Certificate of Non Advancement on Sickness Benefits by jii25615

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									Annexes to Social Insurance Paper


  A. ILO Definitions of Social Protection, Social Security and Social Insurance

  B. Types of Social Security in European OECD Countries

  C. German Social Insurance Code Summary

  D. French Social Security Code Summary

  E. Basic Principles of Unemployment Insurance in EU Countries

  F. Unemployment Data: Comparison of OECD Investment Levels

  G. Sweden: Financial Support and Benefits During Maternity Leave

  H. Temporary Disability and Maternity Programs in Estonia, Poland, and Portugal

  I. Disability Protection Reform in the Czech Republic and Estonia

  J. Austrian Social Protection (attached separately)

  K. US Social Security Definitions of Disability (attached separately)

  L. Swedish Social Insurance (attached separately)




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Annex A

            ILO Definitions of Social Protection, Social Security and Social Insurance1
                          R67 Income Security Recommendation 1944

Recommendation Concerning Income Security
Recommendation: R067
Place: Philadelphia
Session of the Conference: 26
Date of adoption - 12:05:1944
Subject classification: Social Security
Subject: Social Security
Status: Up-to-date instrument

The General Conference of the International Labour Organisation,

Having been convened at Philadelphia by the Governing Body of the International Labour
Office, and having met in its Twenty-sixth Session on 20 April 1944, and

Having decided upon the adoption of certain proposals with regard to income security, which is
included in the fourth item on the agenda of the Session, and

Having determined that these proposals shall take the form of a Recommendation,

adopts this twelfth day of May of the year one thousand nine hundred and forty-four, the
following Recommendation, which may be cited as the Income Security Recommendation, 1944:

Whereas the Atlantic Charter contemplates the fullest collaboration between all nations in the
economic field with the object of securing for all improved labour standards, economic
advancement and social security; and

Whereas the Conference of the International Labour Organisation by a resolution adopted on 5
November 1941, endorsed this principle of the Atlantic Charter and pledged the full co-operation
of the International Labour Organisation in its implementation; and

Whereas income security is an essential element in social security; and

Whereas the International Labour Organisation has promoted the development of income
security--

by the adoption by the International Labour Conference of Conventions and Recommendations
relating to workmen's compensation for accidents and occupational diseases, sickness insurance,

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    http://www.ilo.org/ilolex/cgi-lex/convde.pl?R067



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provision for maternity, old-age, invalidity, and widows'and orphans' pensions, and provision for
unemployment,

by the adoption by the First and Second Labour Conferences of American States of the
resolutions constituting the Inter-American Social Insurance Code, by the participation of a
delegation of the Governing Body in the First Inter-American Conference on Social Security
which adopted the declaration of Santiago de Chile, and by the approval by the Governing Body
of the Statute of the Inter-American Conference on Social Security established as a permanent
agency of co-operation between social security administrations and institutions acting in concert
with the International Labour Office, and

by the participation of the International Labour Office in an advisory capacity in the framing of
social insurance schemes in a number of countries and by other measures; and

Whereas some Members have not taken such steps as are within their competence to promote the
well-being and development of their people although their need for improved labour standards,
economic advancement and social security is greatest; and

Whereas it is now highly desirable that such Members take all necessary steps as soon as
possible to reach the accepted international minimum standards and develop those standards; and

Whereas it is now desirable to take further steps towards the attainment of income security by the
unification or co-ordination of social insurance schemes, the extension of such schemes to all
workers and their families, including rural populations and the self-employed, and the
elimination of inequitable anomalies; and

Whereas the formulation of certain general principles which should be followed by Members of
the Organisation in developing their income security schemes along these lines on the foundation
of the existing Conventions and Recommendations, pending the unification and amplification of
the provisions of the said Conventions and Recommendations, will contribute to this end;

The Conference--

(a) recommends the Members of the Organisation to apply progressively the following general
guiding principles, as rapidly as national conditions allow, in developing their income security
schemes with a view to the implementation of the fifth principle of the Atlantic Charter, and to
report to the International Labour Office from time to time as requested by the Governing Body,
concerning the measures taken to give effect to the said general guiding principles;

(b) calls the attention of the Members of the Organisation to the suggestions for the application
of these general guiding principles submitted to the Conference and contained in the Annex to
this Recommendation.




                                                3
GUIDING PRINCIPLES

General

1. Income security schemes should relieve want and prevent destitution by restoring, up to a
reasonable level, income which is lost by reason of inability to work (including old age) or to
obtain remunerative work or by reason of the death of a breadwinner.

2. Income security should be organised as far as possible on the basis of compulsory social
insurance, whereby insured persons fulfilling prescribed qualifying conditions are entitled, in
consideration of the contributions they have paid to an insurance institution, to benefits payable
at rates, and in contingencies, defined by law.

3. Provision for needs not covered by compulsory social insurance should be made by social
assistance; certain categories of persons, particularly dependent children and needy invalids,
aged persons and widows, should be entitled to allowances at reasonable rates according to a
prescribed scale.

4. Social assistance appropriate to the needs of the case should be provided for other persons in
want.

Social Insurance

5. The range of contingencies to be covered by compulsory social insurance should embrace all
contingencies in which an insured person is prevented from earning his living, whether by
inability to work or inability to obtain remunerative work, or in which he dies leaving a
dependent family, and should include certain associated emergencies, generally experienced,
which involved extraordinary strain on limited incomes, in so far as they are not otherwise
covered.

6. Compensation should be provided in cases of incapacity for work and of death resulting from
employment.

7. In order that the benefits provided by social insurance may be closely adapted to the variety of
needs, the contingencies covered should be classified as follows:

(a) sickness;

(b) maternity;

(c) invalidity;

(d) old age;

(e) death of breadwinner;




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(f) unemployment;

(g) emergency expenses; and

(h) employment injuries.

Provided that benefits should not be payable at the same time for more than one of the following
contingencies: invalidity, old age and unemployment.

8. Supplements for each of the first two children should be added to all benefits payable for loss
of earnings, provision for further children being left to be made by means of children's
allowances payable out of public funds or under contributory schemes.

9. The contingency for which sickness benefit should be paid is loss of earnings due to
abstention from work necessitated on medical grounds by an acute condition, due to disease or
injury, requiring medical treatment or supervision.

10. The contingency for which maternity benefit should be paid is loss of earnings due to
abstention from work during prescribed periods before and after childbirth.

11. The contingency for which invalidity benefit should be paid is inability to engage in any
substantially gainful work by reason of a chronic condition, due to disease or injury, or by reason
of the loss of a member or function.

12. The contingency for which old-age benefit should be paid is the attainment of a prescribed
age, which should be that at which persons commonly become incapable of efficient work, the
incidence of sickness and invalidity becomes heavy, and unemployment, if present, is likely to
be permanent.

13. The contingency for which survivors' benefits should be paid is the loss of support
presumably suffered by the dependants as the result of the death of the head of the family.

14. The contingency for which unemployment benefit should be paid is loss of earnings due to
the unemployment of an insured person who is ordinarily employed, capable of regular
employment in some occupation, and seeking suitable employment, or due to part-time
unemployment.

15. Benefits should be provided in respect of extraordinary expenses, not otherwise covered,
incurred in cases of sickness, maternity, invalidity and death.

16. The contingency for which compensation for an employment injury should be paid is
traumatic injury or disease resulting from employment and not brought about deliberately or by
the serious and wilful misconduct of the victim, which results in temporary or permanent
incapacity or death.




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17. Social insurance should afford protection, in the contingencies to which they are exposed, to
all employed and self-employed persons, together with their dependants, in respect of whom it is
practicable--

(a) to collect contributions without incurring disproportionate administrative expenditure; and

(b) to pay benefits with the necessary co-operation of medical and employment services and with
due precautions against abuse.

18. The employer should be made responsible for collecting contributions in respect of all
persons employed by him, and should be entitled to deduct the sums due by them from their
remuneration at the time when it is paid.

19. In order to facilitate the efficient administration of benefits, arrangements should be made for
the keeping of records of contributions, for ready means of verifying the presence of the
contingencies which give rise to benefits, and for a parallel organisation of medical and
employment services with preventive and remedial functions.

20. Persons employed for remuneration should be insured against the whole range of
contingencies covered by social insurance as soon as the collection of contributions in respect of
them can be organised and the necessary arrangements can be made for the administration of
benefit.

21. Self-employed persons should be insured against the contingencies of invalidity, old age and
death, under the same conditions as employed persons, as soon as the collection of their
contributions can be organised. Consideration should be given to the possibility of insuring them
also against sickness and maternity necessitating hospitalisation, sickness which has lasted for
several months, and extraordinary expenses incurred in cases of sickness, maternity, invalidity
and death.

22. Benefits should replace lost earnings, with due regard to family responsibilities, up to as high
a level as is practicable without impairing the will to resume work where resumption is a
possibility, and without levying charges on the productive groups so heavy that output and
employment are checked.

23. Benefits should be related to the previous earnings of the insured person on the basis of
which he has contributed: Provided that any excess of earnings over those prevalent among
skilled workers may be ignored for the purpose of determining the rate of benefits, or portions
thereof, financed from sources other than the contributions of the insured person.

24. Benefits at flat rates may be appropriate for countries where adequate and economical
facilities exist for the population to procure additional protection by voluntary insurance. Such
benefits should be commensurate with the earnings of unskilled workers.

25. The right to benefits other than compensation for employment injuries should be subject to
contribution conditions designed to prove that the normal status of the claimant is that of an


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employed or self-employed person and to maintain reasonable regularity in the payment of
contributions: Provided that a person should not be disqualified for benefits by reason of the
failure of his employer duly to collect the contributions payable in respect of him.

26. The cost of benefits, including the cost of administration, should be distributed among
insured persons, employers and taxpayers in such a way as to be equitable to insured persons and
to avoid hardship to insured persons of small means or any disturbance to production.

27. The administration of social insurance should be unified or co-ordinated within a general
system of social security services, and contributors should, through their organisations, be
represented on the bodies which determine or advise upon administrative policy and propose
legislation or frame regulations.

Social Assistance

28. Society should normally co-operate with parents through general measures of assistance
designed to secure the well-being of dependent children.

29. Invalids, aged persons and widows who are not receiving social insurance benefits because
they or their husbands, as the case may be, were not compulsorily insured, and whose incomes
do not exceed a prescribed level, should be entitled to special maintenance allowances at
prescribed rates.

30. Appropriate allowances in cash or partly in cash and partly in kind should be provided for all
persons who are in want and do not require internment for corrective care.




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Development of a Comprehensive Social Insurance Policy for the Republic of Armenia



Guiding principles accompanied by suggestions for application.

General

1. Income security schemes should relieve want and prevent destitution by restoring, up to a
reasonable level, income which is lost by reason of inability to work (including old age) or to
obtain remunerative work or by reason of the death of a breadwinner.

2. Income security should be organised as far as possible on the basis of compulsory social
insurance, whereby insured persons fulfilling prescribed qualifying conditions are entitled, in
consideration of the contributions they have paid to an insurance institution, to benefits payable
at rates, and in contingencies, defined by law.

3. Provision for needs not covered by compulsory social insurance should be made by social
assistance; certain categories of persons, particularly dependent children and needy invalids,
aged persons and widows, should be entitled to allowances at reasonable rates according to a
prescribed scale.

4. Social assistance appropriate to the needs of the case should be provided for other persons in
want.

I. Social Insurance

A. Contingencies Covered

Range of Contingencies to Be Covered

5. The range of contingencies to be covered by compulsory social insurance should embrace all
contingencies in which an insured person is prevented from earning his living, whether by
inability to work or inability to obtain remunerative work, or in which he dies leaving a
dependent family, and should include certain associated emergencies, generally experienced,
which involve extraordinary strain on limited incomes, in so far as they are not otherwise
covered.

6. Compensation should be provided in cases of incapacity for work and of death resulting from
employment.

7. In order that the benefits provided by social insurance may be closely adapted to the variety of
needs, the contingencies covered should be classified as follows:

(a) sickness;

(b) maternity;

(c) invalidity;




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(d) old age;

(e) death of breadwinner;

(f) unemployment;

(g) emergency expenses; and

(h) employment injuries. Provided that benefits should not be payable at the same time for more
than one of the following contingencies: invalidity, old age and unemployment.

8. Supplements for each of the first two children should be added to all benefits payable for loss
of earnings, provision for further children being left to be made by means of children's
allowances payable out of public funds or under contributory schemes.

Sickness

9. The contingency for which sickness benefit should be paid is loss of earnings due to
abstention from work necessitated on medical grounds by an acute condition, due to disease or
injury, requiring medical treatment or supervision.

(1) The necessity for abstention from work should be judged, as a rule, with reference to the
previous occupation of the insured person, which he may be expected to resume.

(2) Benefit need not be paid for the first few days of a period of sickness, but if sickness recurs
within a few months, a fresh waiting period should not be imposed.

(3) Benefit should preferably be continued until the beneficiary is fit to return to work, dies or
becomes an invalid. If, however, it is considered necessary to limit the duration of benefit, the
maximum period should not be less than 26 weeks for a single case, and provision should be
made for extending the duration of benefit in the case of specified diseases, such as tuberculosis,
which often involve lengthy, though curable, sickness: Provided that at the outset of the
operation of an insurance scheme it may be necessary to provide for a shorter period than 26
weeks.

Maternity

10. The contingency for which maternity benefit should be paid is loss of earnings due to
abstention from work during prescribed periods before and after childbirth.

(1) A woman should have the right to leave her work if she produces a medical certificate stating
that her confinement will probably take place within six weeks, and no woman should be
permitted to work during the six weeks following her confinement.

(2) During these periods maternity benefit should be payable.




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Development of a Comprehensive Social Insurance Policy for the Republic of Armenia



(3) Absence from work for longer periods or on other occasions may be desirable on medical
grounds, having regard to the physical condition of the beneficiary and the exigencies of her
work; during any such periods sickness benefits should be payable.

(4) The payment of maternity benefit may be made conditional on the utilisation by the
beneficiary of health services provided for her and her child.

Invalidity

11. The contingency for which invalidity benefit should be paid is inability to engage in any
substantially gainful work by reason of a chronic condition, due to disease or injury, or by reason
of the loss of a member or function.

(1) A handicapped person should be expected to engage in any occupation which may reasonably
be indicated for him, having regard to his remaining strength and ability, his previous
experience, and any facilities for training available to him.

(2) A person for whom such an occupation can be indicated but is not yet available, and a person
following a training course, should receive provisional invalidity benefit, training benefit or
unemployment benefit, if he is otherwise qualified for it.

(3) A person for whom no such occupation can be indicated should receive invalidity benefit.

(4) Beneficiaries whose permanent inability to engage regularly in any gainful occupation has
been confirmed should be allowed to supplement their invalidity benefit by casual earnings of
small amount.

(5) Where the rate of invalidity benefit is related to the rate of the previous earnings of the
insured person, the right to benefit should be admitted if the handicapped person is not able to
earn by ordinary effort as much as one-third of the normal earnings in his previous occupation of
able-bodied persons having the same training.

(6) Invalidity benefit should be paid, from the date when sickness benefit ceases, for the whole
duration of invalidity, provided that when the beneficiary reaches the age at which old-age
benefit may be claimed the latter may be substituted for invalidity benefit.

Old Age

12. The contingency for which old-age benefit should be paid is the attainment of a prescribed
age, which should be that at which persons commonly become incapable of efficient work, the
incidence of sickness and invalidity becomes heavy, and unemployment, if present, is likely to
be permanent.

(1) The minimum age at which old-age benefit may be claimed should be fixed at not more than
sixty-five in the case of men and sixty in the case of women: Provided that a lower age may be
fixed for persons who have worked for many years in arduous or unhealthy occupations.


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(2) Payment of old-age benefit may, if the basic benefit can be considered sufficient for
subsistence, be made conditional on retirement from regular work in any gainful occupation;
where such retirement is required, the receipt of casual earnings of relatively small amount
should not disqualify for old-age benefit.

Death of Breadwinner

13. The contingency for which survivors' benefits should be paid is the loss of support
presumably suffered by the dependants as the result of the death of the head of the family.

(1) Survivors' benefits should be paid: (a) to the widow of an insured man; (b) for the children,
stepchildren, adopted children and, subject to their previous registration as dependants,
illegitimate children of an insured man or of an insured woman who supported the children; and
(c) under conditions to be defined by national laws, to an unmarried woman with whom the
deceased cohabited.

(2) Widow's benefit should be paid to a widow who has in her care a child for whom child's
benefit is payable or who, at her husband's death or later, is an invalid or has attained the
minimum age at which old-age benefit may be claimed; a widow who does not fulfil one of these
conditions should be paid widow's benefit for a minimum period of several months, and
thereafter if she is unemployed until suitable employment can be offered to her, after training if
necessary.

(3) Child's benefit should be paid for a child who is under the school-leaving age, or who is
under the age of eighteen and is continuing his general or vocational education.

Unemployment

14. The contingency for which unemployment benefit should be paid is loss of earnings due to
the unemployment of an insured person who is ordinarily employed, capable of regular
employment in some occupation, and seeking suitable employment, or due to part-time
unemployment.

(1) Benefit need not be paid for the first few days of a period of unemployment reckoned from
the date on which the claim is registered, but if unemployment recurs within a few months, a
fresh waiting period should not be imposed.

(2) Benefit should continue to be paid until suitable employment is offered to the insured person.

(3) During an initial period reasonable in the circumstances of the case, only the following
should be deemed to be suitable employment:

(a) employment in the usual occupation of the insured person in a place not involving a change
of residence and at the current rate of wages, as fixed by collective agreements where applicable;
or




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Development of a Comprehensive Social Insurance Policy for the Republic of Armenia



(b) another employment acceptable to the insured person.

(4) After the expiration of the initial period --

(a) employment involving a change of occupation may be deemed to be suitable if the
employment offered is one which may reasonably be offered to the insured person, having regard
to his strength, ability, previous experience and any facilities for training available to him;

(b) employment involving a change of residence may be deemed to be suitable if suitable
accommodation is available in the new place of residence;

(c) employment under conditions less favourable than the insured person habitually obtained in
his usual occupation and district may be deemed to be suitable if the conditions offered conform
to the standard generally observed in the occupation and district in which the employment is
offered.

Emergency Expenses

15. Benefits should be provided in respect of extraordinary expenses, not otherwise covered,
incurred in cases of sickness, maternity, invalidity and death.

(1) Necessary domestic help should be provided, or benefit paid for hiring it, during the
hospitalisation of the mother of dependent children, if she is an insured woman or the wife of an
insured man and is not receiving any benefit in lieu of earnings.

(2) A lump sum should be paid at childbirth to insured women and the wives of insured men
towards the cost of a layette and similar expenses.

(3) A special supplement should be paid to recipients of invalidity or old-age benefit who need
constant attendance.

(4) A lump sum should be paid on the death of an insured person, or of the wife, husband or
dependent child of an insured person, towards the cost of burial.

Employment Injuries

16. The contingency for which compensation for an employment injury should be paid is
traumatic injury or disease resulting from employment and not brought about deliberately or by
the serious and wilful misconduct of the victim which results in temporary or permanent
incapacity or death.

(1) Injuries resulting from employment should be deemed to include accidents occurring on the
way to or from the place of employment.

(2) Where compensation for an employment injury is payable, the foregoing provisions should
be subject to appropriate modifications as indicated in the following paragraphs.


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Development of a Comprehensive Social Insurance Policy for the Republic of Armenia



(3) Any disease which occurs frequently only to persons employed in certain occupations or is a
poisoning caused by a substance used in certain occupations, should, if the person suffering from
such a disease was engaged in such an occupation, be presumed to be of occupational origin and
give rise to compensation.

(4) A list of diseases presumed to be of occupational origin should be established and should be
revised from time to time by a simple procedure.

(5) In fixing any minimum period of employment in the occupation required to establish the
presumption of occupational origin and any maximum period during which the presumption of
occupational origin will remain valid after leaving the employment, regard should be had to the
length of time required for the contraction and manifestation of the disease.

(6) Temporary incapacity compensation should be payable under conditions similar to those
applicable to the payment of sickness benefit.

(7) Consideration should be given to the possibility of paying compensation from the first day of
temporary incapacity if the incapacity lasts longer than the waiting period.

(8) Permanent incapacity compensation should be payable in respect of the loss or reduction of
earning capacity by reason of the loss of a member or function or by reason of a chronic
condition due to injury or disease.

(9) A person who becomes permanently incapacitated should be expected to resume employment
in any occupation which may reasonably be indicated for him, having regard to his remaining
strength and ability, his previous experience, and any facilities for training available to him.

(10) If no such employment can be offered, the person should receive compensation for total
incapacity on a definitive or provisional basis.

(11) If such employment can be offered, but the sum which the person is able to earn by ordinary
effort in the employment is significantly less than that which he would probably have earned had
he not suffered the injury or disease, he should receive compensation for partial incapacity
proportionate to the difference in earning capacity.

(12) Consideration should be given to the possibility of paying suitable compensation in every
case of loss of a member or function or disfigurement, even where no reduction of capacity can
be proved.

(13) Persons exposed to the risk of an occupational disease of gradual development should be
examined periodically, and those for whom a change of occupation is indicated should be
eligible for compensation.

(14) Compensation for permanent incapacity, total or partial, should be paid from the time when
temporary incapacity compensation ceases for the whole duration of permanent incapacity.




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Development of a Comprehensive Social Insurance Policy for the Republic of Armenia



(15) Persons receiving compensation for permanent partial incapacity should be able to qualify
for other benefits under the same conditions as able-bodied persons, where the rates of such
benefits are related to the previous earnings of the insured person.

(16) Where the rates of such benefits are not related to the previous earnings of the insured
person, a maximum may be fixed for the combined rate of compensation and other benefit.

(17) Survivors' compensation should, subject to the provisions of the following subparagraphs,
be paid to the same dependants as could otherwise qualify for survivors' benefits.

(18) A widow should receive compensation for the whole duration of her widowhood.

(19) A child should receive compensation until the age of eighteen, or twenty-one if he is
continuing his general or vocational education.

(20) Provision should be made for compensating other members of the family of the deceased
who were dependent upon him, without prejudice to the claims of the widow and children.

(21) The survivors of a person permanently incapacitated in the degree of two-thirds or more
who dies otherwise than from the effects of an employment injury should be entitled to basic
survivors' benefits, whether or not the deceased fulfilled the contribution conditions for such
benefit at the time of his death.

B. Persons Covered

Range of Persons to Be Covered

17. Social insurance should afford protection, in the contingencies to which they are exposed, to
all employed and self-employed persons, together with their dependants, in respect of whom it is
practicable--

(a) to collect contributions without incurring disproportionate administrative expenditure; and

(b) to pay benefits with the necessary co-operation of medical and employment services and with
due precautions against abuse.

(1) Dependent wives (that is to say, wives who are not employed or self-employed) and
dependent children (that is to say, persons who are under the school-leaving age, or who are
under the age of eighteen and are continuing their general or vocational education) should be
protected in virtue of the insurance of their breadwinners.

Collection of Contributions

18. The employer should be made responsible for collecting contributions in respect of all
persons employed by him, and should be entitled to deduct the sums due by them from their
remuneration at the time when it is paid.


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(1) Where membership of an occupational association or the possession of a licence is
compulsory for any class of self-employed persons, the association or the licensing authority
may be made responsible for collecting contributions from the persons concerned.

(2) The national or local authority may be made responsible for collecting contributions from
self-employed persons registered for the purpose of taxation.

(3) Pending the development of agencies to enforce payment of contributions, provision should
be made for enabling self-employed persons to contribute voluntarily, either as individuals or as
members of associations.

Administration of Benefits

19. In order to facilitate the efficient administration of benefits, arrangements should be made for
the keeping of records of contributions, for ready means of verifying the presence of the
contingencies which give rise to benefits, and for a parallel organisation of medical and
employment services with preventive and remedial functions.

Employed Persons

20. Persons employed for remuneration should be insured against the whole range of
contingencies covered by social insurance as soon as the collection of contributions in respect of
them can be organised and the necessary arrangements can be made for the administration of
benefit.

(1) Persons whose employment is so irregular, or likely to be so short in its total duration, that
they are unlikely to qualify for benefit confined to employed persons, may be excluded from
insurance for such benefits. Special provision should be made on behalf of persons who
ordinarily work for a very short period for the same employer.

(2) Apprentices who receive no remuneration should be insured against employment injuries,
and, as from the date at which they would have completed their apprenticeship for their trade,
compensation based on the wages current for workers in that trade should become payable.

Self-Employed Persons

21. Self-employed persons should be insured against the contingencies of invalidity, old age and
death under the same conditions as employed persons as soon as the collection of their
contributions can be organised. Consideration should be given to the possibility of insuring them
also against sickness and maternity necessitating hospitalisation, sickness which has lasted for
several months, and extraordinary expenses incurred in cases of sickness, maternity, invalidity
and death.

(1) Members of the employer's family living in his house, other than his dependent wife or
dependent children, should be insured against the said contingencies on the basis of either their




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actual wages or, if these cannot be ascertained, the market value of their services; the employer
should be responsible for the payment of contributions in respect of such persons.

(2) Self-employed persons whose earnings are ordinarily so low that they can be presumed to be
a merely subsidiary or casual source of income, or that payment of the minimum contribution
would be a hardship for them, should be excluded provisionally from insurance and referred for
counsel to the employment service or to any special service that may exist for promoting the
welfare of the occupational group to which they may belong.

(3) Persons who, after completing the contribution period prescribed as a qualification for
invalidity and survivors' benefits, cease to be compulsorily insured, either as employed or as self-
employed persons, should be given the option, to be exercised within a limited period, of
continuing their insurance under the same conditions as self-employed persons, subject to such
modifications as may be prescribed.

C. Benefit Rates and Contribution Conditions

Benefit Rates

22. Benefits should replace lost earnings, with due regard to family responsibilities, up to as high
a level as is practicable without impairing the will to resume work where resumption is a
possibility, and without levying charges on the productive groups so heavy that output and
employment are checked.

23. Benefits should be related to the previous earnings of the insured person on the basis of
which he has contributed: Provided that any excess of earnings over those prevalent among
skilled workers may be ignored for the purpose of determining the rate of benefits, or portions
thereof, financed from sources other than the contributions of the insured person.

24. Benefits at flat rates may be appropriate for countries where adequate and economical
facilities exist for the population to procure additional protection by voluntary insurance. Such
benefits should be commensurate with the earnings of unskilled workers.

(1) Sickness and unemployment benefits should, in the case of unskilled workers, be not less
than 40 per cent of the previous net earnings of the insured person if he has no dependants, or 60
per cent. thereof if he has a dependent wife or housekeeper for his children; for each of not more
than two dependent children, an additional 10 per cent. of such earnings, less the amount of any
children's allowances for these children, should be payable.

(2) In the case of workers with high earnings, the foregoing proportions of benefit to previous
earnings may be somewhat reduced.

(3) Maternity benefit should in all cases be sufficient for the full and healthy maintenance of the
mother and her child; it should be not less than 100 per cent. of the current net wage for female
unskilled workers or 75 per cent. of the previous net earnings of the beneficiary, whichever is the




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Development of a Comprehensive Social Insurance Policy for the Republic of Armenia



greater, but may be reduced by the amount of any child's allowance payable in respect of the
child.

(4) Basic invalidity and old-age benefits should be not less than 30 per cent. of the current wage
commonly recognised for male unskilled workers in the district in which the beneficiary resides,
if the beneficiary has no dependants, or 45 per cent. thereof if he has a dependent wife who
would be qualified for widow's benefit or a housekeeper for his children; for each of not more
than two dependent children, an additional 10 per cent. of such wage, less the amount of any
children's allowances for these children, should be payable.

(5) Basic widow's benefit should be not less than 30 per cent. of the current minimum wage
commonly recognised for male unskilled workers in the district in which the beneficiary resides;
for each of not more than three dependent children, child's benefit at the rate of 10 per cent. of
such wage, less the amount of any children's allowances for these children, should be payable.

(6) In the case of an orphan, basic child's benefit should be not less than 20 per cent. of the
current minimum wage commonly recognised for male unskilled workers, less the amount of any
child's allowance payable in respect of the orphan.

(7) A portion of every contribution additional to those paid as a qualification for basic invalidity,
old-age and survivors' benefits may be credited to the insured person for the purpose of
increasing the benefits provided for in sub-paragraphs (4), (5) and (6).

(8) In every case in which retirement is deferred beyond the minimum age at which old-age
benefit could have been claimed, basic old-age benefit should be equitably increased.

(9) Compensation for employment injuries should not be less than two-thirds of the wages lost,
or estimated to have been lost, as the result of the injury.

(10) Such compensation should take the form of periodical payments, except in cases in which
the competent authority is satisfied that the payment of a lump sum will be more advantageous to
the beneficiary.

(11) Periodical payments in respect of permanent incapacity and death should be adjusted
currently to significant changes in the wage level in the insured person's previous occupation.

Contribution Conditions

25. The right to benefits other than compensation for employment injuries should be subject to
contribution conditions designed to prove that the normal status of the claimant is that of an
employed or self-employed person and to maintain reasonable regularity in the payment of
contributions: Provided that a person shall not be disqualified for benefits by reason of the failure
of his employer duly to collect the contributions payable in respect of him.




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(1) The contribution conditions for sickness, maternity and unemployment benefits may include
the requirement that contributions shall have been paid in respect of at least a quarter of a
prescribed period, such as two years, completed before the contingency occurs.

(2) The contribution conditions for maternity benefit may include the requirement that the first
contribution shall have been paid at least ten months before the expected date of confinement,
but even though the contribution conditions are not fulfilled, maternity benefit at the minimum
rate should be paid during the period of compulsory abstention from work after confinement, if
the claimant's normal status appears, after consideration of the case, to be that of an employed
person.

(3) The contribution conditions for basic invalidity, old-age and survivors' benefits may include
the requirement that contributions shall have been paid in respect of at least two-fifths of a
prescribed period, such as five years, completed before the contingency occurs; payment of
contributions in respect of not less than three-quarters of a prescribed period, such as ten years,
or of any longer period which has elapsed since entry into insurance, should be recognised as an
alternative qualification for benefit.

(4) The contribution conditions for old-age benefit may include the requirement that the first
contribution shall have been paid at least five years before the claim for benefit is made.

(5) The right to benefit may be suspended where an insured person wilfully fails to pay any
contribution due by him in respect of any period of self-employment or to pay any penalty
imposed for late payment of contributions.

(6) The insurance status of an insured person at the date when he becomes entitled to invalidity
or old-age benefit should be maintained during the currency of such benefit for the purposes of
ensuring him, in the event of recovery from invalidity, as full protection under the scheme as he
was entitled to on the occurrence of the invalidity, and of entitling his survivors to survivors'
benefits.

D. Distribution of Cost

26. The cost of benefits, including the cost of administration, should be distributed among
insured persons, employers and taxpayers, in such a way as to be equitable to insured persons
and to avoid hardship to insured persons of small means or any disturbance to production.

(1) The contribution of an insured person should not exceed such proportion of his earnings
taken into account for reckoning benefits as, applied to the estimated average earnings of all
persons insured against the same contingencies, would yield a contribution income the probable
present value of which would equal the probable present value of the benefits to which they may
become entitled (excluding compensation for employment injuries).

(2) In accordance with this principle the contributions of employed persons and self-employed
persons for the same benefits may, as a rule, represent the same proportion of their respective
earnings.



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Development of a Comprehensive Social Insurance Policy for the Republic of Armenia



(3) A minimum absolute rate, based on the minimum rate of earnings which may be deemed to
be indicative of substantial gainful work, may be prescribed for the insured person's contribution
with respect to benefits the whole or part of which does not vary with the rate of previous
earnings.

(4) Employers should be required to contribute, particularly by subsidising the insurance of low-
wage earners, not less than half the total cost of benefits confined to employed persons,
excluding compensation for employment injuries.

(5) The entire cost of compensation for employment injuries should be contributed by employers.

(6) Consideration should be given to the possibility of applying some method of merit rating in
the calculation of contributions in respect of compensation for employment injuries.

(7) The rates of contribution of insured persons and employers should be kept as stable as
possible, and for this purpose a stabilisation fund should be constituted.

(8) The cost of benefits which cannot properly be met by contributions should be covered by the
community.

(9) Among the elements of cost which may be charged to the community may be mentioned -

(a) the contribution deficit resulting from bringing persons into insurance when already elderly;

(b) the contingent liability involved in guaranteeing the payment of basic invalidity, old-age and
survivors' benefits and the payment of adequate maternity benefit;

(c) the liability resulting from the continued payment of unemployment benefit when
unemployment persists at an excessive level; and

(d) subsidies to the insurance of self-employed persons of small means.

E. Administration

27. The administration of social insurance should be unified or co-ordinated within a general
system of social security services, and contributors should, through their organisations, be
represented on the bodies which determine or advise upon administrative policy and propose
legislation or frame regulations.

(1) Social insurance should be administered under the direction of a single authority, subject, in
federal countries, to the distribution of legislative competence; this authority should be
associated with the authorities administering social assistance, medical care services and
employment services in a co-ordinating body for matters of common interest, such as the
certification of inability to work or to obtain work.




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(2) The unified administration of social insurance should be compatible with the operation of
separate insurance schemes, compulsory or voluntary in character, providing supplementary, but
not alternative, benefits for certain occupational groups, such as miners and seamen, public
officials, the staffs of individual undertakings and members of mutual benefit societies.

(3) The law and regulations relating to social insurance should be drafted in such a way that
beneficiaries and contributors can easily understand their rights and duties.

(4) In devising procedures to be followed by beneficiaries and contributors, simplicity should be
a primary consideration.

(5) Central and regional advisory councils, representing such bodies as trade unions, employers'
associations, chambers of commerce, farmers' associations, women's associations and child
protection societies, should be established for the purpose of making recommendations for the
amendment of the law and administrative methods, and generally of maintaining contact between
the administration of social insurance and groups of contributors and beneficiaries.

(6) Employers and workers should be closely associated with the administration of compensation
for employment injuries, particularly in connection with the prevention of accidents and
occupational diseases and with merit rating.

(7) Claimants should have a right of appeal in case of dispute with the administrative authority
concerning such questions as the right to benefit and the rate thereof.

(8) Appeals should preferably be referred to special tribunals, which should include referees who
are experts in social insurance law, assisted by assessors, representative of the group to which the
claimant belongs, and, where employed persons are concerned, by representatives of employers
also.

(9) In any dispute concerning liability to insurance or the rate of contribution, an employed or
self-employed person, and, where an employer's contribution is in question, an employer should
have a right of appeal.

(10) Provision for uniformity of interpretation should be assured by a superior appeal tribunal.

II. Social Assistance

A. Maintenance of Children

28. Society should normally co-operate with parents through general measures of assistance
designed to secure the well-being of dependent children.

(1) Public subsidies in kind or in cash or in both should be established in order to assure the
healthy nurture of children, help to maintain large families, and complete the provision made for
children through social insurance.




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(2) Where the purpose in view is to assure the healthy nurture of children, subsidies should take
the form of such advantages as free or below-cost infants' food and school meals and below-cost
dwellings for families with several children.

(3) Where the purpose in view is to help to maintain large families or to complete the provision
made for children by subsidies in kind and through social insurance, subsidies should take the
form of children's allowances.

(4) Such allowances should be payable, irrespective of the parents' income, according to a
prescribed scale, which should represent a substantial contribution to the cost of maintaining a
child, should allow for the higher cost of maintaining older children, and should, as a minimum,
be granted to all children for whom no provision is made through social insurance.

(5) Society as a whole should accept responsibility for the maintenance of dependent children in
so far as parental responsibility for maintaining them cannot be enforced.

B. Maintenance of Needy Invalids, Aged Persons and Widows

29. Invalids, aged persons and widows who are not receiving social insurance benefits because
they or their husbands, as the case may be, were not compulsorily insured, and whose incomes
do not exceed a prescribed level, should be entitled to special maintenance allowances at
prescribed rates.

(1) The persons who should be entitled to maintenance allowances should include --

(a) persons belonging to occupational groups, or residing in districts to which social insurance
does not yet apply, or has not yet applied for as long as the qualifying period for basic invalidity,
old-age or survivors' benefits, as the case may be, and the widows and dependent children of
such persons; and (b) persons who are already invalids at the time when they would normally
enter insurance.

(2) Maintenance allowances should be sufficient for full, long-term maintenance; they should
vary with the current cost of living, and may vary as between urban and rural areas.

(3) Maintenance allowances should be paid at the full rate to persons whose other income does
not exceed a prescribed level and at reduced rates in other cases.

(4) The provisions of the present Recommendation defining the contingencies in which
invalidity, old-age and survivors' benefits should be paid should be applied, in so far as they are
relevant, to maintenance allowances.

C. General Assistance

30. Appropriate allowances in cash or partly in cash and partly in kind should be provided for all
persons who are in want and do not require internment for corrective care.




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(1) The range of cases in which the amount of the allowance is entirely discretionary should be
gradually narrowed as the result of the improved classification of cases of want and
establishment of budgets corresponding to the cost of maintenance in short-term and long-term
indigency.

(2) The grant of allowance may be subject to compliance by the recipient with directions given
by the authorities administering medical or employment services in order that the assistance may
yield its greatest constructive effect.




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Annex B
                         Types of Social Security in European OECD Countries2
                                           Sickness and maternity
                           Old age,
                           disability,                                          Work injury   Unemployment   Family
      Country              and             Cash                 Cash                                         allowances
                           survivors       benefits             benefits plus
                                           for both             medical care
Albania                    X               X                   X                X             X              X
Andorra                    X               X                   X                X             b              b
Austria                    X               X                   X                X             X              X
Belarus                    X               X                   X                X             X              X
Belgium                    X               X                   X                X             X              X
Bulgaria                   X               X                   X                X             X              X
Croatia                    X               X                   X                b             X              X
Cyprus                     X               X                   X                X             X              X
Czech Republic             X               X                   X                X             X              X
Denmark                    X               X                   X                X             X              X
Estonia                    X               X                   X                b             X              X
Finland                    X               X                   X                X             X              X
France                     X               X                   X                X             X              X
Germany                    X               X                   X                X             X              X
Greece                     X               X                   X                X             X              X
Guernsey                   X               X                   X                X             X              X
Hungary                    X               X                   X                X             X              X
Iceland                    X               X                   X                X             X              X
Ireland                    X               X                   X                X             X              X
Isle of Man                X               X                   X                X             X              X
Italy                      X               X                   X                X             X              X
Jersey                     X               X                   X                X             X              X
Latvia                     X               X                   X                X             X              X
Liechtenstein              X               X                   X                X             X              X
Lithuania                  X               X                   X                X             X              X
Luxembourg                 X               X                   X                X             X              X
Malta                      X               X                   X                X             X              X
Moldova                    X               X                   X                X             X              X
Monaco                     X               X                   X                X             c              X
Netherlands                X               X                   X                b             X              X
Norway                     X               X                   X                X             X              X
Poland                     X               X                   X                X             X              X
Portugal                   X               X                   X                X             X              X
Romania                    X               X                   X                X             X              X
Russia                     X               X                   X                X             X              X
San Marino                 X               X                   X                X             X              X
Serbia                     X               X                   X                b             X              X
Slovak Republic            X               X                   X                X             X              X
Slovenia                   X               X                   X                X             X              X
Spain                      X               X                   X                X             X              X
Sweden                     X               X                   X                X             X              X
Switzerland                X               X                   X                X             X              X
Ukraine                    X               X                   X                X             X              X
United Kingdom             X               X                   X                X             X              X
b. Coverage is provided under other programs or through social assistance.
c. Coverage is provided through France's program.



2
 US Social Security Administration, Social Security Practices Throughout the World, Europe, 2008.
http://www.ssa.gov/policy/docs/progdesc/ssptw/


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Annex C
                                        German Social Insurance Code

    1. Introduction

According to the German constitution (Grundgesetz), the state is obligated to protect the well-
being of its inhabitants and to work toward the goal of social justice. To achieve these aims, the
Social Code of the Federal Republic (Sozialgesetzbuch) requires the state to provide social
services and adequate social welfare benefits. Germany's social security system, which was first
established in 1883, provides pensions, health insurance, accident insurance, disability payments,
support for families, and unemployment insurance. Within these broad categories, many different
types of financial assistance are provided.

    2. Historical Background

After Germany was united in 1871 under the direction of Otto von Bismarck, it developed a
common government structure and social policy. But the fact that united Germany had been
formed out of four kingdoms, five grand duchies, twelve duchies, twelve principalities, and three
free cities was a crucial factor in the development of social policy. Although after unification
social welfare policy was increasingly formulated on the national level, the social insurance
programs implementing national policy were aimed at different social strata and were
administered in highly decentralized ways.

The new social welfare system that developed after unification in 1871 used existing
decentralized structures to provide an ever increasing range of benefits. Because of this, most
social welfare programs in Germany are not administered by state bureaucracies. Instead, except
for the period when Germany was ruled by the regime of Adolf Hitler (1933-45) and when the
former East Germany (1949-90) established a state-run social welfare program, the organizations
implementing social policy have been private voluntary entities, some of which date from the
Middle Ages. Thus, Germany has implemented a national social policy through an extensive
decentralized and pluralistic network of voluntary agencies.

Germans see their economy as a social market economy, combining a capitalist mode of
production with the belief that society should protect all its members from economic and social
need. Such protection is provided by a system of social insurance to which people contribute
according to their incomes with the understanding that they may someday need it. The belief that
society is responsible for the well-being of its members is called solidarity, or Solidarität, and is
a key concept of German social policy.

Germans have combined the notion of solidarity with federal and decentralized arrangements of
power sharing, or Subsidarität, another concept at the heart of German political culture.
Subsidarität means building social organizations and society from the bottom up rather than
from the top down. As a result of this concept, Germans rely on grassroots social entities
whenever possible to provide social services and make use of higher-level institutions only when
lower-level ones are found to be inadequate.


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Solidarität and Subsidarität have affected the development of a national social policy, but most
of all they have shaped its implementation. For example, Germany's social insurance programs
are quasi-public self-governing bodies, subject in most cases to labor and management control,
but largely independent of the public sector, which retains only supervisory powers. The primary
providers of most social assistance services are private-sector voluntary organizations, most of
which are church related. Government offices at the regional and local levels generally determine
and handle cash benefits and allowances established at the national level.

Despite radically different political regimes in Germany since 1871, social policy has shown a
remarkable degree of continuity in organizational arrangements and financing. Change has been
largely of an incremental nature, and new programs have conformed to previously existing
principles and patterns.3 Following the unification of the Federal Republic of Germany (FRG)
and the German Democratic Republic (GDR) on October 3, 1990, the social security system of
the FRG remained in force and the system of the GDR continued to apply on an interim basis
within the former GDR territory. The FRG and GDR systems were merged effective January 1,
1992.4

    3. Federal Social Law

The social law or social insurance law of Germany is an important branch of public law. The
details of the statutory insurances for health, pensions, accidents and nursing care as well as
conditions for the payment of unemployment benefits are regulated in 12 books of federal social
law, the “Sozialgesetzbuch.” Special courts are competent in legal actions affecting social
insurance or unemployment benefits.5

The German social insurance system has five branches6:

         1. Unemployment insurance insures employees' livelihood in case of unemployment;
         2. Pension insurance insures old age, incapacity and survivors;
         3. Health insurance supports maintenance and restoration of good health and eases the
            financial consequences of illness;
         4. Accident insurance helps an employee regain his earning ability after a (work-
            related) accident; and
         5. Long-term care insurance provides financial support for those dependent on care and
            assistance from others.

In addition, Germany provides social assistance, also reflected in the social law. It should be
noted that the Sozialgesetzbuch is a codification and organization of laws previously adopted.
The 12 books of the Sozialgesetzbuch (source: ILO) are:


3
  http://www.photius.com/countries/germany/society/germany_society_social_insurance_and~1365.html
4
  http://www.ssa.gov/policy/docs/progdesc/ssptw/2006-2007/europe/germany.html
5
  http://www.internetratgeber-recht.de/frameset.htm?http://www.internetratgeber-
recht.de/deutsches_recht/english/german_public_law.htm
6
  http://www.bund.de/nn_295486/Fremdsprachen/Struktur/EN/Working-in-Germany/Social-security/Social-
security-knoten.html__nnn=true


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I General provisions

II Unemployment

This book determines the conditions for unemployment benefits and for obtaining aid for
integration into the labor market.

III Promotion of Employment

This book addresses promotion of employment, vocational training, and employment services. It
describes employment services, vocational training, training of disabled persons, unemployment
benefits, help in the transition between unemployment and employment, and suppression of
illegal employment of foreigners. New provisions include training programs successful job-
searches, and a recruitment grant for new businesses. Also provides for a contract which allows
employers to hire an unemployed person for a limited duration during which he or she may be
dismissed without justification.

IV General and Common Provisions on Social Security

The first chapter determines the principles and the scope of the insurance and contains provisions
on employed and self-employed, as well as on wages and other income. The second part contains
provisions on the indemnifications and premiums. The third chapter provides for the employer's
obligation to report and determines the general social contribution. The fourth chapter
determines the institutions of the social security. The fifth chapter defines the social security
authorities. The sixth chapter provides for the social security ID. The seventh chapter regulates
the storage of documents. The eighth chapter provides for fines, and the ninth chapter for
transitional provisions.

V Health Insurance

VI Pensions

VII Employment Accident Insurance

VIII Child and Youth Care

Regulates youth labor, aims to promote home care as well as daycare centers. Provides support
for the education of mentally disabled youth. Concerning youth labor, it promotes activities
which develop skills, increase their sense of responsibility and social involvement. Youth who
have social disadvantages are to be offered social pedagogical help and be trained through
special measures and programs.

IX Rehabilitation and Participation of Disabled Persons

This book addresses the rehabilitation and participation of disabled persons. Part I regulates
provision of different types of services to disabled persons, including medical services, measures



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to improve their integration into working life and community life, and disability benefit. Part II
provides for integration of severely disabled persons. The duties of employers toward severely
disabled employees are regulated in chapters 2-4.

X Social Services, Social Administration

XI Long Term Care

XII Social Assistance




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Annex D


                                       French Social Security Code7

Code la Sécurité Sociale of 1985

         Introduction
         Field of application ratione personae
         National social security regime and its institutions
         Maternity insurance
         Family and similar benefits
         Unpaid non agricultural workers
         Prohibition of sex discrimination

Introduction

First of all, we can note that the Code contains three parts: legislative (articles L.); regulation
(articles R.); and Decree (articles D.). Articles R. and D. provide further details to the substantial
articles L.

Title I of Book I of the Code deals with general issues, such as the organisation of the social
security (articles L. 111-1 and L. 111-2) and its financing (articles LO. 111-3 to LO. 111-7 and
L. 114-1). Notably, article L. 111-1 stipulates that social security is based on the principle of
national solidarity.

Field of application ratione personae

The Social Security Code covers any person living in France against the risks likely to reduce or
suppress earning capacity. Maternity and family burdens are also covered by the Code. The
beneficiaries must be affiliated to the compulsory regime or to a personal insurance scheme.
Title III of Book I (articles L. 130-1 to 139-2) defines the social security contributions, the part
that the State is to pay, and the payment of benefits.

National social security regime and its institutions

In Book II, Title I, article L. 200-2 defines the four branches which constitute the general social
security regime:

         sickness, maternity, disability and death;
         working accidents and occupational diseases (both branches managed by the National
          Sickness Insurance Office of Paid Workers);


7
    http://www.ilo.org/public/english/employment/gems/eeo/law/france/l_ss.htm



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        old age and widowhood (managed by the National Old Age Insurance Office of Paid
         Workers); and,
        family (managed by the National Family Allowance Office, through the local Family
         Allowance Offices (article L. 212-1)).

The National Family Allowance Office is in charge of assuring the financing of the family
benefit schemes and to monitor the property operations and management of the local Family
Allowance Offices (article L. 223-1) (for more details, see the Chapter on Legislative and
Administrative Institutions). The origins and nature of resources and contributions of social
security schemes are described in Title IV of Book II (articles L. L. 241-1 to L. 245-16).

Maternity insurance

Book III of the Code is called "Provisions concerning Social Insurances and Various Categories
of Persons Affiliated to the General Regime". Book III covers all paid workers, including home
workers under the provisions of articles L. 721-1 and following of the Labour Code, as well as
temporary workers (article L. 311).

Title III of this Book (articles L. 331-1 to 332-3) specifically deals with maternity insurance.
This insurance is comprised of benefits in kind and in cash. It notably covers the medical,
pharmaceutical, and hospitalisation costs related to pregnancy and confinement (article L. 331-
2). During a period beginning six weeks before confinement and ending ten weeks after the birth
of the child, the insured woman receives a daily rest payment subject to her stopping any
remunerated work during this period, which can vary depending upon the number of births
(article L. 331-3), or upon the number of children for whom the woman (her couple) is
responsible and the number of previous children (article L. 331-4). The daily rest payment is also
granted to an insured woman in relation to adopted children. The beneficiary must stop all
remunerated work during the payment period of a maximum of ten weeks (with longer periods in
case of multiple adoptions or when the household must look after at least three children). The
payment period may also be granted to the adoptive father, or be shared between the adoptive
parents (article L. 331-7).

Family and similar benefits

Book V of the Code provides the legal basis for various programmes, allowances and benefits in
favour of families (and therefore women). The beneficiaries are defined in article L. 512-1 as any
person, French or foreign, living in France and having responsibilities for one or more children
living in France. Subject to specific rules for each particular benefit, the following categories
give rights to family benefits (article L. 512-3):

        any child until the end of compulsory schooling;
        after the end of compulsory schooling, and until he/she reaches 20 years of age (article R.
         512-2), any child whose remuneration does not exceed a certain amount (also defined in
         article R. 512-2);
        any child younger than a certain limit, and whose remuneration does not exceed the same
         ceiling amount, if he/she pursues his/her studies, an apprenticeship or a professional



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         internship, if he/she has the right to the Special Education Allowance, or if he/she is
         unable to work because of a disability or a disease.

The sum to be granted as family benefits is to be determined on a monthly calculation basis in
order to compensate totally or partially the costs of a child/children for the family (article L. 551-
1).

Article L. 511-1 lists, inter alia, the following family benefits (that are further described under
the Chapter on Government Programmes):

        Young Child Allowance (articles L. 531-1 and L. 531-2);
        Family Allowances (articles L. 521-1 to 521-3);
        Family Complement (articles L. 522-1 and L. 522-2);
        Family Support Allowance (articles L. 523-1 to L. 523-3);
        School Return Allowance (article L. 543-1);
        Lone-Parent Allowance (articles L. 524-1 to 524-4);
        Child-Rearing Allowance (articles L. 532-1 to 532-5);
        Adoption Allowance (articles L. 535-1 and L. 535-2).

A number of other family-friendly policies are developed in other parts of the Code (see also the
Chapter on Government Programmes):

        Family Aid for the Employment of Registered Maternal Assistance (articles L. 841-1 to
         L. 841-4); and
        Childminding Allowance for Children Cared for in their Own House (articles L. 842-1 to
         L. 842-4).

Unpaid non agricultural workers

Title I of Book VI (articles L. 611-1 to L. 616-3) deals with sickness and maternity insurance for
unpaid non-agricultural workers. The functioning of these insurance schemes is the responsibility
of a national and regional mutual funds (article L. 611-1) regulated by the Mutual Insurance
Code (article L. 611-2). The beneficiaries of these schemes are defined in article L. 615-1:

        unpaid workers of the occupational groups mentioned in paragraphs 1, 2 and 3 of
         article L. 621-3 and those who are a concern for the national French bar fund (mentioned
         in article L. 723-1), i. e.:
              o the craft industry group;
              o the trade and industrial groups, including tobacconists; and
              o liberal professions group, including barristers;
        the persons having exercised one of the above-mentioned occupations and who are the
         beneficiaries of an old-age or a disability allowance;
        the persons beneficiaries of an allowance of a non agricultural scheme defined in article
         L. 643-9, of a widowhood allowance, as defined in articles L. 644-1 and L. 644-2, of an
         allowance granted by the national French bar fund and old tobacconists beneficiaries of a
         life allowance;


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        subject to some exceptions, the spouse associate who participates in the activity of the
         craft or trade industry; and
        the unique associate of one-person enterprises with limited responsibility.

Articles L. 615-19 and L. 615-19-1 define the maternity insurance available to these workers.
Notably, pregnant women are granted an inclusive maternal rest allowance in order to partially
compensate their diminished activity. When they stop working, they receive a daily inclusive
payment. The same allowances are granted to women on the arrival in their household of an
adopted child.

Prohibition of sex discrimination

Finally, in Book IX, which deals with the complementary social protection of workers, article L.
913-1 prohibits the inclusion in collective agreements and unilateral decisions (as defined in
article L. 911-1) of any provision discriminatory on the basis of sex. However, this does not
preclude the inclusion of maternity protection provisions.




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Annex E
             Basic Principles of Unemployment in EU Countries
Belgium                              Unemployment insurance (assurance-
                                     chômage/werkloosheidsverzekering) compulsory scheme.
                                     Optional insurance.
Denmark                              Unemployment insurance (Arbeitslosenversicherung):
                                     contribution financed compulsory social insurance scheme.

                                     Unemployment assistance (Arbeitslosenhilfe): tax financed
                                     social assistance scheme (following the unemployment
                                     insurance).
                                     Insurance.
Germany                              Compulsory social insurance scheme for employees and
                                     assimilated groups with contribution-related cash benefits (only
                                     in insurance scheme).
                                     Unemployment insurance (assurance chômage): Compulsory
                                     social insurance scheme for employees with earnings-related
                                     benefits.

                                     Unemployment assistance (régime de solidarité): mixed
                                     scheme. Benefits paid under conditions of previous activity and
                                     means test.
Greece                               Insurance:
                                     Compulsory social insurance scheme for employees.

                                     Assistance:
                                     Tax financed scheme for all residents.
                                     Compulsory insurance for gainfully employed persons
                                     guaranteeing flat-rate per diem unemployment benefit
                                     (atvinnuleysisdagpeningar) for unemployed persons actively
                                     seeking work.
Spain                                Economic benefits related to the unintentional unemployment
                                     situation (redundancy):

                                     Full unemployment:
                                     Ordinary unemployment benefit (indennità ordinaria di
                                     disoccupazione).
                                     Special unemployment benefit (trattamenti speciali di
                                     disoccupazione).
                                     Mobility allowance (indennità di mobilità).

                                     Part time unemployment:
                                     Ordinary earnings supplement (Cassa integrazione guadagni
                                     ordinaria).
                                     Extraordinary earnings supplement (Cassa integrazione
                                     guadagni straordinaria).



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                                     Compulsory unemployment insurance scheme
                                     (Arbeitslosenversicherung) for employees against the risks of:

                                     total unemployment (Ganzarbeitslosigkeit)
                                     short-time work (Kurzarbeit)
                                     insolvency of the employer.
                                     Integration measures in case of total unemployment.
France                               Unemployment allowance scheme.
                                     Insurance comprising:

                                     Short-term benefit
                                     (kortdurende uitkering)
                                     Salary-related benefit
                                     (loongerelateerde uitkering)
                                     Follow-up benefit
                                     (vervolguitkering).
Ireland                              Compulsory earnings-related part of the National Insurance
                                     Scheme (folketrygden), designed to compensate for the loss of
                                     earnings from work and contribute to making the unemployed
                                     better qualified for the job market.
                                     Compulsory social protection system for all employees and
                                     assimilated groups.
Iceland                              Compulsory social insurance scheme for employees with
                                     benefits related to the registered earnings.
                                     Unemployment insurance provides either a basic unemployment
                                     allowance (peruspäiväraha) or an earnings-related
                                     unemployment allowance (ansioperusteinen
                                     työttömyyspäiväraha) (optional insurance).
                                     Partially unemployed persons are entitled to an adopted
                                     unemployment allowance.
                                     Labour market support (työmarkkinatuki) is assistance for those
                                     jobseekers who have not worked previously or who have
                                     already been paid unemployment allowance for the maximum
                                     period.
Italy                                From 1 Jan. 1998 Insurance only, consisting of 2 parts:

                                     basic allowance (grundförsäkring) (replacing the unemployment
                                     assistance);
                                     optional earnings-related benefit (inkomstbortfallsförsäkring).
                                     Contribution-based Jobseeker's Allowance (JSA):
                                     Compulsory social insurance scheme for all employed and some
                                     self employed persons. Benefits are flat rate.

                                     Income-based Jobseeker's Allowance:
                                     Social assistance scheme, tax financed and with means tested
                                     flat rate benefits.




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Annex F
Unemployment Data: Comparison of OECD Investment Levels

 OECD Unemployment Benefits Data
 Public Expenditure as Percent of GDP                        2000     2001     2002       2003   2004   2005
 Australia                                                       ..     0.9    0.79       0.72   0.64    0.61
 Austria                                                     1.11       1.1      1.1      1.12    1.1    1.23
 Belgium                                                     1.67      1.75    1.89       2.03   1.97    1.94
 Canada                                                          ..       ..   0.77       0.77   0.69    0.62
 Czech
 Republic                                                        ..       ..   0.26       0.27   0.25    0.24
 Denmark                                                     1.58       1.5    1.55       1.89   1.95    1.83
 Finland                                                     1.61      1.47      1.5      1.55   1.56    1.47
 France                                                        1.2     1.23    1.45       1.63   1.63    1.57
 Germany                                                     1.88       1.9    2.11       2.24   2.28     2.3
 Greece                                                      0.35      0.31    0.29       0.32   0.35    0.35
 Hungary                                                         ..       ..         ..   0.35   0.37    0.38
 Ireland                                                       0.7     0.62    0.72       0.82   0.84    0.77
 Italy                                                       0.51      0.53    0.56       0.54   0.64    0.72
 Japan                                                           ..       ..   0.49       0.48   0.46    0.44
 Korea                                                       0.08      0.14    0.12       0.14   0.19    0.22
 Luxembourg                                                    0.2     0.22    0.29        0.4   0.45    0.47
 Netherlands
                                                             2.03      1.75    1.77       1.97   2.09    2.02
 New
 Zealand
                                                                 ..       ..   0.94       0.77   0.54    0.44
 Norway                                                      0.51      0.54    0.67       0.87   0.86    0.87
 Poland                                                          ..       ..         ..     ..     ..    0.31
 Portugal
                                                             0.67      0.68    0.81       1.04    1.1    1.19
 Slovak
 Republic                                                        ..       ..         ..     ..    0.3    0.17
 Spain                                                       1.33      1.35    1.45       1.43   1.47    1.42
 Sweden                                                        1.3     1.03    1.02       1.21   1.32     1.2
 Switzerland
                                                                 ..       ..   0.77       1.08   1.03    0.93
 United
 Kingdom
                                                             0.31      0.27    0.25       0.23   0.19    0.19
 United
 States
                                                                 ..    0.49    0.51       0.37   0.27    0.24

                 RATIO for ARMENIA                                                                      0.034




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Annex G
FINANCIAL SUPPORT AND BENEFITS DURING MATERNITY LEAVE in SWEDEN


1.1      THE LENGTH OF MATERNITY LEAVE

Parental benefit (föräldraförsäkring) is payable for 480 days. Parents sharing custody are
entitled to half of the total number of benefit days each. This right can be transferred to the other
parent with the exception of 60 benefit days each, that are reserved for the mother respectively
the father. The days may be taken out earliest 60 days before expected confinement by the
woman, and by either of the parents until the child is 8 years old.


1.2      FINANCIAL SUPPORT FROM STATE DURING MATERNITY LEAVE

The Swedish parental insurance comprises three kinds of cash benefits:
     pregnancy benefit
     parental benefit in connection with childbirth or adoption
     temporary parental benefit.

All employed and self-employed women have a right to pregnancy cash benefit
(havandeskapspenning) before confinement. Pregnancy cash benefit is payable to women who
are unable to continue with their usual jobs in the last stages of pregnancy. Pregnancy cash
benefit is payable for a maximum of 50 days during the last 60 days before the expected
confinement.

Parental benefit (föräldrapenning) is paid for 390 days according to the sickness cash benefit
rate (80 % of the qualifying income), and for 90 days at a universally applicable flat rate of SEK
60 per day. Parents on low or no income at all receive a minimum guaranteed benefit
(grundbelopp) of SEK 180 per day.

Temporary parental benefit (tillfällig föräldrapenning) is payable to a parent caring for a sick
child under the age of twelve. Maximum 120 cash benefit days per year are available at 80 % of
qualifying income.

New fathers are entitled to ten days‟ leave on temporary parental benefit (pappadagar) in
connection with the birth or adoption of a child. These days are not counted towards the other
days for which the father has the right to the benefit. In special situations these ten days may be
given to another person than the father.


1.3      CONDITIONS FOR FINANCIAL AND OTHER SUPPORT

To receive a parent's cash benefit (föräldrapenning) above SEK 180 per day, the parent must
also have been insured for a sickness cash benefit above SEK 60 for at least 240 consecutive


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days before confinement. This requirement applies for the first 180 days of drawing the benefit
but not for the remaining days.


1.4      OTHER TYPES OF SUPPORT OR BENEFITS

A parent is entitled to full leave for the care of the child until the child reaches 18 months,
irrespective of whether the parent receives parental benefit. In addition, a parent is entitled to a
reduction of the normal working hours by up to one quarter for the care of a child which has not
yet reached the age of eight years or which is older but has not yet concluded its first year of
school. A qualification period of employment is required.


1.5      SUBSIDY TO PAY AU-PAIRS

There are no financial subsidies for engaging au-pairs or other types of “mother‟s help”.




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Annex H

TEMPORARY DISABILITY AND MATERNITY PROGRAMS IN ESTONIA, POLAND AND PORTUGAL

                                                    1. ESTONIA

Health Insurance: In Estonia, temporary work incapacity benefits are provided to those wage
earners and self-employed individuals on whose behalf the social tax has been paid. Health
insurance is regulated by Health Insurance Act that entered into force on October 2002. The
solidarity-based health insurance scheme includes three main types of benefits:
        • Covering the costs of medical treatment,
        • Payment of cash benefits in the cases of sickness, maternity and nursing of a sick
        dependant,
        • Compensation of the cost of pharmaceuticals for some categories of insured persons.

The insured are the persons:
       1) Who themselves as self-employed persons pay social tax or
       2) For whom the social tax has been paid by an employer.

Besides the insured persons the following groups are covered with health insurance on the
principle of solidarity:
  1) Pregnant women from the 12th week of pregnancy,
  2) Persons under 19 years of age (full time students up to 24 years),
  3) Persons who receive a state pension granted in Estonia,
  4) Persons with up to five years left until attaining retirement age maintained by their spouses
    who are insured persons.

Benefit for temporary incapacity for work is financial compensation that is paid by the health
insurance fund to an insured person on the basis of certificate of incapacity for work issued by
the doctor or dentist treating the person.

Different types of benefits for temporary incapacity for work are paid in the following cases:
1. Sickness benefit:
     A disease or injury
     Quarantine in the case of epidemic
     Temporary transfer to another position due to the health conditions
     Temporary release due to the health conditions

2. Maternity benefit:
     Pregnancy and maternity leave

3. Adoption benefit:
     Adoption of a child

4. Care benefit:


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      Nursing a child under 12 years of age
      Nursing a family member who is ill at home
      Caring for a child under age 3 or for a disabled child under age 16 when the person caring
       for the child is ill or receiving obstetrical care.

The following rates of benefit are applied:

1. 80% of the person‟s average income per calendar day in the cases of:
 Receiving in-patient or out-patient health services
 Nursing a child under 12 years of age in a hospital
 Nursing a family member who is ill at home
 Caring for a disabled child under 16 years of age
 Temporary release from the performance of the duties
 Quarantine


2. 100% of the person‟s average income per calendar day in the cases of:
 Caring for a child under 12 years of age
 Pregnancy and maternity leave
 Adoptive parent‟s leave
 Occupational disease or accident at work
 Preventing a criminal offence
 Protecting national or public interests
 Saving a human life.


The payment of benefit for temporary incapacity for work starts from the calendar day following
the day of determination of incapacity for work (waiting period of 1 day). The waiting period is
not applied in the cases of pregnancy, adoption and nursing a family member.

The duration of payment of benefit is limited depending on the cases of temporary incapacity for
work:
 Sickness - 182 consecutive calendar days, altogether 250 calendar days per calendar year,
  (240 consecutive days in the case of tuberculosis);
 Quarantine - until the date of termination, but not more than 7 days;
 Temporary transfer to another job or release - until the date on which person‟s capacity for
  work is restored, but not more than 60 calendar days;
 Maternity leave – 140 calendar days (154 calendar days in the case of multiple birth or
  delivery with complications);
 Adoption a child under 10 years of age – 70 calendar days;
 Nursing a child under 12 years of age at home – 14 calendar days;
 Nursing another family member at home – 7 calendar days;
 Caring for a child under 3 years of age or a disabled child under age 16 if the person caring for
  the child is ill or receiving obstetrical care – 10 calendar days.



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Temporary Sickness Benefits in Estonia: More Detail

How it works: Sickness cash benefit is paid to an insured person in case of temporary incapacity
to work, if earnings subject to social tax are not received due to the sick leave. For a person to
receive sickness benefit, he/she has to have a medical sick-leave certificate for sick leave issued
by a treating doctor and there does not exist any qualifying periods. (The certificate can be issued
by the treating doctor in the case of illness or injury; rehabilitation; quarantine; and temporary
transfer to another job due to the state of health.)

The medical sick-leave certificate frees the person from executing the work and service
obligations. The medical sick-leave certificate must be presented to the employer, who presents
the medical sick-leave certificate, together with the cover letter and necessary annexes, to
Estonian Health Insurance Fund.

Amount: The rate of sickness cash benefit is 80 % in case of in-patient or out-patient treatment
or quarantine and 100 % in case of work injury or occupational disease. The reference earnings
upon which the benefit rate is applied, is the average daily income (which was subject to social
tax) of the insured person. For self-employed persons the reference earnings are the earnings
upon which social tax has been paid in the previous calendar years. There is no ceiling either for
the amount of sickness cash benefit or for earnings taken into account for the calculation of the
benefit.

Funding: Sickness benefits are paid by the Health Insurance Fund, on the basis of the medical
sick-leave certificate. The benefits are then transferred to the person‟s personal bank account.

Legislation:
-      Health Insurance Act 1991 (Ravikindlustusseadus)
-      Estonian Health Insurance Fund Act 2000 (Eesti Haigekassa seadus)

Maternity Program in Estonia

A person insured by health insurance has the right to remain on pregnancy and maternity leave
from the 30th week of pregnancy. A certificate of incapacity for work shall be prepared by the
doctor, at whom the insured person is registered. A certificate of incapacity for work in
connection with pregnancy and delivery is formalized for 140 calendar days at a time (in the case
of a multiple birth or delivery with complications for the total of 154 calendar days), if the
maternity leave of the woman commences at least 30 calendar days before the estimated date of
delivery as determined by a doctor (or 70 days before, if the working conditions have been eased
or she has been transferred to easier work).

Pregnancy leave and maternity leave are considered as one leave, which, as a rule, lasts for 140
days. A woman has the right to receive a leave approximately 70 days before the expected
delivery and the maternity leave terminates, as a rule, 70 days after the delivery. The duration of
maternity leave is 154 days in case of multiple birth and some therapeutic indications. If a part of
the leave before delivery remains unused, it may be added to the leave after delivery.



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A benefit is paid for pregnancy and maternity leave for the period of the leave. The benefit is
100% of the average income of the woman per a calendar day. The basis for the calculation of a
benefit is the income of the insured person, which is subject to social tax. The right to receive
benefit is decreased when the woman takes her leave less than 30 days before the estimated date
of delivery as determined by a doctor (the same rule applies to a multiple birth or delivery with
complications, but a woman shall take her leave 70 days before the delivery). It is unlawful to
dismiss an employee during maternity leave.

Starting in 2004, Estonia has provisions for combining/alternating parental leave with part-time
working Arrangements, but it is obligatory that the full amount of the benefit is used.

Duration: The confinement benefit is paid for:
-        Up to 140 days during pregnancy and confinement leave: 70 days prior to birth and 70
  days after the birth (as of 2004. Before 2004, this term was 126 days).
-        Up to 154 days for multiple birth or birth complications: 70 days prior to birth and 84
  days after the birth (as of 2004. Before 2004, this term was 140 days).
-        Up to 70 days for adoption of a child aged less than 12 months, starting on the date the
  court order comes into force

Benefit is paid from the calendar day on which the certificate for pregnancy leave was is-sued,
and there is no waiting period.

Maternity Leave Compulsory? – Yes.

There exist some provisions, introduced in 2004, that allow to combine/alternate parental leave
with part-time working arrangements, but those apply to children up to 3 years of age (not clear
if they also apply to newborns).


 Time Limit                 Part-time Option                      Staggered Option
 Up to child‟s 3rd
                            Yes                                   No
 Birthday

Legislation: Parental Benefit Act (January 1, 2004); State Family Benefit Act; Holidays Act

Parental Benefit Act specifies new guidelines for parental leave allowance, which make
Estonia‟s provisions for maternity leave some of the most generous in the European Union.
Previously, mothers in Estonia were able to take 140 days maternity leave and received
compensation at 100% of salary from the Health Insurance Fund. At the end of the period, they
could stay at home for three years, but with rather modest support from the state. Under the new
law, in addition to maternity leave, parents have the right to stay at home on full pay until the
child is a year old.




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                                                    2. POLAND

Temporary work incapacity benefits are available to all wage earners currently insured or
receiving social benefits. All wage earners, as well as persons in full-time education and
unemployed persons must be currently ensured or be receiving social benefits to qualify for
temporary disability assistance. Further qualifying: to receive benefits, the person must have had
30 days of uninterrupted insurance to the moment he/she applies for disability benefits; the
voluntarily insured persons must have 180 days of uninterrupted insurance.

Sickness cash benefits are issued based on a medical certificate from a contracted doctor on the
temporary inability to work caused by a disease, hospitalization or necessity to provide care to a
sick member of the family.

Temporary sickness (rehabilitation) allowance is paid by the Social Insurance Sickness
Allowance Fund (Zakład Ubezpieczeń Społecznych − ZUS), which is also tasked with controlling
the correctness of evaluating temporary incapacity for work and authorizing doctors to issue
medical certificates of temporary incapacity.

Special systems exist for the temporary work incapacity insurance for individual farmers, the
military, and the police.

Amount:

100% of reference wage:
      • From the 91st day of uninterrupted incapacity for work;
      • For an illness caused by an employment injury, an accident on the way to or from work
      or an occupational disease;
      • For an illness occurring during pregnancy.

70% of reference wage:
      • In the event of hospitalization.

80% of reference wage:
      • All other circumstances.

The duration of the payment of benefit:

   Sickness – 6 months, can be extended by a further 3 months: The sickness allowance is
    payable for the period of incapacity, however this period cannot be longer than 6 months (in
    case of tuberculosis not longer than 9 months). If after this period the insured person is still
    unable to perform work, and the prognosis for further medical treatment or health
    rehabilitation indicates that the insured person will recover his/her work capability, the period
    in which the benefit will be payable is prolonged, however only to a maximum of 3 months.




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    Sickness benefits change into in invalidity pension when the person has certificate of work
    incapacity are issued by a doctor licensed by the Social Insurance Institution.
       9 months for tuberculosis.

   Maternity - 16 weeks in the case of giving birth to the first child; 18 weeks in the case of
    giving birth to each subsequent child; 26 weeks in the case of giving birth to more than one
    child at one delivery.
   Adoption

Qualifying period: There is no qualifying period before the continued payment of wages by the
employer if:
-      Any gap between insurance periods is no longer than 30 calendar days,
-      Any gap was caused by parental leave, military service or other unpaid leave,
-      The holder of a school/further education diploma has paid contributions for at least 90
       calendar days after obtaining the diploma,
-      The insured person has paid compulsory contributions for 10 years,
-      Absence is due to an employment injury or occupational disease,
-      Other cases: 30 calendar days.

Funding: For the first 35 calendar days of illness are treated as wages and are financed by
enterprises. During this period, the employer continues to pay wages: 80% of reference wage;
100% in case the illness was caused by an employment injury, occupational disease, or an illness
which occurred during pregnancy.

For periods of illness greater than 35 calendar days, the sickness allowance is paid by the Social
Insurance Sickness Allowance Fund (Zakład Ubezpieczeń Społecznych − ZUS).

The reference wage is calculated on the basis of earnings during the 6 months (12 months in case
of voluntary insurance) that precede the cessation of work for which contributions were paid.

Further benefits:

Rehabilitation Allowance (świadczenie rehabilitacyjne): If incapacity continues beyond the
period of payment of the Social Insurance Sickness Allowance Fund (Zakład Ubezpieczeń
Społecznych − ZUS), or it is likely that rehabilitation will restore the patient's fitness for work.
 Amount: 75% of the reference wage for Social Insurance Fund Sickness
 Allowance: see "Amount of Benefits" above.
 Maximum duration: 12 months after the expiry of Social Insurance Sickness Allowance Fund.


Compensation Allowance (zasiłek wyrównawczy): Paid to workers whose capacity for work has
been reduced by an illness.
 Amount: the difference between the current and previous earnings (wage during the last 3
  months before the illness).
 Maximum duration: 24 months from start of incapacity.




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Legislation: Act of 25.06.1999 on pecuniary social insurance benefits in cases of sickness and
maternity (Ustawa z 25.06.1999 o Ñwiadczeniach pienieznych z ubezpieczenia spoecznego w
razie choroby i macierzynstwa).

Maternity program in Poland:

Maternity allowance is payable to all mothers on the basis of the mothers‟ or their husbands'
contributions. (A single payment equal to 12 % of the average wage for the previous quarter is
made.) Maternity allowance is granted to an insured woman who, within the period of sickness
insurance, or within the period of child care leave, gave birth to a child, or took in a child under 1
year of age either for an adoption or foster care. Maternity allowance may be granted also to
insured father of the child or any other insured member of the family if the mother dies or
abandons the child and the persons concerned discontinue their employment or any other paid
activity in order to take care of the child.

Cash benefits: the amount equals 100% of the average monthly remuneration, calculated on the
basis of the last 6 months. Maternity benefits are paid by ZUS or an employer (if the employer
employs more than 20 people) and are financed by ZUS.

At least 2 weeks of the maternity leave can be taken before the anticipated date of confinement –
i.e. payment of the allowance may begin 2 weeks before the birth, at the request of the insured
person. A wage earner has the right to take up after confinement the period of maternity leave
not taken prior to the child‟s birth.

Is Maternity Leave Compulsory?

– Yes, with very limited flexibility:

Maternity allowance can be granted or „transferred‟ to the insured father of the child for 2 final
weeks of the maternity leave – i.e. once the mother has benefited from at least 14-week leave.
The mother may assign the remaining part of the maternity leave to the father who was granted a
right to the maternity leave or discontinued his paid activity in order to take care of the child
himself, only when he so agrees.

If the father of the child does not want to benefit from the remainder of the maternity leave, the
mother of the child cannot shorten it and she must fully benefit from it.

 Time Limit                         Part-time Option              Staggered Option
 Up to child‟s 4th birthday          No                           Yes




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                                                  3. PORTUGAL

Sick Leave: The sickness benefit is paid to a worker in the case of temporary incapacity (sick
leave), certified by the competent health services. The temporary incapacity certificate must be
handed in by the worker at the regional social security centre where the worker is registered.

Qualifying conditions: In order to receive the sickness benefit, the worker must have:
-        A record of 6 months of remuneration
-        A record of at least in the 12 days of contributions in the 4 months before the onset of
illness.

The sickness benefit is paid as from the 4th day after the onset of the sickness and has a
maximum duration of 1095 days. After this period, the worker changes over to the disability
protection.

The amount of the benefit varies according to the total of the remuneration registered in the
beneficiary‟s name and may not be lower than 30% of the daily amount of the minimum national
salary of the worker‟s activity sector.

Amount for Sickness Benefits:
- 65% of average daily earnings, for the first 90 days of leave
- 70% of average daily earnings, from 91 up to the 365 days of leave
- 75% of average daily earnings, from 365 to 1095 days of leave (no limit for cases of
  tuberculosis)
- 80% of average daily earnings, if the beneficiary has at least 2 dependents
- 100% of average daily earnings, if the beneficiary has 3 of more dependents

Average daily earnings for calculation of benefit amount are based on earnings in the 6 months
before the last 2 months before the month the incapacity began.

The minimum sickness benefit is equal to either 30% of the national minimum wage or the
average daily earnings used for calculating the cash sickness benefit, whichever is lower. (The
current national monthly minimum wage is €385.90.)

Funding:

Of the total 34.75% of payroll contributed by the insured person and employer, 3.05% is
allocated to sickness benefits and 0.73% to maternity benefits.

Maternity Program in Portugal

The benefit is equal to 100% of average daily earnings. The benefit is payable for 120 days,
including 90 days after childbirth. The beneficiary can opt for a 150-day leave period paid at
80% of daily earnings (the 30 additional days must be taken after childbirth). The additional



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leave period can be awarded to the father or shared between the two parents under certain
conditions. In the event of the medical certification of a miscarriage, 14 to 30 days of benefits are
paid.

Qualifying Conditions: Must have at least 6 months of prior insurance coverage.

Duration:
-      120 days for childbirth (30 days before childbirth, 90 days after childbirth.            Few
exceptions – see below)
-      120 days + 30 days for each additional child, for multiple births.
-      14 to 30 days, following miscarriage or delivery of a stillborn child
-      100 days, for adoption

Compulsory Maternity Leave?

– Yes, with very limited flexibility:

The mother must necessarily take 6 weeks (42 days) of maternity leave. After the 6-week
maternity leave period is completed, it is possible to take a joint decision, made by both parents,
to cease the maternity benefit.

If the mother opts for the option of taking a 150-day leave period (instead of the 120-day period),
the 30 additional days must also be taken after childbirth – there is no option to take them before
childbirth.

The father must also take a compulsory paternity leave of 5 days.

 Time Limit                        Part-time Option               Staggered Option
 Up to         child‟s      6th
                                   Yes                            No
 birthday




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Annex I - Disability Protection Reform in the Czech Republic and Estonia

                 DISABILITY PROTECTION IN THE CZECH REPUBLIC

EARLY PERIOD OF REFORM: 1991-1995

1991 - 1992
-        Government Committee for Persons with Disabilities is set up and tasked with drafting
legislation to suit the specific status and needs of the disabled groups.
-        Czech Social Security Administration is given the task of administering social insurance
benefits.
-        Employment promotion: Government focuses on employing persons with disabilities in the
labor market and attempts to introduce measures and programs to support the employment of
disabled persons, modeled on the programs common in western countries. Specially amended
provisions are included in the Labor Law and the Employment Act concerning the employment of
people with disabilities. Some provisions, however, backfire, making employment more difficult for
persons with disabilities.
         • Labor Law prohibits employment for a fixed term or for a trial period for the disabled.
         This backfires because employers become reluctant to employ the disabled altogether.
         • Employment Act (Act No. 1 of 1991) defines what constitutes a disabled person on the
         labor market, creates entitlements to unemployment benefits, and establishes obligations of
         employers in favor of disabled people. Specifically, the Act obliges employees to:
                 • Create suitable working conditions and jobs for disabled people;
                 • Create a list of suitable jobs;
                 • Preferentially fill these jobs with people with disabilities;
                 • Enable persons with disabilities to improve their qualifications; and
                 • Meet mandatory quotas when employing persons with disabilities.
-        Unemployment benefits, including for persons with disabilities, are curtailed from their
generous pre-transition level.
         • Benefit level for unemployed reduced from the pre-1990 level of 95% to 65%.
         • Maximum limit on unemployment benefits is specified (previously no such level).
         • Period of benefit provision shortened

1993
-      Financing: Government shifts financing for social insurance, including disability insurance,
to a special contribution payment outside the tax system. (Responsibility for collecting social
insurance contributions given to Social Security Administration, which has been responsible for
administering social insurance benefits since 1991.)

LATER PERIOD OF REFORM: 1995 - 2001

1995
Pension Insurance Act of 1995 (effective as of January 1996) and State Social Support Act are
passed to reform disability insurance. The major provisions are:



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        • Unify certain existing types of benefits
        • Redefine entitlement criteria
        • Introduce a new benefit level calculation method
-       In the Pension Insurance Act and State Social Support Act, disability levels and
corresponding compensations are specified in terms of the degree of a person‟s reduced ability to
engage in ongoing gainful activity. The goal is to shift emphasis on compensating for the
consequences of disability – i.e. compensating for the loss of the ability to carry out systematic
gainful activity. (In the past, compensation was provided not for the consequences of disability, but
for the disability itself.)
        • Government‟s goal in the design of the new disability insurance system is improve
        evaluation criteria in order to ensure equal treatment of all citizens in their claims to personal
        security.
        • The degree of a person‟s reduced ability to engage in ongoing gainful activity is expressed
        in terms of percentage decline in earning ability, based on a variety of factors including the
        term of disability (long or short term), the severity of impairment, previous & remaining
        earning ability, etc.
-       Pension Insurance Act is designed to improve upon and complement previous legislation on
pension security. In particular, it improves upon and complements the Social Security Act of 1998
which covered certain pension security issues including administrative organization of the system
and contribution payments to the pension insurance system (see table).




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-       Pension Insurance Act and State Social Support Act introduce two-tier system for calculation
of disability pensions (for disabled persons with an employment record):
         • First tier: Consists of a fixed amount flat rate payment which is the same for all pensions
         (amounts to CZK 1,310 or 10 % of national average monthly earnings in 2000). The
         government can increase this amount according to strict rules set out in the Act.
         • Second tier: Consists of a percentage amount corresponding to previous earnings and the
         number of years in employment. This amount differs according to the type of pension. For a
         full disability pension, the percentage assessment is monthly 1.5 % of the calculation base
         (average earnings) for every complete calendar year of insurance.
        • Different method for disabled persons with no employment record (long-term unfavorable
        health status or disabled from youth): the minimum disability pension amounts to 40 % of the
        yearly general assessment base, i.e. the national average wage.
        • Partial disability pensions, based on the Pension Insurance Act, are provided to individuals
        with long-term health-induced reduction in the ability to carry out systematic gainful activity.
        The Act specifies limits on the income from economic activity that those claiming disability
        pensions must meet in order to qualify.
-       A 10-year protection period was included in the new Pension Insurance Act, providing that
new pensions awarded in the period 1996 to 2005 will automatically be calculated according to both
the old and new laws. The beneficiary receives the higher of the two amounts.

Employment promotion: State policy on employing people with disabilities has not substantially
changed in 1992-2000, due in part to the generally austere government‟s reform package and in part
to worsened economic situation in the late 1990s. New wave of employment policy reforms began in
2000, when the economic recovery of 1998-1999 failed to result in an increase of the number of
disabled persons employed in the labor force.

-      Budgetary Rules Act of 2000 introduces a system of subsidies for companies employing
persons with disabilities. Subsidies are provided after assessment by a committee of the Ministry of
Labor and Social Affairs. There are three types of subsidy:
       • to cover social insurance contribution costs for people with disabilities
       • to cover costs connected with the modification of working conditions
       • to cover new investment in such companies.
-      Employment Act of 1991 is amended in 1999 to introduce sanctions for companies not
meeting the 5% mandatory quota of disabled people in their workforce. This measure first enforced
in 2000. Most employers (90%) report meeting and often exceeding this quota.

Effects of the new pension system:
         • Formula allows that a full disability pension can work out to be higher than the old age
         pension for certain groups of employees (unlike Estonia, where old age pension generally
         tends to be higher). For example, women who raised more than one child and took a
         substantial period of parental leave during which time their earnings were minimal would fall
         under this category. Should a claimant have the right to both a full disability and an old age
         pension, the higher of the two is paid.



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         • The overall number of full disability pensions falls (9% in 1996-2000), while overall
         number of partial disability pensions rises (20% in 1996-2000).
         • Replacement ratio of disability pensions to average wages has remained relatively stable
         since 1995. All adjustments in the level of pension benefits since 1990 have taken into
         account real wage increases.
         • Despite the 1999 amendment to the Employment Act (introducing sanctions for companies
         not meeting employment quota for disabled workers), no improvement has been observed in
         the employment rates of people with disabilities in 2000, as compared to 1999. Instead, a
         drop of 13% has been observed.


                             DISABILITY PROTECTION IN ESTONIA

EARLIER PERIOD OF REFORM: 1991-1994

-      Prior to reform, disability pensions were paid at a flat rate, depending only on the invalidity
group. The amounts are linked to the minimum wage. Three invalidity groups are:
   • Group 1: Total incapacity to work and a need for constant attendance
   • Group 2: Total incapacity to work without need for attendance
   • Group 3: Partial incapacity to work

1992
-        Government reviews levels of pensions according to changes in the minimum wage; pension
levels revised 5 times in 1992 to keep pace with inflation.
-       Aim is to find an adequate balance between disability pensions and the minimum wage, as
well as between the amounts of pensions for the various disability groups.
-       Estonian Constitution, effective July 1992, lays down general principles of social security:
specifically recognizes the special needs of two social groups – disabled persons and large families.

1993
-       National Social Insurance Board established and given the responsibility to administer
social security.
-       The first task of the Social Insurance Board is restructuring benefits.
-       Act on State Living Allowances (drafted by the Board) passed effective April 2003.
        • Ends flat-rate pensions for the elderly, differentiating formerly flat old-age pensions on the
        basis of length of service
        • Leaves disability pensions paid at a flat rate, based on the disability group. Carries effects
        only for invalidity groups 1 and 2, with sufficient pensionable service required for old-age
        pensions. For these persons, invalidity pensions are calculated according to the old-age
        pension formula.
        • The act is meant as a temporary measure for the period of economic transition, but remains
        in force until April 2000, when it becomes replaced by the new Act on State Pension
        Insurance (passed in 1998, but not in force until 2000).




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1994
- Pensions disconnected from changes in the minimum wage. This decision is favorable for
disabled pensioners, as the minimum wage remained unchanged in 1993-1994.
- Minimum wage remains below the invalidity pension for Group 1 (greatest invalidity benefits of
the 3 invalidity groups) until 1999. In 1999, minimum wage rises above the level Group 1 invalidity
pension due to labor union pressure, while invalidity pension remains the same.




LATER PERIOD OF REFORM: 1995-2000

The core disability reform, undertaken in 1995–2000, included 4 main elements:
    1. Development of community-based social services to foster the social integration of disabled
    persons
    2. Transformation of invalidity pensions to work incapacity pensions under a new 3-pillar
    pension system, in order to rationalize income replacement in case of incapacity to work
    3. Introduction of a new scheme of social benefits for disabled persons, to compensate for
    additional costs related to their special needs; and
    4. Provision of tax incentives and labor market services to encourage the employment of
    disabled persons.

1995
Act on Social Welfare and the Development of Community-Based Social Services is prepared by
the Ministry of Social Affairs with the assistance of a Finnish expert (a member of the Committee of
Independent Experts on the European Social Charter). The Act draws in part on the principles of
social service delivery in the Nordic countries, and from the requirements of the European Social
Charter.
-       Shifts focus of disability protection, from the provision of cash benefits as a means of basic
income maintenance to the emphasis on community-based care and rehabilitation.
-       Obliges local municipalities to organize social services, including social counseling;
provision of prosthetic, orthopedic, and other devices; domestic services; housing services; family
care; and care and rehabilitation in welfare establishments.



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-       Local governments assigned specific tasks designed to ensure that persons with disabilities
have equal opportunities, can take an active part in social life, and can earn a living.
-       Response to growing demand for social services and in-kind benefits from the increasingly
strong and more organized disability groups.

1997
-        Government appoints Social Security Reform Commission with the task of preparing an
outline for major pension system reform.
-        New Three-Pillar System established June 1997, following the presentation of the Concept
paper by the Social Security Reform Commission (full name of paper Conceptual Framework for
Pension Reform)
     • First pillar: State-managed compulsory pay-as-you-go scheme providing defined-benefit
      pensions. It covers the risks of old age, incapacity to work, and survivorship.
     • Second pillar: Privately-managed compulsory funded scheme providing defined-contribution
      pensions. It covers old age.
     • Third pillar: Privately-managed voluntary funded schemes providing either defined-
      contribution or defined-benefit pensions. It covers old age and incapacity to work.
-        The Concept Paper aims to make clearer the distinction between the instruments of social
insurance (addressing work incapacity) and social assistance (addressing long-term
disability/invalidity). The function of work incapacity program is recognized as providing a partial
replacement of previous earnings, while taking into account the beneficiary‟s remaining capacities.
The function of invalidity pensions is recognized as providing a fixed income for incapacitated
persons, while taking into account their degree of invalidity.
-        The new state pension system was to address social insurance objectives, but to meet social
assistance objectives, a new scheme of social benefits for the disabled was envisaged.
-        The envisioned pension system reform, aimed at gradual transition to the three pillar system,
has the following primary objectives:
     • Introducing stronger incentives for participation and decreasing labor market distortions by
      strengthening the insurance principle.
     • Tightening eligibility criteria to combat an expected increase in the system dependency ratio
      (beneficiaries to contributors) due to demographic aging, which could lead to the decline of the
      replacement rate of pensions.
     • Increasing financial transparency by switching the financing of noninsurance pensions or
      pension supplements to general state revenues
     • Guaranteeing compliance with the EU‟s acquis communautaire by securing gender equality in
      all aspects of the pension system and allowing for the pro rata calculation of pensions in
      applying the EU social security coordination system.

1998
Act on State Pension Insurance of 1998, adopted as the new first pillar law.
-       Adopted June 1998 and entered into force April 2000, replacing the Act on State Living
Allowances (1993)
-       Represents an attempt by the government to end the medical model of invalidity, replacing it
with the new concept of work incapacity (this effort is only partially successful due to the difficulties
of enforcement.)



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-      Divides former recipients of invalidity pensions into four categories:
       1. Children under age 16: transferred to the disabled children‟s benefit, payable according to
       the Social Benefits for Disabled Persons Act from the general state budget.
       2. Persons over the pensionable age: transferred to the old-age pension.
       3. Persons of working age (16 through pensionable age): transferred to the work incapacity
       pension if they fulfilled the qualification period established by the new law.
       4. Persons of working age who did not fulfill the qualification period: transferred to the
       national pension.
-      Prescribes a single pension formula, to serve for the calculation of old age, work incapacity
and survivors‟ pensions. The new formula includes three additional elements:
       • Flat-rate base amount, signifying the solidarity element in the system;
       • Length of service component applying to periods of work before the enactment of the new
       law (through December 31, 1998); and
       • Pension insurance component applying to periods of work after the enactment of the new
       law (after January 1, 1999).
-      Deficiencies: some provisions have unintended effects for work incapacity pensioners:
       • In some cases, persons with a shorter insurance record were better off than persons with
       longer work careers. (15-year credit is granted to those with less than 15 years of service.)
       •The difference between the work incapacity pension for a person who had fulfilled a
       required qualification period and the rate of the national pension for a person without
       sufficient insurance period was marginal (less than 5 percent).

1999-2001
Amendments to the 1998 Pension Act
-        Stipulation that the recalculation of formerly granted invalidity pensions could not result in a
decrease in the pension amount: In most cases recalculation would have resulted in a decrease, so
work incapacity pensions in 2000 were paid in the amounts of the former invalidity pension – i.e. at 3
different rates, depending on the former invalidity group.)
-        Clarification of the definition of work incapacity.
-        Modification of the calculation rules of work incapacity pensions based on work incapacity
percentages. Compensation calculated based on the degree of work incapacity. For entitlement to
disability pension, work incapacity must be at least 40%.
-        Stipulation that the invalidity pension must not be less than the minimum old-age pension.
(These rules create a relatively high floor for work incapacity pensions, whereas most persons under
50 receive the fixed rate. The general pension formula has practical relevance only for persons who
are closer to the pensionable age and have an insurance record longer than 30 years.)
-        Multiple changes to the pension calculation formula to improve the value of work incapacity
pensions as compared to the former invalidity pension (except for persons with 80% work
incapacity).

Act on Social Benefits for the Disabled Persons, adopted January 1999, entered into force January
1, 2001.
 -     Provides additional income to disabled persons; adds increased monthly discharges to the
income of adult disabled persons, based on the degree of disability.



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