Social Protection Floor concept:

Its relevance to secure minimum

income security globally

April 5, 2013

Krzysztof Hagemejer International Labour Office

The ILO’s Mandate in Social Security

Preamble of the ILO Constitution (1919):

“An improvement […] is urgently required; as, […], by […]

the «prevention of unemployment, […] the protection of the

worker against sickness, disease and injury arising out of

his employment, the protection of children, young persons

and women, provision for old age and injury, protection of

the interests of workers when employed in countries other

than their own”.

Declaration of Philadelphia (1944):

To pursue “the extension of social security measures to

provide a basic income to all in need of such protection and

comprehensive medical care”.

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The ILO’s standard-setting function

In 1919: International labour standards as a

response to the need for social justice

From its foundation in 1919, the ILO was charged

with the creation of ILS

Standards came as a response to the recognition

that the global economy needed clear rules in order

to ensure that economic progress would go hand in

hand with social justice, prosperity and peace for all

Since then, the ILO has established a system of

international labour standards covering all matters

within the ILO’s competence (eg. rights at work,

social protection) 3

The ILO’s standard-setting function

Today: still the “rules of the game” in an

increasingly globalised world and in crises

The standards have grown into a comprehensive

system of instruments on work, social protection

and social policy, backed by a supervisory system

designed to address all sorts of problems in their

application at the national level.

They are the main tools at the ILO’s disposal for the

pursuit of its mandate and the main basis for the

provisions of policy advice and technical assistance

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What are International Labour Standards?

ILS are legal instruments drawn up by the ILO’s constituents

(governments, employers and workers) setting out principles

and rights at work and beyond for protecting workers and

their families, governing globalization, promoting sustainable

development, eradicating poverty, and ensuring that people

can work and live in dignity, decency, health and safety;

They are either

Conventions: legally binding international treaties that may be ratified

by member states, that create obligations for ratifying States

(application and reporting)

Recommendations: serve as non-binding guidelines; autonomous or

accompanying a Convention; may also subject to reporting

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How are ILS adopted?

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Consultation process

leading to ILO social security strategy and

Social Protection Floors Recommendation

2001-2010 New consensus 2001 Regional conferences and expert meeting 2008-10 Global Jobs Pact 2009

International Labour Conference 2011 Adoption of two-dimensional strategy (Resolution and Conclusions) Agreement on elements of possible Recommendation

Consultations 2011-12 Replies to questionnaire from governments, employers’ and workers’ organizations

International Labour Conference 2012 Adoption of Social Protection Floors Recommendation

221 responses

from 118 countries

Global tripartite

consensus:

453 votes in favour

and 1 abstention

from 142 countries

Social Protection Floor Initiative

International and regional endorsements (G20 and others)

The (UN) Social Protection

Floor Initiative

• Created in April 2009 by the UN CEB

as one of nine joint crisis response initiatives

• Global coalition of various agencies and

development partners

• Objective: Promote universal access to – essential services (health, education, housing, etc.)

– social transfers in cash or in kind, to ensure income

security, food security, adequate nutrition, and

access to essential services.

• High-level advisory group chaired by Michelle

Bachelet

• Report: Social protection floors for a fair and

inclusive globalization, 2011

Global lead agencies: ILO, WHO.

Coalition Members: UNESCAP,

UNCEPAL, UN Habitat, UNAIDS,

UNDESA, UNDP, UNESCO,

UNFPA, UNHCR, UNICEF,

UNODC, UNRWA, UNWOMEN,

WFP, WMO, FAO, OHCHR,

UNFPA, IMF, World Bank, Asian

Development Bank, European

Commission, OECD, SIDA

(Sweden), the Netherlands,

Luxembourg, France, Finland,

GIZ (Germany), GIP SPSI,

Education and Solidarity

Network, HelpAge International,

International Council of Social

Welfare, NGO Committee for

Social Development, Save the

Children, Concern...

Recommendation concerning national

floors of social protection at a glance

Preamble

Social security as human right and social and

economic necessity

Reference to various

international instruments

I. Objectives, scope and principles

Objective and scope

Definition of national social

protection floors

Principles

II. National social

protection floors

Definition of basic social

security guarantees

Legal foundations

Establishment and review

Provision

Financing

III. National

strategies for the extension

of social security

Prioritize implementation of national SPFs

Progression to higher levels of

protection

Building and maintaining

social security systems

Policy coherence

ILO social security

standards

IV. Monitoring

National monitoring

reviews and consultations

Statistics to be produced

International support

I. Objective: no just the floor

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Par 1:

(a) Establish and maintain, as applicable, social protection floors

as a fundamental element of their national social security systems

(b) Implement social protection floors within strategies for the extension

of social security that progressively ensure higher levels of social security

to as many people as possible, guided by ILO social security standards

Par 13:

(1)...National strategies should

(a) Prioritize implementation of social protection floors as a starting point for

countries that do not have a minimum level of social security guarantees,

and as a fundamental element of their national social security systems; and

(b) Seek to provide higher levels of protection to as many people as possible –

reflecting economic and fiscal capacity – and as soon as possible

(2) For this purpose, Members should progressively build and maintain

comprehensive and adequate social security systems coherent with national

policy objectives and seek to coordinate social security policies with other social

policies

2. What constitutes floors of protection?

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Par. 4: The guarantees should ensure at minimum that, over the life cycle,

all in need have access to essential health care and to basic income security

which together secure effective access to goods and services defined as

necessary at the national level

Par. 2: Nationally defined sets of basic social security guarantees

which secure protection aimed at preventing or alleviating poverty, vulnerability

and social exclusion

Questions

? Basic social security guarantees for all

= benefits for all?

? SPF = social assistance?

? SPF = social safety net?

? Are social insurance schemes part of

the SPF?

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National social protection floors:

At least four nationally-defined guarantees

access to a set of goods and services

constituting essential health care including maternity care

basic income security for

children

basic income security for

persons in active age unable to earn sufficient income

basic income security for

persons in old age

The social protection floors should comprise at least the following

basic social security guarantees: (para. 5)

national definition of minimum levels

Guarantees should be provided to at least all residents and children, as defined in

national laws and regulations, subject to Members’ existing international

obligations. (para. 6)

Questions

? What is meant by “essential health care”?

? What is meant by basic income security

for children?

? How to guarantee basic income security

for the working-age population? Are

minimum wages part of the SPF?

? How to guarantee income security for

elderly?

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3. Minimum levels of protection: National

definitions of minimum levels of protection

should meet following requirements

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8(b): Basic income security should allow life in dignity. Possible reference points:

national poverty lines, income thresholds for social assistance etc.

8(a): Persons in need of health care should not face hardship and an increased risk

of poverty due to the financial consequences of accessing essential health care.

Free prenatal and postnatal medical care for the most vulnerable should also be

considered;.

8 (c) and (d): Levels of basic social security guarantees should be regularly

reviewed through a transparent procedure that is established by national laws,

regulations or practice,

with ensured tripartite participation with representative organizations of employers

and workers, as well as consultation with other relevant and representative

organizations of persons concerned

Questions

? How to define and measure effective

access to essential health care in

practice?

? How to define and measure income

security?

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4. Who should be covered by the

guarantees?

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Par. 3: Principles • Universality of protection, based on solidarity

• Social inclusion including persons in the informal economy

• Non-discrimination, gender equality and responsiveness to special needs

Par. 6: Guarantees should be provided to at least all residents and children,

as defined in national laws and regulations,

subject to Members’ existing international obligations.

Questions

? What is meant by

• “all ... children”? National definition?

• “at least all residents” – national definition?

• “existing international obligations”?

? How to realize basic social security

guarantees for all?

• Migrant workers and their families

• Irregular migrants

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5. How to realize basic social security

guarantees? Rights-based approach

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Par. 7: Basic social security guarantees should be established by law.

- National laws and regulations should specify the range, qualifying conditions

and levels of the benefits giving effect to these guarantees.

- Impartial, transparent, effective, simple, rapid, accessible and inexpensive

complaint and appeal procedures should also be specified.

- Access to complaint and appeal procedures should be free of charge to the

applicant.

- Systems should be in place that enhance compliance with national legal

frameworks.

Par. 3: Principles • Overall and primary responsibility of the State

• Adequacy and predictability of benefits

• Non-discrimination, gender equality and responsiveness to special needs

• Entitlements to benefits prescibed by national law

• Efficiency and accessibility of complaint and appeal procedures

• Respect for the rights and dignity of people covered

• Respect for collective bargaining and freedom of association

Questions

? Why should basic social security guarantees be set out in the law? Does this limit national flexibility?

? How to realize a rights-based approach in resource-constraint contexts? • Limited fiscal space and budget constraints

• Weak governments, limited institutional capacities

? How to transform social safety nets into a social protection floor?

? Can proxy targeting be done in a way which respects for rights and dignity of beneficiaries?

? Can conditional cash transfers?

? Can pilot schemes?

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6. Implementation

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Par. 3: • Progessive realization, including by setting targets and timeframes

• Coherence with social, economic and employment policies

• Regular monitoring of implementation and periodic evaluation

• Tripartite participation and consultation with representatives of persons concerned

Par 13:

(1)...National strategies should

(a) Prioritize implementation of social protection floors as a starting point for

countries that do not have a minimum level of social security guarantees,

and as a fundamental element of their national social security systems; and

(b) Seek to provide higher levels of protection to as many people as possible –

reflecting economic and fiscal capacity – and as soon as possible

(2) For this purpose, Members should progressively build and maintain

comprehensive and adequate social security systems coherent with national

policy objectives and seek to coordinate social security policies with other social

policies

Questions

? Will States use the notion of

“progressive realization” as an excuse

for non-action?

? How to achieve coherence with social,

economic and employment policies?

? How to promote economic activity and

formal employment?

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7. Financing and delivery

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Par. 3: • Consideration of diversity of methods and approaches

• Solidarity in financing and fair balance of interests

• Transparent, accountable and sound financial management and administration

• Financial, fiscal and economic sustainability with due regard to social justice and

equity

• High-quality public services that enhance delivery of social security systems

• Coherence across institutions responsible for the delivery of social protection

Paras 11 and 12:

• Members should consider using a variety of different methods to mobilize the

necessary resources to ensure financial, fiscal and economic sustainability of

national social protection floors...

• National social protection floors should be financed by national resources.

Members whose economic and fiscal capacities are insufficient to implement the

guarantees may seek international cooperation and support that complement their

own efforts.

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FISCAL

RESOURCE

ENVELOPE

SPF cost

Taxation

Level and efficiency

Spending

efficiency

Grants and other

international

transfers

Borrowing

Social

protection

policy

space

SPF

fiscal

space

Policy and fiscal space within resource envelope

Cost of other

complementary

public programmes

Over time investments in social protection – together

with other policies -may enhance fiscal envelope and

fiscal space allowing further extension of social

security

Investment in social

protection

Healthier and better

educated population

Higher productivity

More employment

Less poverty, more fiscal

space

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Higher aggregate demand

Higher incomes,

more fiscal revenue

Questions

? National financing as an excuse for the absence of sufficient international support?

? What about a Global Fund for Social Protection? What is the risk of moral hazard?

? How to achieve effective linkages with public services, and how to ensure their quality? Why public?

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8. What is the link to other ILO social

security standards?

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R202 complements existing ILO social security standards, and it does not lower

these standards

Par 17: Members should aim to achieve the range and levels of benefits set out in

the Social Security (Minimum Standards) Convention, 1952 (No. 102), or in other ILO

social security Conventions and Recommendations setting out more advanced

standards.

Par. 18: Members should consider ratifying, as early as national circumstances

allow,

the Social Security (Minimum Standards) Convention, 1952 (No. 102). Furthermore,

Members should consider ratifying, or giving effect to, as applicable, other ILO social

security Conventions and Recommendations setting out more advanced standards.

Questions

? Are the standards set by R. No. 202

necessarily lower than the standards

set out in C.102 and other (“more

advanced”) social security standards?

? Does R. No. 202 substitute or

complement C. No. 102?

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9. Monitoring

Nationally-defined monitoring mechanisms and national consultations

Members should regularly convene

national consultations to assess progress and

discuss policies for the further horizontal and vertical extension of

social security.

Collection, compilation and publication of

adequately disaggregated social

security data, statistics and indicators

Legal framework to protect private individual

information

Taking into consideration guidance provided by

Resolution of ICLS and other statistical standards

Exchange of information, experience and expertise

among members and with ILO

Technical assistance from ILO and others

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Questions

? How to make effective national

monitoring a regular practice?

? Protection of individual private

information? Why? How?

? What about international monitoring?

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