the date of the onset

of disability. 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: Pensions 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: A widow(er) or partner without dependents receives 70% of the reference payment; a widow(er)

or partner with children receives 50%.

In certain cases, both the deceased’s widow(er) and a

partner may be entitled to survivor benefits. A widow(er) or

partner without dependents receives 35% of the reference

payment; a widow(er) or partner with children receives 25%.

The reference payment is equal to 70% of average salary

(regular contributor) or 50% of average salary (nonregular

contributor) in the 5 years before the insured’s death.

Nonregular contributors must fulfill 50% of the minimum

contribution requirement for the old-age pension (basic

universal) or have paid 12 months of contributions in the

60 months before the date of the onset of disability or have

paid 18 months of contributions in the 36 months before the

onset of disability.

The amount payable may be recalculated if the number of

eligible survivors changes.

The minimum monthly survivor pension is 390 pesos.

The maximum monthly survivor pension is 3,100 pesos.

Schedule of payments: The survivor pension is paid

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

payment divided in half and paid in June and December.

Pensions are payable abroad under bilateral or multilateral

agreement.

Benefit adjustment: Pensions are adjusted annually by the

government, according to changes made to the MOPRE.

Orphan’s pension: Each eligible child younger than age 21

(age 25 if a student, no limit if disabled) 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.

The maximum total survivor pension is equal to 100% of the

reference payment.

The amount payable may be recalculated if the number of

eligible survivors changes.

Benefit adjustment: Pensions are adjusted annually by the

government, according to changes made to the MOPRE.

Survivors also receive an annuity based on 53 times the

insured’s average earnings in the 12 months before the

onset of disability multiplied by a coefficient resulting from

dividing 65 by the age of the worker at the date of the onset

of disability. 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.

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

In order of priority, parents or relatives who were dependent

on the deceased receive the full pension.

Benefit adjustment: Pensions 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.

Argentina
SSPTW: The Americas, 2005 ♦ 37

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: The self-employed, domestic workers, publicsector employees, and teachers in private institutions.

Special systems for agricultural and construction workers.

Source of Funds

Insured person: None.

Self-employed person: None.

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

enterprise type.

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 2005.

There are no maximum monthly earnings for contribution

purposes after October 2005.

Government: Any deficit.

Qualifying Conditions

Unemployment benefits: Twelve months of contributions

before the date of unemployment; 12 months of contributions in the 3 years before or 90 days in the 12 months

before the date of unemployment for temporary workers;

90 days of contributions in the 12 months before the date of

unemployment for occasional workers.

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 41.5% of the insured’s best

wage in the 6 months before the date of 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 benefit is equal to 100% of the calculated amount for

the first 4 months; thereafter, the benefit declines to 85% of

the calculated amount for the fifth to the eighth month and

to 75% for the ninth to the twelfth month.

The minimum monthly unemployment benefit is 150 pesos.

The maximum monthly unemployment benefit is 300 pesos.

Extended unemployment benefit: The benefit is equal to

70% of the first monthly unemployment benefit paid.

Single-payment benefit: Payable 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 work injury and unemployment programs.

Social assistance: Beneficiaries of the social insurance,

individual account, or social assistance programs.

Exclusions: Self-employed persons and domestic workers.

Argentina
38 ♦ SSPTW: The Americas, 2005

Source of Funds

Insured person: None.

Self-employed person: None.

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

enterprise type. 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 2005.

There are no maximum monthly earnings for contribution

purposes after October 2005.

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 3,000 pesos (lower

than 3,100 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

every 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 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. 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 the country.

Family Allowance Benefits

Family allowances

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

allowance is between 30 pesos and 129 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 120 pesos and 480 pesos, depending on

the region.

Prenatal allowance (means-tested): The monthly allowance is between 30 pesos and 129 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 200 pesos.

Adoption grant (means-tested): A lump sum of 1,200 pesos.

Marriage grant (means-tested): A lump sum of 300 pesos.

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

between 15 pesos and 30 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.

Argentina
SSPTW: The Americas, 2005 ♦ 39

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 who do not qualify under

the National Insurance Act.

Source of Funds

Social insurance

Insured person: 1.7% of earnings, if weekly insurable

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 above 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 earnings if also covered for

work injury benefits; 6.8% or earnings if not covered for

work injury benefits.

The maximum annual earnings for contribution and benefit

purposes are B$20,800.

The above contributions also finance cash sickness,

maternity, and work injury benefits (except for certain

categories of self-employed persons).

Employer: 7.1% of payroll for weekly insurable 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 above contributions also finance cash sickness,

maternity, and work injury benefits.

Government: None.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: Total cost of all income-tested allowances in

force before October 1974.

Qualifying Conditions

Social insurance

Retirement pension: Age 65 with 150 weeks of paid

contributions. Employees who were older than age 35 in

1974 (self-employed 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: Younger than age 65 and permanently

incapable of any work. Employees who were older than

age 35 in 1974 (self-employed 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.

Survivor pension: The deceased was a pensioner or had

made 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 payable

to a dependent disabled widower with weekly income less

than B$46.15 and a dependent child younger than age 16

(age 21 if a student).

Funeral grant: Payable 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): For

resident retired workers aged 65 or older who do not qualify

under the National Insurance Act.

Bahamas
40 ♦ SSPTW: The Americas, 2005

Disability assistance (income-tested): For residents who

are assessed as disabled and who do not qualify under the

National Insurance Act.

Survivor assistance (income-tested): Payable if the

deceased did not qualify 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.

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.

Survivor Benefits

Social insurance

Survivor pension: 50% of the deceased’s pension is

payable 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 payable 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 awarded 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 payable to the

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

than B$1,500, the remaining balance is payable 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.

Bahamas
SSPTW: The Americas, 2005 ♦ 41

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: Must have 40 weeks of paid

contributions with 26 weeks paid or credited contributions

in the year immediately before the onset of incapacity, or in

the last contribution year, or 13 weeks paid or credited

contributions in the 26 weeks immediately before the onset

of incapacity.

Cash maternity benefits: Must have 50 weeks of contributions since entry into the system with 26 weeks of paid or

credited contributions in the last contribution year, or

26 weeks of contributions in the 40 weeks before benefit is

due.

Maternity grant: Must have at least 50 paid contributions.

Funeral benefit: Payable 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 insurable earnings and is payable 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

payable 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 insurable earnings. The benefit is payable 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 for each live birth.

Funeral benefit: A lump sum of B$1,500.

Workers’ 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

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 the selfemployed.

Exclusions: Family labor and certain categories of the selfemployed.

Source of Funds

Insured person: None.

Self-employed person: Certain categories of the selfemployed contribute 2% of the total 8.8% contribution made

under Old Age, Disability, and Survivors, above.

Employer: Total cost for employees. (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 payable

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: The pension is equal to

66.6% of average weekly covered earnings, if the assessed

degree of permanent disability is 100%.

The minimum benefit is B$53.07 a week for total disability.

Bahamas
42 ♦ SSPTW: The Americas, 2005

Partial disability: The pension is proportionately reduced

for an assessed degree of disability of 25% or more.

The minimum benefit for a partial disability is B$36.92 a

week.

Lump-sum grant: A lump sum of between B$100 and

B$2,400 is also payable, 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

insured’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

insured’s temporary disability pension, up to a family

maximum of 100%.

Industrial death benefit: A lump sum equal to the monthly

value of the survivor pension or orphan’s pension.

Industrial funeral benefit: A lump sum of B$1,500.

Administrative Organization

Ministry of Housing and National Insurance provides

general supervision.

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

administers the program.

Bahamas
SSPTW: The Americas, 2005 ♦ 43

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 the self-employed aged 16 to 64.

Exclusions: Unpaid family labor.

Social assistance: Residents aged 65 or older; aged 18 or

older and incapable of work because of defective eyesight

or serious hearing and speech problems.

Source of Funds

Social insurance

Insured person: 7.43% to 8.25% of 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$736 a week for employees paid weekly or

B$3,190 a month for employees paid monthly.

The insured’s contributions also finance sickness and

maternity benefits and work injury benefits.

Self-employed person: 14.5% 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: 7.43% to 9% of 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$736 a week for employees paid weekly or

B$3,190 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: Total cost.

Qualifying Conditions

Social insurance

Old-age pension: Age 65.5 with 500 weeks of contributions, including at least 150 weeks of paid contributions.

Early pension: Age 62 and no longer employed or selfemployed.

Deferred pension: The pension may be deferred until

age 70.

Old-age grant: Age 65.5 with at least 50 but not more than

499 contributions.

Old-age benefits are payable abroad.

Disability pension: Younger than age 65, 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, 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, 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

certified as blind or having severe hearing and speech

problems, and earns less than B$36 a week.

Old-Age Benefits

Social insurance

Old-age pension: The pension is equal to 40% of average

insurable earnings, plus 1% of earnings for each 50-week

period of contributions exceeding 500 weeks.

Barbados
44 ♦ SSPTW: The Americas, 2005

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$736 a week for employees paid weekly or B$3,190 a month

for employees paid monthly.

The minimum weekly pension is B$110.

The maximum pension is equal to 60% of average insurable

earnings.

Benefit adjustment: Benefits are adjusted annually according to changes in the cost of living.

Old-age grant: A lump sum equal to 6 weeks’ earnings for

each 50-week period of contributions.

Social assistance

Noncontributory old-age pension: The minimum weekly

pension is B$90.

Benefit adjustment: Benefits are adjusted annually according to changes in the cost of living.

Permanent Disability Benefits

Social insurance

Disability pension: The pension is equal to 40% of average

annual insurable earnings, plus 1% of earnings for each 50-

week period of contributions exceeding 500 weeks.

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$736 a week for employees paid weekly or B$3,190 a month

for employees paid monthly.

The minimum weekly pension is B$110.

Benefit adjustment: Benefits are adjusted annually according to changes in the cost of living.

Disability grant: A lump sum equal to 6 weeks’ average

insurable earnings for each 50-week period of paid or

credited contributions.

Social assistance

Noncontributory disability pension (income-tested): The

minimum weekly pension is B$90.

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. A limited pension is paid for 12 months to a

widow(er) younger than age 50. The pension is paid to a

disabled widow(er) younger than age 50 for the duration of

the disability.

Orphan’s pension: Each child younger than age 16 (age 21

if 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$1,400 is payable to the person who pays

for the funeral of the insured or of the insured’s spouse.

Benefit adjustment: Benefits are adjusted annually according to changes in the cost of living.

Administrative Organization

Ministry of Labor 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 the

self-employed aged 16 to 64.

Exclusions: Unpaid family labor. Permanent government

employees are not covered for cash sickness benefits.

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: Must have 13 weeks of insurance coverage, including 7 weeks of paid contributions in

the last quarter but one before the quarter in which the

onset of incapacity began, and be employed immediately

before the onset of incapacity; at least 39 paid or credited

contributions in the four consecutive quarters ending with

the last quarter but one before the quarter of the onset of

incapacity.

Barbados
SSPTW: The Americas, 2005 ♦ 45

Cash maternity benefits: Employed women must have

26 weeks of insurance 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: Payable for a woman who is not insured

or who fails to meet the coverage requirements for cash

maternity benefits but whose spouse does meet the

requirements.

Funeral grant: Payable for the death of an insured person

who was receiving, or was entitled to receive, sickness

benefits or maternity benefits.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 66.6% of average

insurable weekly earnings and is payable 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 of onset. The waiting period is waived if the

illness lasts 21 or more days.

Maternity benefit: The benefit is equal to 100% of average

insurable weekly earnings and is payable for up to 6 weeks

before and 6 weeks after the expected date of childbirth.

Funeral grant: B$1,400 is payable to the person who pays

for the cost of the funeral.

Maternity grant: A lump sum of B$800.

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 Labor 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 64.

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 insurable earnings

and is payable after a 3-day waiting period for up to

52 weeks. The waiting period is waived if the disability lasts

for 21 or more days.

Permanent Disability Benefits

Permanent disability pension: For a total disability, 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.

Barbados
46 ♦ SSPTW: The Americas, 2005

Survivor Benefits

Survivor pension: 50% of the deceased’s temporary

disability benefit is payable to a dependent spouse.

The pension ceases on remarriage or cohabitation.

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.

The maximum survivor pension is 100% of the deceased’s

temporary disability benefit.

Funeral grant: B$1,400 is payable to the person who pays

for the insured’s funeral.

Administrative Organization

Ministry of Labor 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 64.

Exclusions: Self-employed persons, family labor, and

permanent government employees.

Source of Funds

Insured person: 0.75% of 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$736 a week for employees paid weekly or

B$3,190 a month for employees paid monthly.

Self-employed person: Not applicable.

Employer: 0.75% of 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$736 a week for employees paid weekly or

B$3,190 a month for employees paid monthly.

Government: None; contributes as an employer.

Qualifying Conditions

Unemployment benefit: Must be younger than age 65

with 52 weeks of insurance coverage; at least 20 weeks of

paid or credited contributions in the three consecutive

quarters ending with the last quarter but one before the

onset of unemployment; at least 7 weeks of paid or credited

contributions in the last quarter but one before the onset of

unemployment.

Unemployment Benefits

The benefit is equal to 60% of the insured’s average

insurable weekly earnings. The benefit is payable 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 or more days.

Administrative Organization

Ministry of Labor is responsible for policy.

Directed by a tripartite board, the National Insurance Office

(http://www.nis.gov.bb) administers the program.

Barbados
SSPTW: The Americas, 2005 ♦ 47

Belize

Exchange rate: US$1.00 equals

2.20 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 and survivor benefits for

workers younger than age 65 who become self-employed

and who have paid at least 150 contributions as an employee.

Social assistance: Women aged 65 or older 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 under 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 over.

The insured’s contributions also finance sickness and

maternity benefits and work injury benefits.

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 under 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 over.

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

Insured person: None.

Self-employed person: None.

Employer: None.

Government: Total cost of the noncontributory old-age

pension.

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: 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 of the onset of

disability, 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.

Disability grant: Paid to an insured person younger than

age 60 who has at least 26 weeks of paid contributions but

Belize
48 ♦ SSPTW: The Americas, 2005

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 full-time

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 full-time

student); and, in the absence of other survivors, parents

aged 55 or older.

Funeral grant: The deceased insured 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 insurable earnings, plus 2% of

earnings for each 50-week period of contributions beyond

500 weeks up to 750 weeks, plus 1% of earnings for every

50-week period of contributions over 750 weeks.

Average weekly insurable 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

insurable earnings, up to a weekly maximum of B$192.

Retirement grant: The grant is equal to six times the sum

of average weekly insurable earnings in the best 3 years of

earnings, divided by 150, and multiplied by the number of

50-week contribution periods; or twice the sum of weekly

insurable 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$75 a month.

Permanent Disability Benefits

Disability pension: With at least 500 weeks of contributions, the pension is equal to 30% of the insured’s average

weekly insurable earnings. With less than 500 weeks of

contributions, the pension is equal to 25% of average

weekly insurable earnings.

Average weekly insurable 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

insurable earnings.

Disability grant: The grant is equal to six times the sum of

average weekly insurable earnings in the best 3 years of

earnings, divided by 150, and multiplied by the number of

50-week contribution periods; or twice the sum of weekly

insurable 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: 66.6% of the old-age or disability

pension paid or payable to the deceased is payable to an

eligible widow(er).

Orphan’s pension: 25% of the old-age or disability

pension paid or payable to the deceased is payable 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 payable 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.

The total maximum survivor pension is 100% of the pension

paid or payable to the deceased. If the maximum pension

exceeds the limit, each pension is reduced accordingly.

Survivor grant: The grant is equal to six times the sum of

average weekly insurable earnings in the best 3 years of

earnings, divided by 150, and multiplied by the number of

50-week contribution periods; or twice the sum of weekly

insurable 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.

Belize
SSPTW: The Americas, 2005 ♦ 49

Funeral grant: B$1,500 is payable 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.

Administrative Organization

Ministry of Finance, National Development, and the Public

Service 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: Currently employed with

50 weeks of contributions, including 5 of the 13 weeks

before the onset of incapacity.

Cash maternity benefits: Must have 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: Must have 50 weeks of contributions,

including 25 weeks of the 50 weeks before the expected date

of childbirth. The grant is payable 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 insurable earnings and is payable for up to

a maximum of 26 weeks; thereafter, the benefit may be

payable for a further 13 weeks at 60% of average weekly

insurable earnings. After 39 weeks, a disability pension may

be payable.

Maternity benefit: The benefit is equal to 80% of average

weekly insurable earnings and is payable 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 every 2 weeks.

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, National Development, and the Public

Service 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.

Belize
50 ♦ SSPTW: The Americas, 2005

Government: Covers any deficit; contributes as an

employer.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying

period and no contribution requirement.

Temporary Disability Benefits

The weekly benefit is equal to 80% of average weekly

insurable earnings in the 4 weeks before the onset of

disability and is payable from the first day of incapacity for

up to 182 days; thereafter, the benefit may be extended and

paid at 60% of average weekly insurable earnings.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to

60% of average weekly insurable earnings in the 4 weeks

before the onset of the disability 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 disability is assessed at 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. The grant is equal to

average insurable earnings in the 4 weeks before the onset

of disability 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 payable 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.

The total maximum pension for all survivors is 60% of the

deceased’s average insurable earnings in the 4 weeks before

the employment injury resulting in the insured’s death. If

the maximum pension exceeds the limit, each pension is

reduced accordingly.

Funeral grant: B$1,500 is payable for the death of the

insured.

Administrative Organization

Ministry of Finance, National Development, and the Public

Service provides general supervision.

Social Security Board (http://www.socialsecurity.org.bz)

administers the program.

Belize
SSPTW: The Americas, 2005 ♦ 51

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 insurance 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

Bermudian residents.

Source of Funds

Social insurance

Insured person: B$24.19 a week; if older than age 65, none.

Self-employed person: B$48.38 a week; if older than age 65,

B$24.19 a week.

Employer: B$24.19 a week for employees of any age.

Government: None; contributes as an employer.

Mandatory occupational pension

Insured person: 5% of earnings.

The maximum annual earnings for contribution purposes are

B$200,000.

Self-employed person: 10% of declared earnings.

The maximum mandatory contribution on declared earnings

is B$5,000 a year. Additional voluntary contributions are

possible.

Employer: 5% of 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: Total cost.

Qualifying Conditions

Social insurance

Old-age pension: Age 65 with 484 weeks of contributions,

including 50 weeks of contributions for each year of

insurance. Retirement is not necessary.

Partial pension: A reduced pension is paid with between

25 and 49 weeks of contributions for each year of insurance.

The old-age pension is payable abroad.

Old-age settlement: The insured does not meet the

qualifying conditions for a pension.

Disability pension: Aged 18 to 64, employed immediately

before the onset of disability, and unable to work during a

full year. The insured must have 150 weeks of contributions

with 50 weeks of contributions for each year of insurance.

Partial pension: A reduced pension is paid with between 25

and 49 weeks of contributions for each year of insurance.

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 insurance.

Eligible survivors are the widow(er) and orphans.

The survivor pension is payable abroad.

Survivor settlement: The deceased did not meet the

qualifying conditions for a pension.

Eligible survivors are the widow(er) and orphans.

Mandatory occupational pension

Old-age pension: The normal retirement age is 65.

Disability pension: Assessed as incapable of work as the

result of a physical or mental condition.

Bermuda
52 ♦ SSPTW: The Americas, 2005

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 the

20 years immediately before the application and does not

meet the qualifying conditions for the old-age pension.

Noncontributory disability pension: Aged 18 to 64 with

10 years of residency immediately before the application

and 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$177.10 a week (B$767.43 a month), plus

B$1.04 for every 26-week period of contributions over

484 weeks.

Partial pension: The minimum monthly partial pension is

B$419.80 if the yearly average number of weeks of contributions is between 25 and 29; B$522.70 with 30 to 34 weeks;

B$631.91 with 35 to 39 weeks, B$747.44 with 40 to 44 weeks;

or B$869.28 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: B$352.21 a month.

If annual income is less than B$4,000, the minimum monthly

pension is B$362.44.

Permanent Disability Benefits

Social insurance

Disability pension: B$511.55 a month.

Partial pension: If the number of average annual weeks of

contributions is at least 25 but less than 50, the pension is

reduced in proportion 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 scheme.

Social assistance

Noncontributory disability pension: B$352.21 a month.

Survivor Benefits

Social insurance

Survivor pension: B$767.43 a month.

Partial pension: B$383.72 a month if the deceased’s yearly

average number of weeks of contributions was between 25

and 29; B$460.46 for 30 to 34 weeks; B$537.20 for 35 to

39 weeks; B$613.94 for 40 to 44 weeks; or B$690.96 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: B$76.57 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 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 supervises and regulates the program.

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

Bermuda
SSPTW: The Americas, 2005 ♦ 53

(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.

Employers are liable for carrying insurance for employees

and employees’ nonemployed spouses.

Source of Funds

Insured person: B$72.45 a month each for an employee

and his or her nonemployed spouse. (Other insured

persons contribute B$144.90 a month.)

Self-employed person: B$144.90 a month on an individual

or voluntary basis.

Employer: B$72.45 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: Total cost, 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.

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

Bermuda
54 ♦ SSPTW: The Americas, 2005

paid must not exceed the permanent disability benefit for

which the insured would be eligible.

Permanent Disability Benefits

If totally disabled, the total 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

according to the 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 equal to 3 years’ earnings or

B$42,000 (whichever is less), minus any permanent disability benefit payments.

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

provided 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.

Bermuda
SSPTW: The Americas, 2005 ♦ 55

Bolivia

Exchange rate: US$1.00 equals

8.07 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. Until September 2005, only active members who

were already eligible for a social insurance pension in 1997

were able to retire under the old system.

Coverage

Mandatory individual account: Salaried workers, including armed forces personnel, and apprentices.

Voluntary coverage for the self-employed.

Universal pension (Bonosol): All resident citizens who

were born before January 1, 1974.

Source of Funds

Mandatory individual account

Insured person: 10% of gross earnings for old-age benefits,

plus a fixed 1.71% of gross earnings for disability and

survivor insurance and a fixed 0.5% of gross 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 Bs440. (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 2003.)

Self-employed person: A voluntary contribution of 10% of

declared gross earnings, plus a fixed 1.71% of declared

gross earnings for disability and survivor insurance and a

fixed 0.5% of declared gross earnings for administrative

fees.

The minimum declared earnings for contribution purposes

are equal to the legal monthly minimum wage (Bs440 a

month).

The maximum declared earnings for contribution purposes

are equal to 60 times the legal monthly minimum wage.

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 stateowned enterprises.

Qualifying Conditions

Old-age pension: Age 65; 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): 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%.

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 onset of disability and must be currently

contributing or have ceased contributing no longer than

12 months before the onset of disability. If the disability is

due to an illness, the insured must also have 18 months of

contributions in the last 36 months before the onset of

disability.

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.

Bolivia
56 ♦ SSPTW: The Americas, 2005

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 due to 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 payable 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. (The current value is

fixed until December 31, 2007.)

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 Bs440. (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 2003.)

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 onset of disability 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 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. (Life insurance tops up the accumulated

capital in the deceased’s individual account if the balance

plus the compensation pension 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.

Bolivia
SSPTW: The Americas, 2005 ♦ 57

The maximum earnings for pension calculation purposes are

equal to 60 times the legal monthly minimum wage.

The legal monthly minimum wage is Bs440. (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 2003.)

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 plus the compensation pension 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.

The total survivor pension payable to the widow(er) or

cohabiting partner and to children 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.

The total pension for other 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.

If the deceased died before age 65, contributions made to

the social insurance system are recognized as a compensation pension, which is paid to survivors on the date of the

deceased’s 65th birthday. The compensation pension is

split among survivors in the same way as the survivor

pension.

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 Bs900.

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.

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 the self-employed.

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 minimum

wage.)

The self-employed person’s contributions also finance

temporary disability benefits and medical benefits under

Work Injury, below.

Bolivia
58 ♦ SSPTW: The Americas, 2005

Employer: 10% of payroll.

The employer contributions also finance temporary disability benefits and medical benefits under Work Injury, below.

Government: None.

Qualifying Conditions

Cash sickness benefits: Must have at least two contributions before the onset of incapacity.

Cash maternity and medical benefits: Must have at least

4 months of contributions before the start of pregnancy for

cash and medical benefits. The benefit is payable to an

insured woman or to the spouse of an insured man.

Medical benefits: Must have 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 payable 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 payable 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 the self-employed.

Source of Funds

Insured person: None.

Self-employed person: Voluntary contributions of 1.71%

of declared gross earnings for permanent disability and

survivor pensions. For temporary disability benefits and

medical benefits, see source of funds under Sickness and

Maternity, above.

Employer: 1.71% of payroll for permanent disability and

survivor pensions. For temporary disability benefits and

medical benefits, see source of funds under Sickness and

Maternity, above.

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 if the employer provides the transportation.

Voluntarily insured self-employed workers must have

6 months of contributions in the 12 months before the onset

of disability 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 payable 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 Bs440. (The legal

monthly minimum wage is adjusted by decree for changes in

the cost of living, depending on the financial resources of

Bolivia
SSPTW: The Americas, 2005 ♦ 59

the state budget. The last adjustment was made in

May 2003.)

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.

The disability pension is replaced by the old-age pension at

age 65.

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 onset of disability 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 Bs440. (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 2003.)

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.

The total survivor pension payable to the widow(er) or

cohabiting partner and to orphans 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.

The total pension for other 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 Bs900.

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.

Bolivia
60 ♦ SSPTW: The Americas, 2005

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.

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,

drivers, miners, railroad employees, petroleum workers, and

other groups of workers.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 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: Provided to single and married

workers.

Prenatal grant: Provided from the 5th month of pregnancy.

Birth grant: Payable for the birth of a child.

Nursing allowance: Provided 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 provided 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 national monthly minimum

wage is paid for each birth.

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 national

monthly minimum wage is paid.

Administrative Organization

Ministry of Housing and Economic Development (http://

www.desarrollo.gov.bo) 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.

Bolivia
SSPTW: The Americas, 2005 ♦ 61

Brazil

Exchange rate: US$1.00 equals 2.41 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 the selfemployed.

Voluntary coverage for students, housewives, the unemployed, 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: 7.65% of gross earnings with earnings up

to 800.45 reais; 8.65% with earnings from 800.46 reais up to

900 reais; 9% with earnings from 900.01 reais up to

1,334.07 reais; or 11% with earnings from 1,334.08 reais up to

2,668.15 reais. Voluntary contributors and members of

cooperatives contribute 20% of declared earnings.

The minimum monthly earnings for contribution purposes

are equal to the minimum monthly wage (300 reais).

The maximum monthly earnings for contribution purposes

are 2,668.15 reais.

The above contributions also finance sickness and maternity benefits and family allowances.

Self-employed person: 20% of declared earnings.

The minimum monthly earnings for contribution purposes

are equal to the minimum monthly wage (300 reais).

The maximum monthly earnings for contribution purposes

are 2,668.15 reais.

The above contributions also finance sickness and maternity benefits.

Employer: 20% of payroll (22.5% of payroll for employers in

the financial sector); 15% of earnings for work cooperatives; 12% of payroll on behalf of domestic workers; and

2.7% of earnings for rural employers.

There are no maximum monthly earnings for contribution

purposes.

Small-enterprise employers may contribute from 1.2% to

4.3% of monthly declared earnings, depending on annual

earnings declared in the last year.

The above 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: None.

Employer: None.

Government: 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 the rural self-employed.

Persons who were first insured before July 25, 1991, must

have at least 144 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 45 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 (means-tested): Age 65, without

remunerated work, and with family monthly earnings less

than 25% of the minimum monthly wage for each person

(75 reais). Eligibility is reviewed every 2 years.

Disability pension

Disability pension (social insurance): Assessed as

permanently incapable for work with at least 12 months of

Brazil
62 ♦ SSPTW: The Americas, 2005

contributions. The contribution period is waived if the

disability is the result of an accident.

The degree of disability is assessed by the Ministry of

Social Insurance.

Disability assistance (means-tested): Assessed as

disabled with family monthly earnings less than 25% of the

minimum monthly wage for each person (75 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

absence of the above (in order of priority), parents and

brothers and sisters younger than age 21 (no limit if

disabled).

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 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 since 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.

Persons first insured since November 29, 1999, may opt for

the pension to be calculated using the Fator Previdenciario

method. The monthly pension is equal to the Fator

Previdenciario times 70% of average earnings (based on

earnings in the best 4/5 of the total number of months of

earnings).

The Fator 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

(300 reais).

The maximum monthly earnings for benefit calculation

purposes are 2,668.15 reais.

The minimum monthly age pension is equal to the minimum

monthly wage (300 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 average earnings 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 since November 29, 1999, the

monthly benefit is equal to the Fator Previdenciario times

100% of average earnings (based on earnings in the best 4/5

of the total number of months of earnings).

The Fator 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

(300 reais).

The maximum monthly earnings for benefit calculation

purposes are 2,668.15 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 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.

For persons first insured since November 29, 1999, the

monthly benefit is equal to the Fator Previdenciario times

70% of average earnings plus 5% of average earnings for

each additional year of contributions. Average earnings are

based on earnings in the best 4/5 of the total number of

months of earnings.

The Fator 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

(300 reais).

The maximum monthly earnings for benefit calculation

purposes are 2,668.15 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.

Brazil
SSPTW: The Americas, 2005 ♦ 63

Old-age assistance (means-tested): The monthly benefit is

equal to the minimum monthly wage (300 reais).

Benefit adjustment: Benefits are adjusted annually according to changes in the minimum wage.

Permanent Disability Benefits

Disability pension

Disability pension (social insurance): The monthly benefit

is equal to 100% of 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 since November 29, 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

(300 reais).

The maximum monthly earnings for benefit calculation

purposes are 2,668.15 reais.

Constant-attendance allowance: Equal to 25% of the

disability pension.

Schedule of payments: Thirteen payments a year.

Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.

Disability assistance (means-tested): The monthly benefit

is equal to the minimum monthly wage (300 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 (300 reais).

The maximum monthly pension is 2,668.15 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 the self-employed.

Voluntary coverage for students, housewives, the unemployed, 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 and medical benefits: Must have

contributed in the last 12 months. There is no qualifying

period in case of an accident or serious illness.

Cash maternity benefits: There is no minimum qualifying

period; 10 months of contributions for self-employed

persons and rural workers.

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 payable after a 15-day waiting

period (during which the employer is required to pay 100%

of the wage); there is no waiting period for self-employed

persons and voluntarily covered persons.

Brazil
64 ♦ SSPTW: The Americas, 2005

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.

The minimum monthly earnings for benefit calculation

purposes are equal to the minimum monthly wage

(300 reais).

The maximum monthly earnings for benefit calculation

purposes are 2,668.15 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 payable for a total of 120 days, from 28 days

before until 91 days after the expected date of childbirth.

The benefit is payable for 2 weeks in the case of a miscarriage.

The benefit is also payable for 120 days to the adopting

mother of a child younger than age 1; 60 days if the child is

aged 1 to 4; or 30 days if the child is aged 5 to 8.

The minimum monthly earnings for benefit calculation

purposes are equal to the minimum monthly wage

(300 reais).

The maximum monthly earnings for benefit calculation

purposes are 2,668.15 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.

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: The self-employed.

Special systems for rural workers, public-sector employees,

and military personnel.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1% to 3% of payroll according to the assessed

degree of risk; 1% of 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.

The benefit is payable after a 15-day waiting period (during

which the employer is required to pay 100% of the wage).

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.

The minimum monthly earnings for benefit calculation

purposes are equal to the minimum monthly wage (300

reais).

The maximum monthly earnings for benefit calculation

purposes are 2,668.15 reais.

Schedule of payments: Thirteen payments a year.

Brazil
SSPTW: The Americas, 2005 ♦ 65

Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.

Permanent Disability Benefits

Permanent disability pension: The monthly pension is

equal to 100% of average earnings and is payable if

incapable of any 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.

The minimum monthly earnings for benefit calculation

purposes are equal to the minimum monthly wage (300

reais).

The maximum monthly earnings for benefit calculation

purposes are 2,668.15 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. The degree of disability is

reassessed every 2 years.

Accident benefit (partial disability): The monthly benefit

is equal to 50% of average earnings and is payable 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 and dental treatment, hospital treatment, medicines,

rehabilitation, 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

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 (300 reais).

The maximum monthly pension is 2,668.15 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.

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: The self-employed.

Special system for craft fishermen, domestic workers, and

workers formerly engaged in forced or bonded labor.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: None.

Government: Total cost is financed by earmarked taxes.

Qualifying Conditions

Unemployment benefit: 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 or more

months 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.

Brazil
66 ♦ SSPTW: The Americas, 2005

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.

The benefit is payable 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.gob.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 the self-employed.

Special system for public-sector 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

Family allowances (income-tested): Employees with

monthly income up to 623.44 reais. The child must be

younger than age 14 (no limit if disabled) and attending

school. 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): 21.27 reais is paid

monthly for each child if the insured’s earnings do not

exceed 414.77 reais; 14.99 reais a month if earnings are

between 414.77 reais and 623.45 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.

Brazil
SSPTW: The Americas, 2005 ♦ 67

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.

There are no special systems for any specified groups of

employees.

Source of Funds

Insured person: 3.25% of monthly insured earnings.

The maximum annual earnings for contribution and benefit

purposes are US$23,400 (US$30,420 from January 2006).

Self-employed person: 8.5% of declared monthly earnings.

The maximum annual earnings for contribution and benefit

purposes are US$23,400 (US$30,420 from January 2006).

Employer: 3.25% of monthly covered wages.

The maximum annual earnings for contribution and benefit

purposes are US$23,400 (US$30,420 from January 2006).

Government: None; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 65 with 500 weeks of contributions.

Partial pension: A reduced pension is payable 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 500 weeks of

contributions and 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, ineligible for any periodic

benefit, and permanently incapable of any work.

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: Payable if the deceased was not eligible

for a pension but had at least 50 weeks of contributions.

Funeral grant: Payable 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 above 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$23,400.

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: The grant is 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 above

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 of the onset of

disability, divided by three.

The maximum annual earnings for benefit calculation

purposes are US$23,400.

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.

British Virgin Islands
68 ♦ SSPTW: The Americas, 2005

Disability grant: The grant is 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; 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

Chief Minister’s Office provides general supervision.

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 monthly insured 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 wages.

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: Must have 26 weeks of contributions, including 8 weeks of contributions in the 13 weeks

before the onset of illness.

Cash maternity benefits: Must have 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 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 payable to each.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 2/3 of average

weekly insured earnings and is payable for up to 26 weeks.

The benefit is payable after a 3-day waiting period.

Average weekly insured earnings are based on insured

earnings in the 13 weeks before the onset of the incapacity.

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 insured earnings in the 39 weeks before the expected

date of childbirth. The benefit is payable for up to

13 weeks, beginning no earlier than 6 weeks before the

expected date of childbirth.

Average weekly insured earnings are based on insured

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 for each eligible

insured parent per child.

Workers’ Medical Benefits

No statutory benefits are provided.

Dependents’ Medical Benefits

No statutory benefits are provided.

Administrative Organization

Chief Minister’s Office provides general supervision.

British Virgin Islands
SSPTW: The Americas, 2005 ♦ 69

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 earnings for contribution purposes are

US$23,400 (US$30,420 from January 2006).

Employer: 0.5% of covered monthly wages (including on

behalf of employees aged 65 or older).

The maximum annual earnings for contribution and benefit

purposes are US$23,400 (US$30,420 from January 2006).

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 payable 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 payable 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 payable to the

person who meets the cost of the funeral.

Administrative Organization

Chief Minister’s Office provides general supervision.

Social Security Board (http://www.bvissb.vg) administers

the program.

British Virgin Islands
70 ♦ SSPTW: The Americas, 2005

Canada

Exchange rate: US$1.00 equals

1.25 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 residents.

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: Total cost, including the total cost of incometested benefits.

Earnings-related pension

Insured person: 4.95% of 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$41,100.

Earnings limit adjustment: Adjusted annually according to

increases in the average industrial wage.

Self-employed person: 9.9% of 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$41,100.

Earnings limit adjustment: Adjusted annually according to

increases in the average industrial wage.

Employer: 4.95% of the employee’s 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$41,100.

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 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 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.

Low-income allowance (income-tested): Aged 60 to 64,

with 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 payable from age 60.

Deferred pension: The deferred pension is possible.

The pension is payable abroad.

Earnings-related disability pension (Canada Pension

Plan/Quebec Pension Plan): Severe and prolonged

incapacity for any gainful activity with 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.

Survivor pension

Universal pension (survivor allowance, income-tested):

Payable to widow(er)s aged 60 to 64. The survivor must be

a resident of Canada and have resided in Canada for

Canada
SSPTW: The Americas, 2005 ♦ 71

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 had 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.

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$476.97. 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 highincome earners is subject to recovery (the pension is

reduced by 15% of annual income, minus allowable income

tax deductions and expenses, over C$60,806).

Low-income supplement (income-tested): The supplement

increases the maximum monthly universal pension to

C$1,043.84 for a single person or C$1,692.42 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$846.21 a month 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 yearly 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$828.75.

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 annual adjustments of the

earnings-related pension 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$388.67 is paid, plus 75% of the earnings-related retirement

pension.

The maximum monthly pension is C$1,010.23.

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$195.96 a month for each child

younger than age 18; age 25 if a student. (Quebec Pension

Plan: C$62.22 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):

For 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$934.24.

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$497.25 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$151.64, up to a maximum of C$462.42 a month. (Quebec

Pension Plan: A surviving spouse aged 55 to 64 receives up

to a maximum of C$710.37 a month; aged 45 to 54, up to a

maximum of C$699.42 a month. For a surviving spouse

younger than age 45 and disabled, the maximum pension is

C$699.42 a month; if not disabled but caring for a dependent

child, up to a maximum of C$671.62; if not disabled and with

no dependent children, up to a maximum of C$410.31.)

Orphan’s pension (Canada Pension Plan/Quebec Pension

Plan): C$195.96 a month for each child younger than

age 18; age 25 if a student. (Quebec Pension Plan: C$62.22

for each child below age 18 only.)

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.

Canada
72 ♦ SSPTW: The Americas, 2005

Administrative Organization

Department of Social Development (http://www.sdg.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://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 law: 1996 (employment insurance).

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.

Provincial government employees may be covered with the

consent of provincial government.

Exclusions: Self-employed persons other than fishermen.

Physician and hospital services: All residents satisfying

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.

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.

Self-employed person

Cash benefits: See source of funds under Unemployment,

below.

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.

Physician and hospital benefits: Contributions vary by

province from 1% to 4.5%.

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: Must have a

minimum of 600 hours of insurable employment in the

previous 52 weeks.

Compassionate care benefits: Must have a minimum of

600 hours of insurable employment in the previous 52

weeks. Payable 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.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 55% of average

weekly insurable 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 insurable earnings in the last 26 weeks, plus a family

Canada
SSPTW: The Americas, 2005 ♦ 73

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 (the mother, father, or both) on the

birth or adoption of a child.

Compassionate care benefit: The benefit is equal to 55%

of average weekly insurable 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.

Workers’ Medical Benefits

Medical benefits: 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: 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;

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.

Work Injury

Regulatory Framework

First and current laws: 1908 and 1994 (Newfoundland),

1915 and 1996 (Nova Scotia), 1915 and 1996 (Ontario), 1916

and 1993 (British Columbia), 1916 and 1993 (Manitoba), 1918

and 1994 (New Brunswick), 1918 and 1995 (Alberta), 1928

and 1994 (Quebec), 1930 and 1994 (Saskatchewan), 1949 and

1995 (Prince Edward Island), 1974 and 1992 (Northwest

Territories/Nunavut), and 1993 (Yukon).

Type of program: Social insurance system.

Coverage

Employees in industry and commerce (some differences

exist among provinces).

Exclusions: 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: 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.

Canada
74 ♦ SSPTW: The Americas, 2005

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 payable 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, according to

province.

Other dependents (in the absence of a spouse or

orphan): A reasonable sum in proportion to the loss of

income.

Funeral grant: The grant 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: 1.95% of insurable earnings.

The maximum annual earnings for contribution and benefit

purposes are C$39,000.

Self-employed person: Not applicable.

Employer: 2.73% of the insured’s earnings.

The maximum annual earnings for contribution and benefit

purposes are C$39,000.

Government: None.

Qualifying Conditions

Unemployment benefit: The qualifying conditions vary

from 420 hours to 700 hours of covered employment during

the last year, depending on the regional unemployment rate,

or 910 hours for a new entrant or reentrant to the labor

force.

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 insurable 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

payable after a 2-week waiting period for between 14 and

45 weeks, depending on the claimant’s employment history

and regional unemployment rates.

The maximum weekly benefit is C$413.

Administrative Organization

Human Resources and Skills Development Canada, through

Service Canada (http://www.canadabenefits.gc.ca) regional

and local offices, administers the program.

Canada
SSPTW: The Americas, 2005 ♦ 75

Canada Revenue Agency (http://www.cra-arc.gc.ca/menue.html) collects contributions.

Family Allowances

Regulatory Framework

First law: 1944.

Current law: 1998.

Type of program: Refundable tax credit system.

Coverage

All residents.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: Total cost.

Qualifying Conditions

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.

Family Allowance Benefits

Canada child tax benefit (income-tested): The benefit is

delivered through the income tax system.

The maximum annual benefit is C$2,950 for the first child,

C$2,730 for the second child, and C$2,734 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 2005 to June 2006, families with net income up to

C$96,995 receive the base tax benefit. Families with net

income up to C$35,595 also receive the benefit supplement.

The Canada child tax benefit contains an additional benefit

of up to C$243 a year for children younger than age 7.

Benefits are paid monthly and are based on total family

income during the previous year.

Administrative Organization

Canada Revenue Agency (http://www.cra-arc.gc.ca/menue.html) administers the program.

Quebec Pension Board administers the program in Quebec.

Canada
76 ♦ SSPTW: The Americas, 2005

Chile

Exchange rate: US$1.00 equals 582.60 pesos.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1924.

Current laws: 1952 (wage earners and salaried employees);

1980 and 1981 (new system).

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

All private-sector employees.

Voluntary coverage for the self-employed and workers who

paid social insurance contributions before January 1, 1983.

Social insurance

Wage earners’ program: Wage earners and the selfemployed with earnings lower than three times the minimum

monthly wage.

The minimum monthly wage is 127,500 pesos.

Salaried employees’ program: Salaried employees in

private-sector employment.

Special systems for railroad employees, seamen and port

workers, public-sector employees, the armed forces, the

police, and over 30 other occupations.

Source of Funds

Mandatory individual account

Insured person: 10% of gross earnings for the old-age

pension, plus an average 0.75% of gross earnings for

disability and survivor insurance and an average 1.55% of

gross earnings for administrative fees. (Persons working

under arduous conditions contribute an additional 1% or

2% of gross earnings.)

The minimum monthly earnings for contribution purposes

are equal to the minimum monthly wage of 127,500 pesos;

95,927 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

17,491 pesos and is adjusted monthly according to changes

in the consumer price index.

Self-employed person: 10% of declared earnings for the

old-age pension, plus an average 0.75% of declared

earnings for disability and survivor insurance and an

average 1.55% of declared earnings for administrative fees.

The minimum monthly declared earnings for contribution

purposes are 82,889 pesos.

The maximum monthly declared earnings for contribution

purposes are 60 UFs. The UF is equal to 17,491 pesos and

is adjusted monthly according to changes in the consumer

price index.

Employer: None, except 1% or 2% of gross earnings for

employees working under arduous conditions.

The maximum monthly earnings for contribution purposes

are 60 UFs. The UF is equal to 17,491 pesos and is adjusted

monthly 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 wages;

salaried employees contribute from 20% to 30% of gross

earnings depending on the nature of the job. (A reduction

of 7.75% is granted to some workers with 40 years of

contributions.)

The minimum monthly earnings for contribution purposes

are equal to the minimum monthly wage of 127,500 pesos;

95,927 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 17,491 pesos and is adjusted

monthly 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 82,889 pesos.

The maximum monthly declared earnings for contribution

purposes are 60 UFs. The UF is equal to 17,491 pesos and

is adjusted monthly according to changes in the consumer

price index.

Employer: None.

Government: Special subsidies as needed to finance the

program and the cost of the guaranteed minimum pension.

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 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.

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SSPTW: The Americas, 2005 ♦ 77

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 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 130% of the

minimum old-age pension (rising to 150% by 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 years 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.

Disability pension: Payable 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: Payable 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.

District medical commissions assess the degree of disability.

Guaranteed minimum pension: Payable with at least

10 years of contributions; at least 2 years of contributions

in the 5 years before the onset of disability; at least

16 months of contributions if the insured has less than

2 years of employment; or employed at the onset of

disability. The guarantee is paid if the insured’s pension is

less than the minimum pension.

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 person for at least 6 months (at least

3 years if the insured was a pensioner); the mother of the

deceased’s 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: Payable if the deceased had

at least 10 years of contributions; at least 2 years of

contributions in the 5 years before death; at least 16 months

of contributions if the deceased had less than 2 years of

employment; or employed or 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).

Wage earners are not required to cease gainful activity,

depending on the nature of the job.

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 for each

5 years of work under arduous conditions. The maximum

reduction of the normal retirement age is 10 years.

Deferred pension: The pension for a salaried employee is

increased for each year of economic activity during which

the claim for an old-age pension is deferred.

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) at the onset of

disability. Must have a minimum of 50 weeks of contributions, including at least 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%.

Preventive and disability medical commissions assess the

degree of disability for wage earners.

Salaried employees must be assessed as 2/3 disabled with

3 years of contributions.

Health services assess the degree of disability for salaried

employees.

Survivor pension: The pensioner was previously a wage

earner; had at least 400 weeks of paid coverage; or at least

50 weeks of paid coverage, including at least 40% of the

weeks in the last 5 years and 50% of the weeks since

coverage began (women are exempt from this last condition).

The pensioner was previously a salaried employee or had at

least 3 years of contributions.

Eligible survivors are a widow(er) who was married for at

least 6 months to an insured person who was an active

contributor (at least 3 years if the insured was a pensioner);

the mother of the deceased’s children; and children younger

than age 18 (age 24 if students, no limit if disabled).

Funeral grant: The grant is paid to the widow(er), children,

or parents.

Chile
78 ♦ SSPTW: The Americas, 2005

Social assistance

Old-age assistance pension: Age 65 with 300 weeks of

contributions (men) or age 60 with 200 weeks of contributions (women). The insured must have been registered

before 1937 and have no entitlement to a pension.

Old-age pension for a low-income person (income-tested):

Age 65 (men and women) with 3 years of residence and no

entitlement to a pension. Family income must be lower than

50% of the minimum monthly old-age pension (38,538 pesos).

Disability assistance pension: Age 65 (men) or age 60

(women) with 75 weeks of contributions and declared

disabled. The insured must have been registered before 1937 and have no entitlement to a pension.

Disability pension for low-income persons (incometested): Physically or mentally disabled with 3 years of

residence and no entitlement to a pension. Individual

income must be lower than 50% of the minimum disability

pension.

Survivor assistance pension: The pension is paid to a

widow older than age 45 and children younger than age 18

(age 24 if a student, no limit if disabled) if the deceased was

registered before 1937 and had no entitlement to a pension.

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

77,076.54 pesos for a pensioner younger than age 70;

84,277.26 pesos from age 70 up to age 75; or 88,213.76 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

17,491 pesos and is adjusted monthly 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 beyond 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 pension is 77,076.54 pesos for a

pensioner younger than age 70; 84,277.26 pesos from age 70

up to age 75; or 88,213.76 pesos if older than age 75.

The maximum monthly pension is 70% of the base wage or

791,578 pesos, whichever is lower.

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 over 20 years of contributions; 2/35 of the base

salary if a widow.

The minimum monthly pension is 77,076.54 pesos for a

pensioner younger than age 70; 84,277.26 pesos from age 70

up to age 75; or 88,213.76 pesos if older than age 75.

The maximum monthly pension is 100% of the base salary or

791,578 pesos, whichever is lower.

Deferred pension: For each year of economic activity

during which the claim is deferred, the pension is increased

by 5% of the base salary, up to a maximum of 25%.

Winter voucher: A lump sum of 31,982 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

43,252.91 pesos for a pensioner younger than age 70;

84,277.26 pesos from age 70 up to age 75; or 88,213.76 pesos

if older than age 75.

Old-age pension for a low-income person (income-tested):

The minimum monthly pension is 38,572.20 pesos for a

pensioner younger than age 70; 40,238.14 pesos from age 70

up to age 75; or 42,195.84 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%.

Permanent Disability Benefits

Mandatory individual account

Disability pension: Following an assessment and certification by the medical commission, the AFP (individual

pension fund management company) finances a benefit for

up to 3 years. The monthly benefit is equal to 70% of the

base salary for a total disability; 50% for a partial disability.

Chile
SSPTW: The Americas, 2005 ♦ 79

The base salary is equal to the 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

77,076.54 pesos for a pensioner younger than age 70;

84,277.26 pesos from age 70 up to age 75; or 88,213.76 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

17,491 pesos and is adjusted monthly 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

beyond 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 77,076.54 pesos

for a pensioner younger than age 70; 84,277.26 pesos from

age 70 up to age 75; or 88,213.76 pesos if older than age 75.

The maximum monthly disability pension is 70% of the base

wage or 791,578 pesos, whichever is lower.

Partial disability: 50% of the total disability pension.

Salaried employees receive a monthly pension equal to 70%

of the base salary, plus 2% of the salary for every year of

contributions beyond 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.

The minimum monthly disability pension is 77,076.54 pesos

for a pensioner younger than age 70; 84,277.26 pesos from

age 70 up to age 75; or 88,213.76 pesos if older than age 75.

The maximum monthly disability pension is 100% of the

base salary or 791,578 pesos, whichever is lower.

Salaried woman’s child supplement: A supplement of 1/35

of the base salary is paid for each dependent child to a

woman with over 20 years of contributions; 2/35 of the base

salary if a widow.

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 up to age 75; or 88,213.76 pesos

if older than age 75.

Disability pension for a low-income person (incometested): The minimum monthly pension is 38,572.20 pesos

for a pensioner younger than age 70; 40,238.14 pesos from

age 70 up to age 75; or 42,195.84 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%.

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) pension varies from

39,309.05 pesos to 88,213.76 pesos, depending on the

survivor’s age and the number of 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

17,491 pesos and is adjusted monthly according to changes

in the consumer price index.

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80 ♦ SSPTW: The Americas, 2005

Funeral grant: A withdrawal of 15 UFs (262,365 pesos) form

the deceased’s individual account is granted to the relative

who paid for the funeral expenses. The UF is equal to

17,491 pesos and is adjusted monthly 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) or 100% of the

deceased’s pension. 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 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) pension is 50,017.65 pesos

for a survivor younger than age 70 without children;

62,409.54 pesos from age 70. The minimum monthly

widow(er) pension is 41,838.53 pesos for a survivor younger

than age 70 with children; 53,892.19 pesos from age 70.

The minimum monthly orphan’s pension is 11,561.48 pesos.

The minimum monthly survivor pension is 30,010.58 pesos

for the deceased’s extramarital partner younger than age 70

without children; 41,590.72 pesos from age 70. The minimum

monthly survivor pension is 25,103.12 pesos for the

deceased’s extramarital partner younger than age 70 with

children; 36,480.38 pesos from age 70.

The maximum monthly survivor pension is 791,578 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

(234,150 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. Each orphan and dependent parent receives 15%

of the base salary or deceased’s pension. The mother of the

deceased’s extramarital children receives 60% of the widow

pension.

The pension ceases if the widow(er) remarries, and the

pension is paid to eligible children.

The minimum monthly widow(er) pension is 50,017.65 pesos

for a survivor younger than age 70 without children;

62,409.54 pesos from age 70. The minimum monthly

widow(er) pension is 41,838.53 pesos for a survivor younger

than age 70 with children; 53,892.19 pesos from age 70.

The minimum monthly orphan’s pension is 11,561.48 pesos.

The minimum monthly survivor pension is 30,010.58 pesos

for the deceased’s extramarital partner younger than age 70

without children; 41,590.72 pesos from age 70. The minimum

monthly survivor pension is 25,103.12 pesos for the

deceased’s extramarital partner younger than age 70 with

children; 36,480.38 pesos from age 70.

The maximum survivor pension is 100% of the deceased’s

base salary or pension, or 791,578 pesos, whichever is

lower.

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

(234,150 pesos).

Social assistance

Survivor assistance pension: For a widow(er) without

children, the monthly pension is 25,008.83 pesos;

20,919.26 pesos with children.

The monthly orphan’s pension is 5,780.74 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%.

Administrative Organization

Mandatory individual account

Superintendent of Pension Fund Management Companies

(http://www.safjp.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.

Chile
SSPTW: The Americas, 2005 ♦ 81

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 choose to be covered by the public

national health system or by private social security health

institutes.

Coverage

Public and private systems: All public- and privatesector workers; the self-employed; 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.

Voluntary coverage for all other persons.

Source of Funds

Public system

Insured person: 7% of gross earnings; pensioners, 7% of

the pension; voluntary contributors, 7% of declared

earnings.

The minimum monthly earnings for contribution purposes

are equal to the minimum monthly wage (127,500 pesos);

95,927 pesos for insured persons younger than age 18 or

older than age 65; 82,889 pesos for voluntary contributors.

The maximum monthly earnings for contribution purposes

are equal to 60 UFs (unidad de fomento). The UF is equal to

17,491 pesos and is adjusted monthly according to changes

in the consumer price index.

Self-employed person: 7% of declared earnings.

The minimum monthly declared earnings for contribution

purposes are 82,889 pesos.

The maximum monthly earnings for contribution purposes

are equal to 60 UFs. The UF is equal to 17,491 pesos and is

adjusted monthly according to changes in the consumer

price index.

Employer: None.

Government: Subsidizes maternity benefits and meets any

deficit.

Private system

Insured person: 7% of gross earnings; pensioners, 7% of

the pension.

Voluntary contributors must pay the total cost of the plan.

The minimum monthly earnings for contribution purposes

are equal to the minimum monthly salary (127,500 pesos);

95,927 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. The UF is equal to 17,491 pesos and is

adjusted monthly according to changes in the consumer

price index.

Self-employed person: 7% of declared earnings.

The minimum monthly declared earnings for contribution

purposes are 82,889 pesos.

The maximum monthly earnings for contribution purposes

are equal to 60 UFs. The UF is equal to 17,491 pesos and is

adjusted monthly according to changes in the consumer

price index.

Employer: None.

Government: Subsidizes maternity benefits.

Qualifying Conditions

Cash sickness and maternity benefits: Workers with a

total of 6 months of contributions including 3 months of

contributions in the last 6 months; contract workers with a

total of 6 months of contributions including 30 days of

contributions in the last 12 months; and self-employed

persons with 12 months of enrollment and 6 months of

contributions in the last 12 months.

Medical benefits: Currently covered.

The qualifying conditions for the public and private

systems are the same.

Sickness and Maternity Benefits

Public system

Sickness benefit: For public-sector employees, the benefit

is equal to 100% of net earnings before the onset of

incapacity. 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 from the first day if sick leave is

longer than 9 days; from the fourth day if sick leave 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 1,381.48 pesos.

Maternity benefit: For employees, the monthly benefit is

equal to average monthly net earnings in the 3 months

before the expected date of childbirth. For self-employed

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82 ♦ SSPTW: The Americas, 2005

persons, the monthly benefit is equal to average monthly

declared earnings in the last 6 months. Benefit is payable

for 6 weeks before and 12 weeks after the expected date of

childbirth.

The minimum daily maternity benefit is 1,381.48 pesos.

Maternity benefit is paid for 12 months for the adoption of a

child younger than 6 months.

Private system

Sickness benefit: No benefits are provided.

Maternity benefit: No benefits are provided.

Workers’ Medical Benefits

Public system

Medical benefits: Benefits are provided to patients through

public or private health institutions and professionals

registered with the Ministry of Health. 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.

Cost sharing: 0%, 20%, or 30% depending on the insured’s

income and dependents; from 30% to 80% for dental

treatment.

There is no cost-sharing for primary assistance and for lowincome persons, beneficiaries of assistance pensions or

family allowances, and persons older than age 65.

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 not be less than 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.

Cost sharing: 0%, 20%, or 30% depending on the insured’s

income and dependents; from 30% to 80% for dental

treatment.

There is no cost sharing for primary assistance and for lowincome persons, beneficiaries of assistance pensions or

family allowances, and persons older than age 65.

Private system

Medical benefits: Benefits, as well as cost sharing, vary by

contract but must not be less than 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.

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 selfemployed 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 82,889 pesos.

The maximum monthly earnings for contribution purposes

are equal to 60 UFs (unidad de fomento). The UF is equal to

17,491 pesos and is adjusted monthly according to changes

in the consumer price index.

Employer: 0.95% of payroll, plus up to 3.4% of payroll

according to the industry and the assessed degree of risk.

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SSPTW: The Americas, 2005 ♦ 83

The minimum monthly earnings for contribution purposes

are equal to the minimum monthly wage (127,500 pesos);

95,927 pesos for insured persons younger than age 18 or

older than age 65; and 95,625 pesos for domestic workers.

The maximum monthly earnings for contribution purposes

are equal to 60 UFs. The UF is equal to 17,491 pesos and is

adjusted monthly 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 onset of disability. The benefit is

payable from the day of injury for up to 12 months (may be

extended up to 24 months).

The maximum monthly pension is 791,578 pesos.

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; 22.3% of the

minimum monthly wage for students with earnings lower

than 44.5% of the minimum monthly wage (127,500 pesos).

The base salary is equal to average monthly net earnings in

the 6 months before the onset of disability.

The maximum monthly pension is 791,578 pesos.

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 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 70%, 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 15% to

40%.

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.

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%.

Workers’ Medical Benefits

Benefits include necessary medical, surgical, dental, and

pharmaceutical services; hospitalization; prosthesis;

rehabilitation; transfer costs, and occupational retraining.

Benefits are provided from the first day after the onset of

disability or diagnosis of the occupational disease. Occupational diseases are defined according to a schedule in law.

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 payable to a widow older than age 44

(at any age if disabled or caring for a child) or a disabled

widower.

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

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.

The maximum survivor pension is 100% of the deceased’s

pension.

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, a salaried

employee, or a pensioner, the grant is equal to three times

the monthly minimum income used for funeral grant

Chile
84 ♦ SSPTW: The Americas, 2005

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 aged 18 or older and workers who sign a new work

agreement after October 1, 2002.

Voluntary coverage for other persons.

Exclusions: Persons younger than age 18, domestic

workers, apprentices, pensioners (unless partially disabled),

the self-employed, and armed forces personnel.

Source of Funds

Employment-related system

Insured person: None.

Self-employed person: None.

Employer: None.

Government: Total cost met through the Unified Family

Allowances and Unemployment Fund.

Individual severance account

Insured person: 0.6% of gross monthly earnings (plus an

administrative fee) for up to 11 years for each job; voluntary

contributors, 0.6% of gross 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

17,491 pesos and is adjusted monthly according to changes

in the consumer price index.

Self-employed person: Not applicable.

Employer: 2.4% of 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 fixed-term contract).

The maximum monthly earnings for contribution purposes

are equal to 90 UFs. The UF is equal to 17,491 pesos and is

adjusted monthly according to changes in the consumer

price index.

Government: Annual contribution to the Solidarity

Severance Fund.

Qualifying Conditions

Unemployment benefits

Employment-related system: Must be involuntarily

unemployed with 12 months 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: 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 fixedterm contract, and had not refused a suitable job offer.

Benefit under the Solidarity Severance Fund is available

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, 11,560 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

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SSPTW: The Americas, 2005 ♦ 85

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 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 is equal to the minimum wage

(127,500 pesos).

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.safjp.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; persons receiving work injury, temporary disability, or unemployment benefits; and pensioners.

Exclusions: Some self-employed persons.

Source of Funds

Insured person: None.

Self-employed: None.

Employer: None.

Government: Total cost met through the Unified Family

Allowances and Severance-pay Fund.

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

disabled or aged parents older than age 65 (no limit if

disabled). All beneficiaries must be the insured’s dependent

and have monthly earnings lower than 63,750 pesos.

Maternity allowance (income-tested): Paid from childbirth

for up to 9 months.

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86 ♦ SSPTW: The Americas, 2005

Family Allowance Benefits

Family allowances (income-tested): A monthly allowance

is paid for each dependent, depending on the insured’s

income: 3,930 pesos with monthly earnings up to

122,329 pesos; 3,823 pesos with earnings between 122,329

and 239,606 pesos; and 1,245 pesos with earnings between

239,605 and 373,703 pesos.

All monthly allowances are doubled for disabled dependents.

Income test: No allowance is paid with monthly earnings of

373,702 pesos or more.

Maternity allowance (income-tested): An allowance is paid

for 9 months, depending on the insured’s income: 3,930

pesos with monthly earnings up to 122,329 pesos; 3,823

pesos with earnings between 122,329 and 239,606 pesos;

and 1,245 pesos with earnings between 239,605 and

373,703 pesos.

All monthly allowances are doubled for disabled dependents.

Income test: No allowance is paid with monthly earnings of

373,702 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.

Chile
SSPTW: The Americas, 2005 ♦ 87

Colombia

Exchange rate: US$1.00 equals 2,338.14 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 3 years.

The labor code requires larger employers to provide

generally similar benefits to employees in regions where

either program has not yet been applied.

Coverage

All employees, including public-sector employees, domestic

workers, and new employees joining the state oil company

(Ecopetrol) after January 29, 2003; and the self-employed.

(The program is being gradually extended to all regions.)

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: 3.75% of earnings (3.875% of earnings

from January 2006), plus 1% of earnings for income greater

than four times the minimum wage and between 0.2% and

1% of 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 1.39% of

earnings for disability and survivor insurance and up to a

maximum of 1.61% of earnings for administrative fees.)

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage (381,500 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 (381,500

pesos).

Self-employed person: 15% of declared earnings (15.5% of

declared earnings from January 2006.) (Self-employed

persons who opt for the individual account also contribute

up to a maximum of 1.39% of declared earnings for disability

and survivor insurance and up to a maximum of 1.61% of

declared earnings for administrative fees.)

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage (381,500 pesos).

Employer: 11.25% of payroll (11.625% of payroll from

January 2006.)

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage (381,500 pesos).

The maximum earnings for contribution purposes are equal

to 25 times the legal monthly minimum wage (381,500

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 (men) or aged 35

(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 is to increase 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: Payable if the insured

does not meet the full qualifying conditions for a social

insurance old-age pension.

Mandatory individual account: Payable 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 onset of disability. If aged 20 or older, the

insured must have 50 weeks of contributions in the last

3 years and contributions for at least 20% of the period

between age 20 and the onset of disability.

The assessed degree of disability is reviewed every 3 years.

Disability settlement: Payable if the insured does not meet

the qualifying conditions for a disability pension.

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Survivor pension: If the deceased was younger than

age 20, must have had 50 weeks of contributions at the time

of death. If the deceased was aged 20 or older, must have

had 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: Payable 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 (381,500 pesos).

The maximum earnings for benefit calculation purposes are

equal to 25 times the legal monthly minimum wage

(381,500 pesos).

The minimum social insurance pension is equal to the legal

monthly minimum wage (381,500 pesos).

Schedule of payments: Thirteen or fourteen payments a

year, according to the value of the pension.

Benefit adjustment: Pensions are adjusted annually for

changes in the consumer price index.

Social insurance old-age settlement: If the insured does

not meet the contributions requirement 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 (381,500 pesos).

The maximum earnings for benefit calculation purposes are

equal to 25 times the legal monthly minimum wage (381,500

pesos).

The minimum pension is equal to the legal monthly minimum

wage (381,500 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: Pensions 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

basic monthly wage, plus 2% for each 50-week period of

contributions exceeding 500 weeks, up to a maximum of 75%

of the basic monthly wage. (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 basic monthly wage is 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 (381,500 pesos).

The maximum earnings for benefit calculation purposes are

equal to 25 times the legal monthly minimum wage

(381,500 pesos).

The minimum survivor pension is equal to the legal monthly

minimum wage (381,500 pesos).

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.

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SSPTW: The Americas, 2005 ♦ 89

Survivor settlement: A pension is provided to dependents.

Funeral grant: The cost of the funeral 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 (381,500 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. Cash and

medical benefits.

Coverage

All resident employees, including pensioners, students, and

apprentices; self-employed workers and residents with

earnings greater than twice the legal minimum monthly wage

(381,500 pesos).

Coverage is to be extended gradually to all, regardless of

their 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 (381,500 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 (381,500 pesos),

depending on trade union affiliation.

Employer: 8% of payroll; 12% for students and apprentices.

The minimum earnings for contribution purposes are equal

to the legal minimum monthly wage (381,500 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: Must have 4 weeks

of contributions immediately before the claim, except in

emergency cases.

Cash maternity benefits: Must have 9 months of contributions before the expected date of childbirth. (Benefits are

also payable to parents of adopted children.)

Paternity leave: Fathers must have 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 onset of incapacity and is payable 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 payable for 12 weeks. The spouse

may take one of the 12 weeks as paternity leave, with the

benefit period for the mother reduced to 11 weeks.

Paternity leave: 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 babies younger than 1 year.

Administrative Organization

Superintendent of Health (http://www.supersalud.gov.co)

provides general supervision.

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90 ♦ SSPTW: The Americas, 2005

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 the self-employed.

Special systems for employees of the state oil company

(Ecopetrol), teachers, armed forces personnel, and national

police personnel.

Source of Funds

Insured person: None.

Self-employed person: 0.348% to 8.7% of declared

earnings, according to the assessed degree of risk.

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage (381,500 pesos).

The maximum earnings for contribution purposes are equal

to 25 times the legal monthly minimum wage (381,500

pesos).

Employer: 0.348% to 8.7% of 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 (381,500 pesos).

The maximum earnings for contribution purposes are equal

to 25 times the legal monthly minimum wage (381,500

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 earnings in the month

before the onset of disability and is payable for up to

180 days; may be extended to 360 days.

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 work accidents or in the last 12 months for

occupational diseases.

Constant-attendance allowance: Equal to 15% of the

pension.

Partial disability: For an assessed degree of disability

between 5% and 49%, the pension is 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 (381,500 pesos).

The maximum earnings for benefit calculation purposes are

equal to 25 times the legal monthly minimum wage

(381,500 pesos).

The minimum pension is equal to the legal minimum wage

(381,500 pesos).

The maximum pension is equal to 20 times the legal minimum

wage (381,500 pesos).

Benefit adjustment: Pensions 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 75%

of the insured’s earnings or 100% of the insured’s disability

pension.

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.

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SSPTW: The Americas, 2005 ♦ 91

Administrative Organization

Ministry of Labor and Social Security, Ministry of Health,

National Banking Superintendent, and the National Council

of Professional Risks 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 workers.

Source of Funds

Insured person: None.

Self-employed person: 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 workers,

and the unemployed.

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 381,500 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 381,500 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.

Income test: Monthly income must not exceed four times

the legal monthly minimum wage (381,500 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.

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92 ♦ SSPTW: The Americas, 2005

Surviving spouse allowance: Twelve months’ payment to

a widow or the guardian of dependent children. If the

dependent dies, the family receives a lump sum equal to

12 monthly payments.

Administrative Organization

Superintendent for Family Subsidies (http://

www.ssf.gov.co) supervises family allowance funds.

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Costa Rica

Exchange rate: US$1.00 equals 474.35 colones.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1941 (social insurance fund).

Current laws: 1993 (pensions), 1995 (self-employed), 1995

(mandatory individual accounts), and 2000 (workers’

protection).

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: Employees in public- and private-sector

employment and the self-employed.

There are no special systems for any specified groups of

employees.

Mandatory individual account: Employees in public- and

private-sector employment.

Exclusions: The self-employed.

Source of Funds

Social insurance

Insured person: 2.5% of gross earnings.

The minimum monthly earnings for contribution purposes

are 88,847 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 88,847 colones.

There are no maximum earnings for contribution purposes.

Employer: 4.5% of payroll.

The minimum monthly earnings for contribution purposes

are 88,847 colones.

There are no maximum earnings for contribution purposes.

Government: 0.25% of total covered earnings.

Mandatory individual account

Insured person: 1% of gross earnings, plus up to a

maximum of 0.19% of gross earnings for administrative fees.

The minimum monthly earnings for contribution purposes

are 88,847 colones.

There are no maximum earnings for contribution purposes.

Self-employed person: Not applicable.

Employer: 3.25% of payroll (1.5% of which is for the

mandatory severance pay scheme).

The minimum monthly earnings for contribution purposes

are 88,847 colones.

There are no maximum earnings for contribution purposes.

Government: None.

Qualifying Conditions

Old-age pension

Old-age pension (social insurance): Age 61 and 11 months

with 462 months of contributions (men) or age 59 and

11 months (women) with 450 months of contributions.

Age 62 with 456 monthly contributions (men) or age 60 with

450 monthly contributions (women) for insured persons

younger than age 44 on November 1, 2005.

Deferred pension: A deferred pension is possible. The total

number of required contributions decreases the longer the

pension is deferred, down to 300 monthly contributions at

age 65 for insured persons younger than age 44 on November 1, 2005.

The maximum pension is 700,000 colones (November 2005).

Retirement from covered employment is not necessary.

The old-age pension is payable abroad.

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.

Age 62 (men) or age 60 (women) for insured persons

younger than age 44 on November 1, 2005.

Retirement from covered employment is necessary; the

pensioner may resume employment 6 months after retirement, in which case social insurance contributions must be

paid.

Deferred pension: A deferred pension is possible.

Old-age benefit (noncontributory): See Family Allowances, below.

Disability pension (social insurance): A loss of 2/3 of

normal earning capacity. The total number of required

contributions varies by age.

The minimum number of required 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.

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94 ♦ SSPTW: The Americas, 2005

Disability grant (social insurance): A loss of 2/3 of normal

earning capacity and with 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 or had

made 12 contributions in the last 24 months or had a total of

180 contributions.

Survivor settlement: The deceased had paid at least

12 contributions but the other requirements for the survivor

pension were not met.

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.

Earnings adjustment: Earnings are adjusted in line with

inflation, according to changes in the consumer price index.

The basic benefit is increased by 0.0835% of average

earnings for each month of contributions above 240, plus an

increment of 1.6% of the pension for each year above

20 years.

The minimum monthly pension is 46,523 colones; if the

calculated pension amount is smaller, a lump sum is paid.

(Beginning January 2006, the minimum monthly pension is

50,000 colones.)

The maximum monthly pension is 700,000 colones. (Beginning January 2006, the maximum monthly pension is 742,000

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 is dependent 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 is dependent

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 based on the highest

48 monthly earnings in the last 5 years of coverage.

The basic benefit is increased by 0.0835% of average

earnings for each month of contributions above 240.

The minimum monthly pension is 46,523 colones; if the

computed pension amount is smaller, a lump sum is paid.

(Beginning January 2006, the minimum monthly pension is

50,000 colones.)

The maximum monthly pension is 700,000 colones. (Beginning January 2006, the maximum monthly pension is

742,000 colones.)

Schedule of payments: Thirteen payments a year.

Disability grant (social insurance): A lump sum 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 older than age 60 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.

In cases when 12 contributions were paid by the deceased

but the other requirements were not met, the survivors have

a right to receive a compensation equal to 1/12 of the

average monthly salary for every covered month and no

less than the minimum pension.

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.

The total maximum survivor pension is 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 equal to 1/12 of the

average monthly salary for each month of insurance

coverage. The settlement must be no less than the minimum

monthly old-age pension.

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SSPTW: The Americas, 2005 ♦ 95

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.

Sickness and Maternity

Regulatory Framework

First laws: 1941 and 1943.

Current laws: 1961, 1973 (health), and 1993 (social insurance).

Type of program: Social insurance system. Cash and

medical benefits.

Coverage

Cash sickness and maternity benefits: Employed

persons, including the self-employed, indigent persons,

prisoners, and pensioners.

Medical benefits: All residents; international agreements

provide emergency medical care for visitors to the country.

Source of Funds

Insured person: 5.5% of gross earnings; pensioners make

a contribution equal to 5% of the pension, which is complemented by an 8.75% contribution made by the Social

Insurance Fund on the pensioner’s behalf.

The minimum earnings for contribution purposes are

88,847 colones.

Self-employed person: The self-employed contribute

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 employer pays 50% of

the cost of maternity benefits, and the Social Insurance

Fund pays the remaining 50% of the cost.)

Government: 0.25% of total covered earnings.

Qualifying Conditions

Cash sickness benefits: Must have contributed in the

month before the onset of incapacity and be currently

registered.

Cash maternity benefits and maternity care: Must have

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: Coverage begins in the month in which

the insured first registers.

Sickness and Maternity Benefits

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

in the last 3 months and is payable after a 3-day waiting

period. Benefits are payable for up to 52 weeks; may be

extended in special cases.

Maternity benefit: The benefit is equal to 50% of earnings

and is payable for 30 days before and 90 days after the

expected date of childbirth.

Funeral grant: 80,000 colones is payable 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).

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96 ♦ SSPTW: The Americas, 2005

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: Total cost, met through insurance premiums

varying 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 minimum salary

plus 75% of the insured’s earnings over this amount. The

benefit is payable from the onset of disability for up to

2 years.

The minimum benefit is equal to the legal minimum wage at

the time of the onset of disability.

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 the minimum wage.

Constant-attendance allowance: 78,275 colones 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 payable for up to 10 years. If the assessed

degree of disability is between 0.5% and 50%, the benefit is

equal to the assessed degree of disability times annual

earnings and is payable 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

payable to a widow or to a disabled widower. The pension

is payable 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 payable 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 payable to the deceased’s mother (30% if there are no

dependent children) for a period of 10 years. A pension is

also payable to a dependent father or other dependent

adults, including those aged 60 or older and unable to work.

The maximum total survivor pension is 75% of the insured’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).

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 insurance system.

Costa Rica
SSPTW: The Americas, 2005 ♦ 97

Coverage

Indigent persons who are not entitled to a contributory

pension.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: 5% of payroll.

Government: 20% of proceeds from the sales tax.

Qualifying Conditions

Family allowances (means-tested): Allowances are

payable to persons older than age 65, disabled persons,

widows with dependents younger than age 18 or disabled,

widows older than age 50 without dependents, and orphans

younger than age 18.

Family Allowance Benefits

Family allowances (means-tested): 13,800 colones a

month for a beneficiary, plus 10% for each dependent up to

a maximum of three.

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.

Costa Rican Social Insurance Fund (http://www.ccss.sa.cr)

administers the program.

Costa Rica
98 ♦ SSPTW: The Americas, 2005

Cuba

Exchange rate: US$1.00 equals 1 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, the self-employed, artists, and members of agricultural

cooperatives.

Source of Funds

Insured person: None.

Self-employed person: 10% of earnings; certain artists

contribute 12% of 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 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: A pension is payable for a partial, total,

or severe disability. The full pension is payable 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, must be assessed

as unable to perform usual work and be employed at the

onset of disability. 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 was employed 6 months before the date of

death and for 75% of his or her adult life.

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 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.

The minimum monthly pension is 164 pesos.

Cuba
SSPTW: The Americas, 2005 ♦ 99

The maximum pension is equal to 90% of the insured’s

average earnings if they were higher than 300 pesos.

Old-age social assistance (means-tested): Benefits may

be paid periodically or as a lump sum.

Benefit adjustment: Benefits are adjusted by government

decree according to social and economic factors.

Permanent Disability Benefits

Disability pension: For an assessed total disability caused

by a general disease, 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 they were higher 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 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 by government

decree according to 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 with no

dependents receives the full pension for a limited period of

2 years.

Free burial services are provided by the government for all

residents.

Survivor social assistance (means-tested): Benefits may

be paid periodically or as a lump sum.

Benefit adjustment: Benefits are adjusted by government

decree according to 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 care) system.

Coverage

Cash sickness and maternity benefits: Employed

persons, members of agricultural cooperatives, armed forces

personnel, interior ministry staff, the self-employed, and

artists.

Medical benefits: All residents.

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: Must be currently employed or

self-employed.

Cuba
100 ♦ SSPTW: The Americas, 2005

Cash maternity benefits: Must be currently employed

with 75 days of employment in the 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 payable 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 payable 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 payable until the child is 12 months old;

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, the self-employed, 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 must be employed at the onset of disability.

Temporary Disability Benefits

The benefit is equal to 80% of the insured’s earnings; if

hospitalized, 70% of earnings. The benefit is payable from

the first day of disability until medical certification expires

(new certification by a medical committee is required every

26 weeks) or 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 by government

decree according to 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 of the

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SSPTW: The Americas, 2005 ♦ 101

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.

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 9 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 by government

decree according to 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 with no

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 by government

decree according to 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.

Cuba
102 ♦ SSPTW: The Americas, 2005

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: 3% of gross 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: 7.65% 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 gross earnings. (Employers also

contribute on their own behalf as self-employed persons.)

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: Payable for an insured person aged 60 or

older who does not meet the qualifying conditions for a

pension but has at least 50 weeks of contributions.

Old-age benefits are payable abroad.

Disability pension: Permanently incapable of work and

younger than age 60 with 150 weeks of paid or credited

contributions.

Disability grant: Permanently incapable of work and

younger than age 60 but does not meet the qualifying

conditions 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 16 (age 18 if a full-time student); dependent parents in the absence of other 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 payable for the

death of the insured, the insured’s noninsured spouse, and

the insured’s dependent children.

Old-Age Benefits

Old-age pension: The pension is equal to 30% of the

insured’s average earnings, plus 2% for every 50-week

period of contributions between 500 weeks and 750 weeks

and 1% for every 50-week period above 750.

Average earnings are based on the insured’s 3 best years of

the last 10 years.

The minimum old-age pension is EC$25.

The maximum old-age pension is equal to 70% of the

insured’s average earnings.

Early pension: There is no early pension.

Deferred pension: The pension is increased by 6% for

every complete year of deferral.

Old-age grant: A lump sum equal to three times the

insured’s average weekly covered earnings for every 50-

week period of paid or credited contributions.

Average weekly covered earnings are based on total

insured 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 every 50-week

Dominica
SSPTW: The Americas, 2005 ♦ 103

period of contributions between 500 weeks and 750 weeks

and 1% for every 50-week period above 750.

Average earnings are based on the insured’s 3 best years of

the last 10 years.

The maximum pension is equal to 70% of average earnings.

Disability grant: A lump sum equal to three times the

insured’s average weekly covered earnings for every 50-

week period of paid or credited contributions.

Average weekly covered earnings are based on total

insured earnings divided by the total number of weeks of

contributions.

Survivor Benefits

Survivor pension: 50% of the deceased’s pension is

payable 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.

The maximum total survivor pension is equal to 100% of the

deceased’s pension.

Survivor grant: A lump sum equal to three times the

deceased’s average weekly covered earnings for every 50-

week period of paid or credited contributions.

Weekly covered earnings are based on total insured

earnings divided by the total number of weeks of contributions.

Funeral grant: A lump sum is payable to the person who

meets the cost of the funeral. EC$1,800 is payable for the

death of the insured; EC$1,500 for the death of a noninsured

spouse; and EC$750 for the death of a dependent child

younger than age 16 (age 18 if a full-time student).

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: The self-employed.

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: Must have 13 weeks of insured

employment immediately before the onset of the incapacity,

including 8 weeks of paid contributions.

Cash maternity benefits: Must have 13 weeks of contributions, with at least 20 weeks in the 30-week period before

the start of maternity leave.

Cash maternity grant: Payable 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: 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 payable from the

first day of incapacity if the incapacity lasts beyond 4 days.

The benefit is payable 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; 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.

Dominica
104 ♦ SSPTW: The Americas, 2005

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: 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 payable until the disability ends, subject to

a maximum of 26 weeks. For an insured person with less

than 13 weeks of insured earnings, the benefit is the

average of the insured weeks, with a minimum number of

2 weeks used as the divisor.

Permanent Disability Benefits

The benefit is based on 60% of average earnings in the last

13 weeks and the assessed degree of disability. The benefit

is payable until the disability ends. For an insured person

with less than 13 weeks of insured earnings, the benefit is

the average of the insured weeks, with a minimum number of

2 weeks used as the divisor.

Constant-attendance allowance: If 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

more 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

payable 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 16

(age 18 if a full-time student). 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.

The maximum total survivor pension is 100% of the

deceased’s pension.

Funeral grant: EC$1,800 is payable for the death of the

insured; EC$1,500 for the death of a noninsured spouse;

and EC$750 for the death of a dependent child younger than

age 16 (age 18 if a full-time student).

Administrative Organization

Ministry of Health and Social Security provides general

supervision.

Governed by the Social Security Board, Dominica Social

Security administers the program.

Dominica
SSPTW: The Americas, 2005 ♦ 105

Dominican Republic

Exchange rate: US$1.00 equals 28.60 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 created a three-part system that will be

implemented in stages. A system of individual accounts for

public- and private-sector workers began in June 2003. The

scheduled introduction in August 2004 of a social assistance program for those with very low income has been

delayed. Subsidized individual accounts for the selfemployed are scheduled to begin in August 2006. 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: The self-employed.

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: 2.28% of gross earnings (to be raised

gradually to 2.88% of gross earnings by 2008), plus a fixed

1% of gross earnings for disability and survivor insurance

and up to a maximum of 0.6% of gross earnings for administrative fees.

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: 5.72% of payroll; includes 0.4% of payroll to

finance minimum pensions (Social Solidarity Fund). (To be

raised gradually to 7.12% of payroll by 2008.)

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.

Contributions include administrative fees for the pension

fund and management companies (AFPs) and the operating

costs of the Superintendent of Pensions, the supervisory

organization.

Government: Finances the subsidized mandatory individual

account and guarantees the minimum pension.

Contributions include administrative fees for the pension

fund and management companies (AFPs) and the operating

costs of the Superintendent of Pensions, the supervisory

organization.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: 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.

Dominican Republic
106 ♦ SSPTW: The Americas, 2005

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):

Payable at any age if severely disabled and indigent.

Survivor pension (mandatory individual account): The

deceased was insured or a pensioner at the time of death.

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: Pensions 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: Pensions 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: Pensions 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 onset of disability. The disability pension ceases at the

normal pensionable age and the old-age pension is payable.

(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 onset of disability.

There is no minimum disability pension.

There is no maximum disability pension.

Benefit adjustment: Pensions 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: Pensions 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 50 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: Pensions 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: Pensions 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.

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SSPTW: The Americas, 2005 ♦ 107

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.

Authorized insurance companies sell annuity products.

Sickness and Maternity

Regulatory Framework

First law: 1947.

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 system. Cash and

universal medical benefits.

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 the self-employed and

home workers and their dependents.

Source of Funds

Insured person: 2.7% of gross earnings (2003). (To be

raised gradually to 3% of gross 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: 6.3% of payroll (2003). (To be raised gradually

to 7% of 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: 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): Must have

12 months of contributions or be a pensioner.

Cash maternity benefits (nonsubsidized): Must have

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: Universal coverage.

Pediatric health care: Universal coverage.

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 prosthesis 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 prosthesis 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.

Dominican Republic
108 ♦ SSPTW: The Americas, 2005

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.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: Total cost, met through contributions that vary

according to the assessed degree of risk. The average

contribution is 1.2% of 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

payable 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

payable 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 full-time

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, above).

Dominican Republic
SSPTW: The Americas, 2005 ♦ 109

Ecuador

Exchange rate: Uses the US dollar (US$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1928.

Current laws: 1998 and 2001 (social security).

Type of program: Social insurance 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

Employees in industry, commerce, and agriculture; government employees; domestic workers; and the self-employed.

Voluntary coverage for the President and Vice-President of

the Republic and government ministers.

Exclusions: Congressmen and family labor (including a

father, mother, spouse, sons younger than age 18, and

dependents).

Special systems for small farmers and armed forces and

police personnel.

Source of Funds

Insured person: 9.15% to 17.5% of gross earnings,

according to occupation.

The minimum earnings for contribution purposes are equal

to the legal minimum wage. The legal minimum wage varies

according to the nature of employment or work.

The maximum earnings for contribution purposes are equal

to 10 times the minimum wage.

Contributions also finance sickness and maternity benefits,

work injury benefits, and unemployment benefits (individual

severance account).

Self-employed person: 17.5% to 20.5% of declared

earnings.

The minimum declared earnings for contribution purposes

are equal to the legal minimum wage. The legal minimum

wage varies according to the nature of employment or work.

The maximum declared earnings for contribution purposes

are equal to 10 times the minimum wage.

Contributions also finance sickness benefits, maternity

benefits, and work injury benefits.

Employer: 9.15% to 20.5% of payroll, according to

occupation.

The minimum earnings for contribution purposes are equal

to the legal minimum wage. The legal minimum wage varies

according to the nature of employment or work.

The maximum earnings for contribution purposes are equal

to 10 times the minimum wage.

Contributions also finance sickness and maternity benefits,

work injury benefits, and unemployment benefits (individual

severance account).

Government: A subsidy for old-age, disability, and

survivor pensions; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 55 with at least 360 months of

contributions if born before November 30, 1946, or age 65

with at least 180 months of contributions. (To be phased in

gradually beginning February 2006, age 60 with at least

360 months of contributions.) The required minimum

number of monthly contributions is reduced if aged 66 or

older.

Early pension: Aged 45 or older before November 30, 2001,

with at least 300 months of contributions or unemployed for

6 months.

Disability pension: Must have 5 years of contributions

including the 6 months before the onset of disability and a

loss of more than 50% of earning capacity.

Survivor pension: The deceased had 5 years 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 death, children younger

than age 18 (no limit if disabled), a dependent mother and

father, and brothers and sisters younger than age 18 (no

limit if disabled).

Survivor settlement: The insured did not meet the

qualifying conditions for a pension but had up to 59

contributions.

Funeral grant: The deceased had 6 months of contributions in the last 12 months or was a pensioner. The grant is

also payable for a dependent.

Old-Age Benefits

Old-age pension: The monthly pension is equal to 50% of

the insured’s monthly average earnings with at least 120

months of contributions; 75% of the insured’s monthly

average earnings with 360 months of contributions; and

100% of the insured’s monthly average earnings with 480

months of contributions. With more than 480 months of

Ecuador
110 ♦ SSPTW: The Americas, 2005

contributions, the pension is increased for each additional

year of coverage.

Average earnings for benefit calculation purposes are based

on the 5 best years of earnings.

The minimum pension is US$25; US$12 for domestic

workers.

The maximum pension is US$240.

Working old-age pensioners may also receive pension

benefits if they rejoin the social security scheme.

Early pension: A reduced pension is paid.

Schedule of payment: Fourteen payments a year.

Benefit adjustment: Pensions are adjusted annually

according to scheme reserve funds.

Permanent Disability Benefits

Disability pension: The pension is based on monthly

average earnings and the number of years of paid contributions. After 40 years of contributions, the pension is

increased for each additional year of coverage.

Average earnings for benefit calculation purposes are based

on the 5 best years of earnings.

The minimum pension is US$25; US$12 for domestic

workers.

Schedule of payment: Fourteen payments a year.

Benefit adjustment: Pensions are adjusted annually

according to scheme reserve funds.

Survivor Benefits

Survivor pension: 40% of the deceased’s pension is

payable to a widow(er) or partner.

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 survivor’s pension: A mother or father

receives 20% of the insured’s pension; each brother or

sister who is younger than age 18, disabled, or a student

receives 10% of the insured’s pension.

The minimum survivor pension is equal to the legal minimum wage, plus income support for a family group.

The maximum survivor pension is equal to 100% of the

deceased’s pension for a family group.

Survivor settlement: The total contributions are refunded

as a lump sum.

Death grant: Twenty-one times the minimum wage, minus

the value of the funeral grant, is paid to the person who

pays for the funeral.

Funeral grant: Up to US$450.

Administrative Organization

Under the direction of the Minister of Social Welfare, the

Advisory Council (http://www.mbs.gov.ec) provides general

supervision.

Social Security Institute administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1935.

Current laws: 1942, 1964, and 2001 (social security).

Type of program: Social insurance system. Cash and

medical benefits.

Coverage

Employees in industry, commerce, and agriculture; government employees; domestic workers; and the self-employed.

Voluntary coverage for the President and Vice-President of

the Republic, government ministers, and part-time workers.

Exclusions: Congressmen and family labor (including a

father, mother, spouse, sons younger than age 18, and

dependents).

Medical benefits are available to all insured persons.

Special system for small farmers.

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: Must have at least 6 months of

contributions before the onset of incapacity.

Cash maternity benefits: 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: Must have at least 180 days of consecutive contributions in the 6 months before the onset of

illness or at least 189 days of contributions in the 8 months

before the onset of illness. For the voluntarily insured,

360 days of consecutive contributions in the 12 months

Ecuador
SSPTW: The Americas, 2005 ♦ 111

before the onset of illness or at least 378 days of contributions in the 16 months before the onset of illness. Benefits

are provided 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 onset of incapacity. The benefit is

payable 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 payable 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

Under the direction of the Minister of Social Welfare, the

Advisory Council (http://www.mbs.gov.ec) provides general

supervision.

Social Security Institute administers the program.

Social Security Institute operates its own clinics, dispensaries, and hospitals.

Work Injury

Regulatory Framework

First law: 1921.

Current laws: 1964 and 2001 (social security).

Type of program: Social insurance system.

Coverage

All insured persons, including public employees, domestic

workers, and self-employed workers.

Exclusions: Congressmen and family labor (including a

father, mother, spouse, sons younger than age 18, and

dependents).

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.

Occupational disease benefits: Must have 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 onset of disability;

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 onset of disability 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 in the last year or in the previous 5

years if earnings were higher (100% of average earnings in

cases of severe disability requiring constant attendance).

Partial disability: A percentage of the full pension is paid

according to the assessed degree of disability, based on the

schedule in law.

The minimum pension is US$25; US$12 for domestic

workers.

Schedule of payments: Fifteen payments a year.

Benefit adjustment: Pensions are adjusted annually

according to scheme reserve funds.

Ecuador
112 ♦ SSPTW: The Americas, 2005

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

payable to a widow(er) or partner.

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.

Funeral grant: Twenty-four times the minimum wage is

paid to the person who pays for the cost of the funeral.

Administrative Organization

Under the direction of the Minister of Social Welfare, the

Advisory Council (http://www.mbs.gov.ec) provides general

supervision.

Social Security Institute 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 monthly contributions.

Social insurance: Must have at least 60 months of contributions. The benefit is payable after 90 days of unemployment or if unemployment is the result of the onset of a

permanent disability.

Unemployment Benefits

Individual severance account: A lump sum equal to three

times the insured’s average wage in the last 12 months is

paid. (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

equal to three times the insured’s average wage in the last

12 months is paid.

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: Savings managing

institutions (EDAPs) manage the accounts.

Banking Superintendent (http://www.superban.gov.ec)

supervises the EDAPs.

Social insurance: Under the direction of the Minister of

Social Welfare, the Advisory Council (http://

www.mbs.gov.ec) provides general supervision.

Social Security Institute administers the program.

Ecuador
SSPTW: The Americas, 2005 ♦ 113

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.

Ecuador
114 ♦ SSPTW: The Americas, 2005

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: The 1996 law established a system of mandatory

individual accounts. The social insurance system is closed

to new entrants and will be phased out. Those who were

younger than age 36 in 1997 transferred to the private

insurance system; those who were aged 36 or older but

younger than age 55 (men) or age 50 (women) could join

voluntarily.

Coverage

Mandatory individual account: All employees in the

private, public, and municipal sectors not covered under

social insurance.

Voluntary coverage for the self-employed.

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: 3.25% of 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$151.20 in the

manufacturing for export sector; US$158.40 for all other

sectors.)

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 income, plus up to a maximum of 1.28% of declared

income for disability and survivor insurance and up to a

maximum of 1.71% of declared income for administrative

fees.

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage. (US$151.20 in the

manufacturing for export sector; US$158.40 for all other

sectors.)

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: 6.75% of earnings.

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage. (US$151.20 in the

manufacturing for export sector; US$158.40 for all other

sectors.)

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 who switched to 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 equals at least 60%

of the base salary (average earnings in the last 20 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.

Disability pension: The insured was actively contributing

to an individual account before the onset of disability (in

the case of a common accident); unemployed persons must

have 6 months of contributions in the 12 months before the

onset of disability.

The degree of disability is assessed by the Disability

Commission.

Guaranteed minimum pension: Must have 10 years of

contributions or contributions in 3 of the 5 years before the

onset of disability. The pension (based on the value of the

accumulated capital plus accrued interest) is less than the

minimum pension set by law.

El Salvador
SSPTW: The Americas, 2005 ♦ 115

Constant-attendance supplement: Paid if the insured

requires the constant attendance of another person.

Survivor pension: The deceased was a pensioner or

actively contributing to an individual account before death;

unemployed persons must have had 6 months of contributions in the 12 months before the date of death.

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 or contributions in 3 of the 5 years before

death. 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 30 years of contributions.

Disability pension: 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 onset of disability.

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.

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 life span 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$114 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$114.

The maximum monthly pension is equal to 100% of the base

salary.

Permanent Disability Benefits

Mandatory individual account

Disability pension: The pension is equal to 70% of the base

salary for a total disability. (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 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$114 a month for a total

disability; US$79.80 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$114.

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

payable 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.

Parent’s pension: Each parent receives 20% of the

deceased’s pension; 30% if there is only one surviving

parent.

In the absence of a surviving spouse (or partner), the

pension for surviving children or parents is increased.

Guaranteed minimum pension: US$114 a month.

The minimum survivor pension is a percentage of the

minimum old-age pension.

Social insurance

Survivor pension: 50% of the deceased’s pension is

payable 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 disabled, a female partner who cohabited with

El Salvador
116 ♦ SSPTW: The Americas, 2005

the deceased for the last 3 years (or who is pregnant or had

a child with the deceased) or is disabled, and 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 payable 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.

The total survivor pension 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. Cash and

medical benefits.

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 earnings. Pensioners contribute

7.8% of the old-age pension or disability pension and 6% of

work injury pensions.

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage. (US$151.20 in the

manufacturing for export sector; US$158.40 for all other

sectors.)

The maximum earnings for contribution purposes are equal

to gross monthly earnings. Gross monthly earnings must

not exceed the national public-sector maximum wage.

The above 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$151.20 in the

manufacturing for export sector; US$158.40 for all other

sectors.)

The maximum earnings for contribution purposes are equal

to gross monthly earnings. Gross monthly earnings must

not exceed the national public-sector maximum wage.

The above contributions also finance work injury benefits.

Employer: 7.5% of payroll.

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage. (US$151.20 in the

manufacturing for export sector; US$158.40 for all other

sectors.)

The maximum earnings for contribution purposes are equal

to gross monthly earnings. Gross monthly earnings must

not exceed the national public-sector maximum wage.

The above contributions also finance work injury benefits.

Government: An annual subsidy.

The above subsidy also finances work injury benefits.

Qualifying Conditions

Cash sickness benefits: There is no minimum qualifying

period if the insured is in current employment; if unemployed, 8 weeks of contributions in the last 3 months before

the onset of incapacity.

Cash maternity benefits: Must have 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 payable after a 3-day waiting

period for up to 52 weeks for the same incapacity.

Maternity benefit: The benefit is equal to 75% of average

earnings and is payable 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).

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SSPTW: The Americas, 2005 ♦ 117

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 for sickness

and accidents. Children up to age 6 receive ambulatory care

and preventative dental 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 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 payable from the day after the onset of disability

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$114.

Dependent child allowance: A monthly amount for each

dependent child younger than age 16 (age 21 if a student) or

disabled.

Constant-attendance supplement: Up to 50% of the

pension.

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 35%, a

pension equal to double the amount of the permanent

disability pension based on the assessed degree of disability is payable 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

payable to a spouse.

Orphan’s pension: Each child receives 30% of the

deceased’s pension.

The maximum survivor pension is equal to 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 and contracts services from the Ministry of Health

and the private sector where required.

El Salvador
118 ♦ SSPTW: The Americas, 2005

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 monthly gross 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: 6.75% of monthly gross 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 and maternity benefits.

Employer: 5% of monthly gross wages.

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. (For late

application, the insured will receive only 1 year of any

retroactive payment due.)

Old-age grant: Age 60 and does not meet the qualifying

conditions for the old-age pension. Must have at least

50 weeks of paid or credited contributions.

Old-age benefits are payable abroad.

Disability pension: Younger than age 60 with 150 weeks of

paid contributions and an assessed degree of disability of

30% or more.

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 the deceased’s widow(er) and

children.

Survivor benefits are payable abroad.

Funeral grant: The deceased was a pensioner or was

eligible for an old-age grant or a disability grant at the time

of death. The grant is payable for the funeral of the insured,

the insured’s spouse, and the insured’s children. The

funeral grant is payable to the person who meets the cost of

the funeral.

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 over 500 weeks.

The minimum weekly pension is EC$40.

The maximum weekly pension is EC$297.70.

Partial pension: The pension is equal to 16% of average

weekly earnings, plus 1% of earnings for each 25-week

period of contributions over 150 weeks up to 499 weeks.

Average weekly earnings are based on average annual

earnings in the best 3 years divided by 52.

Early pension: There is no early pension.

Deferred pension: There is no deferred pension. (For late

application, the insured will receive only 1 year of any

retroactive payment due.)

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SSPTW: The Americas, 2005 ♦ 119

Old-age grant: A lump sum equal to five times average

weekly insurable earnings is paid for each 50-week period of

contributions.

Average weekly insurable earnings are based on the sum of

the 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 earnings for each 50-

week period of contributions over 500 weeks.

Average weekly earnings are based on average annual

earnings in the best 3 years divided by 52.

The minimum weekly pension is EC$40.

The maximum weekly pension is equal to 60% of average

earnings.

Disability grant: A lump sum equal to five times average

weekly insurable earnings is paid for each 50-week period of

contributions.

Average weekly insurable earnings are based on the sum of

the weekly earnings for the relevant period divided by the

number of weeks.

Benefit adjustment: Benefits are reviewed periodically.

Survivor Benefits

Survivor pension: 75% of the deceased’s pension is

payable to a widow aged 50 or older or disabled or to a

dependent disabled widower. A limited pension is payable

for a year to a widow who is younger than age 50.

Orphan’s pension: 25% of the deceased’s pension is paid

for each child younger than age 16 (age 18 if a full-time

student); 50% for each disabled child or full orphan.

The minimum weekly pension is EC$8.50; EC$17 for a

disabled child or full orphan.

The maximum survivor pension is equal to 100% of the

deceased’s pension.

Survivor grant: A lump sum equal to five times average

weekly insurable earnings for each 50-week period of

contributions.

Average weekly insurable earnings are based on the sum of

the weekly earnings for the relevant period divided by the

number of weeks.

Funeral grant: EC$2,000 is paid for the insured’s funeral;

EC$1,500 for the funeral of the insured’s spouse; EC$750 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 law: 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: Employed on the day before the

onset of incapacity with at least 13 weeks of contributions,

including 8 of the 13 weeks before the onset of incapacity.

Cash maternity benefits: 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 grant: The grant is payable to the uninsured

wife of an insured man.

Maternity leave: Provided by employers to insured

employees.

Funeral grant: The deceased was receiving or was entitled

to receive sickness or maternity benefits at the time of

death. The grant is payable to the person who meets the

cost of the funeral.

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120 ♦ SSPTW: The Americas, 2005

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 65% of average

weekly insurable earnings in the 13 weeks before the onset

of incapacity. The benefit is payable 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.

Maternity benefit: The benefit is equal to 65% of average

weekly insurable earnings in the 30 weeks before the start of

the claim. The benefit is payable 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$450.

Maternity leave: The employer provides an additional 40%

of average insurable earnings for 2 months of the 3-month

maternity leave period.

Maternity grant: The minimum grant is EC$450.

Funeral grant: EC$2,000.

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 aged 16 to 59.

Exclusions: The self-employed. (Coverage may be extended

to the self-employed before the end of 2006.)

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 the total 5% of gross monthly wages 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 insurable

earnings in the last 13 weeks. The benefit is payable 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

For total disability (100%), the benefit is equal to 70% of

average weekly insurable 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%.

If the assessed degree of disability is less than 30%, a lump

sum is paid.

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

only once.

There is no maximum period for which the benefit is

payable.

Constant-attendance allowance: Equal to 50% of the

benefit, if 100% disabled.

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.

Survivor Benefits

Survivor pension: 75% of the deceased’s pension is

payable to a widow(er) for life.

The pension ceases on remarriage.

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SSPTW: The Americas, 2005 ♦ 121

Orphan’s pension: Each child younger than age 16 (age 18

if a full-time student) receives 25% of the deceased’s

pension; 50% for each disabled child or full orphan.

The minimum weekly pension is EC$8.50; EC$17 for a

disabled child or 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 payable

for a maximum of 52 weeks from the insured’s date of death.

The minimum weekly pension is EC$8.50; EC$17 for a

disabled child or full orphan.

The maximum total survivor pension is 100% of the

deceased’s pension.

Funeral grant: EC$2,000 is payable to the person who

meets the cost of the funeral.

Benefit adjustment: Benefits are reviewed periodically.

Administrative Organization

Ministry of Housing, Social Security, and Women’s Affairs

provides general supervision.

National Insurance Board (http://www.nisgrenada.org)

administers the program.

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122 ♦ SSPTW: The Americas, 2005

Guatemala

Exchange rate: US$1.00 equals 7.59 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.

Coverage

Employees, including agricultural workers and some publicsector employees.

Voluntary coverage for the self-employed.

Special system for other public-sector employees.

Source of Funds

Insured person: 1.83% of gross 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 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: Assessed as disabled with at least

36 months of contributions in the last 6 years and 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 age 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

beyond 120 months.

Dependent’s supplement: 10% of the insured’s pension 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 beyond 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 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.

Constant-attendance supplement: 25% of the insured’s

pension is paid for a severe disability.

Guatemala
SSPTW: The Americas, 2005 ♦ 123

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.

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.

The maximum total survivor pension is 100% of the

deceased’s pension; the sum of the minimum monthly

pensions must not exceed 340 quetzales.

Funeral grant: A lump sum of 600 quetzales.

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. Cash and

medical benefits.

Coverage

Employees of firms with three or more workers. Freight or

passenger transport enterprises with one or more workers.

Exclusions: The self-employed.

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 payroll.

There are no maximum earnings for contribution purposes.

Government: 2% of payroll.

There are no maximum earnings for contribution purposes.

Qualifying Conditions

Cash sickness and maternity benefits: Three months of

contributions in the 6 months before the onset of incapacity.

Medical benefits: 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). The benefit

is payable 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 payable 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.

Guatemala
124 ♦ SSPTW: The Americas, 2005

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 first-aid

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: The self-employed.

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 payroll.

There are no minimum and maximum earnings for contribution purposes.

Government: 1.5% of payroll.

There are no minimum and maximum earnings for contribution purposes.

Qualifying Conditions

Work injury benefits: 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 payable 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

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.

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SSPTW: The Americas, 2005 ♦ 125

Guyana

Exchange rate: US$1.00 equals

203 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.

Coverage

All public- and private-sector employees and the selfemployed between ages 16 and 59.

Voluntary coverage is possible for previously insured

persons until age 60.

Exclusions: Employees earning below G$7.50 a week, casual

employees, and family labor.

Source of Funds

Insured person: 5.2% of gross earnings. The voluntarily

insured contribute 9.3% of average weekly income in the

last 2 years before covered employment ceased.

The maximum weekly earnings for contribution and benefit

purposes are G$21,420. The maximum insurable 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 monthly payroll.

The maximum weekly earnings for contribution and benefit

purposes are G$21,420. The maximum insurable 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: The insured does not meet the qualifying

conditions for a pension but made at least 50 weeks of

contributions before age 60.

Old-age benefits are not payable abroad.

Disability pension: Aged 16 to 59 and permanently

disabled with a minimum of 250 weekly paid or credited

contributions, including at least 150 weeks of paid contributions; 25 weeks of contributions are credited for each year

between the onset of disability and age 60.

The assessed degree of disability is reviewed by the

National Insurance Medical Board when required.

Disability grant: The insured does not meet the qualifying

conditions for a pension but made at least 50 weeks of

contributions before the onset of disability.

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: 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 has paid at least 50 weeks of

contributions. The grant is payable 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 every 50-week period

of contributions above 750.

Average weekly covered earnings are based on the

insured’s best 3 years of the last 5 years before age 60.

The maximum weekly earnings for benefit calculation

purposes are G$21,420.

The minimum pension is 50% of the minimum wage.

The public service minimum wage is G$24,192.

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126 ♦ SSPTW: The Americas, 2005

The maximum pension is 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 every 50-week period

of paid or credited contributions.

Average weekly covered earnings are based on the

insured’s best 3 years of 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 every 50-week period

of contributions above 250.

Average weekly covered earnings are based on the

insured’s best 3 years of the last 5 years before the onset of

disability.

The maximum weekly earnings for benefit calculation

purposes are G$21,420.

The minimum pension is 40% of the minimum wage.

The public service minimum wage is G$24,192.

The maximum pension is 60% of the insured’s average

weekly covered earnings.

Constant-attendance allowance: G$200 a day if 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 every 50-week period

of paid or credited contributions.

Average weekly covered earnings are based on the

insured’s best 3 years of the last 5 years before the onset of

disability.

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 orphan receives a pension

equal to 33.3% of the pension paid or payable to the

deceased, up to a maximum of three orphans.

The total maximum survivor pension is equal to 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.

Funeral grant: G$12,860 is paid to the person who meets

the cost of the funeral.

Administrative Organization

Minister of Finance provides general supervision.

Ministry of Labour, Human Services, and Social Security

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 the selfemployed between ages 16 and 59.

Exclusions: Employees earning below 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, be in covered employment in 8 of the 13 weeks

before the onset of incapacity, and have 50 weeks of

contributions.

Cash maternity benefits: The insured must have 15 weeks

of contributions, including 7 in the 26-week period ending

6 weeks before the expected date of childbirth.

Cash maternity grant: Payable to an insured woman who

does not meet the qualifying conditions 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 in the best 8 weeks in the 13 weeks

before the onset of incapacity. The benefit is payable from

the fourth day of incapacity, for up to a maximum of

26 weeks.

Maternity benefit: The benefit is equal to 70% of average

weekly covered earnings in the best 7 weeks in the 26 weeks

before the start of the benefit. The benefit is payable for

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SSPTW: The Americas, 2005 ♦ 127

13 weeks, including the week of childbirth plus 6 weeks

before and 6 weeks after; may be extended for up to

13 additional weeks if complications arise.

Maternity grant: A lump sum of G$2,000.

Workers’ 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

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 Labour, Human Services, and Social Security

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: Employees earning below G$7.50 a week, casual

employees, family labor, and the self-employed.

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 insurable 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 during the best 8 weeks in the 13 weeks before the

onset of disability. The benefit is payable after the first day

if the injury lasts for more than 3 days, for up to 26 weeks.

Permanent Disability Benefits

Permanent disability pension: For a total disability

(100%), the pension is equal to 70% of average weekly

covered earnings in the best 8 weeks in the 13 weeks before

the onset of disability.

Constant-attendance allowance: G$200 a day 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 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 orphan younger than age 18

receives a pension equal to 23.3% of the deceased’s weekly

earnings.

The minimum orphan’s pension is 33.3% of the old-age or

disability minimum pension.

Death benefit: Up to G$250 to the insured’s creditors or

estate, in the absence of any dependents.

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128 ♦ SSPTW: The Americas, 2005

Administrative Organization

Minister of Finance provides general supervision.

National Insurance Board administers the program.

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SSPTW: The Americas, 2005 ♦ 129

Haiti

Exchange rate: US$1.00 equals 38.15 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, and agricultural firms.

Exclusions: Unpaid family labor, the self-employed,

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: The insured does not meet the

qualifying conditions for a pension.

Disability pension: Total incapacity for work with between

10 and 20 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.

Survivor settlement: The insured did not meet the

qualifying conditions for a pension at the time of death.

Old-Age Benefits

Old-age pension: The pension is equal to 33% of the

insured’s average earnings in the last 10 years.

The national monthly minimum wage is 2,100 gourdes.

Average earnings are not adjusted for inflation.

Benefit adjustment: Benefits are not indexed.

Old-age settlement: A refund of contributions without

accrued interest.

Permanent Disability Benefits

Disability pension: The pension is equal to 1/60 of the

insured’s average earnings for each year of coverage in the

10 years before the onset of disability.

The national monthly minimum wage is 2,100 gourdes.

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.

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, and agricultural firms in specified districts.

Exclusions: The self-employed.

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.

Haiti
130 ♦ SSPTW: The Americas, 2005

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 payable 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.

The national monthly minimum wage is 2,100 gourdes.

Permanent Disability Benefits

Permanent disability pension: For a total disability, the

pension is equal to 66.6% of the insured’s earnings. The

insured must be younger than age 55.

The national monthly minimum wage is 2,100 gourdes.

Partial disability: For an assessed degree of disability of

10% or more, a percentage of the total pension according to

the assessed degree of disability is paid. 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 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 pension is

paid.

The maximum total survivor pension is 80% of the

deceased’s pension.

Funeral grant: The grant is equal to a month of the

deceased’s 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.

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SSPTW: The Americas, 2005 ♦ 131

Honduras

Exchange rate: US$1.00 equals 18.86 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 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 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 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: A loss of 2/3 of earning capacity in the

usual occupation with 36 months of contributions in the last

6 years; 8 months of contributions in the last 24 months in

the case 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: Disabled and 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 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.

The maximum pension is equal to 80% of covered earnings.

Disability settlement: The total contributions are refunded

as a lump sum.

Honduras
132 ♦ SSPTW: The Americas, 2005

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 payable to each

eligible parent.

The maximum survivor pension is equal to 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 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. Cash and

medical benefits.

Coverage

Public-sector employees and employees of firms in industry

and commerce with one or more workers in specified

regions; children of insured persons younger than age 5;

disability pensioners; and old-age pensioners.

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 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 above contributions also finance work injury benefits.

Self-employed person: Not applicable.

Employer: 5% of 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 above 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 above contributions also finance work injury benefits.

Qualifying Conditions

Cash sickness benefits: Must have 35 days of contributions in the 3 months before the onset of incapacity.

Cash maternity benefits: Must have 75 days of contributions in the last 10 months.

Medical benefits: Currently in insured employment or

unemployed.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 66% of the

insured’s earnings in the last 3 months and is payable 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 payable for 6 weeks before and

6 weeks after the expected date of childbirth.

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,

Honduras
SSPTW: The Americas, 2005 ♦ 133

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 worked for a month in

insured employment.

Temporary Disability Benefits

The benefit is equal to 66% of the insured’s daily wage and

is payable after a 3-day waiting period for up to 52 weeks.

The maximum daily wage for benefit calculation purposes is

4,800 lempiras.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to

66% 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, whichever is

greater.

Constant-attendance supplement: Up to a maximum of 50%

of the insured’s pension.

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 payable to a

mother of any age or a father older than age 65 or disabled.

The maximum survivor pension is 100% of the deceased’s

pension.

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.

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134 ♦ SSPTW: The Americas, 2005

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.

Honduras
SSPTW: The Americas, 2005 ♦ 135

Jamaica

Exchange rate: US$1.00 equals

61.61 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$400 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 gross

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 insurable annual earnings.

The maximum earnings for contribution purposes are

J$9,620 a week or J$500,000 a year.

Employer: 2.5% of wages.

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

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 13 weeks and 38 weeks.

Early pension: There is no early pension.

Deferred pension: A deferred pension is possible.

Old-age settlement: The insured does not meet the

qualifying conditions for a pension. A lump sum is paid if

the insured 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: Assessed as permanently incapable of

work with a minimum of 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: The insured does not meet the

qualifying conditions for a pension. A lump sum is paid if

the insured 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: The deceased did not meet the

qualifying conditions for a pension but had at least

52 weeks of contributions. A surviving spouse must have

been married or cohabiting with the deceased for at least

3 years.

Special child’s benefit: Payable to a guardian caring for an

illegitimate child younger than age 18 who is orphaned and

Jamaica
136 ♦ SSPTW: The Americas, 2005

whose deceased mother was eligible for a pension and

whose father is dead or his whereabouts are unknown; a

lump sum is paid if the deceased mother was not eligible for

a pension.

Funeral grant: 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$900 a week with an

annual average of 39 weeks of paid or credited contributions (reduced to J$675 a week with annual average contributions of between 26 weeks and 38 weeks; J$450 with

13 weeks to 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$300 a week 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 oldage pension, above.

Old-age settlement: A lump sum of J$8,100.

Permanent Disability Benefits

Disability pension: If assessed as 100% disabled, a basic

benefit of between J$100 and J$1,740 a week is paid.

Disability settlement: A lump sum is paid equal to nine

times the maximum weekly basic old-age pension (J$8,100).

Survivor Benefits

Survivor pension: A basic benefit of J$900 a week if the

deceased had an annual average of 39 weeks of paid or

credited contributions (reduced to J$675 a week with annual

average contributions of between 26 weeks and 38 weeks;

J$450 with 13 weeks to 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.

Remarriage settlement: The pension ceases if the widow(er)

remarries (or cohabits), and a lump sum equal to a year’s

pension is paid.

Survivor settlement: A lump sum of J$8,100.

Orphan’s pension: J$1,575 a week for full orphans younger

than age 18.

Orphan’s settlement: A lump sum of J$8,100 for full

orphans younger than age 18.

Special child’s benefit: J$1,575 is paid each week until the

child is age 18; a lump sum of J$14,625 is paid if the deceased mother was not eligible for a pension.

Funeral grant: A lump sum of J$30,000 is payable to the

person who meets all or part of the cost of the funeral. The

funeral grant is normally not payable for a death occurring

abroad.

Administrative Organization

Ministry of Labor and Social Security administers the

program through its National Insurance Division and local

offices.

Public Assistance Division of the Ministry of Labor and

Social Security 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: Resident female employees

aged 18 or older.

Exclusions: Self-employed women.

Medical benefits: All residents.

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.

Qualifying Conditions

Cash sickness benefits: No statutory benefits are

provided.

Cash maternity benefits: Must have 26 weeks of paid

contributions in the 52 weeks before the expected date of

childbirth.

Jamaica
SSPTW: The Americas, 2005 ♦ 137

Medical benefits: Resident in Jamaica.

Sickness and Maternity Benefits

Sickness benefit: No statutory benefits are provided.

Maternity benefit: The benefits is equal to the national

minimum weekly wage and is payable for 8 weeks.

The national minimum weekly wage is J$2,400.

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 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, the selfemployed, 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 equal to 75% of the minimum

wage and is payable after a 3-day waiting period for up to

52 weeks.

The maximum benefit is J$1,740 a week.

The minimum wage is J$2,000.

Permanent Disability Benefits

Permanent disability pension: If assessed as between

95% and 100% disabled, the pension is equal to 75% of

average insurable earnings.

The maximum daily earnings for benefit calculation purposes are J$290.

Partial disability: For an assessed degree of disability of at

least 10%, a percentage of the full pension is paid according

to the loss of earning capacity.

The disability is assessed by a medical board or medical

appeal tribunal.

The minimum benefit is J$100 a week.

The maximum benefit is J$1,740 a week.

Workers’ Medical Benefits

Benefits include necessary medical, surgical, and rehabilitative treatment; appliances; hospitalization; and drugs.

Survivor Benefits

Survivor pension: The maximum work injury benefit is

payable for the first 52 weeks; thereafter, if the contribution

conditions are satisfied, a widow(er) pension is payable.

The minimum survivor pension is J$450 a week.

The maximum survivor pension is J$900 a week.

Jamaica
138 ♦ SSPTW: The Americas, 2005

The pension is payable for 52 weeks after the insured’s

death 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.

Funeral grant: A lump sum of J$30,000 is payable to the

person who meets all or part of the cost of the funeral. The

funeral grant is normally not payable for a death occurring

abroad.

Administrative Organization

Ministry of Labor and Social Security administers the

program through its National Insurance Division and local

offices.

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: 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 heath centers.

Family Allowance Benefits

Family allowances: Each eligible family member receives

J$400 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 assesses eligibility and administers social

assistance benefits as part of the Programme of Advancement Through Health and Education (PATH).

Jamaica
SSPTW: The Americas, 2005 ♦ 139

Mexico

Exchange rate: US$1.00 equals

10.88 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 and 2004 amendments.

Type of program: Mandatory individual account and

social insurance system.

Note: As of 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 workers 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 the self-employed.

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 earnings for old-age benefits,

plus an average 0.625% of earnings for disability and

survivor benefits and an additional amount for administrative fees.

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

(1,631.12 NP).

Self-employed person: 6.275% of declared earnings for

old-age benefits; 2.375% 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 (1,631.12 NP).

Employer: 5.15% of payroll for old-age benefits, plus an

average 1.75% of payroll for disability and survivor benefits. Also finances unemployment 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

(1,631.12 NP).

Government: An amount equal to 10.14% of the total

employer contributions for old-age benefits, plus an

average 0.125% of earnings for disability and survivor

benefits and a flat-rate amount to finance the guaranteed

minimum pension. Also provides an additional contribution

on behalf of persons actively contributing to an individual

account.

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, a lump sum is paid or the insured may

continue contributing.

Early pension: Aged 60 to 64 (men and women), retired from

covered employment, and with at least 1,250 weekly

contributions; with less than 1,250 weekly contributions, a

lump sum is paid.

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.

Disability pension: The insured has at least 150 weeks of

contributions with a loss of at least 75% in normal earning

capacity; at least 250 weeks of contributions with a loss of

between 50% and 70% 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 monthly pension of 1,631.12 NP.

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 deceased

being younger than age 55 at the date of marriage; if the

deceased was age 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 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

Mexico
140 ♦ SSPTW: The Americas, 2005

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.

Early pension: Aged 60 to 64 (men or women) with at least

500 weeks of contributions.

Retirement from covered employment is necessary.

The pension is suspended if the pensioner leaves Mexico,

and the pensioner may request a lump sum equal to 2 years’

pension.

Disability pension: Must have a 50% reduction in normal

earning capacity with 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 age 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 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 is

based 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 based 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 the minimum monthly wage in Mexico

City (1,631.12 NP).

Old-age pensions are payable abroad under bilateral

agreement.

Benefit adjustment: Pensions 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 average

earnings during the last 250 weeks of contributions, plus

1.25% of earnings for every year of contributions beyond

500 weeks. The pension is increased by 15% if there are no

dependents.

Dependent’s supplement: 15% of the insured’s pension is

payable for a wife or partner and 10% is payable 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 payable for each dependent parent.

The minimum pension is equal to 100% of the minimum

monthly wage in Mexico City (1,631.12 NP).

The maximum pension is equal to 100% of the insured’s

average earnings in the last 250 weeks of contributions.

The percentage may be increased, depending on total

number of weeks of contributions.

Christmas bonus: Equal to a month’s pension without

supplements.

Early pension: The monthly benefit is equal to 75% of the

old-age pension for an insured person who retires at age 60

and increases by 5% for each additional year of age up to

age 64. The pension is increased by 15% if there are no

dependents.

Old-age pensions are payable abroad under bilateral

agreement.

Benefit adjustment: Pensions 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 average adjusted earnings in the last 500

weeks of contributions.

Dependent’s supplement: 15% of the insured’s pension is

payable for a wife or partner and 10% is payable 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 payable for each dependent parent.

Constant-attendance allowance: Up to 20% of the insured’s

pension.

The minimum pension is equal to 100% of the minimum

monthly wage in Mexico City (1,631.12 NP).

The maximum pension is equal to 100% of the insured’s

average earnings in the last 500 weeks of contributions.

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

Mexico
SSPTW: The Americas, 2005 ♦ 141

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.

Disability pensions are payable abroad under bilateral

agreement.

Benefit adjustment: Pensions 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 average

earnings during the last 250 weeks of contributions, plus

1.25% of earnings for every year of contributions beyond

500 weeks. The pension is increased by 15% if there are no

dependents.

Constant-attendance allowance: Up to 20% of the insured’s

pension.

Dependent’s supplement: 15% of the insured’s pension is

payable for a wife or partner and 10% is payable 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 payable for each dependent parent.

The minimum pension is equal to 100% of the minimum

monthly wage in Mexico City (1,631.12 NP).

The maximum pension is equal to 100% of average earnings

in the last 250 weeks of contributions. The percentage may

be increased, depending on total number of weeks of

contributions.

Christmas bonus: Equal to a month’s pension without

supplements.

Disability pensions are payable abroad under bilateral

agreement.

Benefit adjustment: Pensions 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.

Eligibility ceases if the widow(er) or partner remarries or

cohabits with a new partner.

Remarriage settlement: If a widow(er) or a partner remarries,

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 the above, 20%

of the deceased’s pension is paid for each eligible survivor.

The amount payable may be recalculated if the number of

eligible survivors changes.

The maximum pension is equal to 100% of the pension paid

or payable to the deceased.

Survivor pensions are payable abroad under bilateral

agreement.

Funeral grant: A lump sum equal to twice the insured’s

monthly salary or pension.

Benefit adjustment: Pensions 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 and 2004 amendments.

Type of program: Social insurance system. Cash and

medical benefits.

Coverage

Employees; members of producers’, agricultural, and credit

union cooperatives; pensioners; and dependents.

Voluntary coverage for self-employed persons, domestic

workers, public-sector employees not covered by other

laws, family labor, and employers.

Special systems for public-sector employees.

Source of Funds

Insured person

Cash benefits: 0.25% of gross monthly earnings.

Mexico
142 ♦ SSPTW: The Americas, 2005

Medical benefits: None; 0.88% of earnings exceeding

4,893.36 NP if the insured’s earnings are greater than three

times the minimum monthly wage in Mexico City

(1,631.12 NP). Pensioners contribute 0.375% of gross

monthly earnings.

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

(1,631.12 NP).

Voluntary contributors pay a flat rate equal to 22.4% of the

minimum monthly wage in Mexico City (1,631.12 NP).

Self-employed person

Cash benefits: 0.7% of declared earnings.

Medical benefits: A flat rate of 18.45% of the minimum

monthly wage in Mexico City; plus 2.57% of earnings

exceeding 4,893.36 NP if declared earnings are greater than

three times the minimum monthly wage in Mexico City

(1,631.12 NP). Self-employed pensioners contribute 1.425%

of gross earnings.

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

(1,631.12 NP).

Employer

Cash benefits: 0.7% of gross monthly earnings.

Medical benefits: A flat rate equal to 18.45% of the minimum

monthly wage in Mexico City per employee; plus 2.57% of

earnings exceeding 4,893.36 NP if earnings are greater than

three times the minimum monthly wage in Mexico City

(1,631.12 NP). Pensioners who are employers contribute

1.05% of gross earnings.

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

(1,631.12 NP).

Government

Cash benefits: 0.05% of gross earnings.

Medical benefits: A flat-rate contribution equal to 18.45%

of the minimum monthly wage in Mexico City (1,631.12 NP);

0.75% of gross earnings on behalf of pensioners.

Qualifying Conditions

Cash sickness benefits: Must have 4 weeks of contributions immediately before the onset of the incapacity; 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.

Insured persons older than age 65 (men and women) are

eligible, as are all unemployed persons older than age 60

with 750 weeks of contributions.

Cash maternity benefits: Must have at least 30 weeks of

contributions in the 12 months before the benefit is payable.

Medical benefits: Currently insured, a pensioner, or an

eligible dependent.

Sickness and Maternity Benefits

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

daily earnings and is payable after a 3-day waiting period

for up to 52 weeks; may be extended in some cases to 78

weeks.

The minimum benefit is equal to 60% of the regional

minimum wage.

The maximum earnings for benefit calculation purposes are

equal to 25 times the minimum monthly wage in Mexico City

(1,631.12 NP).

Maternity benefit: The benefit is equal to 100% of the last

daily earnings and is payable for 42 days before and 42

days after the expected date of childbirth. (If incapable of

work when maternity benefit ceases, the mother is eligible

for a cash sickness benefit.)

The minimum benefit is equal to the regional minimum wage.

The maximum earnings for benefit calculation purposes are

equal to 25 times the minimum monthly wage in Mexico City

(1,631.12 NP).

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

(including old-age pensioners covered by the 1997 law)

through the health facilities of the Mexican Social Security

Institute. Benefits include general and specialist care,

surgery, maternity care, hospitalization or care in a convalescent home, medicines, laboratory services, dental care,

and appliances. Benefits are payable 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. Benefits include general and specialist care,

surgery, maternity care, hospitalization or care in a convalescent home, medicines, laboratory services, dental care,

and appliances. Benefits are payable for 52 weeks; may be

Mexico
SSPTW: The Americas, 2005 ♦ 143

extended in some cases to 104 weeks. The wife of an

insured man also receives postnatal benefits in kind.

Medical services are provided for dependent children up to

age 16 (age 25 if a student, no limit if disabled).

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 and 2004 amendments.

Type of program: Social insurance system.

Coverage

Employees and members of producers’, agricultural, and

credit union cooperatives.

Voluntary coverage for domestic workers, public-sector

employees not covered by other laws, and employers.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: Total cost; contributions vary between 0.25%

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

Temporary disability benefit: The benefit is equal to 100%

of earnings before the onset of disability. The benefit is

payable from the first day of disability for a maximum of

52 weeks or until the insured is assessed as permanently

disabled.

The minimum benefit is equal to the regional minimum wage.

The maximum earnings for benefit calculation purposes are

equal to 25 times the minimum monthly wage in Mexico City

(1,631.12 NP).

Occupational disease benefit: The benefit is equal to

100% of 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 earnings before the

onset of disability.

The minimum earnings for benefit calculation purposes are

equal to the regional minimum wage.

The maximum earnings for benefit calculation purposes are

equal to 25 times the minimum wage in Mexico City

(1,631.12 NP).

Partial disability: With an assessed degree of disability

greater than 50%, the pension is a percentage of the full

pension according to the assessed degree of disability. If

the assessed degree of disability is between 26% and 50%,

the pension is paid as a percentage of the full pension

according to the assessed degree of disability or paid as a

lump sum. 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 payable for 2 years; thereafter, payment

is dependent on the disability being assessed as permanent.

Pensions are payable abroad under bilateral agreement.

Benefit adjustment: Pensions are adjusted annually in

February for changes in the price index.

Workers’ Medical Benefits

Benefits include full medical, surgical, and hospital care;

medicines; rehabilitation; transport, and appliances.

The duration of benefit is 52 weeks.

Survivor Benefits

Survivor pension: The monthly pension paid to a

widow(er) or partner is equal to 40% of the deceased’s

disability pension.

Eligibility ceases if the widow(er) or partner remarries or

cohabits with a new partner.

Remarriage settlement: If a widow(er) or a partner remarries,

a lump sum equal to 3 years’ pension is paid.

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

Mexico
144 ♦ SSPTW: The Americas, 2005

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 payable may be recalculated if the number of

eligible survivors changes.

Christmas bonus: A supplement equal to 15 days’ pension.

The maximum pension is equal to 100% of the deceased’s

disability pension.

Survivor pensions are payable abroad under bilateral

agreement.

Funeral grant: A lump sum equal to twice the deceased’s

monthly salary.

Benefit adjustment: Pensions are adjusted annually in

February for changes in the price index.

Administrative Organization

Managed by a general assembly, technical council, oversight commission, and a director general, the Mexican Social

Security Institute (http://www.imss.gob.mx) administers

contributions and benefits through regional and local

boards.

Unemployment

Regulatory Framework

Mexican Social Security Institute (http://www.imss.gob.mx)

pays an unemployment benefit of between 75% and 95% of

the old-age pension for unemployed persons aged 60 to 64

(the benefit is paid under Old Age, Disability, and Survivors,

above).

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

65 days of earnings 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.

Family Allowances

Regulatory Framework

First law: 1973.

Current law: 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.

Child care allowance: Dependent children of covered

women, widowers, or divorced working men.

Exclusions: Self-employed persons, domestic workers,

public-sector employees not covered by other laws, family

labor, and employers.

Marriage grant: Insured men and women.

Social benefits: Residents.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1% of 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

(1,631.12 NP).

Government: None.

Qualifying Conditions

Family assistance (means-tested): Assessed as needy.

Child care allowance: The parent is in covered employment; may be extended for up to 4 weeks after leaving

covered employment. The grant is payable 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: Must be resident.

Family Allowance Benefits

Family assistance (means-tested): Cash benefits are

provided.

Child care allowance: Child day care facilities are provided.

Marriage grant: A lump sum equal to the minimum monthly

wage in Mexico City (1,631.12 NP) is financed by the

individual account.

Social benefits: Preventive health care services are

provided.

Mexico
SSPTW: The Americas, 2005 ♦ 145

Administrative Organization

Managed by a general assembly, technical council, oversight commission, and a director general, the Mexican Social

Security Institute (http://www.imss.gob.mx) administers the

program.

Mexico
146 ♦ SSPTW: The Americas, 2005

Nicaragua

Nicaragua

Exchange rate: US$1.00 equals 16.33 cordobas.

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 the self-employed, 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 gross earnings.

The minimum earnings for contribution purposes are equal

to the minimum wage.

The maximum earnings for contribution purposes are

35,525 cordobas.

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 cordobas.

Employer: 6% of payroll.

The minimum earnings for contribution purposes are equal

to the minimum wage.

The maximum earnings for contribution purposes are

35,525 cordobas.

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 the selfemployed. 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: Payable for the loss of 67% of earning

capacity in the usual or a similar occupation (total disability), with 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 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 retire 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 150 weeks of

contributions in the last 6 years.

Survivor pensions are not payable abroad.

Funeral grant: The deceased had 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) in the last 5, 4, or 3 years

(based on a period of contributions of 15, 20, or 25 years,

respectively), plus 1.365% (1.59% if average earnings are

less than twice the minimum wage) for each additional 50-

week period of contributions. An additional 1% of earnings
SSPTW: The Americas, 2005 ♦ 147

Nicaragua

is paid for each year of work after age 60, up to a maximum

of 5%.

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 maximum 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.

The minimum monthly benefit is 1,032.70 cordobas.

Schedule of payments: Benefits are paid monthly, with an

additional payment made each Christmas.

Benefit adjustment: Pensions 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) in the last 5, 4, or 3 years

(based on a period of contributions of 15, 20, or 25 years,

respectively), plus 1.365% (1.59% if average earnings are

less than twice the minimum wage) for each additional 50-

week period of contributions.

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: Pensions 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

payable to a widow aged 45 or older or disabled or to a

dependent disabled widower. A pension is payable 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 is equal to 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.

Benefit adjustment: Pensions 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.

Coverage

Cash benefits: All persons receiving remuneration for

work or services rendered.

Voluntary coverage for the self-employed, 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 gross earnings.
148 ♦ SSPTW: The Americas, 2005

Nicaragua

The minimum earnings for contribution purposes are equal

to the minimum wage.

The maximum earnings for contribution purposes are

35,525 cordobas.

Self-employed person: See source of funds under Old

Age, Disability, and Survivors, above.

Employer: 15% of payroll.

The minimum earnings for contribution purposes are equal

to the minimum wage.

The maximum earnings for contribution purposes are

35,525 cordobas.

Government: 0.25% of earnings; contributes as an

employer.

Qualifying Conditions

Cash sickness benefits: Must have 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: Must have 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: 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

payable 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

payable according to eight wage classes. The benefit is

payable 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 payroll (plus 1.5% of payroll for war

victims’ pensions).

The maximum earnings for contribution purposes are 35,525

cordobas.

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 payable from the day after

the onset of disability until medical care ceases or the

insured is certified as permanently disabled. (The employer

pays the benefit for the first day of disability.)
SSPTW: The Americas, 2005 ♦ 149

Nicaragua

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 payable 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.

The maximum survivor pension is equal to 100% of the

deceased’s pension.

Funeral grant: 50% of the deceased’s average monthly

salary.

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 the self-employed, 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.
150 ♦ SSPTW: The Americas, 2005

Panama

Exchange rate: US$1.00 equals 1 balboa.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1941.

Current law: 1954 (social insurance), with 1991, 1992, 2000,

and 2004 amendments.

Type of program: Social insurance system.

Coverage

Employees in public- and private-sector employment and

domestic workers.

Voluntary coverage for the self-employed.

All foreign workers are covered except for those working in

Panama for less than 2 months under a foreign employment

contract.

Exclusions: Agricultural workers employed for less than

3 months annually and family labor.

Occasional and seasonal workers are to be covered under

subsequent regulation.

Public-sector employees are covered under the general

system as well as a special system.

Source of Funds

Insured person: 6.75% of gross earnings.

The minimum earnings for contribution purposes are equal

to either the monthly minimum pension (175 balboas) paid

by the fund or 100 balboas.

There are no maximum earnings for contribution purposes,

except for deputies and managerial staff of the Panama

Canal who are subject to maximum earnings of 5,000 balboas

and 5,326 balboas, respectively.

Self-employed person: A voluntary contribution of 9.5%

of declared earnings.

The minimum declared earnings for contribution purposes

must be more than 300 balboas.

There are no maximum earnings for contribution purposes.

Employer: 2.75% of payroll.

The minimum earnings for contribution purposes are equal

to either the monthly minimum pension (175 balboas) paid

by the fund or 100 balboas.

There are no maximum earnings for contribution purposes,

except for deputies and managerial staff of the Panama

Canal who are subject to maximum earnings of 5,000 balboas

and 5,326 balboas, respectively.

Government: A percentage of contributions (1.04% of

payroll for the administration of old-age, disability, and

survivor benefits; sickness and maternity benefits; and

work injury benefits) and the proceeds of an earmarked tax

on alcohol, plus no less than 20.5 million balboas a year.

Qualifying Conditions

Old-age pension: Age 62 (men) or age 57 (women) with

180 months of contributions. Retirement is necessary.

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: At the normal retirement age, the

insured does not meet the contribution conditions for a

pension.

Disability pension: Payable for a loss of 2/3 of earning

capacity. The insured must have at least 36 months of

contributions, including 18 months during the last 3 years; a

total of 180 months of contributions. The pension is

payable 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 fund.

The Medical Qualification Commission assesses the degree

of disability.

The disability pension is payable abroad.

The disability pension is not commuted to an old-age

pension at the normal retirement age.

Disability grant: The insured does not meet the qualifying

conditions for a full pension but has at least 12 months of

contributions, including six contributions in the year before

the onset of disability.

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 above 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.

Dependent’s supplement (at the normal retirement age):

Twenty balboas a month is paid for a wife and 10 balboas

Panama
SSPTW: The Americas, 2005 ♦ 151

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 with 25 years of coverage

and average monthly earnings of 1,500 balboas is

1,500 balboas.

The pension plus supplements must not exceed 100% of the

insured’s average earnings used for the pension calculation.

Benefit adjustment: Pensions 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 above 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.

Benefit adjustment: Pensions 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 payable 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.

The maximum total survivor pension is 100% of the

deceased’s pension, up to a maximum of 1,500 balboas.

Benefit adjustment: Pensions are adjusted on an ad hoc

basis depending on economic conditions.

Funeral grant: A lump sum of 300 balboas.

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: 1954 (social insurance), with 1983, 1986, and

1999 amendments.

Type of program: Social insurance system. Cash and

medical benefits.

Coverage

Employees in public- and private-sector employment and

domestic workers.

Voluntary coverage for the self-employed.

Pensioners are covered for medical benefits.

Exclusions: Agricultural workers employed for less than

3 months annually and family labor.

Temporary workers and seasonal workers will be covered by

subsequent regulations.

Source of Funds

Insured person: 0.5% of gross earnings; pensioners

contribute 6.75% of the pension.

There are no minimum or maximum earnings for contribution

purposes.

Self-employed person: A voluntary contribution of 8.5%

of declared gross earnings.

There are no minimum or maximum earnings for contribution

purposes.

Employer: 8% of payroll.

There are no minimum or maximum earnings for contribution

purposes.

Government: A percentage of contributions (1.04% of

payroll for the administration of old-age, disability, and

survivor benefits; sickness and maternity benefits; and

work injury benefits) and the proceeds of an earmarked tax

on alcohol.

Qualifying Conditions

Cash sickness benefits: Must have 6 months of contributions in the last 9 months.

Panama
152 ♦ SSPTW: The Americas, 2005

Cash maternity benefits: Must have 4 months of contributions in the 8 months before the claim is made and be

certified as pregnant.

Medical benefits: 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 180 months of contributions).

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 70% of the

insured’s average earnings in the previous 2 months. The

benefit is payable 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

payable 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 law: 1970 (occupational risks).

Type of program: Employer-liability system, involving

compulsory insurance with a public carrier.

Coverage

Employees in public- and private-sector employment.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: Total cost 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.

Temporary Disability Benefits

No statutory benefits are provided.

Permanent Disability Benefits

Permanent disability pension: If the insured is 100%

disabled, the pension is equal to 60% of his or her 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 degree

of disability.

The pension may be replaced by the old-age pension at

age 62 (men) or age 57 (women) if the insured meets the

qualifying conditions for the old-age pension.

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The pension is payable abroad.

Benefit adjustment: Benefits are reviewed every 2 years.

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 for life;

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 dependents in the absence of other survivors (in

order of priority): The deceased’s mother receives

between 20% and 30% of the deceased’s earnings. The

pension is payable for 10 years. Brothers or sisters younger

than age 18 (no limit if disabled) and other aged or disabled

or older relatives, including great grandparents, receive 10%

each, up to a maximum of 30%. The pension is payable for

6 years.

The maximum total survivor pension is 75% of the

deceased’s earnings; otherwise, the pensions are reduced

proportionately.

The pension is payable abroad.

Funeral grant: 300 balboas.

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.

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154 ♦ SSPTW: The Americas, 2005

Paraguay

Exchange rate: US$1.00 equals 6,220 guarani.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1943.

Current law: 1992 (unified pension scheme), with 1994,

1995, 2002, and 2003 amendments.

Type of program: Social insurance system.

Coverage

Employed persons, including employees of decentralized

state entities and enterprises partially owned by the state.

Exclusions: Public-sector employees, self-employed

persons, domestic workers, and apprentices.

Special systems for public-sector employees, railroad

employees, bank employees, elected parliamentary representatives, and military and police personnel.

Source of Funds

Insured person: 9% of gross earnings.

The minimum monthly earnings for contribution purposes

are equal to the monthly minimum wage (1,089,000 guaranies).

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 payroll.

The minimum monthly earnings for contribution purposes

are equal to the monthly minimum wage (1,089,000 guaranies).

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 (1,089,000 guaranies).

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 25 years

of contributions.

A pension may be claimed by an insured person older than

age 60. (If the insured was older than age 60 before

January 1999, the number of years of required contributions

for a new claim is 15.)

Early pension: Age 55 (men and women) with 30 years of

contributions.

Disability pension: The loss of 2/3 of earning capacity

with 150 weeks of contributions and younger than age 55;

between 150 weeks and 250 weeks of contributions if

younger than age 60; between 250 weeks and 400 weeks of

contributions if 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 if there are no other eligible survivors.

Survivor grant: The deceased had less than 750 weeks of

contributions.

Funeral grant: 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

every year the insured is older than age 55, up to age 59.

Average earnings are based on earnings in the last

36 months before retirement.

The minimum monthly old-age pension is 300,000 guaranies.

The maximum monthly old-age pension is equal to 300 times

the minimum daily wage. (The minimum monthly wage is

1,089,000 guaranies.)

All gainful activity must cease.

Old-age benefits are payable abroad under bilateral or

multilateral agreement.

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

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before the onset of disability, plus 1.5% of average earnings

for every 50-week period of contributions beyond

150 weeks, up to a maximum of 100%.

The minimum monthly disability pension is 300,000 guaranies.

The maximum disability pension is 300 times the minimum

daily wage. (The minimum monthly wage is 1,089,000 guaranies.)

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; in the absence of

a widow(er) or partner or children, the deceased’s parents

may receive the benefit.

If the widow(er) or partner remarries or cohabits, the

pension 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.

Survivor grant: A lump sum 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 equal to 75 times the minimum

daily wage. (The minimum monthly wage is 1,089,000 guaranies.)

Administrative Organization

Social Insurance Institute (http://www.ips.gov.py) administers the program and is managed by a tripartite council and

a director general.

Sickness and Maternity

Regulatory Framework

First law: 1943.

Current laws: 1950 (social security), 1965 (teachers and

domestic workers), 1992 (unified pension scheme), 1996

(medical benefits), 1999 (teachers), and 2003 (cohabitants).

Type of program: Social insurance system. Cash and

medical benefits.

Coverage

Employed persons, including domestic workers and

employees of decentralized state entities and enterprises

partially owned by the state, teachers in public and private

schools, university professors, and apprentices.

Pensioners are covered for medical benefits.

Exclusions: Public-sector employees and self-employed

persons.

Special systems for public-sector employees, railroad

employees, bank employees, and military and police

personnel.

Source of Funds

Insured person: See source of funds under Old Age,

Disability, and Survivors, above. (Pensioners contribute 6%

of pensions; teachers in public and private schools and

university professors contribute 5.5% of gross earnings;

domestic workers contribute 2.5% of gross earnings.)

The minimum earnings for contribution purposes for

domestic workers are equal to the minimum wage for

domestic workers (400,000 guaranies).

Self-employed person: Not applicable.

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

and Survivors, above. (Employers of teachers in public and

private schools and university professors contribute 2.5%

of payroll; employers of domestic workers contribute 5.5%

of payroll.)

The minimum earnings for contribution purposes for

employers of domestic workers are equal to the minimum

wage for domestic workers (400,000 guaranies).

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

Qualifying Conditions

Cash sickness and maternity benefits: Must have

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: 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 onset of incapacity. The benefit is payable from the day

after the onset of the incapacity, 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.

Maternity benefit: The monthly benefit is equal to 50% of

the insured’s average earnings in the last 4 months immediParaguay
156 ♦ SSPTW: The Americas, 2005

ately before the maternity leave and is payable 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, prosthetics, 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, prosthetics, 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

Social Insurance Institute (http://www.ips.gov.py) administers the program and is managed by a tripartite council and

a director general.

Social Insurance Institute operates its own clinics and

hospitals.

Work Injury

Regulatory Framework

First law: 1927.

Current laws: 1950 (social security), implemented in 1952;

and 1992 (unified pension scheme).

Type of program: Social insurance system.

Coverage

Employed persons, including domestic workers and

employees of decentralized state entities and enterprises

partially owned by the state, teachers in public and private

schools, and apprentices.

Exclusions: Public-sector employees and self-employed

persons.

Special systems for public-sector employees, railroad

employees, bank employees, and military and police

personnel.

Source of Funds

Insured person: See source of funds under Old Age,

Disability, and Survivors, above. (Teachers in public and

private schools contribute 5.5% of gross earnings; domestic

workers contribute 2.5% of gross earnings.)

The minimum earnings for contribution purposes for

domestic workers are equal to the minimum wage for

domestic workers (400,000 guaranies).

Self-employed person: Not applicable.

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

and Survivors, above. (Employers of teachers in public and

private schools contribute 2.5% of payroll; employers of

domestic workers contribute 5.5% of payroll.)

The minimum earnings for contribution purposes for

domestic workers are equal to the minimum wage for

domestic workers (400,000 guaranies).

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 75% of the insured’s average

earnings in the last 4 months or the total contribution period

if shorter. The benefit is payable from the day after the

onset of disability, 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 onset of disability, 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 beyond 3 years.

Partial disability: If the assessed degree of disability is more

than 30%, the pension is equal to 60% of lost earnings,

according to the schedule in law. If the value of the partial

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disability pension is less than 30% of the total disability

pension, a lump sum is paid equal to 5 years’ pension.

Partial disability supplement: The total disability supplement is reduced in proportion 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.

Workers’ Medical Benefits

Benefits include general and specialist care, hospitalization,

medicines, and prosthetics.

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

pension 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.

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

pension is payable to the deceased’s parents.

The maximum survivor pension is 100% of the pension paid

or payable to the deceased.

Survivor supplement: 75% of the deceased’s total disability

supplement is paid to eligible survivors.

Survivor grant: If the insured had less than 750 weeks of

contributions at the time of death, a lump sum equal to

1 month’s minimum wage for each year of contributions is

paid.

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 equal to 75 times the minimum

daily wage. (The minimum monthly wage is 1,089,000 guaranies.)

Administrative Organization

Social Insurance Institute (http://www.ips.gov.py) administers the program and is managed by a tripartite council and

a director general.

Family Allowances

Regulatory Framework

No statutory benefits are provided. (The 1993 labor code

requires employers to provide specified maternity benefits

and family allowance benefits.)

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158 ♦ SSPTW: The Americas, 2005

Peru

Exchange rate: US$1.00 equals

3.25 nuevos soles.

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1936 (wage earners) and 1962 (salaried employees).

Current laws: 1973 (unified social security), 1991 (mandatory individual account), and 1995 (mandatory individual

account).

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). SNP members may switch to the

SPP but may not switch back.

Coverage

Social insurance (SNP): Wage earners and salaried

employees in the private and public sectors, employees of

worker-owned and cooperative enterprises, teachers, selfemployed drivers, artists, domestic workers, wage earners,

and the self-employed in the agricultural sector.

Special systems for fishermen, stevedores, and employees

not covered under the SNP.

Voluntary coverage for the self-employed, 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): Employed persons.

Voluntary coverage for the self-employed.

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 (460 nuevos soles); for

domestic workers, 33.3% of the legal monthly minimum

wage.

There are no maximum earnings for contribution purposes.

Self-employed person: 13% of declared earnings.

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage (460 nuevos soles).

There are no maximum earnings for contribution purposes.

Employer: None; employers of domestic workers contribute 13% of payroll.

Government: None; the government finances the minimum

pension as well as special subsidies needed to finance the

program.

Mandatory individual account (SPP)

Insured person: 8% of gross earnings (10% from January

2006) for old-age benefits, plus an average 0.92% of gross

earnings for disability and survivor insurance and an

average 2.27% of gross earnings for administrative fees.

There are no maximum earnings for contribution purposes

for old-age benefits; 6,486.33 nuevos soles for disability and

survivor benefits.

Self-employed person: 8% of gross earnings (10% from

January 2006) for old-age benefits, plus an average 0.92% of

gross earnings for disability and survivor insurance and an

average 2.27% of gross earnings for administrative fees.

There are no maximum earnings for contribution purposes

for old-age benefits; 6,486.33 nuevos soles for disability and

survivor benefits.

Employer: None.

Government: The government finances the guaranteed

minimum pension.

Qualifying Conditions

Social insurance (SNP)

Old-age pension: Men born up to December 18, 1932, and

women born up to December 18, 1937, with 15 years and

13 years of contributions, respectively. Men and women

born after these respective dates with at least 20 years of

contributions and aged 65.

Early pension: Age 55 with 30 years of contributions (men)

or age 50 with 25 years of contributions (women).

Disability pension: A loss of 2/3 of earning capacity and

employed at the onset of disability; with 36 months of

contributions, including 18 months in the last 36 months;

12 months of contributions in the last 36 months with a total

of 3 to 15 years of contributions; or 15 or more years of

contributions.

Survivor pension: The insured was a pensioner or met the

qualifying conditions for a pension at the time of death.

Eligible survivors are a widow, a dependent widower older

than age 60 (any age if disabled), children younger than

age 18 (age 21 if a student, no limit if disabled), and a father

older than age 60 and a mother older than age 55 (no limit if

disabled).

Funeral grant: The deceased contributed in the 3 months

before the date of death; a total of 4 months of contributions in the 6 months before the date of death.

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SSPTW: The Americas, 2005 ♦ 159

Mandatory individual account (SPP)

Old-age pension: Age 65; a pension is payable at any age

if the individual account has accumulated assets that will

replace at least 50% of average indexed earnings in the last

10 years.

Guaranteed minimum pension: The insured was born no

later than 1945, satisfies the minimum requirements for

contributions (20 years), and the pension (based on the

value of the accumulated capital plus accrued interest) is

less than the minimum pension.

Disability pension: Younger than age 65 and assessed with

at least a 50% loss of earning capacity.

The degree of disability is assessed by the pension fund

administrator or the Bank Superintendent.

Survivor pension: The deceased was a pensioner or met

the qualifying conditions for a pension at the time of death.

Eligible survivors are a widow or partner, children younger

than age 18 (age 21 if a student, no limit if disabled), and a

dependent father and a mother older than age 65.

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

for a spouse and between 2% and 5% for each child.

The minimum pension is 415 nuevos soles.

The maximum pension is 857.36 nuevos soles.

Constant-attendance supplement: An amount equal to the

minimum wage (460 nuevos soles).

Benefit adjustment: Pensions are adjusted according to

changes in the cost of living in Lima.

Mandatory individual account (SPP)

Old-age pension: The value of retirement savings varies

according to the insured’s contributions to an 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.)

Retirement savings 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 accompanied by temporary programmed withdrawals.

Guaranteed minimum pension: 415 nuevos soles.

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 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 average earnings in the last

60 months.

The minimum pension is three times the minimum wage

(460 nuevos soles).

The maximum pension is 80% of total earnings.

Dependent’s supplement: 2% to 10% of earnings for a

spouse and 2% to 5% 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 (460 nuevos soles).

Benefit adjustment: Pensions are adjusted according to

changes in the cost of living in Lima.

Mandatory individual account (SPP)

Disability pension: The pension is calculated on the basis

of the insured’s average monthly salary and is proportional

to the assessed degree of disability. (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.)

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160 ♦ SSPTW: The Americas, 2005

Survivor Benefits

Social insurance (SNP)

Survivor pension: 50% of the pension paid or payable to

the deceased is payable to a widow or a disabled widower.

The pension ceases if the widow(er) remarries or if a

disabled widower is assessed as capable of work.

The minimum pension is equal to three times the minimum

wage (460 nuevos soles).

Orphan’s pension: 20% of the deceased’s pension is

payable to the widow for each orphan younger than age 18

(age 21 if a student, no limit if disabled); 40% is payable to

each full orphan.

The minimum orphan’s pension is 1.5 times the minimum

wage (460 nuevos soles).

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

Each dependent parent receives 20% of the deceased’s

pension.

The maximum survivor pension is 100% of the deceased’s

pension.

Funeral grant: Up to five times the minimum wage

(460 nuevos soles).

Constant-attendance supplement: An amount equal to the

minimum wage (460 nuevos soles) if the survivor is disabled.

Benefit adjustment: Pensions are adjusted according to

changes in the cost of living in Lima.

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 salary, 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 also covers the cost of funeral

grants.)

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.

National Superintendent of Tax Administration (http://

www.sunat.gob.pe) collects contributions.

Mandatory individual account (SPP)

Superintendent of Banks and Insurance (http://

www.sbs.gob.pe) is responsible for licensing and supervising pension fund administrators and insurance companies.

Investment Classification Commission assesses investment

risks.

Pension fund administrators (AFPs) administer the scheme.

Sickness and Maternity

Regulatory Framework

First laws: 1936 (wage earners) and 1948 (salaried employees).

Current laws: 1991 (private pensions), 1997 (modernizing

health), 1999 (social security health insurance, EsSalud),

and 2004 (domestic workers).

Type of program: Social insurance and private insurance

system. Cash and medical benefits.

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, stevedores, 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: No information is available.

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.)

The minimum earnings for contribution purposes are equal

to the legal monthly minimum wage (460 nuevos soles).

Government: None; contributes as an employer.

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SSPTW: The Americas, 2005 ♦ 161

Qualifying Conditions

Sickness cash benefits: Must have 3 months’ consecutive contributions or 4 months of contributions in the

6 months before the onset of incapacity.

Maternity care and cash benefits: Insured 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 payable 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 payable for 45 days

before and 45 days after the expected date of childbirth;

30 additional days in case of multiple births.

Nursing allowance: Twice the minimum wage (920 nuevos

soles) from 8 months to 14 months of age.

Funeral grant: 2,070 nuevos soles.

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 lower.

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) receive 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.

Work Injury

Regulatory Framework

First laws: 1911 (work injury) and 1935 (occupational

diseases).

Current law: 1997.

Type of program: Social insurance system. Cash and

medical benefits.

Coverage

Employed persons in the public and private sectors,

including fishermen, domestic workers, and journalists

working for one employer; and employees of worker-owned

and cooperative enterprises.

Source of Funds

Insured person: None.

Self-employed person: A lump sum of 10 to 30 nuevos

soles.

Employer: 0.63% to 1.84% of payroll, according to the

assessed degree of risk and the accident rate.

The maximum earnings for benefit 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 wages and is payable after a

20-day waiting period for up to 11 months and 10 days or

340 days. The employer pays the full salary 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.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to

80% of average wages (100% if the insured requires

constant attendance) if totally disabled with an assessed

degree of disability of more than 65%.

Peru
162 ♦ SSPTW: The Americas, 2005

Partial disability: The pension is proportionately reduced

for an assessed degree of disability of between 40% and

65%. A lump sum equal to 2 years’ pension is paid if the

assessed degree of disability is less than 40%.

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 deceased’s total disability

pension is payable to a widow or a disabled widower.

Orphan’s pension: Each orphan younger than age 18

(age 23 if a student) receives 25% of the deceased’s

pension.

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

Each parent receives 25% of the deceased’s pension.

The maximum survivor pension is 100% of the deceased’s

pension.

Funeral grant: 2,070 nuevos soles.

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.

Peru
SSPTW: The Americas, 2005 ♦ 163

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: Resident elderly or disabled persons.

Source of Funds

Social insurance

Insured person: 5% of weekly or monthly earnings.

The maximum monthly earnings for contribution and benefit

purposes are EC$6,500.

The above contributions also finance cash sickness and

maternity benefits.

Self-employed person: 10% of monthly earnings, according to earnings categories ranging from EC$200 to EC$1,350

a week.

The above contributions also finance cash sickness and

maternity benefits.

Employer: 5% of monthly payroll.

The maximum monthly earnings for contribution and benefit

purposes are EC$6,500.

The above 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: 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 and does not

qualify for an 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 qualify for

the old-age pension.

Social assistance benefits are not payable abroad.

Disability pension (social insurance): Younger than

age 62 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.

Disability benefits are payable abroad under specific

conditions.

Disability social assistance (means-tested): Assessed

as disabled, between ages 16 and 62, and does not qualify

for a disability pension.

The degree of disability is assessed by the Social Security

Medical Board at least every 3 years.

Social assistance benefits are not payable abroad.

Survivor pension (social insurance): The deceased had at

least 150 weeks of paid contributions.

Eligible survivors are a widow(er) aged 45 or older who was

married to the insured for at least 3 years 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.

Survivor grant (social insurance): The deceased did not

qualify for a pension.

Eligible survivors are a widow(er) aged 45 or older who was

married to the insured for at least 3 years 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 wage, plus

Saint Kitts and Nevis
164 ♦ SSPTW: The Americas, 2005

2% for each 50-week period of paid or credited contributions exceeding 500, up to a maximum of 750 contributions,

and 1% for each 50-week period of contributions exceeding

750. The pension is determined by dividing this sum by 52.

The average annual wage is 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$250.

The maximum monthly pension is 60% of wages or

EC$3,900, whichever is less.

Old-age grant (social insurance): The grant is equal to six

times the average weekly wage for each 50-week period of

paid or credited contributions, up to a maximum of 499 contributions.

Insured persons are entitled to a refund of contributions if

they have made less than 50.

Old-age social assistance (means-tested): EC$100 is

paid every 2 weeks.

Permanent Disability Benefits

Disability pension: The monthly pension is equal to 30%

of the insured’s average annual wage, plus 2% for each 50-

week period of paid or credited contributions exceeding 500,

up to a maximum of 750 contributions, and 1% for each 50-

week period of contributions exceeding 750. The pension is

determined by dividing this sum by 52.

The average annual wage is based on earnings in the

3 years in which the insured made the most contributions in

the last 15 contribution years.

The pension is paid after entitlement to 26 weeks of

sickness benefit has ended or after the disability has lasted

for at least 26 weeks. It is paid for as long as the disability

continues.

The minimum monthly pension is EC$250.

The maximum monthly pension is 60% of wages or

EC$3,900, whichever is less.

Disability social assistance (means-tested): EC$100 is

paid every 2 weeks.

Survivor Benefits

Survivor pension: The pension is equal to 50% of the

deceased’s pension or 30% of the deceased’s average

earnings in the 3 years in which he or she made the most

contributions, whichever is higher. The pension is payable

for life or until remarriage.

A limited pension is payable for a year if the widow(er) is

younger than age 45 or was married to the deceased for less

than 3 years.

Orphan’s pension: Up to 1/6 of the insured’s pension is

paid if unmarried, younger than age 16 (age 18 if a full-time

student), and previously living with or supported by the

deceased. If the orphan is disabled, the pension is equal to

1/3 of the family maximum.

The minimum survivor pension is EC$720 a year.

The family maximum survivor pension is 100% of the

deceased’s pension.

Survivor grant: The grant is equal to six times the average

weekly wage for each 50-week period of paid or credited

contributions.

The contributions are refunded if the deceased made less

than 50.

Funeral grant: EC$2,500 for the funeral of the insured or

his or her spouse. Up to EC$1,600 for a dependent child,

with the maximum payable for a child aged 10 or older or

aged 16 to 25 and a full-time student. The grant is payable

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.

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.

Saint Kitts and Nevis
SSPTW: The Americas, 2005 ♦ 165

Qualifying Conditions

Cash sickness benefits: Younger than age 62 and

employed the day before the onset of incapacity with

26 weeks of paid contributions, including 8 in the 13 weeks

before the onset of incapacity .

Cash maternity benefit: 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.

Funeral grant: Must have a minimum of 26 weeks of

contributions.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 65% of the

average weekly wage divided by six (daily rate) and is

payable from the first day if the incapacity lasts for 4 or

more days. The benefit is payable for up to 26 weeks.

Maternity benefit: The benefit is equal to 65% of the

average weekly wage divided by six (daily rate) and is

payable for 13 weeks, beginning up to 6 weeks before the

expected date of childbirth.

Maternity grant: EC$450 is paid for every childbirth.

Funeral grant: EC$2,500 is payable to the person who pays

for the cost of the funeral for the insured, the insured’s

spouse, or a dependent child.

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.

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 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.

Temporary Disability Benefits

The benefit is equal to 75% of average weekly covered

wages and is payable from the first day if the disability lasts

for 4 or more days. The benefit is payable for up to

26 weeks.

Permanent Disability Benefits

If the insured is totally disabled (100%), the pension is

equal to 75% of his or her average weekly wages.

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.

Partial disability: A percentage of the pension is paid

according to the assessed degree of disability. A benefit is

payable if the assessed degree of disability is 20% or more.

Workers’ Medical Benefits

Benefits include the reimbursement of reasonable expenses

for medical, surgical, dental, hospital, and nursing care;

medicines; appliances; and transportation.

Saint Kitts and Nevis
166 ♦ SSPTW: The Americas, 2005

Survivor Benefits

Survivor pension: 50% of the deceased’s permanent total

disability pension is payable to a widow(er).

Orphan’s pension: Each child younger than age 16

receives up to 1/6 of the deceased’s permanent total

disability pension; 1/3 for a full orphan.

The maximum survivor pension is equal to 100% of the

deceased’s permanent total disability pension.

Funeral grant: EC$4,000 is payable to the person who pays

for the cost of the funeral for the insured, the insured’s

spouse, or a dependent child.

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.

Saint Kitts and Nevis
SSPTW: The Americas, 2005 ♦ 167

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

Employees, 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: 5% of gross 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 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 payroll for contributing civil servants.

Qualifying Conditions

Old-age pension: Age 62 (January 2006) 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 (January 2006) and does not meet

the qualifying conditions for the old-age pension.

All old-age benefits are payable abroad, subject to authorization.

Disability pension: Younger than age 62 (January 2006)

with at least 5 years of contributions, including the

36 months before the onset of disability; a total of 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 medical doctor at

least every 2 years.

Disability grant: Must be assessed as disabled with less

than 5 years of contributions.

All disability benefits are payable abroad, subject to

authorization.

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), 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.

Funeral grant: Payable to an insured person for the death

of a dependent child or spouse.

All survivor benefits are payable abroad, subject to

authorization.

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 based on the insured’s

earnings in the best 5 years.

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,

without interest, is paid. (For those covered previously by
168 ♦ SSPTW: The Americas, 2005

Saint Lucia

the provident fund, 100% of contributions, plus accrued

interest.)

Permanent Disability Benefits

Disability pension: The pension is paid in proportion to

the assessed degree of disability.

The minimum pension for an assessed degree of disability

of at least 30% is 65% of the insured’s average insurable

earnings in the month of the accident.

The maximum pension is equal to 100% of the insured’s

average insurable earnings in the month of the accident.

Disability grant: A lump sum equal to the value of

60 months’ benefit is paid.

Survivor Benefits

Survivor pension: In the absence of any other survivors,

75% of the deceased’s old-age pension or disability pension

is payable to a widow(er) aged 62 or older (January 2006). If

there are other survivors or dependents, the rate of the

survivor pension is reduced to 50%.

A limited pension is paid for a year to a widow(er) younger

than age 62 (January 2006) who has no dependent children.

Orphan’s pension: In the absence of any other survivors,

50% of the deceased’s pension (50% of each insured

parent’s pension if a full orphan) is payable to a dependent

child younger than age 16 (age 18 if a full-time student).

If there are other survivors or dependents, the maximum

orphan’s pension is split among all eligible children.

The maximum survivor pension is equal to 100% of the

deceased’s pension.

Survivor grant: A lump sum at least equal to the value of

the old-age grant or disability grant that would have been

payable to the deceased is paid.

Funeral grant: The cost of the funeral, 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

Employees 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: Employed on the day before the

onset of incapacity, with at least 6 months of contributions

including 2 of the 4 months immediately before the onset of

incapacity.

Cash maternity benefits: Must have at least 7 months of

contributions in the 10 months immediately before the date

of the claim.

Maternity grant: Payable 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 salary in the last 4 months. The benefit is

payable after a 3-day waiting period for up to 26 weeks.

Maternity benefit: The benefit is equal to 65% of the

insured’s average salary in the last 10 months. The benefit

is payable for 3 months, beginning 6 weeks before the

expected month of childbirth.

Maternity grant: EC$600.

Workers’ Medical Benefits

No statutory benefits are provided.

Dependents’ Medical Benefits

No statutory benefits are provided.
SSPTW: The Americas, 2005 ♦ 169

Saint Lucia

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

Employees and apprentices aged 16 to 65.

Exclusions: The self-employed; 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.

Temporary Disability Benefits

The benefit is equal to 65% of wages and is payable from

the day of injury until full recovery for up to 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%, the pension is a percentage of the full pension

according to the assessed degree of disability.

The disability is assessed every 6 months by an appointed

medical board.

Disability pensions are payable abroad, subject to authorization.

Workers’ Medical Benefits

All medical expenses, including specialist care abroad if

necessary, up to a maximum of EC$20,000.

Survivor Benefits

Survivor benefit: A benefit is paid to a spouse, parents,

grandparents, and children who were fully or largely

dependent on the deceased.

If the spouse, parent, or grandparent is older than the

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, 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.
170 ♦ SSPTW: The Americas, 2005

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 persons aged 16 to 59.

Voluntary coverage for self-employed persons aged 16 to

59, previously insured persons with at least 150 paid or

credited contributions, and persons living abroad.

Source of Funds

Insured person: 2.5% of gross earnings.

The minimum weekly earnings for contribution purposes are

EC$15.

The maximum monthly earnings for contribution purposes

are EC$3,770. (EC$4,330 from January 2006.)

The above contributions also finance sickness and maternity benefits, below.

Self-employed person: A voluntary contribution of 5.5%

of declared gross earnings, according to eight income

categories.

Contributions may be paid weekly or monthly.

Employer: 3.5% of monthly payroll.

The minimum weekly earnings for contribution purposes are

EC$15.

The maximum monthly earnings for contribution purposes

are EC$3,770. (EC$4,330 from January 2006.)

The above contributions also finance sickness and maternity benefits, below.

Government: None; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 60. The minimum required number

of weeks of contributions is being increased annually by

25%, up to 500 weeks of contributions. In 2005, the insured

must have at least 350 weeks of contributions.

Old-age grant: Age 60 with at least 50 weeks of contributions.

Old-age benefits are payable abroad.

Disability pension: Younger than age 60 and disabled with

at least 150 weeks of contributions. The insured must have

an assessed degree of disability of at least 30%.

Disability grant: Younger than age 60 and disabled with at

least 50 weeks of contributions.

The degree of disability is assessed by National Insurance

Services inspectors. (The last inspection was in 2004.)

Disability benefits are payable abroad.

Survivor pension: The deceased had at least 150 weeks of

contributions.

Survivor grant: The deceased did not meet the qualifying

conditions for a pension but was eligible for an old-age

grant or disability grant.

Survivor benefits are payable abroad.

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

contributions. The grant is payable 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 pension is equal to 30% of the

insured’s average annual earnings with 350 weeks of

contributions. The pension is increased by 0.5% of average

annual earnings for each additional 25-week period of

contributions beyond 350 weeks. (The minimum required

number of weeks of contributions is being increased

annually by 25%, up to 500 weeks of contributions.)

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 reaches age 60.

The minimum pension is EC$60 a week. The pension is paid

every 2 weeks.

The maximum benefit is 60% of average annual earnings.

Benefit adjustment: Benefits are adjusted for inflation every

3 years, subject to an actuarial review.

Old-age grant: The grant is equal to six times average

weekly insurable earnings for each 50-week period of

contributions.

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 reaches age 60.

Saint Vincent and the Grenadines
SSPTW: The Americas, 2005 ♦ 171

Permanent Disability Benefits

Disability pension: The pension is equal to 30% of the

insured’s average earnings with 350 weeks of contributions.

The pension is increased by 0.5% of average annual

earnings for each additional 25-week period of contributions

beyond 350 weeks. (The minimum required number of

weeks of contributions is being increased annually by 25%,

up to 500 weeks of contributions.)

Average annual earnings are the sum of the insured’s last

50 weeks of insurable earnings or credits before the onset of

disability, divided by 50.

The minimum benefit is EC$60 a week. The pension is paid

every 2 weeks.

The maximum benefit is 60% of average annual earnings.

Benefit adjustment: Benefits are adjusted for inflation every

3 years, subject to an actuarial review.

Disability grant: The grant is equal to six times average

weekly insurable earnings for each 50-week period of

contributions.

Average annual earnings are the sum of the insured’s last

50 weeks of insurable earnings or credits before the onset of

disability, divided by 50.

Survivor Benefits

Survivor pension: The widow(er) pension is equal to 75%

of the pension paid or payable to the deceased.

Eligible survivors are a widow(er), or cohabiting partner

who lived with the deceased for at least 3 years, aged 50 or

older or disabled or caring for a child who is eligible for

survivor benefits.

The pension ceases if the surviving spouse remarries or

cohabits.

A limited pension is payable for a year to a pregnant widow

younger than age 50 with no dependent children; the

benefit continues if the child is born and is eligible for

benefits.

Orphan’s pension: Each dependent child younger than

age 16 (age 18 if a full-time student) receives 25% of the

pension paid or payable to the deceased; 50% for a full

orphan.

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

Dependent parents aged 60 or older may receive up to 50%

of the pension paid or payable to the deceased.

The total survivor pension must not exceed 100% of the

deceased’s old-age pension or disability pension.

Survivor grant: A lump-sum benefit is paid to survivors.

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

amendments.

Type of program: Social insurance system. Cash benefits

only.

Coverage

Employed persons aged 16 to 59.

Voluntary coverage for 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: None; contributes as an employer for certain

categories of civil servant.

Qualifying Conditions

Cash sickness benefits: Currently employed with at least

26 weeks of contributions, including 8 weeks in the

13 weeks immediately before the onset of the incapacity.

Cash maternity benefits: Must have at least 30 weeks of

contributions, including 20 weeks in the 30 weeks immediately before the claim.

Maternity grant: The woman or her spouse must have at

least 20 weeks of contributions in the 30 weeks immediately

before the birth of a living child.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 65% of the

insured’s average earnings in the 13 weeks before the onset

of the incapacity. The benefit is payable 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 payable for 13 weeks, starting no

earlier than 6 weeks before the expected date of childbirth.

Maternity grant: EC$550.

Saint Vincent and the Grenadines
172 ♦ SSPTW: The Americas, 2005

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 work injury benefits.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 0.5% of payroll.

Employer contributions may be paid weekly or monthly.

Government: None; contributes as an employer.

Qualifying Conditions

Work injury benefits: The insured must be employed.

Employees older than age 59 or younger than age 16 are

eligible. Benefits are paid for a work injury or an occupational disease only.

Temporary Disability Benefits

The benefit is equal to 70% of average weekly insurable

earnings and is payable for up to 26 weeks in the first

instance; thereafter, the benefit is payable for an additional

26 weeks and is equal to 70% of average weekly insurable

earnings times the assessed degree of disability.

Average weekly insurable earnings are based on the

insured’s earnings in the 13 weeks before the onset of

disability.

The degree of disability is assessed by a medical doctor and

reviewed every 26 weeks.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to

70% of average weekly insurable earnings times the

assessed degree of disability. The minimum assessed

degree of disability must be greater than 30%, and the

insured must have exhausted entitlement to the temporary

disability benefit.

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 for as long as constant attendance is

required. 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 less than 30%, a lumpsum grant is paid equal to 365 times the insured’s average

weekly insurable earnings times the assessed degree of

disability. The insured must have exhausted entitlement to

a temporary disability benefit.

Average weekly insurable earnings are based on the

insured’s earnings in the 13 weeks before the onset of

disability.

Workers’ Medical Benefits

Benefits include medical, surgical, and hospital treatment;

medicines; appliances; and transportation costs.

Survivor Benefits

Survivor pension: 35% of the deceased’s average weekly

insurable earnings are paid to the widow(er). The insured’s

death resulted from a work injury or an occupational

disease.

The pension ceases on remarriage.

Average weekly insurable earnings are based on the

deceased’s earnings in the 13 weeks before the onset of

disability.

Orphan’s pension: Each child younger than age 16 (age 18

if a full-time student) receives 11.7% of average weekly

insurable earnings (23% for a full orphan or if disabled).

Average weekly insurable earnings are based on the

deceased’s earnings in the 13 weeks before the onset of

disability or death.

Other dependent’s pension: 11.7% of average weekly

insurable earnings is paid for a year.

Average weekly insurable earnings are based on the

deceased’s earnings in the 13 weeks before the onset of

disability or death.

Saint Vincent and the Grenadines
SSPTW: The Americas, 2005 ♦ 173

Eligible survivors are a widow(er), unmarried children, and

any other person who was fully dependent on the insured.

Insured workers have the prior option of naming the

beneficiary.

Funeral grant: If the insured died as the result of a work

injury or an occupational disease, EC$3,800 is payable to

the person who paid for the funeral.

Administrative Organization

National Insurance Board (http://www.nissvg.org) administers the program.

Saint Vincent and the Grenadines
174 ♦ SSPTW: The Americas, 2005

Trinidad and Tobago

Exchange rate: US$1.00 equals

6.19 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 insured employment.

Exclusions: The self-employed, persons who work less than

10 hours a week and earn less than TT$100 per week or

TT$433 per 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 (means-tested): Citizens aged 65 or

older with 20 years’ residence; aged 40 or older if blind and

needy.

Source of Funds

Social insurance

Insured person: 2.8% of gross weekly or monthly earnings,

according to 12 wage classes. The voluntarily insured

contribute 7.1% of weekly earnings, according to 12 wage

classes.

The minimum weekly earnings for contribution purposes are

TT$130.

The maximum weekly earnings for contribution purposes are

TT$1,010.

Self-employed person: Not applicable.

Employer: 5.6% of weekly or monthly payroll, according to

12 wage classes.

The minimum weekly earnings for contribution purposes are

TT$130.

The maximum weekly earnings for contribution purposes are

TT$1,010.

Government: None; contributes as an employer.

Social assistance

Insured person: None.

Self-employed person: None.

Employer: None.

Government: Total cost.

Qualifying Conditions

Old-age pension (social insurance): From age 60 with

750 weeks of contributions paid or credited (in 1972,

workers were credited with 25 weeks of coverage for each

year of age over 35; up to a maximum 600 weeks). An

additional amount is paid for each 25-week period of

contributions in excess of 750, excluding the age credits.

Retirement is not necessary if aged 65 or older.

Old-age settlement (social insurance): The insured does

not meet the qualifying conditions for a 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 20 years’ residence and monthly

income not exceeding TT$1,000.

The social assistance pension is not payable abroad.

Disability pension (social insurance): Assessed as

incapable of work with 150 weeks of contributions, including 50 weeks of contributions in the 3 years immediately

before the onset of disability; 250 weeks of contributions in

the last 7 years immediately before the onset of disability; or

750 weeks of contributions immediately before the onset of

disability.

Disability settlement (social insurance): The insured

does not meet the qualifying conditions for a pension.

Disability benefits are payable abroad under reciprocal

agreements with other Caribbean territories and Canada.

Means-tested disability pension (social assistance):

Certified as blind, aged 40 or older, and with monthly income

not exceeding TT$1,000.

The social assistance 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.

Trinidad and Tobago
SSPTW: The Americas, 2005 ♦ 175

Old-Age Benefits

Old-age pension (social insurance): The pension is equal

to between 30% and 48% of the insured’s average weekly

earnings, according to 12 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 12 wage classes.

The minimum old-age pension is TT$1,000.

Old-age settlement (social insurance): A lump sum equal

to three times the total employer and employee contributions is payable.

The minimum settlement is TT$200.

Means-tested old-age pension (social assistance):

TT$1,050 or TT$1,150 a month, 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 12 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 12 wage classes.

There is no minimum disability pension.

The disability pension is commuted to an old-age pension

at age 60.

Disability settlement (social insurance): A lump sum

equal to three times the total employer and employee

contributions is payable.

The minimum settlement is TT$200.

Means-tested disability pension (social assistance):

TT$1,050 or TT$1,150 a month, depending on income.

Survivor Benefits

Survivor pension (social insurance): A widow(er)

receives 60% of the disability pension paid or payable to

the deceased.

The pension ceases on remarriage.

Remarriage settlement: A lump sum equal to 52 weeks’

benefit is payable.

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$320; TT$640

for a full orphan.

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 maximum survivor pension is 100% of the deceased’s

pension.

Funeral grant (social insurance): A lump sum of TT$4,000

is payable to the person who pays for the funeral.

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.

Office of the Prime Minister (Social Services Delivery),

Social Welfare Division, 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. Cash and medical benefits.

Coverage

Employed persons aged 16 to 64, including agricultural and

domestic workers, apprentices, and public-sector employees.

Exclusions: The self-employed, persons who work less than

10 hours a week and earn less than TT$100 per week or

TT$433 per 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: 0.3% of gross weekly or monthly earnings, according to 12 wage classes.

The minimum weekly earnings for contribution purposes are

TT$130.

The maximum weekly earnings for contribution purposes are

TT$1,010.

Self-employed person: Not applicable.

Employer: 0.6% of weekly or monthly payroll, according to

12 wage classes.

The minimum weekly earnings for contribution purposes are

TT$130.

The maximum weekly earnings for contribution purposes are

TT$1,010.

Trinidad and Tobago
176 ♦ SSPTW: The Americas, 2005

Government: None; contributes as an employer.

Qualifying Conditions

Cash sickness benefits: Must have 10 weeks of contributions in the 13 weeks before the onset of incapacity.

Cash maternity benefits: Must have 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.

Sickness and Maternity Benefits

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

weekly earnings before the onset of incapacity, according to

12 wage classes. The benefit is payable after a 3-day

waiting period, for up to 52 weeks.

Average earnings are based on earnings in the 10 best

weekly contributions in the 13 weeks before the onset of

incapacity.

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 12 wage

classes. The benefit is payable for a maximum of 13 weeks.

Average earnings are based on earnings in the 10 best

weekly contributions in the 13 weeks before the expected

date of childbirth.

Maternity grant: A lump sum of TT$2,000.

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

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.

Office of the Prime Minister (Social Services Delivery),

Social Welfare Division, provides general supervision of the

social insurance program and administers means-tested

benefits.

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: The self-employed, persons who work less than

10 hours a week and earn less than TT$100 per week or

TT$433 per month, and persons employed by international

organizations who are granted specific exemptions.

Source of Funds

Insured person: 0.2% of gross weekly or monthly earnings, according to 12 wage classes.

The minimum weekly earnings for contribution purposes are

TT$130.

The maximum weekly earnings for contribution purposes are

TT$1,010.

Self-employed person: Not applicable.

Employer: 0.4% of weekly or monthly payroll, according to

12 wage classes.

The minimum weekly earnings for contribution purposes are

TT$130.

The maximum weekly earnings for contribution purposes are

TT$1,010.

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 12 wage classes. The benefit is payable for up

to 52 weeks. There is no waiting period.

Average weekly earnings are based on career average

earnings, according to 12 wage classes.

Benefits are payable abroad under reciprocal agreements

with other Caribbean territories and Canada.

Trinidad and Tobago
SSPTW: The Americas, 2005 ♦ 177

Permanent Disability Benefits

Permanent disability pension: With 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: For an assessed degree of

disability of less than 20%, the benefit is calculated as a

percentage of average weekly earnings in proportion 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 when calculating the partial disability benefit is 3%.

The benefit is payable after the temporary disability benefit

ceases.

Average weekly earnings are based on career average

earnings, according to 12 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$18,000 per injury.

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 12 wage classes.

The pension ceases on remarriage.

Remarriage settlement: A lump sum equal to 52 weeks’

benefit is payable.

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 12 wage classes.

The minimum monthly orphan’s pension is TT$320; TT$640

for a full orphan.

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 12 wage classes.

Survivor benefits are payable abroad under reciprocal

agreements with other Caribbean territories and Canada.

Funeral grant: TT$2,000.

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: Total cost.

Qualifying Conditions

Family allowances (means-tested): Payable to needy

individuals and families with little or no means of support.

Burial assistance: Paid to families to help pay for the cost

of a funeral.

Clothing grant: Paid to help purchase clothing, including

school uniforms and shoes for children. The grant is

payable for a maximum of four persons per household.

Dietary grant: Paid to help purchase prescribed foodstuffs

for person 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

been resident in Trinidad and Tobago for the last 3 years

and have annual income less than TT$3,600.

Education grant: Paid to families to help meet the cost of

school fees, school transportation, and other essentials.

The grant is payable 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.

Trinidad and Tobago
178 ♦ SSPTW: The Americas, 2005

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

payable 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 payable for

a maximum of four children per household.

Family Allowance Benefits

Family allowances (means-tested):

Burial assistance: A lump sum of TT$3,450.

Clothing grant: Up to TT$200 per person, for a maximum of

four persons per household.

Dietary grant: Up to TT$150 a month.

Disability assistance: A monthly grant of TT$800.

Education grant: Up to TT$140 a month per child, 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 provided in a 3-

month period.

Medical equipment grant: Up to TT$5,000.

Home help grant: The selected caregiver receives TT$350 a

month, for up to 3 months.

School textbook grant: TT$500 per child, for a maximum of

four children per household.

Special child grant: TT$300 a month is payable to parents,

for a maximum of four children per household. The grant is

reviewed annually by the local office of the National

Insurance Board.

Administrative Organization

Office of the Prime Minister (Social Services Delivery)

(http://www.socialservices.gov.tt/opmssd), Social Welfare

Division, provides general supervision and administers the

program.

Trinidad and Tobago
SSPTW: The Americas, 2005 ♦ 179

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 occupied persons, including self-employed

persons.

Exclusions: Casual agricultural and domestic employees,

some categories of self-employed persons (when annual net

income is below $400), and some federal employees hired

before 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 earnings.

The maximum annual earnings for contribution and benefit

purposes are $90,000. (The maximum earnings for contribution and benefit purposes are automatically adjusted to

wage levels.)

Self-employed person: 12.4% of earnings.

The maximum annual earnings for contribution and benefit

purposes are $90,000. (The maximum earnings for contribution and benefit purposes are automatically adjusted to

wage levels.)

Employer: 6.2% of payroll.

The maximum annual earnings for contribution and benefit

purposes are $90,000. (The maximum earnings for contribution and benefit purposes are automatically adjusted to

wage levels.)

Government: Total cost of the means-tested old-age

benefit.

Qualifying Conditions

Old-age pension: Effective for workers retiring at age 65 in

2005, the full retirement age required for a nonreduced

pension has been raised from age 65 to age 65 and

6 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: 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 of the onset of disability, 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 onset of disability.

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):

Payable 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.

United States
180 ♦ SSPTW: The Americas, 2005

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 2005

at the full retirement age is $1,939.

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 2005, 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 2005 at the full retirement age is $3,393.

Old-age supplemental income benefit (means-tested):

The maximum monthly benefit is $579 for an individual; $869

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

become disabled at age 50 in 2005 is $2,036. 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 2005 is $3,054.

Benefit adjustment: Benefits are adjusted automatically for

changes in the cost of living.

Disability supplemental income benefit (means-tested):

The maximum monthly benefit is $579 for an individual; $869

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 retirement

benefits.

The pension is payable 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 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 payable to a

surviving spouse.

Orphan’s pension: 75% of the deceased’s pension for

each child.

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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 2005, is $3,602.

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) and 1972 (health insurance for the disabled).

Medical benefits only.

Type of program: Social insurance system.

Note: Beginning in 2006, subsidized access to prescription

drug insurance coverage under the health insurance

program for older persons and disabled persons (Medicare)

will be provided on a voluntary basis with premium and

cost-sharing subsidies for low-income persons.

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 a disability pensioner 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 a disability pensioner for more than

2 years; persons with end-stage renal disease; and all other

persons aged 65 or older, through voluntary 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 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 $78.20 a

month.

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: None.

Employer

Cash benefits: There is no national program.

Hospitalization: 1.45% of payroll.

There are no maximum earnings for contribution purposes

for hospitalization.

Other medical services: None.

Government

Cash benefits: There is no national program.

Hospitalization: Total cost of hospitalization benefits for

certain noninsured elderly persons.

Other medical services: 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.

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182 ♦ SSPTW: The Americas, 2005

Other medical services: Meets the requirement for

hospitalization benefits, election of coverage, and payment

of required premiums.

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

Hospitalization: Inpatient care is provided for stays of up

to 90 days; the beneficiary is responsible for the first-day

deductible of $912 (amount adjusted each year) and, for the

60th to the 90th day, $228 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 $456 per day. Posthospital skilled nursing

facility care for an additional 100 days (the patient pays

$115 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 $110 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.

Federal and state assistance programs: Medical

services are provided to medically indigent persons of any

age.

Dependents’ Medical Benefits

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 $912 (amount adjusted each year) and, for the

60th to the 90th day, $228 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 $456 per day. Posthospital skilled nursing

facility care for an additional 100 days (the patient pays

$115 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 $110 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.

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 (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.

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.

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).

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SSPTW: The Americas, 2005 ♦ 183

Source of Funds

Insured person: Nominal contributions in a few states.

Self-employed person: Not applicable.

Employer: 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 2002 was 1.58% of payroll.) Total cost of pneumoconiosis benefits for insured persons who entered the

workforce after 1973.

Government: None; contributes as an employer. 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 payable after a waiting period of 3 to 7 days

(first day in Virgin Islands). 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

$549. The maximum monthly family pension is $1,098 (2004).

Constant-attendance supplement: Provided in some states.

The supplement is payable 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 payable 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 $549. The family maximum monthly is $1,098

(2004).

Other eligible survivors include dependent parents,

brothers, and sisters.

Funeral grant: A lump sum is paid. The amount varies by

state.

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 Programs, 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

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184 ♦ SSPTW: The Americas, 2005

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%. 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 $32,000 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 benefit: 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

Unemployment benefit: 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 payable 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 $120 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.

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.

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SSPTW: The Americas, 2005 ♦ 185

Uruguay

Exchange rate: US$1.00 equals

24.15 new pesos (NP).

Old Age, Disability, and Survivors

Regulatory Framework

First laws: Various laws 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 12,951 NP; the individual account is voluntary

for those with monthly income of 12,951 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, including rural and domestic

workers, with monthly earnings greater than 12,951 NP.

Voluntary coverage for employed and self-employed

persons with monthly earnings of 12,951 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: Contributions depend on the insured’s

level of monthly earnings and whether the insured has an

individual account:

• 15% of gross monthly earnings to social insurance, with

earnings up to 12,951 NP. (If the insured opted for the

individual account, 7.5% of gross monthly earnings to

social insurance and 7.5% of gross monthly earnings to

the individual account.)

• 15% of gross monthly earnings (up to a ceiling of

12,951 NP) to social insurance and 15% of monthly

earnings for earnings above 12,951 NP to the individual

account, with monthly earnings from 12,951 NP up to a

ceiling of 19,427 NP. (If the insured opted for the individual account, 7.5% of monthly earnings (up to a ceiling

of 12,951 NP) plus 15% of monthly earnings for earnings

above 12,951 NP (up to a ceiling of 19,427 NP) to social

insurance and 7.5% (up to a ceiling of 12,951 NP) to the

individual account.)

• 15% of monthly earnings (up to a ceiling of 12,951 NP) to

social insurance and 15% of monthly earnings for

earnings above 12,951 NP (up to a ceiling of 38,854 NP) to

the individual account, with earnings of 19,427 NP or

more.

The insured’s contribution includes an average 0.98% of

earnings for disability and survivor insurance and an

average 1.88% of earnings for administrative fees.

The minimum monthly earnings for contribution purposes

are 1,397 NP.

Earnings for contribution purposes are adjusted according

to the civil servants’ average wage index.

Self-employed person: 15% of declared earnings, including an average 0.98% of declared earnings for disability and

survivor insurance and an average 1.88% of declared

earnings for administrative fees.

The minimum monthly declared earnings for contribution

purposes are 2,829.42 NP.

Street vendors with annual earnings up to 400,000 NP

contribute 27.625% of 1,397 NP for old-age, disability, and

survivor benefits (plus an additional amount if covered for

sickness benefits).

Employer: 12.5% of payroll for social insurance only.

The minimum monthly earnings for contribution purposes

are 1,397 NP.

The maximum monthly earnings for contribution purposes

are 38,854 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.

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186 ♦ SSPTW: The Americas, 2005

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): 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. Must have at least 2 years of

recognized service, including the 6 months before the onset

of disability; at least 6 months of recognized service before

the onset of disability if younger than age 26. Coverage 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): 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. Must have at least 2 years of

recognized service, including the 6 months before the onset

of disability; at least 6 months of recognized service before

the onset of disability if younger than age 26. The benefit is

payable 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):

Assessed as totally and permanently disabled, needy, and

with at least 15 years of residency.

Survivor pension

Survivor pension (social insurance and individual account): The deceased was working; a pensioner; a beneficiary of partial disability benefit, sickness benefit, maternity

benefit, or work injury benefit; unemployed and receiving

unemployment benefits; or death occurred in the 12-month

period after 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

38,854 NP; 22,341.33 NP for a divorced spouse.

Funeral grant: The grant is payable 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

50% of average indexed earnings in the last 10 or 20 years,

whichever is higher, 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 maximum earnings for benefit calculation purposes are

12,951 NP.

The minimum monthly pension is 1,452.20 NP.

The maximum monthly pension is 10,684.98 NP.

The pension is payable abroad under bilateral or multilateral

agreement only.

Benefit adjustment: Pensions are adjusted according to the

civil servants’ average wage index.

Advanced-age pension (social insurance): The monthly

benefit is 50% of average indexed earnings in the last 10 or

20 years, whichever is higher, 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: Pensions are adjusted according to the

civil servants’ average wage index.

Old-age pension (individual account): The value of the

pension is dependent 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 is dependent 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):

2,498.73 NP a month.

Benefit adjustment: Pensions 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 average indexed

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SSPTW: The Americas, 2005 ♦ 187

earnings in the 10 or 20 years before the onset of disability,

whichever is higher, or the total number of years worked if

less than 10 years.

Special allowances: A lump sum of 1,036 NP is paid for

transportation costs, and a lump sum of 1,921 NP is paid for

rehabilitation costs.

Partial disability benefit (social insurance): The monthly

benefit is equal to 65% of average indexed earnings in the

10 or 20 years before the onset of disability, whichever is

higher, or the total number of years worked if less than 10

years. The benefit is payable for up to 3 years.

The maximum earnings for benefit calculation purposes are

12,951 NP.

The minimum monthly benefit is 2,425.64 NP.

The maximum monthly benefit is 10,684.98 NP.

Benefits are payable abroad under bilateral or multilateral

agreement only.

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 average indexed

earnings in the 10 years before the onset of disability.

(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 average indexed earnings in the

10 years before the onset of disability. The benefit is

payable for up to 3 years.

Noncontributory means-tested pension (social assistance):

2,498.73 NP a month.

Benefit adjustment: Pensions 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.

Eligibility 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: Pensions are adjusted according to the

civil servants’ average wage index.

Funeral grant: The cost of the funeral up to 6,015.27 NP.

(Additional costs related to the funeral are covered up to

2,978.84 NP.)

Administrative Organization

Ministry of Labor and Social Security (http://

www.mtss.gub.uy) provides general supervision.

Social Security Bank (http://www.bps.gub.uy) supervises

and administers the social insurance program.

Pension fund management companies (AFAPs) manage the

individual accounts.

Central Bank of Uruguay (http://www.bcu.gub.uy) oversees

pension fund management companies and insurance

companies.

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), and 2001

(child adoption).

Type of program: Social insurance system.

Coverage

Sickness benefits: Employed persons in the private

sector, self-employed persons, persons receiving unemployment benefits, and employers with one employee.

Voluntary coverage for rural workers and their spouses; and

pensioners.

Special systems for bank employees and civil servants.

Maternity benefits: Benefits are provided under Family

Allowances, below.

Source of Funds

Insured person: 3% of gross earnings; 3% of gross

earnings for voluntary coverage.

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188 ♦ SSPTW: The Americas, 2005

The minimum earnings for contribution purposes are

1,746.25 NP.

Self-employed person: 8% of declared earnings.

Employer: 5% of payroll, plus an additional amount for

medical benefits. 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: 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 earnings

and is payable 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 4,191 NP; 978 NP for the

self-employed.

Maternity benefit: See Family Allowances, below.

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.

Copayments for benefits range from 43 NP to 189 NP.

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 Security Bank (http://www.bps.gub.uy) supervises

and administers the social insurance program.

Collective medical assistance or mutual health institutions

contracted by the Social Security 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: Total cost, 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 a work injury, the benefit is equal to 66% of earnings

before the onset of disability; for workers in irregular

employment, 66% of total adjusted earnings in the last

6 months divided by 150. The daily benefit is payable after

a 4-day waiting period until the insured is assessed as no

longer disabled. The benefit for the waiting period is paid

retroactively.

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 payable

under sickness benefits.

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SSPTW: The Americas, 2005 ♦ 189

The State 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

onset of disability if the insured needs the constant

attendance of another person.

For an assessed degree of disability of 10% to 20%, 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 State 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 State 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 50% of the

deceased’s earnings is payable to a widow(er) or partner

with dependents; 66% without dependents. The widow(er)

must have been married to the deceased for a year; a partner

must have cohabited with the deceased for a year.

Orphan’s pension: Between 20% and 100% of the

deceased’s earnings for dependent orphans younger than

age 18 (no limit if disabled), subject to the number of

orphans and other eligible survivors.

If the deceased worked for at least 150 days in the last 6

months, the earnings for pension calculation purposes are

based on 24 times average half-monthly earnings in the

6 months before the accident; half-monthly earnings if the

insured worked less than 15 days.

Benefit adjustment: Benefits are adjusted according to the

civil servants’ average wage index.

Administrative Organization

State Insurance Bank (http://www.bse.com.uy) administers

the program.

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.

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 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 8,382 NP in the

12-month period.

Rural workers who are paid monthly must have 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 16,764 NP in the 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: Payable 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.

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190 ♦ SSPTW: The Americas, 2005

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 698.50 NP.

The maximum unemployment benefit is 11,176 NP.

Administrative Organization

Ministry of Labor and Social Security (http://

www.mtss.gub.uy) provides general supervision.

Social Security 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.

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 4,191 NP or more and employees

with earnings of 13,970 NP or more do not receive family

allowances. (For employees with earnings of 13,970 NP or

more and with three or more dependents, the earnings limit

is increased to 1,397 NP for each additional dependent.)

Cash maternity benefit: Payable for the birth of a child.

Multiple birth allowance: Payable 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: Payable to eligible

children in households with monthly earnings of 4,191 NP

or less.

Family Allowance Benefits

Family allowances: The allowance is 223.52 NP (447.04 NP

for a disabled child) for covered persons with income up to

8,382 NP; 111.76 NP (223.52 NP for a disabled child) with

income between 8,382 NP and 13,970 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 payable 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.

The maximum allowance is 20,955 NP.

Special paid leave: Private-sector workers receive benefits

equal to 6 weeks’ cash maternity benefit.

Low-income family allowance: 223.52 NP (447.04 NP for a

disabled child) is payable every 2 weeks.

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 Security Bank (http://www.bps.gub.uy) supervises

and administers the program.

Collective medical assistance or mutual health institutions

contracted by the Social Security Bank provide medical

benefits.

Uruguay
SSPTW: The Americas, 2005 ♦ 191

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

earnings.

The maximum monthly earnings for contribution and benefit

purposes are equal to five times the minimum urban wage.

The above contributions also finance the marriage grant

(see Family Allowances, below).

Self-employed person: Not applicable.

Employer: The average contribution is 4.82% of payroll.

The maximum monthly earnings for contribution and benefit

purposes are equal to five times the minimum urban wage.

The above contributions also finance the marriage grant

(see Family Allowances, below).

Government: At least 1.5% of total taxable earnings to

cover the cost of administration; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 60 (men) or age 55 (women) with

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: The insured does not meet the qualifying

conditions for the pension but has at least 100 weeks of

contributions in the last 4 years.

Disability pension: Payable for the permanent or prolonged

loss of over 2/3 of working capacity with 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 onset of disability. There is no

qualifying period for a disability caused by an accident.

Partial disability pension: The loss of between 25% and

66.6% of working capacity.

Disability grant: For an assessed degree of disability of

between 5% and 25%.

Survivor pension: The insured met 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 with

children; a partner older than age 45 or 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 payment.

Survivor grant: The insured did not meet 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 with

children; a partner older than age 45 or 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

Venezuela
192 ♦ SSPTW: The Americas, 2005

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.

Partial disability: For an assessed degree of disability of

between 25% and 66.6%, a percentage of the full pension

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%.

The maximum survivor pension is 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 payable.

Funeral grant: The grant must not be more 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. Cash and

medical benefits.

Coverage

Employees in the private and public sectors.

Source of Funds

Insured person: The average contribution is 1.79% of

earnings.

The above contributions also finance work injury benefits.

Self-employed person: No information is available.

Employer: The average contribution is 3.46% of payroll.

The above 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: Currently

insured.

Medical benefits: Currently insured.

Sickness and Maternity Benefits

Sickness benefit: The benefit is equal to 66.6% of

earnings and is payable after a 3-day waiting period for up

to 52 weeks; may be extended under certain conditions.

The benefit is reduced by 50% when the insured is hospitalized.

Maternity benefit: The benefit is equal to 66.6% of

earnings in the last month before maternity leave and is

payable 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.

Venezuela
SSPTW: The Americas, 2005 ♦ 193

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,

hospitalization, laboratory services, medicines, dental care,

maternity care, appliances, and transportation. The

maximum duration of medical benefits for 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. The

benefit is payable 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: The pension is equal to

66.6% of the insured’s earnings, if totally disabled.

Constant-attendance supplement: Up to 50% of the

pension.

Partial disability: For an assessed degree of disability of

between 25% and 66.6%, a percentage of the full pension

according to the assessed degree of disability. For an

assessed degree of disability of between 6% and 24%, a

lump sum equal to 3 years’ pension is paid.

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 with

children; a partner older than age 45 or 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 meet the qualifying

period for a pension but had at least 100 weeks of contributions in the last 4 years.

Funeral grant: 5,000 bolivares.

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 contributions and benefits.

Social Insurance Institute provides medical benefits

through its own clinics and hospitals.

Venezuela
194 ♦ SSPTW: The Americas, 2005

Unemployment

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 and members of

cooperatives.

Source of Funds

Insured: 0.5% of earnings.

The maximum monthly earnings for contribution and benefit

purposes are equal to five times the minimum urban wage.

The above contributions also help finance health insurance

for the unemployed.

Self-employed person: Not applicable.

Employer: 1.7% of payroll.

The maximum monthly earnings for contribution and benefit

purposes are equal to five times the minimum urban wage.

The above contributions also help finance health insurance

for the unemployed.

Government: None.

Qualifying Conditions

Unemployment benefits: Must have 52 weeks of contributions in the 18 months before unemployment began. The

insured must 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. The benefit 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 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.)

Venezuela