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TYPE OF SOCIAL

SECURITY BENEFITS

CHAPTER FOUR4

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Objectives of the lecture:

After completing this lecture, the students should be able to:

Elaborate the medical care, sickness and maternity benefits

Elaborate the unemployment, employment injury and invalidity benefits

Elaborate the old-age, family and survivors benefits

Elaborate the social security for migrant workers and dependents

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4.1 : MEDICAL CARE, SICKNESS AND MATERNITY BENEFITS

MEDICAL CARE

The medicare program is designed to meet the problem of medical expenses of the aged and disabled. (Rejda:1994)

The medical benefit is provided free to insured persons who suffer from an employment injury. Medical care, both inpatient or outpatient, is provided through a system of panel doctors (insurance medical practitioners) and in all government clinic and hospitals [s 37 Social security Act 1971]

Organizational benefits/discretion

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SICKNESS BENEFITS If the employees fall sick, they are entitled

for the medical care subject to the eligibility coverage and qualifying conditions. (family)

Organizational benefits/discretion

MEDICAL CARE, SICKNESS AND MATERNITY BENEFITS

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MEDICAL CARE, SICKNESS AND MATERNITY BENEFITS

MATERNITY BENEFITS To sustain & care for herself & baby over the period,

immediately before & after confinement Maternity Protection Convention 1919 No (3) Maternity leave Maternity allowance S 37 (1)(a) Employment Act 1955]

60 days maternity leave Maternity allowance Extension of maternity leave

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4.2 : UNEMPLOYMENT, EMPLOYMENT INJURY AND

INVALIDITY BENEFITS

UNEMPLOYMENT BENEFITS

Unemployment insurance is a federal-state program that provides for the partial replacement of income during periods of short-term involuntarily unemployment, with demonstration of need and fulfill certain eligibility requirements. (Rejda:1994)

EMPLOYMENT INJURY

It means a personal injury to an employee caused by accident or an occupational disease arising out of and in the cause of his employment in an industry to which the act applies [S2(6) Social Security Act 1969]

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INVALIDITY BENEFITS

Types of invalidity Physical invalidity / Occupational invalidity / General

Invalidity The pension is payable to an insured person

under 55 years of age who is suffering from an invalidity due to illness or infirmity from whatever cause as confirmed by a Medical Board and who has fulfilled the qualifying contribution conditions

[ s 20 Social Security Act 1971]

UNEMPLOYMENT, EMPLOYMENT INJURY AND INVALIDITY BENEFITS

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4.3 : OLD-AGE, FAMILY AND SURVIVORS BENEFITS

OLD AGE BENEFITS

Basically it refers to the monthly retirement, disability and survivors benefits that are paid under the program, under the social insurance principles. It provides only a minimum floor of income protection against the various risks covered.(Rejda:1994)

It is important in promoting economic security for the aged to reduce the problem of the loss of earned from retrenchment, retired etc.Eg: US - OASDIMalaysia - EPF

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FAMILY AND SURVIVORS BENEFITS

Social security survivor benefits provide considerable protection against economic insecurity because of premature death. The benefits are also inflation proof because of the automatic cost-of-living provisions.

Organizational discretionary

Eg: US - survivor benefits are such as - Unmarried children under age 18 - Unmarried Disabled children etc

Malaysia- survivor benefits are such - Survivor Pension [Soc Sec Act] - Dependent Benefit of E’ment

Injury Scheme [Soc Sec Act]

OLD-AGE, FAMILY AND SURVIVORS BENEFITS

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4.4 : SOCIAL SECURITY FOR MIGRANT WORKERS AND

DEPENDENTS SOCIAL SECURITY FOR MIGRANT WORKERS

Initially, foreign workers are protected under Employees Social Security Act, but then it was resolved in 1st April 1993 due several reasons.

There are also fund provided for foreign workers under EPF Act, but it was also resolved in 1st August 1998.

Now, their benefits are under workmen’s Compensation (Foreign Worker’s Compensation Scheme) (Insurance) Order 1998.

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The benefits are such follows:

Insurance scheme, premium payable by the employer to the insurer RM96 per annum for each foreign workers

- Additional benefits.

The insurer, in addition to its contractual obligations to pay in accordance with the policy of insurance subscribed by the employer in favour of his workman, shall provide under the Scheme the following additional benefits without imposing any additional premium on the employer:

SOCIAL SECURITY FOR MIGRANT WORKERS AND DEPENDENTS

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(a) a sum of two thousand ringgit in the event of death of a workman from personal injury sustained in an accident which arises out of and in the course of his employment;

(b) where the personal injury is sustained in an accident which occurs outside the

working hours of a workman –

(i) a sum of RM20,000 in the event of death or permanent total disablement;

&(ii) a sum of money equivalent to the

amount of compensation awarded under section 8 of the Act for, and in

the event of, permanent partial disablement or temporary disablement; and

SOCIAL SECURITY FOR WORKERS AND DEPENDENTS MIGRANT

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(c) a sum of RM4,800 or the actual expenses incurred in repatriating a workman to his country of origin in the event of his death

or permanent total disablement, whichever is lesser.

SOCIAL SECURITY FOR WORKERS AND DEPENDENTS MIGRANT

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TUTORIAL Please identify any issues regarding on the various

types of social security benefits.

Identify the various types of Social Security benefits in your country.