Transcript Republic of Seychelles The Impact of Income Security

Republic of Seychelles
The Impact of Income Security
Universal Benefits in relieving
poverty.
Marie Josée Bonne
$1
There is no poverty line – this will need to be
defined and implemented in order that we
can have a benchmark
But
Article 22
Universal Declaration of Human Rights 1948
“… everyone, as a member of society, has the
right to social security …”
Government of Seychelles
supports its policy to
ensure that its citizens
live in basic comfort
either by setting up,
reviewing, or supporting
programmes and projects
• The schemes covers the
estimated population of
81,755 based on the
National 2002 Population
and Housing Census.
• Social Security Fund
(there remains a need to ensure that
safety nets exist to cater for the
vulnerable groups in our society)
• Seychelles Pension Fund
Social Security Fund (SSF) (regulated by the Social
Security Act of 1987)
• Earnings-Related Benefits - It is financed by
employers and employees contribution.
• As of 1 January 1995, contributions = 5% of all
emoluments paid to an employee or deemed to
be employed by an employer. (S31(2) of the Social Security
Act 1987)
Seychelles Pension Fund (SPF)
(regulated by the Seychelles Pension Fund Act 2005)
• The Scheme seeks to ensure a level of social
insurance and universal pensions through the
provision of basic financial protection for the
Seychellois worker and their relatives in situation
of retirement, death before retirement and/or
disability
• Both Funds are mandatory.
• Seychelles Pension Fund (compulsory + voluntary
element)
• Compliance to both schemes is achieved
through deduction at source (the 15th day of
the following month)
• The SPF maintains an updated database on
contributors
STRUCTURE OF BENEFITS
Social Security Fund (SSF)
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Sickness Benefit
Maternity Benefit
Injury Benefit
Invalidity Benefits
Disability Benefit
Survivors Benefit
Funeral Benefit
Retirement Pension
Dependent’s Benefit
Orphan’s Benefit
Abandoned Child’s Benefits
BENEFITS PAID TO WORKERS
UNDER THE SSF
• Injury benefit (Rs1,350) ($251), Maternity benefit
(Rs1,350) ($251), Invalidity benefit (Rs1,600) ($297),
Disablement benefit (Rs1,350) ($251), Sickness
benefit (Rs1,350) ($251)
• benefits paid to workers are periodic. Benefit received is often
lower than the average salary of an employee. Assessment by the
Means Testing Board and meet a number of criteria (medical
certificate, household budgets, income of other family
members).
• A flat rate is paid to qualified applicants, except for retirement
benefit which sometimes increase in line with the budget.
STRUCTURE OF BENEFITS
The Seychelles Pension Fund (SPF)
1. Retirement Pension
2. Invalidity Pension
3. Surviving Spouse’s Pension
4. Children’s Pension
5. Post retirement surviving spouse’s pension and
children’s pension
6. Post retirement death gratuity
7. Pre-retirement death gratuity
8. Migration Allowance
ANALYSIS OF PENSION BENEFITS
RECEIVED
• The minimum guaranteed wage in Seychelles is by law
Rs2025($376) for governmental and parastatal
organizations and is deemed the same for the private
sector. Flat or uniform rate benefit is given solely by the
retirement pension, which was last amended to a
monthly allowance of Rs1700($316). It is important to
note that the retirement allowance has been constantly
increased since 1977, averaging a yearly increase of
approximately Rs50.
The retirement pension is 84% of the minimum
Government guaranteed wage.
• The pensions payable are at the following rates:• Salary Band (pm)
% Pension
• R 800 – 3,500
70% or R2,000
whichever is the greater
• R 3,501 – 5,900
65%
• R 5,901 – 7,500
60%
• R 7,501 and above
40%
“Pockets of poor people”,
Peter Sinon, 1996
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Single women-headed households
The hidden poor
The seasonally unemployed –
Groups of retired people living on limited
pensions.
DESTITUTION
• The Social Security Scheme provide subsistence
income for persons unable to work through
sickness, unemployment, invalidity or maternity,
those of retirement age and all the people of
Seychelles in general.
• The Seychelles Pension Scheme supplement the
pension provided by the Social Security Fund therefore
increases the allowance retired persons can live on.
• The Home Care Scheme assists senior citizens
who cannot perform basic domestic work and
require assistance and to the able-bodies seeking
part-time employment.
COVERAGE
• The number of persons benefiting from the Social
Security Fund has decreased from 15,364 in December
2003 to 13,398 persons by December 2005. (reduction
in full day URS and beautification now full time)
• The number of beneficiaries under the Social security
fund fluctuates frequently during the year depending on
the number of applicants and those leaving the scheme.
• government minimum wage stands at
SR2,025. the lowest paid workers on
retirement currently enjoy a pension in the
range of SR2,100 to SR3,500 per month
• The adequacy of social protection
programmes must be examined to eliminate
such vulnerable sectors of society from the
risk of falling into a poverty trap.
• It is also a fact that better health care has led
to an increase in number of elderly.
• This is coupled with the decrease in the number
of births hence enlarging the dependency ratio.
Population projections undertaken by Dr
Michel Rosalie shows that the percentage of
the non-working age population decreases
and will continue to decrease from 83% in
1979 to 47% in 2019.
WAY FORWARD
• …need to carry out a poverty impact
analysis of such national programmes and
policies as a way of measuring the
changing level of the well being of the
population and households.