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					LIS Variable Contents (national programmes) Legislation Coverage

V2 Mandatory Employer Contributions Social contributions for employers NB: NOT INCLUDED IN SURVEY

Decree-Law Nº 25897 Mandatory Individual Account System (1992); Law Nº 26790 Moderniza Social Security Health (1997); Law Nº 27056 Creation of Social Security Health Insurance Pro ESSALUD (1999); Law Nº 27986 Domestic Workers (2003) All employers

Benefits (financed programmes)

Social Security Health Insurance : Preventive and promotional benefits; recovery benefits; wel and social promotion benefits; cash benefits (temporary disability benefits, maternity and nurs allowance); funeral grants; minimum care plan. Supplementary risk insurance : Health benefits for work injuries or occupational diseases; and disability pensions (temporary or permanent disability), survivors benefits and funeral grants, a consecuence of occupational injuries and diseases. Payroll

Basis of assessment

Rate

Social Security Health Insurance: Regular affiliates: 9% of payroll (paid by employer); regular affiliated pensioners: 4% of pension (paid by pensioner); voluntary affiliates: contributions acc to the selected plan. The minimum earnings for contribution purposes are equal to the legal m minimum wage. Supplementary risk insurance: 0.63% to 1.84% of payroll, according to the assessed degree o and the accident rate (paid by employer). Self-employed persons contribute a lump sum of 10 nuevos soles. The maximum earnings for benefit purposes are equal to six times the local min wage. By withholding

Collection

ry Employer Contributions butions for employers CLUDED IN SURVEY

Nº 25897 Mandatory Individual Account System (1992); Law Nº 26790 Modernization ty Health (1997); Law Nº 27056 Creation of Social Security Health Insurance Program 999); Law Nº 27986 Domestic Workers (2003)

ty Health Insurance : Preventive and promotional benefits; recovery benefits; welfare omotion benefits; cash benefits (temporary disability benefits, maternity and nursing uneral grants; minimum care plan. ry risk insurance : Health benefits for work injuries or occupational diseases; and sions (temporary or permanent disability), survivors benefits and funeral grants, as of occupational injuries and diseases.

ty Health Insurance: Regular affiliates: 9% of payroll (paid by employer); regular sioners: 4% of pension (paid by pensioner); voluntary affiliates: contributions according d plan. The minimum earnings for contribution purposes are equal to the legal monthly ge. ry risk insurance: 0.63% to 1.84% of payroll, according to the assessed degree of risk ent rate (paid by employer). Self-employed persons contribute a lump sum of 10 to 30 . The maximum earnings for benefit purposes are equal to six times the local minimum

g

LIS Variable Contents (national programmes)

V11 Income Taxes Income tax Contributions to SENATI Contributions to SENCICO NB: ONLY TAXES PAID ON WAGES ARE AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN LIS DATA)

Legislation

Supreme Decree Nº179-2004-EF Income Tax Law (2004), Law Nº26272 National Service of Occu Training in Industry - SENATI, Decree-Law Nº 21673 Organic law National Service of Training for Construction Industry - SENCICO, Legislative Decree Nº147 Organization and Functions of SENC Supreme Decree Nº032-2001-MTC Statute SENCICO (2001)

Income tax Coverage Contributions to SENATI Contributions to SENCICO Income tax Beneficiary Contributions to SENATI Contributions to SENCICO

Income tax

Basis of assessment

Contributions to SENATI

Contributions to SENCICO

Income tax Exemptions Contributions to SENATI Contributions to SENCICO

Income tax Deductions

Contributions to SENATI Contributions to SENCICO

Income tax Tax unit Contributions to SENATI Contributions to SENCICO

Income tax Rate

Contributions to SENATI Contributions to SENCICO Income tax Collection Contributions to SENATI Contributions to SENCICO

Income Taxes me tax tributions to SENATI tributions to SENCICO ONLY TAXES PAID ON WAGES ARE AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN PSLOT1 IN DATA)

reme Decree Nº179-2004-EF Income Tax Law (2004), Law Nº26272 National Service of Occupational ning in Industry - SENATI, Decree-Law Nº 21673 Organic law National Service of Training for the struction Industry - SENCICO, Legislative Decree Nº147 Organization and Functions of SENCICO, reme Decree Nº032-2001-MTC Statute SENCICO (2001) Any taxable income obtained by taxpayers domiciled in the country, without regard to the nationality of natural persons, the place of constitution of juridical persons, nor the location of the source of production. In the case of taxpayers not domiciled in the country, its branches, agencies or permanent establishments, the tax is levied only on taxable income from Peruvian sources. Income paid to employees by companies that develop industrial and manufacturing activities in Category D of the International Standard Industrial Classification - ISIC (revision 3). Natural or juridical persons carrying out, either for themselves or for third parties, construction activities listed in Major Division 45 of the ISIC (revision 3). Central Government National Service of Occupational Training in Industry (SENATI) National Service of Training for the Construction Industry (SENCICO) The tax is levied on any income coming from capital, labour or the joint application of both factors. Incomes are understood as earnings coming from a steady source that is likely to generate income on a regular basis. Income from Peruvian sources subject to this tax are divided into five categories: _First category: Real income (in cash or in kind) from lease or sub-lease payments and value of improvements coming from rural and urban real estate, or movable goods. _Second category: Interest from capital investments, royalties, patents, annuities, good will [derechos de llave], etc. _Third category: In general, income generated from commercial, industrial, service or business activities. _Fourth category: Income generated from the practice of any profession, science, art or craft. _Fifth category: Income obtained for personal work performed under dependency; annuities and pensions originated from personal work; other income from selfemployment explicitly set forth by the law. Total remuneration paid to workers. Remuneration is defined as any payment received by the worker for the provision of personal services subject to employment contract, regardless of its origin, nature or denomination. Total income received by taxable persons for materials, labor, overhead expenses, technical direction, profits [utilidad] and any other concept billed to the client, regardless of the construction contract system [sistema de contratación de obras].

Income exempted from taxation: Compensations set forth by current legal norms; pensions received for death or disability caused by accidents or illness, compensation for time served; annuities and pensions that have their origin in personal work; allowances for temporary disability or maternity.

Resident taxpayers : _Incomes on first category: 20% of gross earnings _Incomes on second category: 10% of gross earnings _Incomes on third category: It may be deducted from gross income the expenses needed to produce and maintain their source, as well as those associated with the generation of capital gains, provided these deductions are not expressly prohibited by this law. _Incomes on fourth category: 20% of gross earnings from all expenses, up to a limit of 24 UTI. _Incomes on fourth and fifth categories: A fixed amount equal to seven UTI may be deducted annually. Taxpayers who receive income in both categories may deduct the fixed amount only one time. _Global net ncome: It results from adding and compensating the incomes from the different categories, except the incomes on the third category, and dividends or other form of distribution of profits. On the overall net income, the tax financial transactions may be deducted, as well as expenditures on donations to national entities of the public sector or non-profit organizations whose social purpose is acknowledged in the law. Non-resident taxpayers: Insurance activities: 7% of premiums; rental of ships and aircraft: 80% (ships) and 60% (aircraft) of gross revenue; air transportation: 1% of gross revenue; sea transportation: 2% of gross revenue; telecommunications services: 5% of gross revenue; international news agencies: 10% of gross earnings; distribution of films and similar: 20% of gross revenue; companies that provide containers for cargo transport services: 15% of gross revenue; container demurrage [sobreestadía de contenedores]: 80% on gross revenue; assignment of television retransmission rights: 20% of gross revenue; technical services: 40% of gross revenue; pay or pensions for services completed in the country: 80% of gross revenue for incomes from fourth category, and 7 UIT for incomes from the fifth category.

UIT: Tax Revenue Unit. This is the benchmark used by tax norms/rules for determining tax bases, limits of taxation, deductions, sanctions, etc. Its value is determined taking into account macroeconomic assumptions. The value for 2004 was 3200, according to Supreme Decree No. 192-2002-EF.

_Resident taxpayers engaged in activities in third category: 30% of taxable income. _Resident natural persons carrying out activities in the other categories have a progressive rate: 15% for incomes up to 27 UIT; 21% for incomes above 27 UIT and up to 54 UIT; 30% for incomes above 54 UIT. _Non-resident juridical persons: In general, 30% of taxable income; royalties: 30%; interest from foreign loans that meet certain requirements: 4.99%; interests paid [al exterior] by banks and financial companies established in Peru as a result of the domestic use of their credit lines abroad : 1%; income from rental of ships and aircrafts: 10%; technical assistance: 15%. _Non-resident natural persons and [sucesiones indivisas]: 30% of pensions or remunerations for personal services completed in the country, royalties and other income. _Dividends and other forms of distribution of profits received from juridical persons: of 4.1%, irrespective of the nature of the taxpayer. 0.75% of total remunerations paid to workers 0.2% of total income coming from the sources detailed in the basis of assessment Taxpayers with taxable income must submit affidavit [declaración jurada] of the income received in the accounting period [ejercicio gravable]. No submission of affidavit for those taxpayers who receive income exclusively from the fifth category. Presentation of affidavit (tax-files) according to established regulation. Presentation of affidavit for natural and juridical persons to SENCICO (with the same deadline timetable that the Annual Declaration of Tax Revenue) .

LIS Variable Contents (national programmes) Legislation

Coverage

V13 Mandatory Employee Contributions Social contributions for employees NB: ONLY CONTRIBUTIONS PAID ON WAGES ARE AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN PSLOT2 IN LIS DATA) Decree-Law Nº19990 Social Insurance --SNP (1973); Decree-Law Nº25897 Mandatory Individ Account--SPP (1992 and reform 1995); Law Nº27617 Restructuring of SNP, amendment of D Nº20530 and law of SPP. Mandatory affiliation: Wage earners and salaried employees in the public sectors; artists; domestic workers; wage earners and the self Social Insurance (SNP) in the agricultural sector. Voluntary affiliation: The self-employed, those who are economical no longer in covered employment (a minimum of 18 months of prev coverage is required), and housewives. Mandatory Individual Account (SPP)

Mandatory affiliation for all employed persons opting for this system coverage for the self-employed.

Beneficiary (financed programmes) Basis of assessment

Old-age pension (ordinary or early), permanent disability pension, survivors pension Gross earnings

Rate

Insured person: 13% of gross earnings. The minimum earnings for contribution purposes are equal to the legal monthly minimum wage domestic workers, 33.3% of the legal monthly minimum wage. Social Insurance (SNP) Self-employed person: 13% of declared earnings. The minimum ea contribution purposes are equal to the legal monthly minimum wage There are no maximum earnings for contribution purposes. The government finances the minimum pension as well as special s needed to finance the program.

Mandatory Individual Account (SPP)

Insured and self-employed persons: 8% of gross earnings (10% fro 2006) for old-age benefits, plus an average 0.92% of gross earning disability and survivor insurance and an average 2.27% of gross ea administrative fees. There are no maximum earnings for contributio for old-age benefits; 6,486.33 nuevos soles for disability and survivo The government finances the guaranteed minimum pension.

Collection

By witholding. Contributions in the case of self-employed persons.

ons

N WAGES ARE AVAILABLE IN ORIGINAL SURVEY

--SNP (1973); Decree-Law Nº25897 Mandatory Individual Law Nº27617 Restructuring of SNP, amendment of Decree-Law

filiation: Wage earners and salaried employees in the private and s; artists; domestic workers; wage earners and the self-employed ural sector. liation: The self-employed, those who are economically active but covered employment (a minimum of 18 months of previous equired), and housewives.

filiation for all employed persons opting for this system. Voluntary the self-employed.

manent disability pension, survivors pension

on: 13% of gross earnings. The minimum earnings for purposes are equal to the legal monthly minimum wage; for kers, 33.3% of the legal monthly minimum wage. d person: 13% of declared earnings. The minimum earnings for purposes are equal to the legal monthly minimum wage. maximum earnings for contribution purposes. ent finances the minimum pension as well as special subsidies ance the program.

self-employed persons: 8% of gross earnings (10% from January age benefits, plus an average 0.92% of gross earnings for survivor insurance and an average 2.27% of gross earnings for e fees. There are no maximum earnings for contribution purposes enefits; 6,486.33 nuevos soles for disability and survivor benefits. ent finances the guaranteed minimum pension. of self-employed persons.

LIS Variable

Contents (national programmes)

V16 Sickness benefits Cash sickness benefits Integral part of the Social Security Health Insurance. It is managed by EsSalud and is complemented by plans and health programs provided by private health care providers (EPS). Persons insured can choose to receive care from EsSalud or the EPS of their choice. NB: NOT SEPARATELY AVAILABLE IN SURVEY (MOST LIKELY INCLUDED IN V1NET IN LIS DATA) Law Nº 26790 Modernization Social Security Health (1997); Law Nº 27056 Creation of Social Security Health Insurance Program - ESSALUD (1999); Law Nº 27986 Domestic Workers (2003) EsSalud: Regular affiliates: Workers engaged in relationship of dependency or as members of cooperatives, and pensioners who receive income from an old-age, disability or survivors pension. By modification of Act No. 27177, also included are self-employed persons who are incorporated by mandate of a special law to the Contributory Regime of Social Security Health Insurance [Régimen Contributivo de la Seguridad Social en Salud]. Voluntary affiliates [Afiliados Potestativos]: Workers and independent professionals, including those who were subject to mandatory special regimes; and others who do not qualify for regular membership, as well as those determined by law. Beneficiaries [Derechohabientes]: Spouse or partner (in accordance with the provisions of Article 326 of the Civil Code), and children under age or older fully and permanently disabled to work. Exclusions: Employees whose employers provide health services directly. EPS : All persons opting out of EsSalud and their dependents. Three months of consecutive contributions or 4 months of non-consecutive contributions in the 6 months before the onset of incapacity. Special unemployment coverage for regular affiliates and their beneficiaries [derechohabientes] : A minimum of 5 months of contributions, consecutive or not, during the three years preceding the termination or suspension of activity. They are entitled to preventive, promotional and recovery benefits, at the rate two months of latency for every five months of contributions. Waiting period: 20 days. The employer pays the full salary during the waiting period. Duration: Up tp 11 months and 10 consecutive days. Amount: Insured’s average daily earnings in the last 4 months immediately preceding the month in which the contingency begins.

Legislation

Coverage

Qualifying conditions

Benefits Accumulation with other income Adjustment Financing

Financing principle Taxation Contributions from benefits

Employer's contributions (see V2).

LIS Variable

Contents (national programmes)

Legislation

V17SR Occupational injury and disease insurance n.e.c. Supplementary occupational injury insurance in case of high-risk activities [Seguro Complementario de Trabajo de Riesgo] , including: - health benefits in case of work injury or occupational disease. - survivors benefits, disability benefits (permanent total or partial, and temporary). - funeral grant NB: ONLY WORK INJURY OCCASIONAL INDEMNISATIONS ARE INCLUDED HERE; REGULAR BENEFITS ARE NOT SEPARABLE FROM GENERAL SYSTEM (INCLUDED IN V1NET, V19S4 AND V19SR IN LIS DATA) Law Nº 26790 Modernization Social Security Health (1997); Law Nº 27056 Creation of Social Security Health Insurance Program - ESSALUD (1999); Law Nº 27986 Domestic Workers (2003); Supreme Decree 002-72-TR, which dictates the Rules of Decree-Law 18.846 Work Injury and Occupational Diseases. Every worker that is a regular affiliate of Essalud and works in high-risk activities, as defined in Annex 5 of the Rules of the Law on Modernization of Social Security Health, Act No. 26790, Supreme Decree No. 099-97-SA, amended by Supreme Decree No. 003-98-SA. Persons insured can choose to receive care from Essalud or the EPS of their choice. Medical benefits Temporary disability pension Being temporarily unable to work as a result of a work injury or occupational illness. Being temporarily unable to work as a result of a work injury or occupational illness. There is no minimum qualifying period. Becoming permanently unable to work (partial or total disability) as a result of work injury or occupational disease. There is no minimum qualifying period. Payable to the widow or widower if she/he is dependent for being disabled, orphans and other dependent relatives in the absence of widow / widower and orphans. Benefits include necessary medical, surgical, and hospital care and appliances until full recovery or certification of permanent disability. Waiting period : 20 days. The employer pays the full salary during the waiting period. Duration: 11 months and 10 days. The maximum duration of benefits is 18 months in a 36-month period. Amount: 100% of wages. Maximum benefit: The maximum earnings for benefit calculation are equal to six times the local minimum wage. Amount: 80% of average wages (100% if the insured requires constant attendance) if totally disabled with an assessed degree of disability of more than 65%. Partial disability : The pension is proportionately reduced or 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%. Widow or disabled widower: 50% of the deceased's total disability pension. Orphans: 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 receives 25% of the deceased’s pension. The maximum survivor pension is 100% of the deceased’s pension. Funeral grant: 2,070 nuevos soles.

Coverage

Qualifying conditions

Permanent disability pension

Survivors pension

Medical benefits

Temporary disability pension

Benefits

Permanent disability pension

Survivors pension

Accumulation with other income Adjustment Financing principle Taxation Contributions from benefits Employer's contributions (see V2).

Financing

LIS Variable Contents (national programmes)

V18S1 Disability pension Invalidity Pension Since 1992 the insured may choose between the public social insurance system (SNP) or the mandatory individual account system (SPP). NB: NOT SEPARATELY AVAILABLE IN ORIGINAL SURVEY (INLCUDED IN V19SR IN LIS DATA) Decree-Law Nº19990 Social Insurance --SNP (1973); Decree-Law Nº25897 Mandatory Individual Account--SPP (1992 and reform 1995); Law Nº27617 Restructuring of SNP, amendment of Decree-Law Nº20530 and law of SPP. Mandatory affiliation: Wage earners and salaried employees in the private and public sectors; artists; domestic workers; wage earners and the selfemployed in the agricultural sector. Social Insurance (SNP) Voluntary affiliation: The self-employed, those who are economically active but no longer in covered employment (a minimum of 18 months of previous coverage is required), and housewives. Mandatory Individual Account (SPP) Mandatory affiliation for all employed persons opting for this system. Voluntary coverage for the self-employed.

Legislation

Coverage

Qualifying conditions

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; 3 to 15 Social Insurance (SNP) years of contributions with 12 months of contributions in the last 36 months; or 15 or more years of contributions. Mandatory Individual Account (SPP) 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.

Benefits

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 Social Insurance (SNP) earnings in the last 60 months. The minimum pension is three times the minimum wage, and 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. Disability 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.)

Mandatory Individual Account (SPP) Accumulation with other income Adjustment Financing

Pensions are adjusted according to changes in the cost of living in Lima. Financing principle Taxation Contributions from benefits Employee's contributions (see V13). Contributions are not deductible from income tax.

LIS Variable

Contents (national programmes)

Legislation

V19S1b Employment-related old-age pensions Old-age pension, includes: -Ordinary old-age pension -Early pension Since 1992 the insured may choose between the public social insurance system (SNP) or individual account system (SPP). NB: NOT SEPARATELY AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN V19SR IN LIS D Decree-Law Nº19990 Social Insurance--SNP (1973); Decree-Law Nº25897 Mandatory Individua and reform 1995); Law Nº27617 Restructuring of SNP, amendment of Decree-Law Nº20530 and

Social Insurance (SNP) Coverage Mandatory Individual Account (SPP)

Social Insurance (SNP)

Qualifying conditions

Mandatory Individual Account (SPP)

Social Insurance (SNP)

Benefits

Benefits

Mandatory Individual Account (SPP)

Accumulation with other income Adjustment Financing Pensions are adjusted according to changes in the cost of living in Lima. Financing principle Taxation Contributions from benefits

ployment-related old-age pensions sion, includes: -age pension n he insured may choose between the public social insurance system (SNP) or the mandatory ccount system (SPP). PARATELY AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN V19SR IN LIS DATA) Nº19990 Social Insurance--SNP (1973); Decree-Law Nº25897 Mandatory Individual Account--SPP (1992 995); Law Nº27617 Restructuring of SNP, amendment of Decree-Law Nº20530 and law of SPP. Mandatory affiliation: Wage earners and salaried employees in the private and public sectors; artists; domestic workers; wage earners and the self-employed in the agricultural sector. Voluntary affiliation: T he self-employed, those who are economically active but no longer in covered employment (a minimum of 18 months of previous coverage is required), and housewives. Mandatory affiliation for all employed persons opting for this system. Voluntary coverage for the self-employed. Ordinary 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). Ordinary 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. Ordinary 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 value of retirement savings varies according to the insured’s contributions to an individual account plus accrued earnings, minus administrative fees. To use the retirement savings, the beneficiary can choose among four modalities: Programmed withdrawals (the participant maintains ownership of the funds in his/her individual account and conducts monthly withdrawals against the balance of the account), personal annuity (the participant purchases an annuity and receives a monthly annuity until death), family annuity (joint survivor life annuity), or temporary programmed withdrawals with deferred annuity (a personal or family annuity becomes effective from a set date forward, and participant makes programmed withdrawals until that date). Guaranteed minimum pension: 415 nuevos soles.

adjusted according to changes in the cost of living in Lima. Employee's contributions (see V13)

LIS Variable

Contents (national programmes)

V19S4 Survivors pension Survivors pension, includes: - Widow's/ Widower's pension - Orphan's pension - Ascendant's pension Since 1992 the insured may choose between the public social insurance system (SNP) or th mandatory individual account system (SPP).

Legislation

Decree-Law Nº19990 Social Insurance --SNP (1973); Decree-Law Nº25897 Mandatory Individual A SPP (1992 and reform 1995); Law Nº27617 Restructuring of SNP, amendment of Decree-Law Nº2 and law of SPP.

Social Insurance (SNP) Coverage

Mandatory Individual Account (SPP)

Social Insurance (SNP) Qualifying conditions

Mandatory Individual Account (SPP)

Social Insurance (SNP)

Benefits

Mandatory Individual Account (SPP)

Accumulation with other income Adjustment

Pensions are adjusted according to changes in the cost of living in Lima.

Financing

Financing principle Taxation Contributions from benefits

S4 Survivors pension ivors pension, includes: dow's/ Widower's pension phan's pension cendant's pension ce 1992 the insured may choose between the public social insurance system (SNP) or the datory individual account system (SPP).

ree-Law Nº19990 Social Insurance --SNP (1973); Decree-Law Nº25897 Mandatory Individual Account-(1992 and reform 1995); Law Nº27617 Restructuring of SNP, amendment of Decree-Law Nº20530 law of SPP. Mandatory affiliation: Wage earners and salaried employees in the private and public sectors; artists; domestic workers; wage earners and the self-employed in the agricultural sector. Voluntary affiliation: self-employed, those who are economically active but no longer in covered employment (a minimum of 18 months of previous coverage is required), and housewives. Mandatory affiliation for all employed persons opting for this system. Voluntary coverage for the self-employed. Survivors 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 age limit if disabled), and a father older than age 60 and a mother older than age 55 (no age 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. Survivors 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 or mother older than age 65. Spouse's pension: 50% of the deceased's pension is payable to a widow or a disabled widower. The pension ceases if the widow(er) remarries or if an originally disabled widower is assessed as capable of work. The minimum pension is equal to three times the legal minimum wage. 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. 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. Other benefits: Funeral grant: Up to five times the minimum wage. Constant-attendance supplement: An amount equal to the minimum wage if the survivor is disabled. 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.)

sions are adjusted according to changes in the cost of living in Lima.

Employee's contributions (see V13)

LIS Variable Contents (national programmes) Legislation Coverage Qualifying conditions Benefits Accumulation with other income Adjustment Financing

V21SR Unemployment compensation benefits n.e.c. Compensation for dismissal Law 26513 (1995) and Decree-Law 871 (1996) Workers engaged in dependent activity Arbitrary dismissal Lump sum payment equal to one and a half remuneration for each year of employment at the firm, with a ceiling of 12 earnings. (Between 0 and 3 months, the probationary period is in place and consequently there are no benefits. Between three months and one year, the worker receives a share of the salary proportional to the number of months worked.)

Financing principle Taxation Contributions from benefits

Completely financed by employer.

LIS Variable

Contents (national programmes)

V22S1 Wage replacement Maternity and nursing benefits Integral part of the Social Security Health Insurance. It is managed by Essalud and is complemented by plans and health programs provided by private health care providers (EPS). Persons insured can choose to receive care from Essalud or the EPS of their choice. NB: NOT SEAPARATELY AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN V1NET IN LIS DATA) Law Nº 26790 Modernization Social Security Health (1997); Law Nº 27056 Creation of Social Security Health Insurance Program - ESSALUD (1999); Law Nº 27986 Domestic Workers (2003)

Legislation

Coverage

Qualifying conditions

Benefits

EsSalud: Regular affiliates: Workers engaged in dependent employment or members of cooperatives, and pensioners who receive income from an old-age, disability or survivors pension. By modification of Act No. 27177, also included are self-employed persons who are incorporated by mandate of a special law to the Contributory Regime of Social Security Health Insurance [Régimen Contributivo de la Seguridad Social en Salud]. Voluntary affiliates [Afiliados Potestativos] : Workers and independent professionals, including those who were subject to mandatory special regimes; and others who do not qualify for regular membership, as well as those determined by law. Beneficiaries [Derechohabientes] : Spouse or partner (in accordance with the provisions of Article 326 of the Civil Code), and children under age or older fully and permanently disabled to work. Exclusions: Employees whose employers provide health services directly. EPS: All persons opting out of EsSalud and their dependents. Insured when the child was conceived. Duration: 45 days before and 45 days after the expected date of childbirth; 30 additional days in case of multiple births. Amount: 100% of earnings. Nursing allowance: Twice the minimum wage from 8 months to 14 months of age. Funeral grant: 2,070 nuevos soles.

Accumulation with other income Adjustment Financing Financing principle Taxation Contributions from benefits

S1 Wage replacement ernity and nursing benefits gral part of the Social Security Health Insurance. It is managed by Essalud and is plemented by plans and health programs provided by private health care providers (EPS). ons insured can choose to receive care from Essalud or the EPS of their choice. NOT SEAPARATELY AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN V1NET IN LIS A)

Nº 26790 Modernization Social Security Health (1997); Law Nº 27056 Creation of Social urity Health Insurance Program - ESSALUD (1999); Law Nº 27986 Domestic Workers (2003)

alud: ular affiliates: Workers engaged in dependent employment or members of cooperatives, and sioners who receive income from an old-age, disability or survivors pension. By modification of No. 27177, also included are self-employed persons who are incorporated by mandate of a cial law to the Contributory Regime of Social Security Health Insurance [Régimen Contributivo a Seguridad Social en Salud]. ntary affiliates [Afiliados Potestativos] : Workers and independent professionals, including e who were subject to mandatory special regimes; and others who do not qualify for regular mbership, as well as those determined by law. eficiaries [Derechohabientes] : Spouse or partner (in accordance with the provisions of Article of the Civil Code), and children under age or older fully and permanently disabled to work. usions: Employees whose employers provide health services directly. : All persons opting out of EsSalud and their dependents. red when the child was conceived. ation: 45 days before and 45 days after the expected date of childbirth; 30 additional days in e of multiple births. unt: 100% of earnings. sing allowance: Twice the minimum wage from 8 months to 14 months of age. eral grant: 2,070 nuevos soles.

Employer's contributions (see V2).

Main sources: Ministry of Labor and Employment Promotion Superintendent of Private Health Providers Medical Commission of the Social Security Health Insurance Program Social Security Programs Throughout the World (Sistemas de seguridad social a lo largo del mundo) National Superintendent of Tax Administration (Sunat) SENATI: National Service of Occupational Training in Industry SENCICO: National Service of Training for the Construction Industry NATLEX, database of national labor, social security and related human rights legislation (NATLEX, base de datos sobre legislación en materia de trabajo, seguridad social y derechos humanos)

Websites http://www.mintra.gob.pe/leyes_seg_soc.php#2 http://www.seps.gob.pe/discapacitados/asegurado_sctr.asp http://www.essalud.gob.pe/ (http://www.ssa.gov/policy/docs/progdesc/ssptw/)

http://www.sunat.gob.pe/quienesSomos/index.html http://200.106.54.117/Inicio.htm http://www.sencico.gob.pe (http://www.ilo.org/dyn/natlex/natlex_browse.home?p_lang=en)


				
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