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SOCIAL SECURITY

IN

FRANCES U B M I T T E D T O : M R . H A R P A L S I N G H S U B M I T T E D B Y : A N M O L

S H A I F A L I S H A R M A

R A C H N A S H A R M A

A M A N B H A T I Y A

A M A N G U M A N



Some General Details about France :

Population: 62,277,432 - 2008

Currency: Euro1 Euro ( EUR ) = 59.916 Indian Rupee ( INR )

INR = Indian Rupee

Area: 674843 km2

Economy: Mixed Economy ( Industry,Energy, Agriculture &

Tourism )Per Capita Income: $25,700BPL criteria: Half of the median incomePersons BPL: 6.1%



Social Security in France (History)

The Social Security is financed by payments from both employers and theiremployees

It is administered and managed by all social partners, typically employee unionsand/or companies

Universal social security program (excluded were miners, sailors, farmers, andgovernment employees )

Special administrative bodies (miners, sailors, farmers, and government

employees)

Finally, on 22 May 1946, unified social security program to employees of theindustrial and commercial sectors.



³ I L L N E S S , M A T E R N I T Y , D I S A B I L I T Y , D E A T H , A C C I D E N T S , O L D A G E A N D F A M I L Y ´ .

Risks covered by Social Security Administration

The system is divided in 4 different schemes classifying people according to their

professional activity:



1 . S O C I A L I N S U R A N C E S Y S T E M

Old Age & Disability

Sickness & Maternity

Work Injury

2 .S O C I A L A S S I S T A N C E S Y S T E M

Unemployment

3 . U N I V E R S A L S Y S T E M

Family Allowances

Different Schemes are followed under three basic systems



Old Age & Disability

First law: 1910.

Amendments: 1945, 1967, 1971, 1975, 1980, 1982,1988, 1993, 1994, and 1995.

Coverage:

y Employed persons.y Women receiving certain family benefits, including the single-parent

allowance (see Family Allowances, below) and persons caring for adisabled person are covered for the old-age pension.

y Voluntary affiliation for a nonworking head of household (old-age

pension only), nonemployed persons caring for a disabled family member, and persons employed abroad.

y Special systems for agricultural, mining, railroad, public utility, andpublic employees; seamen; nonagricultural self-employed; andagricultural self-employed.



Source of Funds

Insured person: 6.55% of insurable earnings

Employer: 8.2% of insurable earnings

Government: Variable subsidies



Qualifying Conditions

Old-age pension: Age 60 with at least one quarter of insurance coverage.

Old-age allowance and supplement : Awarded to low-incomepensioners at age 65 (age 60 if disabled). ¼7,223.45 for single

¼12,652.36 for a couple.

Old-age special allowance: Awarded to low-income elderly persons who are ineligible for the old-age pension.



Benefits

Old-age allowance: Awarded to increase the old-age pensionup to a minimum amount of ¼2,898.28 a year.

Old-age supplement: ¼4,154.67 a year for a single pensioner;¼6,855.79 for a married couple.

Old-age special allowance: ¼2,898.28 a year.



Disability Benefits

Disability pension: 50% of average earnings in the best paid 10 years

if incapable of any professional activity, up to a maximum of

¼1,238 a month.The minimum pension is ¼241.52 a month.

Partial disability pension: 30% of average earnings in the best paid

10 years, up to a maximum of ¼742.80 a month.The minimum

pension is ¼241.52 a month.



Sickness and Maternity

First law: 1928.

Current laws: 1945, 1967, 1971, 1974, 1978, and 1999.

Coverage:

Employed persons.

Pensioners and some groups of non-employed persons are also coveredfor medical benefits.



Source of Funds

Insured person: 6.8% of total earnings; Old-age pensioners contribute 1.4% of the old-age pension (low-income

pensioners are exempt) and 2.4% of any private pension;

The unemployed contribute 2% of the guaranteed minimum income forthe unemployed and 1% of unemployment benefits and trainingallowances.

Employer: 12.8% of total payroll.

Government:Proceeds from a 12% surcharge on automobile insurance premiums plusproceeds from an earmarked tax on the costs of pharmaceuticaladvertising, alcohol, and tobacco.



Maternity benefit

100% of net earnings is payablefor

6 weeks before and 10 weeksafter the expected date of

childbirth 8 weeks before and 18 weeks

after the expected date of childbirth

12 weeks before and 22 weeks

after the expected date of childbirth

24 weeks before and 22 weeksafter the expected date of childbirth.

for the first and second child

for the third child;

for twins

for triplets or more



Maternity benefit (continue..)

The benefit is payable for 2 additional weeks if maternity hospital careis needed because of complications arising from the pregnancy, exceptin cases of multiple births of three or more.

Maximum benefit is ¼64.92 a day; in Alsace-Moselle, ¼66.29 a day.

Benefits that are paid in cases of adoption correspond to those paid forthe postnatal period.

Benefit adjustment: Maternity benefit is adjusted each year.



WORK INJURY

First law: 1898.

Current laws: 1946, 1967, 1972 (agriculture), and 1994.

Coverage:

Employed persons, vocational education students, and certain

nonpaid members of social service organizations.

Special systems for agricultural, mining, railroad, public utility,

and public employees; seamen; nonagricultural self-

employed; and agricultural self-employed.



SOURCE OF FUNDS

Insured person: None

Employer:

Total cost. Contributions vary according to theassessed degree of risk. The average contribution is 2.26% of

total payroll.

Government: None



Benefits

Temporary Disability Benefits:

During the first 28 days, the benefit is 60% of average daily

earnings of the last month thereafter, 80%.

The benefit is payable from the day following the onset of the

incapacity for work until recovery or certification of permanent

disability.

The maximum daily benefit is ¼148.67 during the first 28 days;

thereafter, ¼198.23.

Permanent disability pension:

100% of average earnings during the last 12 months up to a ceiling(full)

100% of average earnings during the last 12 months up to a ceilingmultiplied by half the assessed degree of disability (partial)



First law: 1905

Current laws in France :1967 (coverage)1972 (guaranteed income)1974 (agriculture)

1984 (social insuranceand socialassistance)

1986 (conversion insurance)1988 (retraining)

1992 (single decreasingallowance)1995 (job placementallowance).

UNEMPLOYMENT



Unemployment insurance: Employed persons.

Exclusions: Public-sector workers with comparable compensation.

Special systems for construction workers, dockworkers, merchant

seamen, aviators, domestic workers, seasonal workers, doorkeepers,

and disabled personnel in sheltered workshops.

Unemployment assistance : Long-term unemployed persons who have

exhausted unemployment insurance and certain other designated

categories of unemployed person.



SOURCES OF FUNDS

Insured person: 2% of monthly earnings.

Employer: 3.6% of payroll.

Government: Total cost of social assistance.



Coverage

Unemployment benefit:

Under age 60, or between ages 60 and 65.

Must be resident in France, registered at an employment office, andcapable of, and available for, work.

Unemployment is not due to voluntary leaving, misconduct, or therefusal of a suitable job offer.

Preretirement benefit:

At least age 59 and 6 months Receiving unemployment benefit for 365 days.

Must have 12 years of contributions and 1 year of uninterruptedemployment, or 2 years of interrupted employment



Insertion allowance (income-tested):

Awarded to foreign nationals, victims of accidents at work, thosediagnosed with an occupational illness, refugees, certain groups of noncitizens, or those in detention immediately prior to unemployment.

Monthly earnings must not exceed ¼846.90 fora single person;¼1,693.80 for a couple.

Solidarity allowance (income-tested):

Long-term unemployed or aged 50 and older and unemployed with 5 years of employment during the last 10 years before unemployment.

Monthly earnings must not exceed ¼935.20 for a single person;

¼1,469.60 for a couple.



Benefits

Unemployment benefit:

The benefit varies according to the value of declared previous income between 57.4% and 75.0% of the daily reference wage.

The duration of the benefit award varies according to age and the

length of covered employment.

Preretirement benefit:

The benefit awarded under the unemployment benefit is continueduntil age 60.



Solidarity allowance (income-tested):

The maximum allowance is ¼400.80 a month with additional totalsupplements of ¼174.90 under certain conditions of age and activity.

Income from employment is not excluded under certain conditions forperiod of up to 12 months; conditions are waived for those older thanage 50.

Insertion allowance (income-tested):

The maximum allowance is ¼282.30 a month.

Income from employment is not excluded under certain conditions fora period of up to 12 months.



First law: 1932.

Current law: 1946

Coverage: All residents.

FAMILY ALLOWANCES



Source of Funds

Insured person: None, except for the self-employed and farmers.

Employer: 5.4% of payroll.

Government: 1.1% of total revenues.

Qualifying Conditions

At least two children under age 20 and earnings of less than 55% of thelegal minimum wage.



Allowances & Benefits

Parent allowances:

Awarded for a maximum of 12 months to a parent who has fully orpartially ceased employment to care for a seriously sick, injured, or

disabled child. ¼813.61, ¼406.82, or ¼247.86 a month according to the percentage

reduction in working time.

Special education allowance:

For children up to age 20 with at least a 50% disability.¼113.15 amonth.

A supplement varying between ¼84.86 and ¼945.87 is paidof additional expenses incurred by the child's state of health.



Single-parent allowance

Guarantees a minimum family income for a single parent who has at

least one child or is pregnant. The difference between the beneficiary's income and the amount of

¼530.39, plus an additional ¼176.80 for each child.

New school year allowance

Awarded to children between ages 6 and 18. ¼258.90 per child.



Family supplement

Awarded to families with at least three children over age 3 but younger

than age 21. Family supplement A flat-rate allowance of ¼147.27.

Housing allowance

The claimant is entitled to one of the family allowance benefits.

A variable amount depending on rent level, income, and the number of children.



Young child benefits

Birth grant

Paid at the start of the 7th month of pregnancy (or for an adoption). ¼808.

Income supplement for reduced work

Granted to parents who decide to suspend or reduce work in order to

rear a child under age 3. The full rate is ¼340 a month;



Base allowance

Paid from the month of birth until the child is age 3. ¼162 a month.

Supplement for child care

Awarded to children under age 6 if parents are working and pay forchild care by an accredited carer or home worker.

The family allowances fund pays the social security contributions for an

accredited carer or 50% of the social security contributions for a home worker.



SUGGESTION

Indian system

In India, there are various schemes in place that largely coveremployees in the organised sector and their families. But these schemesare more in the nature of savings schemes than social security schemes.

eg. Provident Fund, Gratuity, Employees' Deposit Linked Scheme,Employees' Pension Scheme and Superannuation Scheme. They coverpeople in the formal employment sector. Also, most of the schemes aremandatory for employees and, hence, no security cover is available tothose who are non-contributors to any of the schemes, such as self-employed / unemployed people. Broadly, under most of the schemes,

the amount contributed by the employee and employer during thetenure of employment, plus interest accumulated, is returned at thetime of retirement and, generally, no security is available forunemployment, old age, hospitalization, etc.



SUGGESTION

Developed countries

Social security systems in the US, the UK, Japan, Australia and Franceare complex but cover a major portion of society. The pension planscover most of the labour force. In countries such as the US, Canada andthe UK, which have a lower percentage of mandatory pensioncontribution, there is a greater reliance on voluntary private pensionprovisions. There are free hospitalisation benefits in developedcountries like US and Japan. Contribution to health cover is ensured inthe form of µmedicare taxes' and a portion is financed through publicfunding.

Some developed countries also have unemployment insuranceschemes, where, if a person is unemployed, the government provideshim a specified monthly pension to take care of himself and his family.



CONCLUSION

y To conclude the entire discussion in the end we may point it out that they are giving good amount of family allowance and giving proper care of child

allowance. They are also provide young child benefits, parental allowance, unemploymentallowance etc. And they are very essential for any country and we think that it is good as we have

studied.



y THANK YOU

france social security

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