Keyfinding - 7. Social Security - 2020

7. SOCIAL SECURITY

A. OLD AGE PENSION

Over 85% (100 of 115) countries provide old age pension through a contributory social insurance system. Five countries, Bangladesh, Canada, Mexico, New Zealand and South Africa, provide a non-contributory (universal or social assistance based) old age pension. Eight countries provide a state administered provident fund or a mandatory individual account system for old age pensions. Malawi and Nigeria have a non-state administered provident fund and/or mandatory individual account system for old age pensions.  

B. DEPENDANTS’/SURVIVORS’ PENSION

More than 100 countries require a social insurance-based dependants/survivors’ pension system. There is a provision of a non-contributory survivors’ pension in four countries, Bangladesh, Netherlands, New Zealand, and Norway have a non-contributory (universal or social assistance) survivors’ pension.  El Salvador, Malawi and Nigeria provide a non-state administered provident fund or mandatory individual account system for survivors’ pension. 

C. UNEMPLOYMENT BENEFITS

More than 50% (62 of 115) countries provide for a state administered unemployment benefit. Australia, Brazil and Romania have a state administered system which is means-tested. While 40 countries have severance pay in the event of contract termination or loss of employment, Burundi, Ghana and Singapore have neither severance pay nor unemployment benefit.

D. SICKNESS BENEFIT

Nearly 65% (75 of 115) countries require a sickness benefit of at least 6 months. A similar number of countries provide state administered sickness benefits. 36 countries require sickness benefit to last less than six months and make it an employer liability i.e., require the employer to pay wages during the period of sickness. It must be emphasised however that though the number of countries remains the same in above referred cases, the actual countries might be different. Burkina Faso, Ghana, Korea Rep., and Senegal do not provide any statutory sickness benefit. In provision of sickness benefit, waiting periods were also considered. 17 countries have waiting periods of over 10 days to access sickness benefits. 13 of these countries are in Europe. Azerbaijan, Brazil, Namibia and New Zealand also require a waiting period of more than 10 days to access sickness benefits. 

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E. INVALIDITY PENSION

Similar to old age pension and survivors’ pension, most of the countries (100 of 115) provide for a contributory social insurance invalidity pension. Four countries, Bangladesh, Botswana, New Zealand, and South Africa have a non-contributory (universal or social assistance based) invalidity pension. Bolivia, Kenya, Singapore, Sri Lanka and Uganda provide for a state administered provident fund or a mandatory individual account-based invalidity pension. El Salvador, Malawi and Nigeria have a non-state administered invalidity pension.  Angola, Lesotho, and the United Arab Emirates have no provision for invalidity pension.