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Social Security

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Social security is any of the measures established bylegislation to maintain individual or family income. Social securitymay provide cash benefits to persons faced with sickness anddisability, unemployment, crop failure, loss of the marital partner,maternity, responsibility for the care of young children, orretirement from work. Social security benefits may be provided incash for medical need, rehabilitation, domestic help during illnessat home, or funeral expenses. Social security may be provided bycourt order (e.g., to compensate accident victims), by employers,by central or local government departments.

The International Labour Organization (ILO) uses threecriteria to define a social security system. First, the objective ofthe system must be to grant curative or preventive medical care, tomaintain income in case of involuntary loss of earnings, or togrant supplementary income to persons having familyresponsibilities. Second, the system must be set up by legislationthat attributes specified individual rights to a public, semipublic,or autonomous body. And third, the system should beadministered by a public, semipublic, or autonomous body.

An alternative but wider term for social security in thecountries that are members of the European Union is socialprotection, which includes voluntary schemes not set up underlegislation. For example, in the United Kingdom, only statutorybenefits are regarded as social security. The term social services isused to cover social security; health, education, and housingservices. In the United States the term social security is restrictedto the federal social insurance system which in Europe would becalled social assistance. In some countries (for example, Denmarkand the United Kingdom) the reduction of poverty historically hasbeen a central aim of social security policy.

A report prepared by 10 international experts appointed by thedirector of the ILO, set out the ultimate aims of social security. Itsfundamental purpose is to give individual and families theconfidence that their level of living and quality of life will not begreatly eroded by any social or economic eventuality. Thisinvolves not just meeting needs as they arise but also preventingrisks from arising, and helping individuals and families to makethe best possible adjustment when they are faced with disabilities.

Approximately 140 countries have some type of socialsecurity scheme. Nearly all of these countries have schemescovering work-related injury and old-age pensions. Over half haveprovisions for sickness, and nearly half have family allowances.

In most countries the major part of the cost of social securityis paid for by proportional contributions of earnings fromemployers and employees. The maximum varies from around 50percent above average earnings (e.g., France, Ireland, and Italy) totwice average earnings (e.g., Germany, the United Kingdom, andthe United States) or higher (Norway).


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