Social protection incountries of thesouthern and easternMediterraneanCurrent situation and future prospects

Social protection incountries of thesouthern and easternMediterraneanCurrent situation and future prospects

Euromed Trade Union Forum

Study coordinated by Henri Lourdelle (ETUC, Brussels, hlourdel@etuc.org), in collaboration withAbdeslam MANSOUR and Mohamed SARDY (Morocco), Abdelmajid BENNACER and MohamedIDRI (Algeria), Hassine DIMASSI (Tunis), Ali ISSA (Jordan) and Abdelhalim EL KADI (Egypt)

Translation to English: Sarah Plackett / Rob Gartenberg (Linguanet, Brussels)

Edited by: Fundación Paz y Solidaridad Serafín Aliaga / Confederación Sindical de ComisionesObreras (Spain) and Euromed Trade Union Forum

With the support of: European Commission, Agencia Española de Cooperación Internacional(Ministerio de Asuntos Exteriores, Spain)

Madrid, March 2003

Gráficas Almeida, Madrid

Depósito Legal: M-23.831-2003

ContentsIntroduction .................................................................................................................................................................................. 7

Part one: Social security and how to organise it ............................................................................................ 9

1. Organisation of social security ...................................................................................................................................... 9

1.1 Formers social security systems that have subsequently been vastly improved and expanded .................................................................................................................................................. 9

1.2 Funding that is broadly dependent on salary contributions ........................................................................ 11

1.3 Variable social security cover according to the country and risks concerned .................................. 15

1.4 Social security management, with the state authorities often wielding decisive influence .............................................................................................................................................................. 18

1.5. A guaranteed minimum wage that –where it exists- can serve as a benchmark for determining the amount benefit ...................................................................................... 21

Part two: How are different risks covered? ...................................................................................................... 23

2. Covering different risks ................................................................................................................................................ 23

2.1 Health protection: benefits in kind .......................................................................................................................... 23

2.2 Cash benefit in the event of illness ........................................................................................................................ 25

2.3 Elderly and retired persons ........................................................................................................................................ 26

2.4 Covering the risk of disability .................................................................................................................................... 33

2.5 Accidents at work and occupational diseases .................................................................................................... 37

2.6 Varying national practices in terms of maternity cover for employed women .................................... 43

2.7 Other family benefits: family allowance for the cost of childcare in a crèche .................................. 44

2.8 Covering the risk of unemployment: where such cover is available, it is for a limited period and may depend on the period of affiliation to the scheme .................... 47

2.9. Paid leave ............................................................................................................................................................................ 50

2.10 Benefits in addition to social security are still often very basic .............................................................. 51

2.11 Social assistance ........................................................................................................................................................ 52

Conclusion: some topics for discussion and areas to look at in the future .............................. 55

Introduction

Social security systems are always the product of historical developments and are borne out of a moreor less explicit social agreement.

At the same time, since their very nature and purpose entail striving to meet the expectations andrequirements of a changing society more efficiently, they are never truly 'complete', but are con-stantly improving and evolving.

However, they often also suffer tensions between their own social objectives (both the 'social' and'security' aspects) and financial constraints, which naturally cannot be ignored, but which govern-ments and other economic 'experts' often seek to impose on them.

These characteristics are reflected in the five social security systems (of Algeria, Morocco, Tunisia,Egypt and Jordan) that feature in this study, which is a kind of a White Paper. In a second phase, thePalestinian, Lebanese and Syrian social security systems will beinvestigated.

But this study is not designed to be a purely academic exercise, vital though such an undertakingmight be. It also sets out to take a 'militant' approach reflecting what triggered it, i.e. a collectiveeffort that began in Madrid in June 2002 and was subsequently discussed and amended in Barcelonain March 2003.

It is also a militant approach in that the comparisons which will inevitably be made between one sys-tem and another can serve as a basis for making improvements and providing social solutions thatwill not only allow a standardised social security system to flourish in this region of the southern andeastern Mediterranean, but will also ensure that all the systems join in implementing the same kindsof guarantees, with due respect to each other's decision-making autonomy and national structures.

In this approach, partnership with the European Union, particularly in the context of the Euro-MedForum, promises to be very fruitful. The problems faced by the various systems are similar, as aretheir underlying philosophies, and they all find themselves up against the same challenges.

I repeat, the aim of this exercise is not to 'preach', but rather to 'learn some lessons' from these com-parisons. In other words, this is an opportunity for trade union teams to take up these issues of socialprotection themselves, instead of simply leaving them to so-called specialists. The type of society weset out to create depends on the social security systems we aim to establish. Should that society bebased on individualism and profit at any price or rather on a well-thought-out approach combiningsolidarity with social cohesion? To adapt a well-known French proverb: "Tell me the social securitysystem you are putting in place and I will tell you the kind of society you are seeking…"

Henri Lourdelle

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Part one: Social security and how to organise it 1. Organisation of social security1.1 Former social security systems that have subsequently been vastly improved andexpanded

In the five countries studied, it is clear that the social security systems that already existed beforetoday's nations were established provided more or less partial cover against various risks.

On the other hand, the organisation of and cover afforded by today's systems are characterised bysuch previous history and the culture the used to prevail in the respective countries.

As such, two social security models can be identified in this region of the Mediterranean:- one that is more heavily influenced by the French model and hence based on the principle of

'social insurance', as found in Algeria, Morocco and Tunisia;- and the other more 'universal' type more closely aligned to the British model, as found in Egypt

and Jordan.

However, each of these countries has been forced to restructure, adapt and improve its system in theface of pressure from workers and their union organisations.

Algeria has offered cover against accidents at work since 1919 and against sickness since 1950, andhas provided retirement benefit since 1953 and cover against unemployment and early retirementsince 1994. A family allowance for workers with dependent families was introduced in 1941.

Nevertheless, the entire system was restructured in 1983 and the plethora of existing schemes thatoften gave rise to unfairness were replaced by the following:

- a standard system of benefits across all sectors;- an improved service (daily sickness benefit, higher pension and so on);- a standard system of financing;- a standard system of supervision and administrative organisation, but with the exception of social

security for unsalaried workers who, on account of their particular situation, have access to a spe-cial fund;

- management of different risks via national funds.

In 1917, Morocco also introduced its first optional retirement scheme geared towards French civilservants. The scheme, which provided old-age and survivors' pensions was extended to all civil ser-vants in 1930 and continued after independence in the form of the country's current retirement fundCaisse Marocaine de Retraites (CMR). Worker compensation for industrial accidents dates back to1927, and was later extended to cover occupational diseases. Family allowance for workers in largecompanies and a pregnant women's allowance was introduced in 1942.In 1949, another (optional) pension fund, the Caisse Interprofessionnelle Marocaine de Retraite(CIMR), was set up to provide old-age and survivors' pensions for private-sector workers.Medical cover was provided by mutual benefit insurance companies or mutuelles, which in duecourse were grouped together to form first sectoral mutuelles and then a federation.In 1959 soon after independence, a social security system set up for workers in trade and industryand the liberal professions was run by the national social security fund Caisse Nationale de SécuritéSociale (CNSS). This body pays out compensation on a daily basis in the event of sickness and preg-nancy, and offers disability allowance and retirement pensions. It also provides family allowance andpays out death benefit and a survivor's pension to beneficiaries. The system was introduced on1 April 1961 and has since been extended to agriculture and the handicraft sector. The services pro-vided have been improved and a network of health care centres in the form of private general hospi-tals has been set up.At the same time, the General Retirement Benefits Scheme or RCAR (Régime Collectif d'Allocationde Retraite) – was set up in 1977 and is managed by the National Retirement and Insurance Fund orCNRA (Caisse Nationale de Retraites et D'assurance). This system is aimed at pensions for state-employed temporary, occasional and stand-in workers and those working in public institutions.In addition to these large-scale systems and in contrast to, for example, what happened in

Algeria, several specific systems provided within the following public corporations still exist:OCP (Office Chérifien des Phosphates), the National Electricity Office (ONE), the NationalRailway Office (ONCF), the electricity and water distribution authority RAD (Régie Autonome deDistribution), the Harbour Management Office (ODEP), tobacco firm Régie des Tabacs, the min-ing research office BRPM (Bureau de Recherches et de Participations Minières), the national bankBanque du Maroc and so on.As at 31 December 1999, some 2,118,533 people were covered by the three major compulsorywelfare systems (CNSS, CMR and RCAR) out of a total estimated working population of9,360,321, the equivalent of an overall coverage rate of 23%. More than half these workers(1,085,723) were covered by the CNSS, which is the only body to cover several types of risk with-in a single system.Finally, it is important to note that in Morocco, cover against accidents at work and occupation-al diseases is provided by private insurance companies and that as yet, there is no cover againstthe risk of unemployment.

In Tunisia, the 'modern form' of social security system was first introduced towards the end ofthe 19th century, with the establishment in 1898 of a welfare system for government workers.At present, the Tunisian social security system is run primarily by two funds:

- the National Retirement and Social Security Fund or CNRPS (Caisse Nationale de Retraite etde prévoyance Sociale) which covers government workers (532,000 in 2000, the majority ofwhom are public civil servants) and which was set up in 1976 following the amalgamation oftwo former individual pension and social security funds, the Caisse Nationale des Retraitesand the Caisse de Prévoyance Sociale;

- the National Social Security Fund of CNSS (Caisse Nationale de Sécurité Sociale), establishedin 1960, which covers all private-sector workers, i.e. all categories and all economic activi-ties, apart from those in the Civil Service; this equates to a coverage rate of over 70% of allworkers in the country.

In Egypt, too, long before the revolution of July 1952, there were provisions covering some socialrisks, although rather via a social assistance scheme (public aid) than via a comprehensive 'socialsecurity system' in the true sense of the term.As a result, under a law on 'accidents at work' passed in 1936, employers became responsible forany accident at work suffered by one of their employees on the condition that the salary of theemployee in question was below a specified threshold. In 1946, employers were obliged to takeout insurance with an insurance company to cover this risk: in 1950, this responsibility for pay-ing out compensation for accidents at work was devolved to the insurance and savings companywhich subsequently evolved into the national social security institute (Institution Nationale deSécurité Sociale). However, it was not until 1958 that legislation was brought in to govern com-pensation and cover for accidents at work. The law on occupational diseases dates back to 1950,whereas 1955 saw the promulgation of the law on insurance and savings that subsequentlyevolved in 1961 into an insurance scheme covering old-age, disability and death. Later, in 1964,the law on social security came into effect, which covered four areas: accidents at work, old age,health and unemployment. That law was subsequently amended and supplemented (in 1975,1976, 1978 and finally in 1980 with the advent of the general law on social security).In Jordan, the first partial steps towards a social security system were taken in the early 1940s,with the introduction of pension rights for some workers employed by state and military bodies,a provision that was extended in 1959 to all permanent public civil servants. In 1955, a lawgranted private-sector workers limited compensation in the event of accidents at work or workstoppages. But the occupation of the West Bank of the River Jordan brought the country's eco-nomic growth to a halt. The country's economy only started picking up again in the 1970s, and itwas not until 1978 that the law on social security was brought in. This law included a whole rangeof wide-reaching and mandatory social guarantees that were partly funded by industry. The lawwas implemented progressively in line with the country's social and economic development, how-ever, it is significant that of the six risks theoretically covered (accidents at work and occupa-tional diseases; combined old age, disability and death; temporary incapacity on account of ill-ness or pregnancy; health care for workers and their beneficiaries, family benefits and unem-ployment), only the first two still apply today.

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1.2 Funding that is broadly dependent on salary contributions

In Algeria1, social security benefits are funded by contributions levied on salaries and borne byworkers and companies. The overall rate is prescribed by law, but the way in which rates of contri-butions are distributed between different areas is set by decree to allow for greater flexibility inachieving a balance in each area. At present, the overall contribution rate is 34.5%, distributedbetween the five areas as follows:

- social insurance: 14%, of which 12.5% paid by the company and 1.5% by the employee;- accidents at work and occupational diseases: 1.25% paid solely by the company;- retirement: 16%, of which 9.5% is paid by the company and 6.5% by the employee;- early retirement: 1.5%, of which 0.5% is paid by the company, 0.5% by the employee and 0.5%

by the social security system;- unemployment insurance: 1.75%, of which 1.25% is paid by the company and 0.5% by the employ-

ee.

This is equivalent to a total contribution of 25% from companies, 9% from employees and 0.5% fromthe social security system.

Nonetheless, it is important to note that 90% of resources come from the public sector and 10% fromthe private sector.

This is primarily due to the size of companies in each sector: although a total of 185,464 companiesare registered with the national social insurance fund for salaried employees or CNAS (CaisseNationale des Assurances Sociales des Travailleurs Salariés), only 12,300 are in the public sector and10,609 in civil-service positions and local authorities, while the remaining 157,160 are in the pri-vate sector, which equates to 84.74% of employers.

However, if we then look at the number of employees registered and in work, out of a total of3,200,000, some 2,600,000 are in the public sector as compared with 600,000 in the private sector(excluding the proportion of the total working population classed as 'informal').

In addition, although most private-sector companies have between four and five employees, exclud-ing a few exceptions in the construction, public works and hydraulics sectors in particular, in thepublic sector several hundred companies have a workforce of more than 50 and several dozen haveover 500 employees, which translates as a national average of 100 workers in public-sector compa-nies.

Those entitled to disability or retirement pension or to benefit for accidents at work contribute 2% oftheir total benefit or pension, except in cases where their pay is below the guaranteed national min-imum wage.

Contributions for students, disabled people not in work, and recipients of social benefit are reduced(levied on the basis of the guaranteed national minimum wage) and are generally borne by the state.

In 2000, there was a surplus in the social security budget, which was DZD 197.32 billion (income)and DZD 184.11 billion (expenditure). Spending on family allowances, which stood at DZD 48 bil-lion, was borne by the national budget.

In Morocco2, the social security system is run by the CNSS and is funded by contributions from bothcompanies and employees, and by the interest accumulated on reserve funds held with the Depositand Management Fund or CGD (Caisse de Dépôt et de Gestion).The workforce is distributed between the public and private sectors as follows:

- agriculture, forestry and fisheries: 45.2%- industry (including water, electricity and energy): 12.8%- construction and public works: 6.4%- commerce: 12.5%

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1 As at 1 January 2002, Algeria had a population of 31.07 million. In 2000, the country's GDP was DZD 4,079 billion,i.e. DZD 134,085 per capita. In 2001, the GDP had risen to DZD 4,222 billion, i.e. DZD 136,736 per capita. One Algeriandinar (DZD) is equivalent to 0.0122316 (as at 9 January 2003).2 Morocco has a population of 29.170 million. In 2002, its total GDP amounted to MAD 143,648.3 million, which equatesto a per capita GDP of MAD 4,924.52. One Moroccan dirham (MAD) = €0.0939666 (9 January 2003).

- transport, warehousing and communications: 3.4%- repairs: 1.8%- general administration: 5.4%- community services: 5%- other services: 7.4%- miscellaneous: 0.1%.

In the case of family allowances, the company alone contributes 7.5%3 (no ceiling) of the remunera-tion received. For short-term social benefits, the company contributes 1% and the employee 0.33%,up to a ceiling of MAD 6,000, and for long-term benefits the company contributes 7.93% and theemployee 3.96%, this contribution also being capped at MAD 6,000. The contribution levied fordeep-sea fisherman is based on the gross income of the fishing boat (4.65% of the gross amount fortrawlers and 6% for sardine boats and lining vessels.

Although the contributions covering family benefits are paid for exclusively by companies, those con-tributions covering short- and long-term benefits are shared 66.6%:33.3% between the company andthe employee. They are levied on the employees' total remuneration received, including allowances,bonuses, etc. up to a ceiling stipulated by decree. For deep-sea fisherman remunerated on a sharebasis, the contribution levied is based on the gross income of the fishing boat. For the 2001 finan-cial year, when including total contributions due of MAD 2.552 billion, there was also a surplus inthe CNSS budget: income totalled MAD 6.318 billion while expenditure stood at MAD 6.046 billion.

In Tunisia4, following a period during which the CNSS had a budget deficit and experienced con-siderable difficulties, since 1990, thanks to an extension of – and in some cases an increase in – thebasic amounts subject to the payment of contributions (in particular for non-agricultural employeesand unsalaried non-agricultural workers), as well as the introduction of new schemes (covering somecategories of agricultural employees and Tunisian workers abroad) and new areas of insurance, thesituation has been consistently improving, resulting in a budget surplus of somewhere in the regionof 20%, varying between 25.6% in 1991 et 15.4% in 2000 for extreme differences.

Hence in 2000, income was TND 1,075,247,000 as compared with expenditure of TND 909,799,000.

Apart from the causes mentioned above, this improvement in results is down to a number of otherfactors including the following:

- increased monitoring of employers declaring their employees to the CNSS;- payment, as from 1995, by the CNSS of insurance for accidents at work and occupational dis-

eases (this insurance was previously run by public or private insurance companies and appar-ently without any monitoring and this sometimes led to companies not declaring their full work-force);

- rise in the income per insured worker (the average annual salary declared to the CNSS uponwhich contributions are calculated increased from TND 1,586 for the period 1984-1989, toTND 2,655 for the period 1990-1994, and then to TND 3,646 for the period 1995-2000);

- an upward shift in the pyramid representing nominal income: the proportion of affiliates with anincome equivalent to the guaranteed minimum wage fell from 83.5% in 1991 to 73.3% in 2000,and this led to an increase in the proportion of affiliates with an income of between two and threetimes the SMIG, or guaranteed minimum wage applying across all sectors, (20% in 2000 as com-pared with 11.3% in 1991).

CNSS resources are derived primarily from contributions from companies (17.3% in 2000) and non-agricultural employees (7.75%), which translates as an overall total contribution rate to the schemeof approximately 25%; in 2000, such contributions accounted for 90.7% of CNSS resources.Contributions are levied on employees' gross earnings.

In Tunisia, there are some 112,113 companies employing 1,015,923 employees. However, if we look athow these employees are distributed, we can see that approximately 68.7% of active workers areemployed by companies with between one and five employees, i.e. 13.1% of the total payroll (77,022

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3 In 2000, Tunisia had a population of 9.561 million. The country's GDP was TND 26,685.4 million, i.e. a per capitaGDP of TND 2,791. One Tunisian dinar (TND) = 0.714416 (as at 9 January 2003)4 One Egyptian pound (EGP) = €0.206717 (as at 9 January 2003)

companies and 132,549 employees). At the other end of the scale, 3% of companies (3,421) employover 50 people, and this includes 1,805 companies with more than 100 employees (i.e.1.6% of the totalnumber of companies), which themselves employ 535,415 employees, i.e. 52.7% of the total payroll.

In 2001, this situation led to an average of 10.6 employees per company.

The average overall annual salary 'declared' in 2001 was TND 4,345. But this overall average maskssignificant disparities because for very small companies (those with between one and five employ-ees) this figure was TND 3,317, rising to TND 4,105 for companies with more than 50 employees andTND 4,841 for those with more than 100 employees.

In schemes covering independent workers, the income serving as the basis for contributions is fixedaccording to a predetermined scale.

In Egypt, the structure of the social protection system is more complex and there are differentsources of funding according to the individuals covered and the risks insured.

Firstly, there are social security funds, which are financed by the following:- contributions paid by companies and employees, contributions levied on the entire salary

(including benefits in kind and bonuses). In the context of the law on savings (retirement), com-panies pay a contribution of 5% on salaries while the employee also contributes 5%. Togetherwith 1/4 of the income from investments, these contributions cover disability, death or retirement.Moreover, a contribution of 2% levied on salaries and funded by companies compensates work-ers in the event of either total permanent disability or death not resulting from work-related activ-ities;

- subsidies from the Treasury Department for combined old-age/disability/death insurance;- the total amount paid by the Treasury Department, companies and employees to cover previous

periods of affiliation to the social security system;- income from investment of social security funds.

The insured individual or the individual receiving a pension contributes 0.5% of their salary or pen-sion for each family member and this is supplemented by a 5% contribution from their company (ifthey are employed) or from the state (if they are receiving a pension).

As from 1 July 2001, the minimum salary qualifying as a contribution base is EGP 485, and the ceil-ing, which was fixed as at the same date at EGP 600, later increased to EGP 650.625 as of1 July 2002 and then to EGP 650 as of 1 July 2003.

Any amount in excess of these ceilings forms part of the so-called 'variable salary' (bonuses, com-mission, allowances and so on), which in turn is capped at EGP 2,000 per year.

Secondly, there is the universal social protection scheme, which applies compulsorily to seasonal agri-cultural workers (with a continuous period of employment of less than six months), farmers (who owntheir property or are tenants) with fewer than 10 feddans of land, owners of real estate generatingincome totalling less than EGP 250 per year, workers in the fishing industry working for private-sec-tor employers, forwarding agents, small-scale self-employed workers6, people who work at home andsimilar workers paid on a monthly or daily basis, owners of sailing boats and so forth (provided thatthey do not employ either workers or trainees from training centres for lepers), people working atplaces of worship who are not covered by the employers' social security system, and finally patientsrecovering from tuberculosis who are following a training course in centres bringing together the var-ious associations combating the disease. The scheme is funded by the following:

- capital paid into the annual general budget to fund benefits;- capital from the bank Banque Sociale Nasser;- a maximum share of 2% of the contributions collected by the social security system;- several different types of tax (on licences for fishing boats, individual agricultural measuring

units, etc.);- a monthly contribution of EGP 5 paid by the insured individual;

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5 One Egyptian pound (EGP) = €0.206717 (as at 9 January 2003)6 Travelling salesmen, taxi touts, newspaper vendors, itinerant shoeshines, etc.

- assistance and surcharges paid by Treasury Department to those receiving a pension and theirbeneficiaries, as well as the capitalised value of pensions transferred to other schemes;

- interest from investing these resources;- income from penalties for non-observance of legal provisions;- assistance, gifts, donations and legacies accepted by the Board.

Thirdly, there is the social security system for employers and similar persons, which guarantees coverfor combined old-age/disability/death and combined disability/death resulting from an accident atwork.

This applies to employers, i.e. physical persons employing one or more workers, self-employed peo-ple (independent workers) and those working in liberal professions, shopkeepers, members of themedical professions, owners or tenants of agricultural land provided that the farm in question is of aminimum size (presently 10 feddans but this may be reduced to 5 feddans or less) and so on.

This scheme applies compulsorily to individuals concerned and who are aged at least 21 and no olderthan 65.

This scheme is funded by the following:- a monthly contribution of 15% of income chosen from the categories of monthly income serving

as a basis for contributions (the amount in the lowest category is EGP 100 a month and in thehighest EGP 1,000);

- the top-up amount to be paid by the insured individual to cover previous unpaid periods;- pension provisions paid into the accounts held by those covered by the scheme and pertaining to

periods during which contributions were made to other retirement schemes;- income from investments;- any other contribution from the state;- assistance, gifts, donations and legacies accepted by the Board.

Finally, there is also the social security system for migrant workers (law of 1983), which applies toEgyptians who work abroad and are not covered by either the law on social security (1975) or the lawon employers and similar persons (1976), e.g.:

- workers employed on the basis of an individual contract;- self-employed workers; employees working under an individual contract in the offices of inter-

national and regional organisations located in the Arab Republic of Egypt;- expatriates.

The insured individual must be at least 18 years of age, no older than 60, and must pay a monthlycontribution, in advance either on the first day of every month, every three months, every six monthsor annually, equivalent to 22.5% of the category of income chosen: this contribution must be paideither in the local currency of the country in which they work or in a convertible currency.

This is a voluntary scheme covering combined old-age/disability/death insurance, and benefit fortotal permanent disability or death resulting from an accident at work. It also offers the additionalcover of death benefits and funeral costs granted under social security legislation.

In Jordan7, the social security budget totalled USD 353 million in income8 and USD 125 million inexpenditure, leaving a surplus of USD 228 million. The surplus accumulated between 1997 and1998 was USD 985 million against total contributions of USD 1,577 million during the same periodand expenditure of USD 592 million.

Cover for combined old-age/disability/death is funded by the following:- a monthly contribution of 9% by companies levied on workers' salaries;- a monthly contribution of 5.5% by employees from their salaries;- top-up contributions paid by the insured individual for previous years' work for which contribu-

tions have not been paid;

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7 In 2000, Jordan had a population of 5 million and the country's GDP stood at JOD 5,912 million. One Jordanian dinar(JOD) = €1.33720 (as at 10 January 2003)8 NB: USD 1 = €0.946847 and JOD 1 = €1.33720 (as at 10 January 2003)

- surcharges, penalties and additional sums payable as a result of non-observance of the provisionsset out under social security legislation;

- interest from investment of surpluses.

Cover for accidents at work and occupational diseases is funded by:- contributions of 2% levied on the salary of insured individuals and paid by companies. The same

applies to public civil servants affiliated to the social security system, while government institu-tions contribute 2% of the insured individual's salary.

- Surcharges, penalties and any other additional amount payable as a result of non-observance oflegal provisions;

- interest accumulated from investing funds derived from these sources.

1.3 Variable social security cover according to the country and risks concerned

In Algeria, cover for sickness insurance is fairly widespread but cover for other risks is far more limited.

All workers, salaried and unsalaried, those receiving pensions and benefits, students, apprentices, thehandicapped who are not gainfully employed, the mujahideen, those receiving social assistance, andbeneficiaries of insured individuals (spouse, dependent children and ascendants, provided that thereis proof of a link by marriage (spouse), that age conditions are met (dependent children) and that con-ditions on resources are met (dependent ascendants) are all entitled to sickness insurance.

Nonetheless, there is one major problem in the form of cover for individuals 'employed' in the infor-mal sector, who currently number approximately 1.5 million9 and are not covered by any social secu-rity system.

On the other hand, in the context of insurance for disability, accidents at work, death, retirement,unemployment and early retirement, it would appear that only salaried employees are covered, pro-vided that certain affiliation conditions are met at the time the risk arises, and, potentially, withrespect to the duration of employment and age of the persons concerned. As regards accidents atwork and occupational diseases, the only requirement is that proof be established of the occupation-al nature of the accident or disease.

In Morocco, the social security system is run by the CNSS and covers employees in the private sec-tor (industry, commerce, liberal professions, agriculture and handicrafts): to be eligible for benefit,they must have been registered with and declared to the CNSS by their employers, be up-to-date withtheir contributions, and meet any conditions regarding a probation period.

In Tunisia, since the CNSS was established in 1961, cover by the fund has been progressivelyextended and other schemes have also been set up.

Under the system, non-agricultural employees in the private sector, who were the first to be coveredby the CNSS and come under what is known as the 'general scheme'10, have been and continue to becovered for family allowances, social insurance, pensions, social and health care services, accidentsat work and occupational diseases, social protection for workers, loans, and so on.

During the 1960s, the CNSS was progressively extended to married students (1965) and to certainemployees working in France within the framework of an agreement between France and Tunisia(1967).

Under the student scheme, affiliates are entitled to three types of benefit: family allowance, socialand health care services and, since just recently, loans.

Under the agreement between France and Tunisia, affiliates are only entitled to family allowance andsocial and health care services.

The following categories also subsequently became covered for social insurance, pensions and socialand health care services:

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9 See section on Unemployment (2.8)10 The vast majority of the CNSS. In 2000, this scheme covered 972,979 employees (equivalent to 74.5% of the popula-tion) and 77.4% of jobs.

- agricultural employees (Agricultural Employees' Scheme (RSA), 1971);- unsalaried non-agricultural workers (Unsalaried Non-agricultural Workers' Scheme (RTNSNA),

1983);- unsalaried agricultural workers (Unsalaried Agricultural Workers' Scheme (RTNSA), 1983);- Tunisian workers abroad (Tunisian Workers Abroad Scheme(RTTE), 1990).

In addition, in 1990 the Improved Scheme for Agricultural Employees (RSAA) was set up, underwhich affiliates are entitled to family allowance as well as social insurance, pensions and social andhealth care services.

As a result, the CNSS currently runs eight different social security schemes that offer cover for dif-ferent risks according to the category of insured individual (with the exception of social and healthcare services, which are covered under all schemes).

In Egypt, the cover provided for different risks by the social security system varies according to dif-ferent occupational categories.

As such, the following individuals are covered for combined old-age/disability/death:- civil servants working in administrative positions for the state, and public-sector employees;- private-sector employees aged over 18;- construction site workers, forwarding agents and maintenance workers;- foreign workers who are subject to the labour code and those entitled to a work permit, provided

that a reciprocal agreement exists with the country of origin;- individuals employed in zonal work and home workers (except servants).

The following individuals are covered for accidents at work:- workers and graduates aged under 18;- students employed on a summer work programme;- individuals serving their non-military service who have completed a degree course (Law no. 67-

1973),- persons entitled to a retirement pension but who are nonetheless continuing to work as employees.

The following individuals are covered for health care protection (sickness and maternity insurance):- workers in public and private companies11;- for medical treatment and payment of medical expenses persons who receive a pension if they

ask to receive their benefit at the time the request for a pension is submitted, or the widow of theinsured individual or the individual receiving a pension;

- families of insured individuals or persons receiving a pension in the Alexandria mouhafada;- working women who are pregnant or have recently given birth.

All individuals covered by social insurance are covered for unemployment insurance except the fol-lowing:

- temporarily12, second-generation members of the family of a sole proprietor of a business,- individuals who are salaried partners in their company, individuals working for state administra-

tions and public institutions, and workers aged over 60;- all occasional and temporary workers (workers on construction sites, itinerant workers, seasonal

and maintenance workers (loading and unloading)).

In Jordan, the law on social security applies to the following categories, without discrimination onthe grounds of sex or nationality and from the age of 16 upwards:

- workers governed by the Jordanian Labour Code, and who are employed in companies with fiveor more workers;

- civil servants and employees in state institutions not bound by the law on civilian and militaryretirement.

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11 Workers in public- or private-sector companies employing one or more workers from all the country's mouhafadha.12 'Temporarily' because a decree by the President of the Republic will soon extend these benefits to them and will setout the conditions and situations applying to them and specify how their salaries will be taken into consideration withinthe scheme.

In addition, independent workers (self-employed persons) and Jordanian expatriates working abroadmay sign up for combined old-age/disability/death insurance on a voluntary basis.

The following individuals are excluded from the provisions of this law: - public civil servants who are affiliated to the retirement scheme by virtue of the legal provisions

on retirement currently in force (law on civilian retirement – law on military retirement);- foreign civil servants working in foreign government, political and military missions (in accor-

dance with the Geneva Convention);- workers whose contract with their employer (as assessed by the Board of the Social Security

Institute) does not conform to regulations.

The following individuals are also bound by a decision by the Jordanian Council of Ministers andbased on a proposal by the Board of the Social Security Institute to extend insurance provisions tocover them:

- agricultural workers, except those working on mechanical equipment or employed in irrigationwork;

- sailors and deep-sea fisherman;- servants and similar workers.

However, under social security legislation, workers in companies employing fewer than five workers,self-employed workers and Jordanian expatriates (working outside Jordan) may ask to be affiliated tothe Social Security Institute for the purposes of combined old-age/disability/death cover.

To do this, they must contribute 14.5% of their salary, the equivalent of the worker's share and theemployer's share.

The salary considered is set in bands ranging from JOD 15 to JOD 1,000 per month.

A voluntary insured individual is entitled to all benefits available under combined old-age/disabili-ty/death cover.

Moreover, the National Aid Fund covers categories of poor workers not protected by the provisionscited above.

There are also several 'categorised' social security schemes designed for members of certain profes-sions (or 'professional associations'), such as doctors, engineers, pharmacists, journalists and so on.

Finally, the International Aid Agency (Agence Internationale de Secours) provides assistance toPalestinian refugees who have settled in Jordan and who currently number approximately 2 million.

In Jordan, as previously indicated13, social security legislation covers six areas, but only two of theseare applied in practice:

- insurance against accidents at work and occupational diseases;- combined old-age/disability/death insurance.

On the other hand, there is a whole array of laws on retirement, and efforts are gradually being madeto try and combine these into a single law on social security that would cover all workers in Jordanregardless of whether they are employed by the state or in the private sector. Initial progress wasmade on this issue in the form of the law applicable as from 1 January 1995, under which all newcivil servants appointed after this date were covered by social security legislation. At the same time,strictly defined categories of workers in state institutions that are due to be privatised will be trans-ferred from the civilian retirement scheme to the general (social security) scheme.

There are 385,000 affiliates signed up to the scheme by virtue of their working status. Together, theymake up approximately 30% of the total workforce in Jordan.

Around 10% of workers currently paying contributions are non-Jordanian nationals who are entitledto social security benefits (the figure peaked at 30% in the mid-1980s, but subsequently fell as aresult of a rise in unemployment amongst Jordanian workers).

Finally, since the law came into force in 1980 over 1 million workers have registered with the social

17

13 See section 1.1

security system, but the rate of contributions to the system represents approximately 29% of theworking population.

1.4 Social security management, with the state authorities often wielding decisive influence

In Algeria, social protection is organised by a number of different social security bodies:- the national social insurance fund for salaried employees or CNAS (Caisse Nationale des

Assurances Sociales des Travailleurs Salariés), which is responsible for the areas of social insur-ance, accidents at work and occupational diseases, and family allowance for salaried employeesand some specific categories of individuals covered by social assistance (students, the disabled,those receiving social assistance from the state, etc.). There are branches of this fund in eachwilaya (district) and 650 municipal payment centres;

- the national retirement fund or Caisse Nationale de Retrait, which is responsible for retirementpensions, survivors' pensions for salaried employees and early retirement;

- the national employment insurance fund or CNAC (Caisse Nationale d'Assurance Chômage),which is in charge of unemployment insurance for salaried employees;

- the national social insurance fund for non-salaried workers or CASNOS (Caisse Nationale desAssurances Sociales des Travailleurs Non Salariés), which organises social and retirement insur-ance for non-salaried workers.

These latter three bodies also have local branches but only at district level.

These various social security bodies are run by Boards made up of workers' and employers' repre-sentatives (both nominated by union or employers' organisations) and each run by a Director-Generalappointed by decree following consultation with the Board.

In the social insurance and retirement funds, both workers' unions and employers' organisations arerepresented, while the CNAC also includes state representatives from the particular ministries con-cerned. Workers' representatives play a major role.

Under this system, the Boards of the CNAS and national retirement fund respectively each comprise29 members with a 4-year term of office and who are divided into the following categories:

- 18 workers' representatives;- 9 employers' representatives;- 2 fund representatives.

The Board of the CNAC is made up of 19 members divided up as follows:- 9 workers' representatives;- 5 employers' representatives;- 4 representatives of the Board;- 1 fund representative.

Within the CASNOS, the Board is represented solely by non-salaried workers.The Boards for the different funds have the following key functions:

- making proposals concerning the internal organisation of the fund;- voting on budgets and forecasting income (contributions) and expenditure;- approving the fund's statement of account and annual activity report;- taking all necessary measures to ensure that the fund's commitments, and those designed to

improve the way it operates and is managed, are met.

The Boards also issue an opinion on all draft texts of legislation or regulations brought before themby the minister responsible for social security (advisory role) and may monitor any proposal made onsocial security regulations.

However, some deliberations by the Boards (e.g. budgets, appeals by insured individuals) are sub-mitted for express approval to the minister responsible for social security, who monitors the varioussocial security bodies.Nonetheless, the state is responsible for fixing the following:

- the scope (those entitled to and the conditions for receiving benefits);

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- contributions;- the level of benefits.

The Boards have an advisory role only in these areas.

Morocco's social security fund for employees or the CNSS (Sécurité Sociale des Salariés) is managedby a tripartite Board made up of 24 members representing in equal proportions:

- the state;- employers;- employees' representatives.

Employers' and employees' representatives are appointed for three years and are nominated by themost representative union and professional organisations.

The scheme for civilian and military pensions for civil servants, is managed by the CMR and head-ed up by a Board chaired by the Prime Minister. It comprises the following:

- five members representing the state;- five members representing affiliates;- a representative of local authorities;- two representatives of retired individuals.

The General Retirement Benefits Scheme (RCAR) is run by the National Retirement and InsuranceFund (CNRA), which in turn is managed by the Deposit and Management Fund (CDG). The Director-General of the CDG is supported by a Management Committee, which is consulted on all matters ofgeneral interest to the CNRA. For issues involving the RCAR, the Management Committee includesfour additional state representatives and four representatives of affiliates appointed by the four mem-ber organisations of the RCAR.The pension fund CIMR is run by a Board comprising between 12 and 24 members, elected by secretballot of the general meeting.

The Board of the CNSS has a chairman appointed by the supervising minister on behalf of the PrimeMinister. The chairman is supported by two vice-chairmen (one each representing employers andemployees) elected by the Board.

The Board meets by invitation of the chairman at least twice a year:- the first time prior to 30 June to pass the accounts for the previous financial period;- the second time prior to 31 December to examine and pass the budget for the upcoming finan-

cial period.

The Board may hear all issues pertaining to allocations by the CNSS. A supervisory authority moni-tors the legality of CNSS actions and in this way the latter's action is limited: the authority may evenoverrule a decision by the Board. The supervisory authority is obliged to request the opinion of thefinance minister before overruling any financial measure.

In Tunisia, the CNSS is run by a Board that in principle has extensive powers, in particular thoseset out below:

- each year, it approves the fund's budget and during the financial period approves any amend-ments deemed necessary;

- it sets out the conditions governing how the fund draws up and approves its accounts;- it rules on acquisitions and disposals of real estate, the appropriateness of legal action and all

agreements and transactions;- it submits the breakdown of overall contribution rates by system, and any necessary amendment

to these rates;- it puts forward proposals concerning the fund's internal rules of procedure and issues its opinion

on regulations concerning personnel and their remuneration;- it deliberates on all contracts and agreements involving an amount greater than that set by the

supervisory ministries;- it deliberates on the establishment of regional offices, the amount of investment in real estate and

loans.

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However, the composition of the Board and in many cases the way in which its members are appoint-ed, can restrict its influence in the decision-making process. The Board comprises a Chairman-cum-Director-General, appointed by decree, supported by directors appointed in the same way and by 12administrators.

Administrators are appointed for a period of three years by decision of the minister for social affairsand in accordance with the following conditions:

- four administrators chosen from a list of eight names, put forward by the most representativeemployers' organisations;

- four administrators chosen from a list of eight names, put forward by the most representativeunion organisations (actually put forward by the Tunisian Industrial, Commercial and handicraftsUnion (UTICA) and the General Union of Tunisian Workers (UGTT));

- four administrators chosen on the basis of their skills in social, economic and financial mattersand who represent the relevant ministries.

Beyond these formal appointments, the state plays a decisive role, acting via the Board.

The state appoints a CEO by decree (i.e. that person is not elected by the Board or general meeting)and also chooses the members of the Board from a list of names put forward by the respective pro-fessional associations and union organisations.

The CNSS operates subject to constant, direct supervision and monitoring by the ministers respon-sible for social affairs and/or finance. The most important decisions (on rules of internal procedure,breakdown on contributions, draft budget, etc.) are submitted for their approval. Two supervisors (onetechnical and appointed by the minister for social affairs, and the other financial, appointed by theminister of finance) are involved in almost all activities relating to the day-to-day management of thefund.

The role of union organisations is negligible if not non-existent, especially where major strategicdecisions are concerned (e.g. setting and collecting contributions, choosing how to invest any sur-plus, etc.).

Finally, according to the employees' representatives, and in the light of the over-representation of thestate – either directly or indirectly – on the Board, the latter's decisions generally reflect the pre-vailing state policy at the time.

In Egypt, social security is administered by the national institute for social security or InstitutionNationale de la Sécurité Sociale (INSS), a non-profit body attached to the ministry for insurance andsocial affairs. The institute comprises two funds:

- the insurance and pension fund for public workers (Caisse des Assurances et des Pensions desAgents de l'Etat);

- the social security fund for public- and private-sector workers (Caisse de Sécurité Sociale desTravailleurs des Secteurs Publics et Privés).

The institute has a tripartite Board made up of representatives of the state, employers and the gen-eral workers' union called the Union Générale des Syndicats de Travailleurs.

The Boards are responsible for the following:- taking measures and adopting resolutions on financial, administrative, financial and personnel

matters without being bound by state-imposed standards and regulations;- examining plans and voting on the draft programme-budget;- examining activity reports, making operational changes and taking the necessary measures to

improve operations;- setting the Institute's budget, approving the annual statement of account and the financial situa-

tion;- studying texts of social security legislation;- appointing actuaries responsible for examining and approving the financial situation;- taking decisions on financial, administrative and technical issues deemed by legislation, rules

and regulations to be within the remit of the Board.

The chairman of the Board represents the Institute in legal matters and in its dealings with third parties.

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In Jordan in 1978, the public institute for social security (Institution Publique de la Sécurité Sociale)was set up and given legal status as well as administrative and financial autonomy.

This institute has a Board comprising 15 members:- seven representatives of the state or the public authorities, including the minister for employment

as chairman of the Board; the Director-General of the Institute, appointed by the JordanianCouncil of Ministers following a proposal by the minister for employment, chairman of the Board;the General Secretary of the ministry for employment; the General Secretary of the ministry forhealth; the Assistance Governor of the Central Bank; and the General Secretary of the ministry offinance;

- four members representing workers and appointed by the general union of workers' trade unions(Union Générale des Syndicats des Travailleurs);

- four members representing employers including two appointed by Chambers of Industry and twomore by the Chambers of Commerce.

The Board, being responsible for the administration of the institute, performs the following tasks:- defines the institute's general policy;- sets the institute's provisional annual budget; - approves the definitive budget and the statement of account of income and expenditure for the

annual financial period;- draws up the general programme for the investment of the institute's funds;- draws up draft schemes and proposals on texts of social security legislation and issues executive

instructions and guidelines on internal rules of procedure, as well as financial, administrativeand technical instructions for the institute;

- takes the necessary recommendations and submits them to the minister responsible for employ-ment (chairman of the Board) so that the latter can put them to the Council of Ministers for adop-tion;

- appoints expert actuaries to audit and draw up the Institute's financial accounts;- appoints auditors and insurance experts to evaluate the institute's accounts and examine and

evaluate the financial accounts;- approves the institute's organic structure and defines the profile of the institute's positions, allo-

cations and responsibilities;- delegates signing authority to certain representatives on financial, legal and administrative mat-

ters;- sets up permanent or ad hoc committees and defines their tasks, powers and remuneration.

There is also a monitoring committee in place within the WAB, made up of three members –includ-ing a workers' representative – that is responsible for monitoring the management's financial andinvestment activities and analysing financial reports to ensure that the books balance and that theaccounts are accurate, and to issue an opinion on the institute's financial organisation, the account-ing system in general and the institute's financial accounts in general.

Although the prevailing spirit within the Board is one of understanding and dialogue, which is pos-itive in terms of the general interests of Jordanian society, where practical operations are concernedthe workers' and employers' representatives feel that the role of the state representatives 'definitelyleans towards' the government.

Accordingly, workers' representatives and the general confederation of workers' trade unions (UnionGénérale des Syndicats des Travailleurs) are calling for an increase in their number of representativeson the Board. As they try to press this point home, they remain hopeful that their demand will be metin the future.

1.5 A guaranteed minimum wage that - where it exists - can serve as a benchmark fordetermining the amount of benefit

In Algeria, the guaranteed minimum wage is determined and negotiated within the framework of atripartite discussions between the government, the General Union of Algerian Workers (UGTA) andemployers' organisations. The amount is altered in line with changes in households' purchasing

21

power. It acts as a benchmark against which the determine the minimum amount of benefit, in par-ticular for disability and retirement pensions, (which cannot be less than 75% of this guaranteednational minimum wage), benefit for accidents at work and so forth.

On 1 January 2001, the guaranteed national minimum wage was DZD 8,000, having been hiked eighttimes in 10 years.

In Morocco, there are two guaranteed minimum wages:- one for industry, commerce and liberal professions, known as the Salaire Minimum

Interprofessionnel Garanti or SMIG and which stood, as at 1 July 2000, at DZD 1826.24 permonth for 208 hours of work (i.e. DZD 8.78 per hour and DZD 70.22 for an eight-hour workingday);

- one for the agricultural sector, known as the Salaire Minimum Agricole Garanti or SMAG, whichis DZD 1,183 per month for 208 hours of work (i.e. DZD 5.69 per hour and DZD 45.50 for aneight-hour working day).

Tunisia has a guaranteed minimum wage, or SMIG ('SMAG' in the agricultural sector).

Since August 2002, it has been:- TND 1.049/hour (equivalent to TND 218 per month) based on a 48-hour working week;- TND 0.998/hour (equivalent to TND 174 per month) based on a 40-hour working week.- However, the most common SMIG in Tunisia is that based on the 48-hour working week.- The SMAG amounts to TND 6.259 per day.

In Jordan, the minimum wage is fixed by a tripartite committee comprising workers, employers andthe government in accordance with the provisions of the Jordanian Labour Code. On 1 January2003, the minimum wage was increased to JOD 85, which is equivalent to approximately €113.

Part two: How are different risks covered?

2. Covering different risks2.1. Health protection: benefits in kind

In Algeria, the social insurance fund includes cover for care administered by the health care sys-tem, which comprises the following:

- a public (state-owned) sector;- a parapublic (partly state-owned) sector;- a private sector.

The public health care sector provides the majority of care for the population, in particular basicand preventative care, and specialised and high-level care.

The sector is organised as follows:- university hospital centres;- specialist hospitals;- basic centres located throughout the country: hospitals, clinics, health centres and so on.

The public health care sector is funded almost exclusively through the state budget and the socialsecurity system. The social security system helps to fund the sector via a lump sum set by the statein accordance with Finance Act and which constitutes approximately 40% of the annual budgetfor public health institutions.

This lump sum is designed to cover the care of insured individuals and their beneficiaries. Otheradditional expenditure is added to this lump sum and this is also covered by the social securitysystem to fund certain specialist services required in the context of high-level care.

The parapublic sector comprises primarily joint medical-social welfare centres covered by thesocial security fund, companies, social welfare work and mutuelles. It mainly provides basic careand diagnosis.

The social security fund reimburses expenses for medical treatment and the costs of medicine pro-vided to those receiving social assistance by joint medical/social welfare centres with which anagreement has been signed.

The private sector, which is growing more and more at present and in particular in the area of spe-cialist care, comprises mainly doctors' surgeries, general practitioners and specialists.

As a general rule, when an individual receiving social assistance opts for the private health caresector, they must pay all costs in advance and then claim reimbursement from the social securitysystem.

Reimbursement is offered on the basis of rates set by regulations for medical treatment and on thebasis of the selling price of pharmaceutical products. In general, 80% of costs are reimbursed. Thedeterrent fee of 20% dates back to the creation of the social security system. As in all countries14

where those receiving social assistance are required to pay a proportion of the costs, the aim of thedeterrent fee is to limit costs.15

However, in many situations insured individuals are exempt from all costs. For example:- insured individuals suffering from a chronic and/or long-term ailment;- individuals entitled to replacement income from the social security system not exceeding the

guaranteed minimum wage or of other categories of insured individual (those receiving bene-fit for accidents at work and who are at least 50% disabled, beneficiary of a deceased worker,an so on);

23

14 Of the 15 current Member States of the European Union, only three require individuals to pay up front for medical costs(visits to the doctor): France, Belgium and Luxembourg. 15 The indications are that in the medium to long term this objective is not being met.

- regardless of the duration and level of care required, the medical supplies needed and theamount of time off work.

In addition, an insured individual who, under the third-party payer scheme, visits a doctor, healthcare centre, supplier, or pharmacy that has signed an agreement with the social security system isnot obliged to pay costs up front.

The state provides for care for the destitute not covered by social security if they visit public healthcare centres.

Given this situation, it would appear that all the population is covered for health care and thataccess to care is available to everyone. Moreover, the third-party payer scheme enables an 80%reimbursement of costs and easy access to medicines. However, it seems that reforms are requiredto ensure better cover for the sick and greater transparency in the way funding is provided.

In Morocco, the CNSS does not cover health care. However, 20 years after it was established, theCNSS decided to become involved in health care by setting up 13 clinics for those affiliated to thefund and members of their families, and for other 'signed-up groups'.

In 2002, the draft bill on creating a system of mandatory sickness insurance was passed. TheCNSS will be obliged to insure private-sector employees while the national fund for organisationof welfare (Caisse Nationale d'Organisation De Prévoyance Sociale) will provide the same insur-ance for individuals in the public sector.

According to the Moroccan economic think tank called the Centre Marocain de Conjoncture(December 2001):

- 55% of medical consumption is borne by households;- 22% is state-funded;- 18% is covered by mutuelles and insurance companies.

The latter group provides cover for 15% of the population. Three quarters are covered by civil ser-vants' mutuelles while the remaining quarter is covered by firms via insurance companies.

In Tunisia, the CNSS covers the operating costs for CNSS-affiliated clinics and contributes to thestate health budget.

All CNSS affiliates, except those belonging to the student and French-Tunisian schemes receivesocial insurance benefit.

The CNSS' outlay on social insurance consumes the second largest share of overall expenditure.

Since its creation in 1961, the CNSS has contributed an ever-increasing lump sum16 to the statehealth budget and this has made it possible to provide the public care – at very reasonable rates– that affiliates enjoy.

However, the patient is free to choose their doctor. Patients pay all costs at the time of treatmentand then apply to the CNSS, which will reimburse a maximum of 80% of these costs based on offi-cial rates. However, the rates employed in practise are often higher than the official rates set peri-odically by decree of the Minister for Health.

The CNSS also contributes to the respective budgets for public hospitals (since 1983), militaryhospitals (since 1989), strengthening public health centres (since 1990) and treatment billed bypublic hospitals (1996).17

The CNSS also contributes an average of TND 1.7 million per year to the operating costs of clinics.

In addition, the fund contributes to the funding of social and health care activities to which all CNSSaffiliates are entitled, and in the context of the social aspect of these activities, non-CNSS affiliatessuch as the disabled, needy families, non-profit organisations and such like are also covered. From

24

16 This lump sum increased from TND 150 thousand in 1961 to TND 17.5 million in 1990 and then further to TND 43.5million in 2000.17 In 1996, contributions towards care billed by public hospitals totalled TND 46 million.

25

the mid-1980s onwards, the institute began to develop new health care activities focused on costlyand sometimes chronic illnesses and disabilities such as kidney dialysis, spa therapy, scanners, lasertherapy and so on. From 1987, it also began to reimburse a proportion of costs for medicines requiredby patients receiving private health care. Where necessary, the CNSS also contributes to covering thecost of health care and hospitalisation abroad.

Finally, the majority of CNSS expenditure on social and health care activities downstream goes tothe private medical sector (doctors, clinics, pharmacies, laboratories and so on) and as such, thesector is opposed to the draft sickness-insurance reform currently under discussion and which isbasically designed to limit this kind of expenditure for the CNSS.

In Egypt, the law on social insurance – under which employers were obliged to offer medical coverto sick workers in accordance with specified rules and conditions – has transferred this responsi-bility from employers to the social security institute. Under this system, patients (those not suffering from and occupational disease) are entitled tocover from the public institute for health care protection for the following in the event of illness,pregnancy and childbirth:

- care and medical treatment, and medical treatment in the event of pregnancy and childbirth;- re-education benefit/services;- provision of artificial limbs and prostheses.

In Jordan, as previously mentioned, although the law on social security introduced in 1978 andamended in 2001 provides for proportional cover for most risks, including health care insurancefor workers and their beneficiaries, this risk is not presently covered by the social security system.However, outside the system, health care protection is provided for the following persons:

- all civil servants, employees and retirees working for the state or in a state-run company, andtheir families;

- all current and former servicemen of the armed forces and their families;- all workers in large companies and their families.

Moreover, the Jordanian Ministry of Health offers health care cover to individuals receiving assis-tance from the National Aid Fund to combat poverty.

It also offers health care services at reduced rates to other categories of individuals and is respon-sible for areas such as prevention, maternity and childhood, and the treatment of chronic disor-ders and epidemiological illnesses.

Nonetheless, discussions are currently under way on a project designed to amalgamate the twosickness-insurance funds into a single fund within the context of a single insurance system.

2.2. Cash benefit in the event of illness

In Algeria, the following amounts of daily compensation are paid in the event of a worker falling ill:- 50% of the monthly salary subject to contributions between first and fifteenth day of sick leave;- 100% of this salary as from the sixteenth day of sick leave. This rate also applies as from the

first day of sick leave in the event of hospitalisation or long-term illness.

The daily compensation paid may not be less than the minimum amount benchmarked against theguaranteed minimum wage (DZD 8,000 as at 1 January 2001): this amount changes automaticallywhenever there is an increase in the guaranteed minimum wage.Daily compensation is paid for the following periods:

- a maximum of 300 days during any period of two consecutive years;- three years (by date) in the event of a long-term ailment as cited on the list of 16 long-term ail-

ments or groups thereof.

In Morocco, employees who can provide evidence of 54 days of contributions during the six cal-endar months prior to the sick leave are entitled to daily compensation. Subsequently, the workermust provide evidence of a minimum of 6 days of contributions between each period of sick leave.However, in the event of an accident or other circumstance stipulated in legislation on accidents

at work, these conditions need not be met. Moreover, compensation commences as from the firstday of sick leave and as such there is no waiting period.Compensation is limited to a maximum period of 52 weeks and the amount of daily compensationis equivalent to 2/3 of the capped benchmark salary (MAD 6,000) and may not be lower than 2/3of the statutory minimum wage (SMIG or SMAG).In Tunisia, entitlement to daily compensation in the event of illness is subject to completion of atraining period of at least 50 days' work during the two calendar quarters or 80 days during thefour calendar quarters prior to the sick leave. Compensation is payable for every day (whether ornot a working day) as from the sixth day of sick leave (waiting period). However, the waiting peri-od does not apply in cases of long-term illness, hospitalisation, injury or accident.

In the event of a short-term illness, the maximum period of compensation is 175 days (or up to the180th day of sick leave), but for long-term illness there is no time limit on the period during whichindividuals may receive benefit.

The amount of sickness benefit is equivalent to 50% of the individual's average daily wage, risingto 2/3 of said wage as from the 45th day of sick leave. However, this rate is fixed at 50% as fromthe 180th day for cases identified as involving a long-term illness.

In Egypt, during the first 90 days of illness employees receive 75% of their daily wage (includingthe so-called 'variable' proportion thereof covering all applicable bonuses etc) subject to contri-butions. This rate then rises to 85% for the following 90 days (total compensation period of 180days).

In the event of chronic illness, the patient receives compensation equivalent to the total amount oftheir salary (basic and variable) subject to contributions until such time as they recover, aredeclared unfit to work, or die.

No social security cover in this area is provided in Jordan.

2.3 Elderly and retired persons

Algeria is moving into what could be classed as a demographic transition. For years the majorityof the Algerian population have been young people but during the past 10 years the followingchanges have been observed:

- in 1996, 36.20% of the total population were aged under 15. In 2001, still nearly a third of thepopulation (32.79%) fell into this age group;

- out of a total population of 31.07 million, some 18.61 million people fall into the 15-59 agegroup (as at 1 January 2002)18;

- 2.11 million inhabitants are aged over 60, which equated to 6.5% of the population in 2001;- the number of inhabitants in the 65+ age group increased from 3% in 1966 to 4.55% in 1998.

There is no denying that Algeria has experienced unprecedented economic growth, which has ledto a tripling of its population between 1962 and 2000 and this gives a clear indication of how greatthe demand for social provisions is particularly in terms of health care, education, housing, jobsand so on.

Continuing this trend, 2002 saw an increase of 440,000 in the population (+1.4%), which sent thetotal population over the 31 million mark.

At 50.7%, the male population is slightly higher than the female one (49.3%), and the populationin general is characterised by the following:

- the crude birth rate is still high despite a noticeable fall over the past decades (20.45‰ in2001 as compared with 39.5‰ in 1985);

- the crude mortality rate is also falling, down as it was to 5.44‰ in 2001, as compared to 6.03‰in 1996 16.45‰ in 1970!;

- the average life expectancy at birth is constantly increasing: in 2001 it stood at 70.7 years

26

18 In 1998, this group accounted for 60.35% of the total population.

27

(72.1 for women and 69.4 for men) compared with 47 in 1962, 59 in 1980, and 67.3 in 1991.Life expectancy at age 60 is 20 years for both men and women.

In the same way as the other categories of individuals, the ageing population who are entitled tofree medicine, have free access to all public health care services.

In addition, retired persons, pensioners and the chronically sick have access to the third-partypayer scheme whereby they can receive medicine without having to pay up-front.

Although there is no assistance for families caring for elderly people, family solidarity, particular-ly in rural areas, plays a vital role in caring for ascendants and avoiding the need to turn to spe-cialist care institutions for the elderly. This is the aim of the policy currently being pursued, i.e.that of promoting the family environment, since this reduces the demand for care homes for theelderly.

In terms of the retirement scheme, legislation stipulates a retirement pension for the followingworkers:

- those aged at least 60 (men) or 55 (women);- those who have worked for at least 15 years.

However, exceptions are made to the age stipulations for workers occupying positions where work-ing conditions are particularly hazardous and for women who have raised children (1 year per childup to a maximum of three children).

In addition, entitlement to a retirement pension may be granted directly under the following cir-cumstances:

- regardless of age, to workers who have worked for a period of 32 years or more;- as from the age of 50 (men) and 45 (women) where the individual has worked for a period of

20 years or more (men) or 15 years or more (women).

Finally, individuals who have worked for between 5 and 15 years are also entitled to retirementbenefit. Individuals who have never worker may claim lump sum solidarity benefit classed associal assistance from the state.

Retirement pensions under the social security system, which are reviewed annually, may not belower than the minimum amount equivalent to 75% of the guaranteed national minimum wage, andmay not be higher than 15 times this minimum wage.

The pension is calculated in one of the two following ways:- either on the basis of the average monthly salary during the five years immediately prior to

retirement;- or, if more favourable, on the basis of the average monthly salary during the five years' of high-

est paid employment during the individual's professional career.

Each eligible year entitles the individual to 2.5% of the appropriate monthly salary, up to a max-imum of 80% of the salary subject to contribution.

Where appropriate, an increase may be granted for a dependent spouse, the amount of which is setby decree.

The average retirement pension increased from DZD 8,824 in 2000 to DZD 10,339 in 2001 andthen to DZD 10,554 in 2002 (NB. the guaranteed national minimum wage was DZD 6,000 until2000 and DZD 8,000 as from 1 January 2001).

Upon the death of an individual receiving a pension or retirement benefit, their beneficiaries(spouse, children and dependent ascendants) receive a survivor's pension equivalent to a maxi-mum of 90% of the initial pension.

If someone dies before reaching retirement, the benefit received by their beneficiaries is calcu-lated on the basis of the pension to which the worker in question would have been entitled on thedate of their death, provided they had contributed to the scheme for at least 15 years.

In Morocco, in 1990 7% of the total population were aged 60 or over, and in 1999 the percent-age was 7.2%. The total fertility rate is 3. Life expectancy at the following stages is:

- at birth: 69.5 years;- at age 60: 16 years;- at age 65: 13 years.

The demographic and economic weights of retired people in Morocco are (respectively): - 12.7% (retired persons/working persons);- 0.6% (expenditure for retirement/GDP).

Elderly people are generally cared for by their families.

In terms of pensions, statutory pension schemes are provided within the framework of the follow-ing fundamental obligatory social protection schemes:

- the social security system run by the CNSS;- the system of civilian and military pensions for civil servants (CMR);- the General Retirement Benefits Scheme (RCAR) for individuals not receiving a pension who

are employed by the state and by local authorities.

Retirement pensions are calculated (for the CNSS) on the basis of the number of days of CNSS con-tributions paid and of contribution annuities in the case of the CMR and RCAR schemes.

All the social protection systems in Morocco make provision for a survivors' pension scheme.

To qualify for the CNSS old-age pension, workers must meet the following criteria:- be at least 60 years of age, or 55 for miners who can provide evidence of five years' at the pit

face;- cease all paid work;- have accumulated a minimum of 3,240 days of insurance.

The old-age pension is equivalent to at least 50% of the monthly benchmark salary for workerswho can provide evidence of 3,240 days of insurance, with a minimum guaranteed amount ofMAD 500.

Each 216-day period of insurance over and above the 3,240 days entitles the worker to an increaseof 1%.

The maximum pension is equivalent to 70% of the monthly benchmark salary, calculated on thebasis of a maximum salary of MAD 6,000, giving a maximum pension of MAD 4,200.

As from 2 September 1982, workers who reach the age of 60 are legally obliged to retire unless anexception is authorised by the minister for employment and social affairs.

Survivors' pensions are allocated to the beneficiaries of an insured individual or a deceased pen-sioner. Beneficiaries are defined as:

- dependent spouses;- dependent children aged under 12, or under 18 if they are serving an apprenticeship, or under

21 if they are students;- disabled children regardless of age.

The pension amount is:- for a spouse and orphans who have lost their father and mother, 50% of the total pension- that the insured individual received or would have received before their death,;- for an orphan or orphans who has/have lost their father or mother, 25% of the total pension.

In either instance, the total amounts paid out may not exceed the sum of the deceased individual'spension.

Any increase affecting the benchmark amount actually held by the individual on the date theyceased working is added to the retirement pensions paid by the CMR.

In Tunisia, pensions cover four sub-areas: old-age pensions, pensions for surviving spouses (alsoknown as widow's pensions), orphans' pensions and disability pensions.

Pension benefits are available to individuals affiliated to all social security schemes, except thestudent scheme.

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There was a significant increase in the number of individuals receiving old-age pensions duringthe mid-1980s. This was due to the combined effect of a number of factors:

- a large proportion of the working population, who had been employed during the previousdecades (during the 1950s and 1960s in particular) was reaching retirement age;

- new social security schemes were being introduced providing old-age pensions (schemes forunsalaried agricultural workers and unsalaried non-agricultural workers in 1983, and theimproved scheme for agricultural employees in 1990);

- the life-expectancy of individuals receiving an old-age pension was becoming longer thanks toimprovements in their living and health conditions. In 2000, 35.9% of these individuals wereaged 70 or above;

- in 1982, the concept of early retirement took a hold and the trend continued to grow during the1990s. The average annual number of individuals taking early retirement (including phasedretirement) more than doubled between the 1980s and the 1990s, increasing from 2,156 to4,450, in particular as a result of redundancy and personal choice (salaried women with threechildren are also entitled to take early retirement).

The total population of 9.561 million can be broken down into the following categories:- those aged under 15: 30.9%;- 15- to 59-year-olds: 60.1%;- over 60s: 9%.

The average life expectancy at birth (2001 estimates) is 72.9 years (70.8 for men and 75 forwomen).

In 2000, some 16,336 individuals (equivalent to 9.5% of the total number of individuals receivinga retirement pension) took early retirement and accounted for TND 66.2 million (equivalent to20.2% of total expenditure on old-age pensions). In addition, their average annual pension(TND 4,054) was almost two-and-a-half times the average annual 'standard' pension, i.e. thatreceived by individuals aged 60 and over (TND 1,676).

In 2000, there were some 172,163 retired persons including those aged between 50 and 59)receiving a combined total of TND 327.5 million: this worked out at an average overall annual pen-sion of TND 1,902.

By law, workers reaching the age of 60 (as in previous cases, this age may be reduced to 50 years)and who have paid contributions for a minimum of between 5 and 15 years according to the are ofactivity are entitled to a retirement pension.

Under the scheme for salaried non-agricultural workers, the retirement pension is calculated onthe basis of the average salary for the 10 years immediately prior to retirement.

The total salary amount taken into account is capped at 6 times the SMIG (guaranteed minimumwage).

The pension awarded is 40% of the salary for a contribution period of 120 months (10 years). Anyfraction of contributions in excess of 120 months entitles the individual to an increase of 1.5% ofthe benchmark salary per three-month period. The maximum pension is set at 80% of the work-er's salary. In addition, the pension may not be less than 2/3 of the SMIG (or half of the SMIG inthe case of an early-retirement pension), which makes the current minimum rate TND 145/monthfor a 48-hour working week.19

Surviving spouses (often widows) and children (up to a certain age) of deceased retired individu-als are entitled to a pension. The total amount of these pensions (spouse and children) may notexceed 100% of the retirement pension.

The average annual pension paid out by the CNSS in 2001 was as follows::- TND 2,560 for the salaried non-agricultural workers' scheme and including supplementary

schemes where these exist, and TND 2,473 where there are no supplementary schemes- (1990: TND 1,171 and TND 1,155 respectively);

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19 See section 1.5.

- TND 690 for the salaried agricultural workers' scheme (1990: TND 410);- TND 446 for the improved scheme for agricultural employees;- TND 816 for the scheme for non-salaried workers in the non-agricultural sector (1990:

TND 282);- TND 747 for the scheme for non-salaried workers in the agricultural sector (1990: TND 390);- TND 2,250 for the Tunisian workers abroad scheme;- TND 2,075 for all schemes (1990: TND 941).

In Egypt, the revolution in July 1952 saw the advent of a law on insurance and savings benefit-ing civil servants and government employees. The decision was also taken to set up an identicalsystem for workers in the private sector and this led to the establishment in 1955 of the insuranceand savings funds for workers. In order to be entitled to an old-age pension, workers must havereached the statutory retirement age (65, 60 or 55 as applicable) and must be able to provide evi-dence of a contribution period of at least 9 years. Any part of a year counts as a full year. In Egyptno distinction is drawn between men and women in the context of old age.

Individuals may receive an early-retirement or reduced (i.e. graded) pension in the event of resig-nation, work stoppage or termination of employment contract prior to retirement age provided thatthey are able to provide evidence of having contributed over a period of at least 19 years.

The pension amount depends not only on the period of time working and the contribution period,but also on the eligible periods20 (either via top-up payments, military call-up or the advantage ofimproved standards of living in certain areas).

The total pension consists of the sum of the following- the pension amount based on basic salary: eligible periods x average basic salary x validation

rate. The pension is capped at EGP 480 as from 1 July 2001;- the pension based on the variable salary: eligible periods x average variable salary x valida-

tion rate.- The maximum pension is 80% of the average salary. - For pensions lower than EGP 70 per month, the maximum rate is increased to 100% of the

salary, i.e. EGP 70.

An insured individual requests their pension prior to reaching retirement age they may receive agraded pension calculated on their basic salary under the following conditions:

- the pension will be reduced by 15% if they are under 45;- the pension will be reduced by 10% if they are under 50;- the pension will be reduced by 5% if they under 55.

However, there is no reduction if the insured individual is aged 55 or over at the time they ceaseworking.

The pension based on the variable salary is reduced by 5% for each year below the retirement age.

If the individual requesting a pension has not reached the age of 50, payment of the pension isdeferred until they reach this age. This means that the amount of the basic pension will be paidbut the pension based on the variable salary will be deferred until the individual reaches the ageof 50 and it will be reduced by 50% (5% x10 years).

If an insured individual stops working while they do not meet the eligibility requirements for apension, they receive an old-age compensation allowance consisting of a single payment equiva-lent to 15% of their annual salary per contribution year.

This 'compensation' is payable in the following situations:- if the insured individual reached the age of 60;- if the insured individual becomes completely disabled;

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20 The following validation rates used to calculate pensions: 1/75 for the period of work prior to affiliation, 1/45 for thecontribution period, 1/36 and 1/40 for workers in mines and quarries.

- if the insured individual dies21;- if a foreign worker permanently leaves the country or goes to work abroad permanently or goes

to work in an Egyptian diplomatic or consular mission;- if the insured individual emigrates22;- if the insured individual is sentenced to a prison term of 10 years or more, or of a period equal

to the number of years left until they reach retirement age;- if, during their imprisonment, the insured individual becomes partially permanently disabled

and is therefore unable to work;- if the insured individual joins a religious order;- if the insured individual takes up a position in a sector not included in the scope of the pres-

ent law according to the conditions and situations stipulated by decree of the minister for socialsecurity;

- if an insured woman is married, divorced or widowed or where she has reached the age of 51on the date of request for a pension.

In the event of death, the compensatory allowance is paid in full to the legal beneficiaries accord-ing to the distribution rates stipulated for pensions. In addition, where there is only one benefici-ary entitled to claim a pension, the full compensation amount is paid to them. Where there are nobeneficiaries, the amount is paid to the legal heirs.

If the duration of the insurance exceeds 36 years, the insured individual receives a single paymentequivalent to 15% of their basic annual salary for each year over and above the effective contri-bution periods up to a maximum of four years.

Under the universal social protection scheme, combined old-age/disability/death pensions areavailable under the following conditions:

- where the insured individual has reached the age of 65 and can provide evidence of a contri-bution period of at least 120 months;

- where there is confirmation that the insured individual or beneficiary is totally and perma-nently disabled and is therefore completely and definitively unable to undertake paid work;

- where the insured individual dies.

To qualify for a pension in the event of permanent and full disability or death, the insured indi-vidual must have paid into the scheme for at least six months. This period may be reduced to threemonths for insured individuals who have taken steps to sign up to the scheme.

In the event of death, the pension is divided between the widow and children in the following pro-portions:

- widow (s): 50% of the pension;- children (one or more): the other 50% of the pension;- a single child: only 1/3 of the pension; - where there are several children, the pension is divided up equally between them.

The pension is EGP 12 (including additional assistance, pension increase and cost-of-livingallowance). However, this figure was increased by EGP 5 by virtue of the law of 1 July 1991, andin the long term the pension is set to rise to EGP 30 per month.

Under the scheme for employers and similar persons, a pension is available at the age of either 50or 60, or upon cessation of work in cases other than disability or death. In these circumstances,the pension is reduced.

The pension is based on:- the contribution period to the scheme that may not be less than 120 months at the age of 45,

or 240 months in the event of cessation of work;- the contribution income of the average contribution income;

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21 In these cases, compensation is increased by 6% based on the number of full years from the date of ceasing work untilthe date of entitlement to compensation;22 In the latter two cases, where the contribution period entitles the beneficiary to a pension, they are entitled to chosebetween receiving a pension or a single payment.

- the rate used to calculate the pension amount, i.e. 1/45th per year of contribution, up to a max-imum of 80%.

If the insured individual ceases work before reaching the age of 60, their pension is reduced by20% if they are aged below 45 on the date of application, and by 5% if they are aged below 60.

Where the effective period of contributions to the scheme is greater than 36 years, insured indi-viduals or, in the event of their death, their one or more beneficiaries are entitled to a single pay-ment equivalent to 108% of the contribution income for each contribution year.

In Jordan, between 6% and 8% of the population are elderly and life expectancy is 69 years formen and 71 for women.

Affiliates working in private companies employing 5 or more workers23, all workers employed bylocal authorities, institutes and municipalities, and public servants not covered by legislation gov-erning civilian and military pensions receive combined old-age/disability/death insurance24.

To be entitled to a pension, individuals must meet the following conditions:- have reached the age of 60 (men) or 55 (women);- have paid contributions for at least 15 years, during which period there must have been at least

60 monthly contributions.

In the case of all pensions payable to insured individuals, a decision was taken to apply anincrease of 10% with effect from 1 January 1996 making the maximum and minimum amountsapproximately €66 and €40 respectively.

The amount of old-age pension is also increased by 10% for the first dependent person, by 5% forthe second and by 5% again for the third.

If the insured individual has reached the age of 45 and can provide evidence of a contributionperiod of either at least 216 effective contributions (men) or 180 effective monthly contributions(women), any insured individual who stops working for any reason, may request an early-retirementpension.

The pension is reduced by 18% for insured individuals aged over 45 but under 46.

This rate is reduced by 2% per year up to the age of 50, and then by 1% from the age of 50 to 58.

For women, the amount of early-retirement pension is reduced by 10% if they are aged over 45 butunder 50, and by 5% if they are over 50 but under 54.

The pension is withheld in the event that the insured individual takes up work again in a compa-ny that is subject to the social security system. The new periods are added to the existing ones andentitlement will be paid in accordance with the appropriate legal provisions.

Where the insured individual stops working before they reach retirement age and has not fulfilledthe conditions for receiving a pension, they are paid compensation in the form of a single paymentcalculated according to the period of contribution to the scheme and provided that fall into a cate-gory not included in the scope of the law25 as decreed by the Board of the Social Security Institute26.

The amount of the compensation payment is calculated in the following way:- 10% of the average annual salary where the contribution period is less than 60 months;- 12% of the average annual salary where the contribution period is between 60 and 180 months

inclusive;- 15% of the average annual salary where the contribution period is less than or equal to 180

months.

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23 See section 1.3 for details of the situation for workers employed by a company with fewer than 5 employees.24 During the period 1997-2001, a total of 18,644 individuals were receiving old-age insurance, including 4,430 in 2001:this is equivalent to a total payment amount of $243 million, $83 million of which for beneficiaries in 2001.25 For example, non-Jordanian workers wishing to return to their country or to settle in another country, or an insuredwoman wanting to spend time bringing up their family.26 During the period 1997 to 2001, there were 53,190 individuals receiving 'one-off compensation', including 11,254 in2001: this is equivalent to total expenditure of USD 62 million, USD 14 million in 2001.

All individuals paying into combined old-age/disability/death insurance may request that a previ-ous period or periods of work be added to their affiliation to the scheme so that they can be takeninto account when calculating their retirement pension in return for top-up payment in respect ofthe periods they wish to add.

The top-up payment is calculated on the basis of the monthly salary and the individual's age at thetime of request, in line with a scale annexed to the law in question.

The minimum retirement pension according to age or following disability, an accident at work ordeath is €104.

This minimum amount is set by the Council of Ministers following a proposal by the Board of theSocial Security Institute.

Under the provisions of the Labour Code and their employment contract, workers are entitled toan end-of-service allowance totalling one month per year of work.

2.4 Covering the risk of disability

In Algeria, workers who are forced to stop work for health reasons are covered in the first instanceby sickness insurance whereby they receive a daily allowance for a maximum period of three con-secutive years.

When sickness cover comes to an end, workers may granted a disability pension under the fol-lowing conditions:

- they must be at least 50% disabled;- they must not yet be 60 years old;- they must be able to provide evidence of a period of work of at least 60 days over a period of

12 months or at least 180 days over a period of 3 years immediately prior to the work stoppageand subsequent disability;

No distinction is drawn between total and partial disability.

The worker concerned may be place in one of the three following categories:- category 1:disabled individual able to perform paid work;- category 2: disabled person completely unable to perform paid work;- category 3: disabled person completely unable to perform paid work and requiring assistance

from a third party.

The amount of disability pension is calculated as follows:- on the basis of the individual's most recent annual salary immediately prior to their stopping

work;- or, if more favourable, on the basis of the average annual salary during the three highest-paid

years of employment of the individual's career.

The disability pension is equivalent to the following:- 60% of the benchmark salary of an disabled individual still able to work;- 80% of the salary for a disabled individual who is completely unable to work;- 80% of the salary plus 40% of the pension for disabled individuals completely unable to work

and who require the assistance of a third party.

The guaranteed minimum amount of disability pension is 75% of the guaranteed national mini-mum wage.

When the disabled individual reaches the age of 60, the disability pension becomes a retirementpension, the amount of which is at least equal to the disability pension.

If the disabled individual dies, their pension is transferred to their surviving beneficiaries (spouse,children and dependent ascendants).

A worker may appeal against a medical decision and there are three stages to the appeal process:stage 1: expert medical opinion given;stage 2: opportunity to contest the expert medical opinion before a regional disability committee

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comprising a magistrate, an expert doctor, representatives of the insured individual and a rep-resentative of the parent ministry;

stage 3: appeals against decisions of the disability committees may be brought before the com-petent legal bodies up to the court of cassation.

In Morocco, in order to receive a disability pension, workers must fulfil the following require-ments:

- be able to provide evidence of a minimum of 1,080 days of insurance, including 108 days dur-ing the 12 calendar months immediately prior to the disability. However, this condition iswaived where disability has occurred as a result of an accident at work;

- be unable to perform any kind of paid work (total disability).

The pension is equivalent to the following: - 50% of the monthly benchmark salary for workers who are able to provide evidence of between

1,080 and 3,240 inclusive days' insurance;- an increase of 1% is available for each 216-day period of insurance over and above the 3,240

days, and an increase of 10% of the monthly benchmark salary is available if the disabled indi-vidual requires permanent assistance from a third party;

- the minimum pension is MAD 500 per month; - the maximum pension is 70% of the monthly benchmark salary, capped at MAD 6,000 but may

be increased by 10% in cases where the individual requires permanent assistance from a thirdparty.

Dependents of an insured worker or an individual receiving a disability or old-age pension at thetime of their death are paid death benefit.

As from 1 January 1991, death benefit is MAD 10,000 and is paid out to beneficiaries in the fol-lowing order of priority:

- spouse;- descendants;- ascendants;- brothers and sisters;- the individual paying the funeral costs, in which case the amount of death benefit is

MAD 5,000.

In Tunisia, insured individuals may by law receive a disability pension if they have been disabledas a result of their work and have had their earning capacity reduced by at least 2/3.

It would appear that there is no legal provision for disability pensions for individuals who havebecome disabled as a result of illness.

In Egypt, entitlement to disability and death pensions is dependent on a number of conditions:- workers in the state sector and the public sector (business and other) must have stopped work

as a result of death or full disability, or, where the worker cannot be transferred to another post,as a result of partial permanent disability (no required contribution period);

- insured individuals who die or are declared fully disabled during the year following their ces-sation of work must not have exceeded the retirement age and may not have received a one-offcompensation payment, regardless of the contribution period. A period of three years may beadded, provided that there are no fewer than three years left before the individual reachesretirement age. Private sector employees are required to have completed a contribution periodof either three consecutive months of six non-consecutive months; this does not apply to work-ers governed by the statutory recruitment regulations, or to workers whose wages, allowancesand promotions are set by collective agreements concluded in accordance with the LabourCode and where such regulations and agreements have been approved by the minister forsocial security;

- the insured individual must have died or been declared disabled more than one year after stop-ping work, the contribution period must be greater than nine years, and the insured individualmust not have received the one-off compensation payment. In this case, the pension is calcu-lated on the basis of the contribution period, the average salary and the pension rate.

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In the first two cases, the pension is calculated on the basis of either 65% of the average salary,or the old-age pension, whichever is the greater, provided that the rate does not exceed 80%.

An additional allowance is granted in the following circumstances in the event of total or partialpermanent disability or death:

- stopping work as a result of death or total or partial permanent disability with pension entitle-ment;

- death of an individual receiving a pension where there are no surviving persons who are enti-tled to a pension.

Except in the event of an accident at work or for workers in state sector and the public sector (busi-ness or other) governed by the statutory recruitment regulations, or workers whose wages,allowances and promotions are set by collective agreements concluded in accordance with theLabour Code, in order to receive this additional allowance, workers must be able to provide evi-dence of a contribution period of either three consecutive months or six non-consecutive months.

This condition must also be met in cases where the insured individual is a soldier requesting thattheir time in the military be added to their periods of work in the civil sector.

The amount of the additional allowance is equivalent to a percentage of the annual salary accord-ing to the age of the insured individual on the date of eligibility and a scale annexed to the law.

In the event of partial disability, half the amount of the additional allowance is paid.

The allowance is doubled in the event of the insured individual dying (and therefore stoppingwork) and leaving no beneficiaries.

If either the insured individual or an individual receiving a pension dies, death benefit is paid outfor the month in which the death occurred and for the two following months. This benefit is paidby the party responsible for paying the individual's salary or pension.

Where an individual receiving a pension dies, funeral costs are paid totalling an amount equiva-lent to two months' salary, and in any case no less than EGP 200.

Beneficiaries of the pension are defined as the widow or divorced wife, husband, sons, daughters,father and mother, and brothers and sisters meeting the entitlement conditions stipulated by lawat the time of death.

Under the scheme for employers and similar persons, a disability or death pension may be grantedsubject to the following conditions:

- there must be confirmation that the insured individual is disabled or has died during thecourse of performing their work;

- there must be confirmation that the insured individual became disabled or died during the yearin which they stopped work and that they have not received the one-off payment, and provid-ed in both cases that they have made contributions for a period of either three consecutive orsix non-consecutive months;

- there must be confirmation that the insured individual became disabled or died more than oneyear after stopping work, provided that they have paid contributions for a period of at least120 months and that they have not received the one-off payment. The contribution period isincreased either by five years or by the number of years left before the age of 65.

The pension is calculated on the basis of either 65% or that of the contribution period plus theincrease and a validation rate of 1/45th, whichever is greater.

Under this scheme, an allowance is paid out in the event of death as is an allowance to cover funer-al costs, under the same conditions as those applying in other schemes, and on top of the addi-tional allowance and one-off payment. The allowance or one-off payment is 14.4% of the averagecontribution income for each year of contribution to the scheme.

The universal social protection scheme also grants the insured individual and the beneficiary apension in the event that the former suffered permanent and full disability whereby the individualis completely unable to perform paid work, provided that they have paid contributions to thescheme for a minimum period of six months, falling to three months for insured individuals whohave taken steps to sign up to the scheme. The pension is the same as the retirement pension.

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The migrant workers' scheme also grants benefits set out by the social security system in the eventof disability or death.

In Jordan, under the terms of the law of 1 June 2001, which significantly amended the provisionsof the pervious law, in the event of permanent chronic disability, i.e. for any reason excluding anaccident at work or an occupational disease, a disability pension may be granted according to thefollowing conditions:

- the individual must be declared disabled in a medical report issued by the ad-hoc committee;- the individual must have stopped work for medical reasons and must submit an application for

a total permanent disability pension before they reach the age of 60 (men) or 55 (women);- the effective contribution period may not be less than 60 months, during which continuous con-

tributions must have been made for at least 36 months;- the insured individual may not claim a disability pension prior to their being affiliated to the

scheme.

The amount of the total permanent disability pension is equivalent to 50% of the average month-ly salary upon which payment of the last 36 contributions is based.

In the event of full disability or death, a worker employed in a company with fewer than fiveemployees qualifies for an allowance based on 1,200 days' work, provided that the total allowancedoes not exceed JOD 5,000 and is not less than JOD 2,000.

To qualify for benefit for permanent partial chronic disability, the same conditions must be met asfor full disability.

The pension is equal to 75% of the total permanent disability pension.

However, these two types of pension are increased by 0.5% per year of contribution where the con-tribution period is at least 60 months, and by 1% where the contribution period is 120 months.

Individuals receiving a partial chronic disability pension may claim this benefit in addition totheir income from work subject to the provisions of the social security system up to a maximum of50% of the minimum pension.

Continuing payment of the pension is subject to a medical examination that may be performed atany time within two years following the declaration of the individual as partially or fully disabled.

Both the institute and the beneficiary are entitled to appeal against decisions taken following amedical examination within a period of 24 days from the date of the decision.

Indeed, in the event of 'chronic' disability (i.e. not as a result of an accident at work), if the insuredindividual is not happy with the decision by the medical committee of the Social Security Institutewhich rules in the first instance, they may appeal to a special appeal committee consisting of spe-cialist doctors outside the institute. If the insured individual does not win the appeal, they maytake their case before the High Court of Justice, which will either accept or reject the appeal.

If the insured individual dies, where evidence can be provided of at least 24 months of paid con-tributions, including 12 continuous months, the beneficiaries and heirs are entitled to a retirement-death allowance calculated on the basis of 50% of the average monthly salary of the last 12 monthsof contributions. This amount is increased by 0.5% for each year of contribution if the contribu-tion period is at least 60 months, and by 1% for a period of at least 120 months.

Beneficiaries receive the income granted to the insured individual regardless of whether they diedduring their working life or after retirement, or whether the income was for normal or early retire-ment or as a result of an accident or illness.

The income granted is divided between the beneficiaries according to the shares stipulated inannex to the law and in the following order of priority:

- widow or widower;- children;- dependent brothers and sisters;- widowed or divorced daughters;- mother and father;- other.

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If a widow remarries or dies after receiving her entitlement, her share is transferred in equal pro-portions to the children receiving the benefit at the time of her remarriage or death, provided thatthe sum in question does not exceed 75% of the total amount of the entitlement.

This rule also applies in the event of the death of an entitled spouse.

The individual may claim both pensions allocated under social security legislation and those allo-cated under any other legislation.

An individual receiving two retirement pensions or two disability pensions may claim both bene-fits at the same time provided that the sum of the amounts does not exceed twice the minimumpension. If this is the case or where one of the benefits exceeds twice the minimum pension, thegreater benefit will be paid.

A widow may claim her own retirement or disability pensions as well as her share of the survivor's,retirement or disability pension. She may also claim at the same time her share of the survivor's,retirement of disability at the same time as her working salary up to a maximum of the minimumpension allocated.

The children (both male and female) of an individual receiving a retirement or disability pensionmay concurrently claim their shares of both benefits provided that neither of exceeds the minimumpension. If one of the two benefits does exceed twice the minimum amount, the higher benefit ispaid.

The minimum amounts for both retirement and disability pensions are set by the Council ofMinisters on the basis of a recommendation from the Board of the Social Security Institute. TheCouncil of Ministers also decides, in the same way, whether to raise these minimum amounts.

However, there is no maximum amount for retirement of disability pensions. They are also exemptfrom all taxes and may only be seized in the event of default on support payments to dependantsor where debts are owed to the Social Security Institute: seizure is limited to 1/4 of the pension.However, priority is always given to support payments to dependants.

2.5 Accidents at work and occupational diseases

In Algeria, an individual who is the victim of an accident at work is entitled to free care from thepublic health service. If they choose to receive private-sector treatment, all costs for this are reim-bursed.

During a period of temporary disability, the victim receives a daily allowance equivalent to 100%of the most recent salary subject to contributions.

If at the end of a period of temporary disability, the victim is still suffering from the after-effectsof the accident, they are allocated a permanent disability allowance calculated as follows:

- on the basis of the most recent annual salary received prior to the date of the accident;- on the basis of the disability rate and allocated according to a statutory scale.

The benchmark salary upon which the benefits are calculated may not be lower than the guaran-teed national minimum wage.

The benefit may be reviewed in the light of any medical changes in the after-effects.

Where the disability rate is less than 10%, instead of a benefit, a sum in lieu of benefit is paid,calculated on the basis of the age of the victim at the time of the accident.

If an individual receiving benefit dies, the survivor's benefit is allocated to the dependants whooutlive them.

Where an accident results in the death of the victim, the surviving beneficiaries are paid the fol-lowing:

- a sum equal to 12 times the amount of the victim's most recent monthly salary provided that itis not less than 12 times the amount of the guaranteed national minimum wage;

- a survivor's benefit, calculated on the basis of the victim's most recent annual salary, up to amaximum of 90% of their salary.

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Occupational diseases are those diseases appearing on one of the lists of occupational diseasesdrawn up by decree of the minister for social security.

There are 85 lists, which, in addition to the types of ailments, give details of the period of expo-sure to risk, the period of cover and a list of jobs in which an individual is likely to encounter suchailments.

Compensation for occupational diseases is the same as that for accidents at work.

In Morocco, in the context of reimbursement of health care costs following an accident at workor an occupational disease, the victim is free to choose their doctor or pharmacist and their med-ical staff. In this case, the insured individual's employer is only obliged to pay the costs incurredby the victim up to a sum set by the Verification and Arbitration Committee (Commission deContrôle et d'Arbitrage), or where necessary, by the court and up to the maximum rate set bydecree.

Where the individual is admitted to a state hospital, the employer or the insured individual mustpay the costs of hospitalisation, the rate of which is set by decree. If the victim is hospitalised ina private clinic, the employer or the insured individual must reimburse the costs up to the maxi-mum rate for state hospitals.

When stopping working after an accident of illness, the victim is entitled to a daily allowance inline with the following rules:

- the work day on which the accident occurred is covered by the employer;- the daily allowance is payable throughout the entire period of temporary disability following

the accident at work or the consultation of a doctor concerning the occupational disease;- the daily allowance is equivalent to half the victim's daily wage for the first 28 days and then

2/3 of the daily wage from the 29th day onwards.

The daily wage taken into account when calculating the allowance includes the basic wage andany benefits in cash or in kind received by the victim during the week or month prior to the acci-dent.

It may not be less than the applicable minimum wage and is readjusted in the event of any gener-al or partial wage increase made during the period of temporary disability.

If the victim has to take time off during working hours to receive care prescribed by a doctor, theyare entitled to claim compensation for the time they are absent equivalent to half their salary,unless more favourable conditions are otherwise indicated, and paid at the same time as theirsalary. Each period of absence lasting less than one hour entitled the individual to be paid theirfull salary.

Regardless of the period of temporary disability, the daily allowance is paid every fortnight untilthe day their condition stabilises or they recover.

A permanent disability is a disability that continues after the victim's wounds have healed com-pletely. The permanent disability rate is determined according to the nature of the disability, thevictim's general condition, their age, their physical and mental faculties, and their skills and pro-fessional qualifications in line with a disability scale set out in a decree. Individuals sufferingpermanent disability are entitled to the following:

- equipment: the supply (by specialist bodies approved by the ministry of employment), repairand replacement of prostheses necessitated by the victim's condition;

- a statutory allowance, equal to the annual remuneration multiplied by the disability rate, thelatter being reduced by half for the proportion of the rate below 50% and increased by half forthe proportion of the rate exceeding 50%. Pensions' arrears run from the day of or day follow-ing either stabilisation of the patient's condition or death. If the disability rate is under 10%,the benefit may be substituted by a cash payment. The benefit is paid quarterly in arrears. Thetotal annual salary is taken into account when calculating this benefit, up to a ceiling set bydecree. Over and above this limit, the salary is reduced in stages.

In the event of permanent full disability (TPD=100%), if the victim requires assistance from athird party to carry out day-to-day tasks, the amount of benefit is increased in line with conditionsset out by decree.

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39

In the event of an increase in the victim's basic salary or remuneration, the amount of benefit isreadjusted to reflect the salary increase. However, in practice, the amount is seldom readjusted.

Where an accident results in death, the beneficiaries are paid a funeral allowance equivalent toone month's salary, however, this allowance may never be less than the monthly SMIG in force fora working period of 200 hours.

Death benefit equivalent to 55% of the average daily wage is also paid to the spouse, children,father, mother and ascendants.

These provisions applying to accidents at work were extended to cover occupational diseases bythe Dahir of the 31 May 1943, a legal provision that was supplemented and amended in 1963.

In Tunisia, the system for accidents at work and occupational diseases, set up in 1995, coversemployees of three schemes: non-agricultural employees, agricultural employees and the improvedscheme for agricultural workers.

Under the law that established this branch within the CNSS, there is a system of automatic andfixed-amount compensation for employees who fall victim to accidents at work or occupational dis-eases.

Benefits in kind covered by the CNSS include health care and supplying prostheses and orthoses.Great importance is attached to the patients being free to choose their doctor or pharmacist. Thevictim pays the costs for medical treatment and pharmaceutical products and is then reimbursedby the CNSS up to the maximum official rate. However, if the victim is treated in a state hospitalor health care centre, or in a private centre affiliated to the CNSS under an agreement, the cost ofcare is covered by the CNSS directly.

Where a victim who is an employee is rendered permanently disabled, they are entitled to bene-fit, provided that the disability rates 15% or higher. The amount of benefit is calculated by multi-plying their annual remuneration by the disability rate (reduced by half for the proportion below50% and increased by half for the proportion exceeding 50%).

Where disability is less than 15%, there are two possible scenarios:- where the disability rate is less than or equal to 5%, the victim is not entitled to any benefit;- where the disability rate is between 6% and 15% inclusive, the victim is entitled to a single

lump-sum payment equivalent to three times the benefit amount.

If the insured individual suffers from an ailment that reduces their working capacity by at least2/3, they are entitled to a disability pension (however, there are no conditions as regards the min-imum contribution period in the case of occupational disease) equivalent to 50% of the averagebenchmark salary used to calculate the payment of the retirement pension. For insured individu-als who can provide evidence of more than 108 months of contributions (nine years) this amountis increased by 0.5% per quarter. However, the total amount of the pension may not exceed 80%of the benchmark salary. If the victim requires assistance from a third party to carry out normaleveryday activities, the victim's pension will be increased by 20%.

If the individual dies, their beneficiaries are entitled by law to compensation in the form of a lifeannuity for the surviving spouse and orphaned children.

Compensation for harm caused by occupational diseases is granted according to the same condi-tions and criteria as those applying to accidents at work. The list of ailments considered as occu-pational diseases is drawn up by decree and is reviewed periodically (at least once every threeyears).

In 2000, 46,300 accidents at work and 297,000 occupational diseases were reported to the CNSS.

However, more specific efforts are now being made to raise people's awareness of how to preventaccidents at work and occupational diseases, and this should help to cut spending in this area.

In Egypt, since 1958, the present-day National Social Security Institute has been responsible forcompensating individuals for accidents at work, even in cases where workers have not beeninsured by their employer.

The response in the event of accidents at work comprises three stages:

- dealing with the causes of the accident by offering a means of prevention;- dealing practically with the consequences of accidents by offering medical care and optimum

compensation;- dealing with the various after-effects of accidents by offering retraining for staff and occupa-

tional rehabilitation for victims who have suffered permanent disability but can be retrained.

In the event of death or total or partial permanent disability, the workers also qualify for benefitrather than a single payment.

The following are deemed to qualify as accidents at work:- any accident occurring during or as a result of performing work;- any accident occurring during the worker's journey to or from their place of work, provided that

the route taken is the normal one and that there is no detour, interruption or delay to the jour-ney;

- diagnosis of any of the 29 occupational diseases listed in the table annexed to the law;- any injury resulting from overwork which causes a brain haemorrhage or heart attack.

When an accident at work occurs, the employer must: - fill out an accident report;- take the victim to a specialised treatment centre (at the employer's expense);- inform the police27 within 48 hours of any accident involving one of their workers in which the

victim is rendered unfit to work.

If an insured individual notifies their employer that an accident has occurred and the employerfails to take the necessary steps, the insured individual must inform the appropriate social secu-rity authorities so that the necessary steps can be taken.

The Public Health Protection Institute is obliged to provide care and all forms of medical cover such as:- the medical services of a general practitioner;- specialist medical services, including dental surgery;- where necessary, medical care at the victim's home;- treatment and stays in a hospital, clinic or other specialist centre;- surgery and other forms of care, as required;- X-ray examinations, laboratory analyses and other medical and related examinations;- supply of necessary medication, rehabilitation services and provision of artificial limbs and

prostheses.

The victim is entitled to the following cash benefits:- transport costs, excluding the initial costs borne by the employer for transporting the victim to

a hospital or other treatment centre;- in the event of temporary disability, replacement income equivalent to 100% of the salary sub-

ject to contributions. This benefit is paid as from the first day following the day of the accidentuntil the victim's recovery, stabilisation of their health situation or death, as appropriate. Theemployer covers the first day on which the accident occurred (except where the accident is theresult of a deliberate error by the victim, their conduct28 or where disability in excess of 25%leads to full disability);

- in the event of total permanent disability or death, benefit equivalent to 80% of the amount ofthe basic salary and variable salary29. This benefit is increased by 5% every five years up tothe age of 60 completed years;

- in the event of total permanent disability and where the insured individual is aged 25 or less,additional compensation equal to 400.5% of the annual salary used to calculate the benefit.This additional compensation is reduced as the insured individual grows older, reaching 30%at the age of 62, and in line with a scale annexed to the law;

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27 With accidents involving public-sector workers which occur in the workplace, an administrative statement is sufficient.28 For example, where instructions on prevention are not followed.29 A monthly benefit of EGP 10 is paid to victims aged 18 years, graduates, trainees in the industrial sector and to indi-viduals performing unpaid charitable work.

- in the event of permanent partial disability and provided that the disability rate is lower than35%, benefit equivalent to the disability rate multiplied by the amount of permanent disability;

- where the disability rate is lower than 35%, an extra capital amount is paid in addition to thiscompensation for partial permanent disability equivalent to the disability rate multiplied by 4years' or 48 months'30 worth of pension for full disability. No amount is paid either wherecapacity is less than or equal to 25% of full disability or where the accident is a result of adeliberate error by the victim or of wilful misconduct on their part.

Benefit for an accident at work is paid out during the entire lifetime of the worker and, upon theirdeath, to their family: 50% to the widow during her lifetime or until she remarries, to any daugh-ters during their lifetime or until they marry, and to any sons up to the age of either 24 (if they havecompleted standard education) or 26 (if they have followed a course of higher education) or par-ents.

Workers who fall victim to on the occupational diseases, listed in the table annexed to the law are enti-tled to medical care, assistance (compensation for temporary disability) and payment of compensationin accordance with the provisions of law 89-1950 on compensation for accidents at work.

Furthermore, under law 117-1950, employers are obliged to take out insurance against occupa-tional diseases for any of their workers who are exposed to the risk of such disorders. Under thislaw, employers must pay a premium to an insurance company, which will in return provide care forworkers, pay them financial assistance and entitled them or their kin to compensation in the eventof their permanent disability or death.

Under the scheme for employers and similar persons, following an accident at work a monthly dis-ability or death pension is paid out under the same conditions as for employees, except where theinjury occurs as a result of overwork and causes a brain haemorrhage or heart attack. This pen-sion is equivalent to 80% of the contribution income or average contribution income.

If an individual receiving a pension dies, their survivors are awarded an allowance equivalent toone month's allowance, paid during the month in which the death occurs and for a period of twomonths thereafter, plus funeral costs equivalent to two months' payment.

In the event of the full disability or death of an insured individual, or of the death of an individ-ual receiving a pension who leaves no beneficiaries, the insured individual and/or their benefici-aries qualify for additional compensation as defined in section 2.4 above, but increased in thiscase by 50%.

Under the same conditions as those set out in section 2.4, the insured individual is entitled to com-pensation in the form of either capital or a single payment.

In Jordan, the area of accidents at work31 and occupational diseases covers the following people:- all workers paying social security contributions and employed by private companies with five

or less employees;- workers employed by state bodies, municipal authorities and local authorities not affiliated to

civilian and military schemes;- trainees.

The following are considered accidents at work:- any accident arising from the insured individual performing a task in the course of their work32,

including any accident occurring during the insured individual's journey to or from their place

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30 Using the formula: disability rate x 80% x 4 years x 1231 In 2001, income (contributions) for insurance against accidents at work was USD 17.9 million as compared with expen-diture of just USD 6.2 million! During the same year, there were 9,103 accidents: of this total, 68 individuals receiveddeath benefit, 127 received disability benefit and 1,526 received a single payment (disability rate below 30%)!32 Excluding incidents or accidents resulting from an intentional error by the victim or occurring following the victim'sconsumption of wine, spirits, drugs or psychotropic substances, or where the victim has violated instructions regarding thehandling of materials, hygiene, safety or occupational health, where the violation in question was either the prime causeof the accident or played a significant role in its occurrence. The institute may conduct any investigation required to estab-lish these facts. However, there is no loss of entitlement where the disability rate as a result of the accident is greater thanor equal to 30%.

of work, provided that their outward destination is their place of work and their return journeyoriginates at their place of work;

- but under Jordanian law, contracting one of the occupational diseases listed in the annex to thelaw or "any other disease that the Board of the Social Security institute may decide to add tothis list on the basis of a proposal following a medical examination".

Medical cover includes costs for medical care, hospitalisation, costs of transporting the victim toa treatment centre, rehabilitation services and equipment.

The private-sector employer (company or business) is responsible for transporting the victim to thetreatment centre and for settling all bills and costs incurred as part of the treatment. In addition,provided that all medical reports and bills relating to the treatment are submitted to the SocialSecurity Institute, the latter will then reimburse the employer for the costs paid until the treatmentis completed and the victim has recovered or the stabilisation of their condition has been certifiedby the Medical Committee of the Social Security Institute.

The employer also pays wage compensation for the days the victim is unable to work following anaccident, namely to the tune of 75% of their salary: the employer then applies to the SocialSecurity Institute for reimbursement of any amounts paid on the basis of medical reports and theperiod of time off work set out therein.

For public civil servants who are affiliated to the social security system and are covered by gov-ernment health insurance, the costs of care and salary compensation are covered by governmentinstitutions in return for a 50% reduction in their monthly contributions, i.e. payment of a 1% con-tribution instead of the 2% stipulated for such insurance.

When treatment is terminated due to the stabilisation of the medical state of a patient sufferingfull disability following an accident, the appropriate medical committees of the social securityinstitute stipulate the rate of disability.

Where the rate is greater than or equal to 30% the institute grants the insured individual a bene-fit based on their disability rate.

Where the rate is less than or equal to 30%, the insured individual receives a cash amount, knownas a single payment, calculated according to the rate of disability in respect of a full disability fora period of 36 months.

If the victim dies, the Social Security Institute grants the beneficiaries and heirs of the deceasedworker a death pension equivalent to 60% of the overall salary the worker would have receivedprior to their death. Funeral costs are also paid to the family up to the maximum stipulated limit.

The victim is entitled to benefit for an accident at work or for an occupational disease from thevery first day of their affiliation to the scheme.

The maximum rate for full disability is 75% of the salary received at the time the accident occurs.This rate is increased by 25% if the victim required assistance from a third-party.

The minimum amount is currently equivalent to approximately €104.

Any employer whose worker suffers an accident at work must inform the Social Security Institutein line with the specified procedures within a maximum period of seven days.

If they fail to do so, they shall be liable to pay 15% of the costs for care and 100% of the dailycompensation covered by the Social Security Institute.

In the event of multiple ailments, victims are entitled to the following:- where the overall disability rate is less than 30%, a single capital amount based on the dis-

ability rate arising from the injury;- where the rate is greater than or equal to 30%, a monthly benefit;- where the victim was already receiving a benefit, the amount is recalculated on the basis of the

new rate (rate of disability arising from accidents). Either the Institute or the victim mayrequest a fresh medical examination once every six months during the two years following cer-tification of the disability. The victim's entitlements are determined on the basis of the resultsof the medical examination. If the rate has increased, the amount of benefit is re-evaluated

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accordingly. If the rate has dropped but is still less than or equal to 30%, the benefit amountis reduced. If the rate drops below 30%, the benefit is suspended and the victim receives a sin-gle cash payment as determined on the basis of the disability rate in respect of a full disabili-ty lasting 36 months.

Employees working in a company with fewer than five workers and who fall victim to an accidentat work are entitled to medical treatment paid for by their employer and to daily compensationequivalent to 75% of their salary for each day they are unable to work as a result of the accident.

Victims may appeal against decisions taken by the Medical Committee to a special committeecomprising independent doctors outside the Social Security Institute. Such appeals are subject tothe same conditions as apply in the case of chronic disability33.

The Social Security Institute remains bound to honour the entitlements of any insured individualin the event that they develop symptoms of an occupational disease within a period of two yearsafter stopping work, even where they were engaged in an occupation that does not give rise to anyoccupational disease.

Individuals may claim benefit for an accident at work while drawing a salary.

2.6 Varying national practices in terms of maternity cover for employed women

In Algeria, employed women are entitled to 14 consecutive weeks' maternity leave paid by thesocial security system. This leave may begin no earlier than six weeks and no later than one weekprior to the estimated due date.

Under labour legislation, a male employee is entitled to paternity leave – usually three days – paidby the company.

Daily compensation paid during the period of maternity leave is equivalent to 100% of the salarysubject to contributions.

Furthermore, pregnant women may receive treatment from the following:- centres specialising in mother and infant welfare;- hospitals (both here and in the above cover is free of charge);- a privately employed doctor or midwife (in this case, the patient must pay the costs up front

and claim reimbursement at a later date).

In order to encourage pregnant women to receive medical treatment, under social security legisla-tion entitlement to maternity insurance is subject to mandatory medical examinations and a doc-tor or midwife must attend the delivery of the child.

Centres specialising in mother and infant welfare also provide medical check-ups for breastfedinfants and administer the necessary vaccinations. However, medical check-ups for children canalso be carried out by actors in the private sector, and the insured individual will be reimbursedfor any medical treatment and care under their sickness insurance.

In Morocco, to qualify for maternity cover, pregnant women must meet the following criteria:- be able to provide evidence of 54 days of contributions during the 10 months of registration

prior to the date on which they stopped work;- be resident in Morocco;- have stopped all paid work at the time their maternity leave commences.

Maternity leave lasts for 12 weeks, including a minimum of six weeks after the baby's delivery.

During this period, pregnant women may receive 100% of the benchmark salary, up to a limit ofMAD 6,000 per month, as defined for calculating the daily sickness benefit.

When a child is born to their spouse, male employees are entitled to take three days' paternityleave, paid by their employer: the latter is then reimbursed for this amount by the CNSS.

In Tunisia, women stopping work after becoming pregnant or giving birth are entitled to dailycompensation known as 'delivery benefit' (indemnité de couche) for a period of one month, with the

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possibility of extending this period by successive periods of 15 days up to a maximum of threemonths. This compensation is equivalent to 2/3 of their average daily wage.

Accordingly, a male employee who is the head of a household is entitled to one day's paternityleave per birth, paid by their employer and equivalent to 100% of their average daily wage. Theemployer is subsequently reimbursed for this amount by the CNSS.

In Egypt, an insured woman who can provide evidence of least 10 months' affiliation is entitled,in addition to health care benefit, to extra compensation. For female workers in the private sectorthis is equivalent to 75% of their salary that is subject to contributions for a period of 50 days andis paid by the social security system.

Female workers in the state or public sector are entitled to payment of their full salary by theiremployer for a period of three months in accordance with labour regulations.

In addition, under the law on infants34, a woman is entitled to take three months' maternity leaveon full pay after giving birth.

In Jordan, women receive 10 weeks' paid maternity leave. They are also entitled to unpaid leavefor a maximum period of one year to raise their child.

Conversely, men are not entitled to any paternity leave when their spouse has a child.

2.7 Other family benefits: family allowance for the cost of childcare in a crèche

In Algeria today, family allowance still, as ever, takes the form of make-up pay, whereby it is onlyavailable to and paid by companies for single salaried employees and similar individuals.

Despite being financed by the state budget, the allowance is neither (nor has it ever been) extend-ed to other categories, nor more generally applied.

As such, allowances are paid for children of workers with dependent families, provided that theworker has paid contributions based on a salary that is no less than half the guaranteed minimumwage.

However, family allowance is also available to workers who have stopped work due to illness, dis-ability, an accident at work, paid unemployment, retirement and so forth.

Family allowance is payable for each child who is resident in Algeria and who is aged: - under 17;- or under 21 for a youngster who is following a course of study or an apprenticeship or who is

unable to work due to disability or chronic sickness.

There is no limit on the number of children for whom an allowance may be paid.

In respect of the first five children, the amount of family allowance varies according to the salaryor income of the recipient. The amount is fixed for the sixth child and any subsequent child/chil-dren regardless of the recipient's salary.

Therefore, the allowance amounts are as follows:- DZD 600 per month and per child if the recipient's income is less than or equal to DZD 1,500

per month (up to the fifth child);- DZD 300 per month if the recipient's income is greater than DZD 1,500;- DZD 300 per month for the sixth child and any subsequent child/children regardless of the

recipient's income.

The family allowance is administered by the Social Insurance Fund (Caisse d'Assurances Sociales),but is paid for out of the state budget. In the public-service sector, family allowance for workers isrun directly by the public institutions and administrations themselves.

As well as a family allowance, there is also education bonus, the amount of which is set by decreeand which is paid twice a year to children aged between 6 and 21 who are studying. The bonus is

44

34 Law no. 12-1996

the responsibility of the employer and is paid by them directly. Here, too, there are two fixedamounts according to the resources of the recipient and the rank of the child.

For children of individuals receiving a disability or retirement pension, this education bonus ispaid by the Social Insurance Fund on behalf of the state.

Crèches and kindergartens are available and may be set up and run by the following:- local authorities;- the Social Insurance Fund;- employers;- private individuals.

The financial contribution paid by families varies according to the status of the crèche or kinder-garten and is generally in region of 1/3 of the guaranteed national minimum wage. But as a gen-eral rule, tax relief is available on this amount for low-income and single-parent families.

Finally, in the context of social assistance from the state and family policy:- individuals receiving standard solidarity benefit receive compensation of DZD 120 per- dependent person up to a maximum of three people;- grants for secondary- and university-level study are also available;- there are also measures for adjusting income tax according to an individual's family situation.

On the other hand, in almost all public-sector companies and organisations single-salary compen-sation is available for workers whose spouse does not work.

In Morocco, in order to be entitled to family allowance, an insured individual must meet the fol-lowing criteria:

- be able to provide evidence of 108 days of contributions during a registration period of six cal-endar months and have one or more dependent children resident in Morocco;

- and be earning a salary of at least MAD 500 (April 2002). However, since January 1982,insured seasonal workers have been entitled to the allowance throughout the year provided thatthey can provide evidence of an average monthly salary (subject to contributions during theprevious year) of at least MAD 500.

Any child entitled to family allowance must meet the following criteria: - be a dependent of the insured individual;- still be in education or following an apprenticeship at the age of 13;- an allowance is paid for each child up to the age of 21 (for children in education) and up to the

age of 18 (for children following an apprenticeship); there is no age limit for disabled children.

The following are entitled to receive the allowance:- children of workers in industrial, commercial, handicraft and liberal companies and individu-

als receiving a disability or retirement pension;- children of seasonal workers;- children of individuals receiving benefit for accidents at work or occupational diseases.

In the event of the death of a worker who is paying contributions or receiving a pension, a familyallowance is still paid to any surviving children who are their beneficiaries.

In the public sector, family allowance is paid directly by the Civil Service.

Granting of the allowance for children of insured individuals working in the agricultural sector issubject to the decision of the Board of the CNSS.

The allowance totals: - MAD 150 per month and per child for the first three dependent children;- MAD 36 per month and per child for three subsequent children.

Individuals receiving family allowance (an insured individual, spouse and children) may receivefamily health care benefit provided that they submit a medical file. The maximum annual fixedsum for an insured individual according to their number of children is MAD 300 for one child: thisamount increases by MAD 100 per additional child up to a maximum of MAD 800 for six children.

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Educational assistance (aides scolaires) is also available.

In Tunisia, family benefit35 covers five sub-areas: family allowance, single-salary increase36, leavetaken upon the birth of a child, young workers' leave and contribution towards the cost of child-care in a crèche37.

Unlike most other areas, family benefit is only available to individuals affiliated to the followingfour schemes:

- non-agricultural employees;- students;- improved agricultural employees;- French–Tunisian agreement.

Family allowance is payable for the first three dependent children38 and until the child reachesthe following ages:

- 14;- 16 (if they are attending school);- 18 (if they are following an apprenticeship);- 20 (if they are in secondary or higher education).

This allowance is calculated on a sliding scale. The rate is 18% of the basic amount for the firstchild, 16% for the second and 14% for the third. The basic amount used to calculate allowance isequivalent to a TND 122 share of the insured individual's quarterly pay.

However, evidence shows that in Tunisia the number of recipients per working affiliate droppedfrom 0.46 in the period 1991-1995 to 0.39 during the period 1996-2000.

It appears that this is due to the following factors:- a drop in the birth rate, which has applied in Tunisia since 1987 and which translates into a

decrease in the average number of children per recipient (recipients with more than three chil-dren are becoming fewer and fewer)39;

- individuals staying single for longer.

Moreover, by law, an insured individual whose spouse does not work is entitled to a single-salaryincrease. Contrary to family allowance, the quarterly amount of this benefit increases according tothe number of children (but similarly is limited to three).

But here too, expenditure for this benefit is decreasing, a fact which indicates in particular a sig-nificant increase in the number of working women, especially married women.

Young workers aged under 18 are entitled to a additional leave of 12 days per year, while thoseaged between 18 and 20 are entitled to six additional days' leave.

The CNSS contributes towards the cost of childcare in a crèche. This contribution is paid out toinsured individuals who are in work and whose monthly income does not exceed two-an-a-halftimes the SMIG, being set at TND 15 per child per month for 11 months a year.

Finally, for several years now the CNSS has been issuing repayable loans to students not awardedgrants.

In Jordan, under the Labour Code (and not the social security system), all companies employingat least 20 married women must set up a suitable area where a qualified nursery teacher can lookafter children aged under 4. There must be no fewer than 10 children.

Married men and women are also entitled to unpaid leave, on a single occasion, for a period of no

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35 Increasingly, contributions towards family allowance are turning into pension contributions. 36 Introduced in 198037 Introduced in 199538 Until 1988, this was paid to the first four children.39 Whereas in 1970, in the non-agricultural sector, families with four or more children constituted 35.6% of those qual-ifying for family allowances, by 2000 this figure had dropped to just 0.8%!

more than two years to follow their spouse in the event that the latter moves to take up a job out-side the governorate where he/she works or to work abroad.

2.8 Covering the risk of unemployment: where such cover is available, it is for a lim-ited period and may depend on the period of affiliation to the scheme

In Algeria, the estimated working population is 8.5 million. Estimates show that approximately6.5 million people are 'employed', over 1.5 million of whom in the informal sector, which accountsfor a total of some 3 million permanent jobs.

In 2001, some 27% of the working population were unemployed: 62% of these unemployed indi-viduals lived in urban areas while the remaining 38% lived in rural areas.

In addition, the distribution of this population by age group shows that40:- over 46% are under 25 years of age;- almost 37% are aged between 25 and 34;- more than 10% are aged between 35 and 44;- less than 7% are aged between 45 and 59.

It would seem that the majority of unemployment is at career entry level, since approximately 71%of those seeking work are under the age of 30 and/or are first-time job-seekers.

It is also interesting to note that:- 85.8% of the 8,568,000-strong working population are male;- 14.2% (i.e. 883,549 people) are female.

Although the number of working women is increasing, (1.8% in 1966, 9.6% in 1998 and 12% in2000), the figure is still low, despite (paradoxically) the fairly high percentage of girls in full-timeeducation (88.92% for 6-15 year-olds). Cultural and sociological reasons are most likely to blamefor this low figure.

To qualify for compensation for employment insurance (indemnisation de l'assurance chômage), anemployed individual must meet the following criteria:

- have been made redundant;- have been affiliated to the social security system for at least three years in all;- have paid contributions during the six months prior to being laid off;- provide confirmation that they were working for the company at the time they were laid off;- have been a registered jobseeker for at least two months.

The compensation period for unemployment insurance is two months per year of contributions,with a minimum of 12 and a maximum of 36 months.

The rate of unemployment allowance is based on a sliding scale and varies between 100% and50% (according to the period of compensation) of a benchmark salary equivalent to half the salarysubject to contributions and the guaranteed national minimum wage.

The minimum allowance amount is 75% of the guaranteed minimum wage, and the maximumamount is three times the SNMG.

Finally, in the context of its involvement in employment policy, the fund responsible for organis-ing unemployment insurance carried out the following activities:

- training, retraining and boosting the skills of those receiving benefit;- helping to create jobs;- providing help in job-hunting and becoming self-employed;

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40 According to the National Office of Statistics (ONS), 2001. Moreover, the under-30s represent 44% of the working pop-ulation and 34.4% of the working population; those aged 30-59 represent 53.5% of the working population and 62.1% ofthe working population; and those aged 60 and over represent 2.5% of the working population and 3.5% of the workingpopulation.

- contributing to the guarantee fund to support microcredit;- promoting literacy;- providing financial assistance to companies in financial difficulty.

At the same time, within the contexts of promoting jobs for young people, of some specific cate-gories of workers, and of investment, the law on finance provides for exemptions from social secu-rity contributions in the following cases:

- recruitment of young, first-time jobseekers: the company and employee contributions are 7%and 5% respectively instead of 24.5% and 9%;

- disabled workers: reduction of 50% in the company share;- encouraging investment: reductions of different levels are offered on the company's share

according to area and investment; - occupational integration of young graduates from higher education and top-level technicians:

the company share is 7% instead of 24.5%.

The state reimburses the social security system for the difference between the normal and reducedrates in all cases except that of recruiting young people.

In Morocco, the national unemployment rate is 13.0%.

The percentage of unemployed young people under the age of 35 in relation to the working popu-lation is 11.71%. For the over-35s, the percentage is 2.23%.

The overall labour force participation rate is 54.4%: the activity rate for men is 79.3% and forwomen 30.3% (in 2000, these rates were 78.8% and 27.9% respectively). Accordingly, Moroccoappears to have a relatively high female working population, compared with the average for theregion as a whole.

The proportions of people in work per age group are as follows:- 15-24 years old: 48%;- 25-34: 64.2%;- 35-44: 64.2%;- 45-59: 58.5%;- 60 +: 28.5%.

In Morocco, the risk of unemployment is not covered by the social security system.

In Tunisia, in 1999 some 2,635,000 workers aged 15 and over were in work, of whom 75.6%(1,992,100) were male and 24.4% (642,900) were female. In Tunisia as in other countries in theregion is characterised by a relatively low number of women on the labour market.

In terms of employed persons affiliated to the CNSS, in 2001 the percentage of women in the non-agricultural employees scheme increased slightly since there were 697,139 affiliated men (68.6%)and 318,784 affiliated women (31.4%).

Some 2/3 of the working population are employed by public companies (excluding administration).However, for several years no distinction has been made in Tunisia's national accounts betweenthe 'public' and 'private' sector.

In a census taken in 1999, 331,800 of all unemployed persons were male and 115,300 werefemale. A look at the change in unemployment rates since 1989 clearly indicates that the rate formen is increasing (13.9% in 1989, 15% in 1994 and 15.6% in 1999) while the rate for women,although still higher than that for men, is falling (20.9% in 1989, 17.2% in 1994 and 16.3% in1999). These trends are reflected in the overall rate, which is rising: 15.3% in 1989, 15.6% in1994 and 15.8% in 1999.

Another factor is that of unemployment rates according to age-group. First to succumb to unemploy-ment are young people, and the rate in this category is on the rise. Indeed, the unemployment rateamongst 18- to 24-year-olds was 67.1% in 1999 compared to 54.7% five years earlier (1994). Therates for 18- to 19-year-olds are 35.8% (29.2% in 1994) and 31.3% (25.5% in 1994) respectively.

This rate decreases proportionally as the age of the employee increases: in the 35-59 age group,the rate was 6.9% in 1999 compared to 9.8% in1994.

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In terms of compensation, employees who are laid off for economic reasons or due to advances intechnology and those whose companies cannot afford to pay them the salary owed and who there-fore face a suspension of pay receive temporary benefit for loss of employment.41

The amount of this assistance is capped at 6 monthly payments up to a maximum amount of theSMIG. This is not unemployment benefit as such, but rather social benefit designed to safeguardincome in an emergency for a temporary period.

However, it is essential that a real unemployment insurance scheme be established as quickly aspossible.

In Egypt, unemployment insurance was introduced under the law on social security, law no. 63-1964. This unemployment insurance took the place of the compensation for stopping work (indem-nité de cessation d'activité) provided for under the Labour Code.

A basic amendment to the law42 provided for payment of half the amount of unemployment com-pensation if the work stoppage was for disciplinary reasons.

To qualify for unemployment insurance, insured individuals must:- have paid contributions to this insurance for at least six months, including three consecutive

months prior to becoming unemployed;- be registered as unemployed with the relevant job centre;- be able to work and be actively seeking work;- report weekly to the job centre where they are registered, except in cases where the insured

individual resigns or stops work following a legal judgement in the event of a crime or offencethat damages their reputation, disrupts public order or is an affront to public morality.

The compensation amount is 60% of the salary upon which payment of contributions is based.However, the amount is reduced to 35% if the individual stops work for the following reasons:

- giving a false identity or submitting a false declaration or falsified documents;- they are under investigation;- committing an error that caused serious damage to the employer;- not observing mandatory safety instructions for employees and equipment;- unjustified absence for a period longer than that stipulated by law and in the company's inter-

nal rules of procedure;- not fulfilling the primary duties required by the position;- breaking professional confidentiality requirements;- being obviously drunk or under the influence of drugs during working hours;- attacking their employer or boss, physically attacking the head of their department when at

work or for work-related reasons.

Compensation is payable as from the eighth day of stopping work (there is a 'waiting period' ofseven days). Payment is made weekly either until the insured individual finds another suitable jobor for a period of 15 weeks.

This period is increased to 28 weeks in cases where the individual has paid contributions to unem-ployment insurance for a period longer than 24 months.On the other hand, compensation may be withheld under the following circumstances:

- where the insured individual does not report to the job centre on a weekly basis;- where the insured individual refuses to follow a training courses stipulated by the relevant job centre;- where the insured individual is called up for military service.

Compensation may be reduced if the insured individual: - works for a third party for a salary lower than the compensation amount;- becomes eligible for a pension, the amount of which is lower than that of the unemployment

compensation.

41 Introduced in 199742 Law no. 79-1975

In both the above cases, the individual receives compensation for the difference between the com-pensation amount and the salary or pension received. In the latter case, compensation is paid upto the end of the remaining compensation period.Finally, compensation may be withheld if the unemployed individual:

- turns down a 'suitable' job proposed by the relevant job centre;- starts working for themself;- starts working for a third party in return for a salary that is greater than or equal to the amount

of compensation;- is entitled to a pension that is greater than or equal to the compensation amount;- reaches the age of 60;- emigrates or leaves the country permanently.

In Jordan, the working population represents 23.7% of the country's total population. The over-all unemployment rate is 13.7%, 12.3% among men and 21% among women. Approximately 29%of the working population pay social security contributions. Of the total number of individualsaffiliated to the social security scheme in 2000, 23% were women. And when viewed by sector oractivity, it can be seen that a large proportion of women are employed in the teaching profession(42%) and in health care and social action (approximately 14%).

Under social security legislation, in the context of combined old-age/disability/death insurance,employers must pay compensation for legal termination of contract, granted in accordance withlabour legislation in force.

Employers agree to pay this and any other compensation to which their employees may be entitledunder any legislation, regulations or agreement to their workers or beneficiaries in respect of peri-ods prior to the entry into force of social security legislation and as from the time of stopping workregardless of when this occurs.

Where some schemes, agreements or regulations grant workers financial benefits that are morefavourable than the compensation offered under the Labour Code, workers may keep the benefitsthus acquired.

Employers agree to pay workers the difference between these financial benefits and the contribu-tions the former are obliged by law to pay to the Social Security Institute: payment of this differ-ence commences from the time the individual stops work.

In the event of unfair dismissal, the competent court either orders the worker to be reinstated orgrants financial compensation equivalent to no less than three and no more than six months' salary,in addition to pay in lieu of notice and other entitlements such as severance pay, which is equiv-alent to one month's salary per year of service.

If a worker is not affiliated to the social security system, when they stop work either because theyhave reached the end of their contract or because they resign, they receive all entitlements andnotice.

Despite payment of these various forms of compensation when an individual stops working, it isimportant to note that there is still no system of unemployment insurance in Jordan.

2.9 Paid leave

In Algeria, workers receive 2.5 days' paid leave per month worker at their company up to a max-imum of 30 calendar days. The reference period for calculating leave entitlement is from 1 May to30 April. Although leave may be taken at any time during the year, it is generally taken during thesummer period, i.e. between June and September. Similarly, leave may be taken all in one go ordivided up throughout the year.

In Morocco, in principle employees receive one month of paid leave per year.

In Tunisia, in private companies and in line with collective agreements, workers receive 18 work-ing days' paid annual leave, which equates to 1.5 days per month of service with the company. Thisleave may be increased by one additional working day per five years of service up to a maximum

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total of 24 days' leave. In addition to this paid leave, paid leave is also awarded on 12 public hol-idays. Like civil servants, workers in public companies generally receive one month of paid leavein addition to paid public holidays.

2.10 Benefits in addition to social security are still often very basic

In Algeria, the state sets up and runs vocational training centres that provide young people andyoung girls who have completed secondary level education with training in many fields designedto prepare them for working life.

Until the social security system was streamlined in 1983, there were several supplementary pen-sion schemes according to professional sector and social security system.

The laws of 1983 prevented supplementary pension schemes being set up due to the increasedmaximum replacement rate of 80%. The laws also stopped employers from contributing to sup-plementary welfare systems for sickness disability and so on.

At that time, the existing systems continued providing the benefits acquired until they were super-seded.

In 1996, these restrictions were lifted but there has been no move towards actively introducingsupplementary pension schemes.

These supplementary measures are only available within the framework of the mutual benefitinsurance system or mutualité:

- either in the form of a financial assistance for retired persons that is run by the mutuelles;- or, in two large companies, in the form of real supplementary pension schemes.

In both cases, affiliation is voluntary and benefits are paid out in the form of a pension.

The company does not play any part in funding the mutuelles. It rather pays contributions to sup-plementary pension schemes in the case of the two large companies.

These institutions comprise salaried employees and sometimes retired persons and affiliation andcontribution are voluntary. the institutions are designed to provide additional benefit to that avail-able from the social security system.

They are primarily responsible for the deterrent fee (20%) to be paid by the insured individual forhealth care services. They also pay out supplementary replacement income in respect of disabilitypensions and daily compensation, and in the event of retirement or death.

Since 1996, pension schemes that supplement social security have been allowed by law. Howeverthey are not yet particularly well developed, probably due to the high legal retirement rate.

Nonetheless, large companies such as SONATRACH for example, provide their employees with anadditional pension representing 20% of their salary. This enables their employees to retire with apension supplemented in this way that is equivalent to their full salary.

The public authorities and unions are joining forces to get across to people how important it is toprovide for their own welfare and to encourage people to do so.

In Morocco, CNSS-affiliates are obliged to pay to the vocational training office a vocational train-ing tax, which is a tax payable by companies and equivalent to 1.6% of their actual earnings.

In addition, voluntary pension schemes funded by a contribution from both company and employ-ee are run by the CIMR.

In Tunisia, workers may join a supplementary pension scheme43 that entitles them to a proportionof their salary over and above the limit set under the mandatory scheme (six times the SMIG) inreturn for payment of an additional contribution.

Public vocational training is funded exclusively by the state, which deducts a 'vocational trainingtax' of 3% of earnings. This 'tax' is paid by companies alone and is managed by a special Treasuryfund.

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Private vocational training is funded by the respective participants' households.

In Jordan, the state attaches particular importance to vocational training. The General Institutefor Vocational Training (Institution Générale de la Formation Professionnelle) offers annual train-ing programmes on a short-, medium- or long-term basis.

The Institute also works closely with the public and private sectors and the armed forces.

Special programmes are used in the private sector.

2.11 Social assistance

In Algeria, the state provides social help to individuals who are unable to support themselves andhave no-one to look after them.

Several forms of assistance are available, depending on the social situation and/or physical con-dition of the recipient.

Social assistance is funded out of a budget that is allocated annually and which, in addition to pro-viding direct access to certain services such as transport, health care and tax exemptions, isdesigned to cover the following in particular:

- spending on operational and investment aspects of specialist institutions covering various cat-egories of disabled and elderly people;

- awarding a monthly fixed solidarity allowance to individuals who are unable to work due to aphysical or mental handicap44, and a monthly allowance to families with one or more disableddependants;

- awarding a monthly bonus to families fostering children with no family of their own;- granting a fixed solidarity allowance to people aged 60 or over who do not have an income, to

heads of household with no income, to people living alone with no income, and to female headsof household with no income;

- granting compensation to young people who are unemployed but have completed school or uni-versity education and are taking part in general-interest activities in the form of projects atmunicipal level. This compensation is managed and paid out by the social developmentagency.

Individuals in the latter two categories receive an additional allowance for up to a maximum ofthree dependants.

In addition, where appropriate, to the age and health of the individual, criteria for receiving assis-tance include lack of or insufficient resources, or the absence of any individual able to look afterthe person concerned.

On the other hand, the state guarantees a minimum income for individuals receiving a retirementor disability pension. In the context of social assistance, the state pays out any differencebetween the pension as determined by the amount of contributions made, and the minimum pen-sions set by law.

The processes of indexing these allowances are based on the government, UGTA and employerssetting a guaranteed national minimum wage that increases in line with the purchasing power ofhouseholds. However, the actual amount of allowances and any increases in them are set by law.

In Morocco, evidence suggests that any form of social assistance awarded is provided by thestate.

In Tunisia, the CNSS contributes to spending on social action, which is available not only to allCNSS affiliates, but also to those who are not affiliated to the CNSS, such as the disabled, needyfamilies, uninsured elderly people, unemployed people who therefore have no means of subsis-tence, non-profit associations and so on.

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43 Introduced in 198244 Fully disabled persons

In this context, in 2000 the CNSS contributed some TND 2.8 million (this represented 5.4% of itsTND 52.3 million budget) to some 120,000 recipients via the needy families' assistance pro-gramme, which also includes disabled and elderly people without means.

In both Egypt and Jordan, in the absence of any information on this subject and until any moredetailed research is carried out, it would appear that social assistance is provided mainly throughprivate initiatives.

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Conclusion: some topics for discussion and areas to look at inthe futureThe present situation outlined in this study brings to light a number of aspects that could do with furtherstudy.The first point for discussion is that of social security cover for the population. It would seem that socialsecurity is often designed only for (salaried) workers, but there are even gaps in this type of cover, e.g. inthe areas of health care, unemployment and soon.. What about cover for other members of the populationand the 'reality' of the different risks implemented within the framework of the social security system,particularly in accordance with the provisions of ILO Convention 102? And where are the concepts of sol-idarity and social cohesion that form the basis for and lend meaning to trade union action?But this question immediately raises another quite legitimate question: who will fund any potential exten-sion of cover? Is this not an opportunity to question the appropriateness of some forms of funding that arebeginning to appear outdated, i.e. which originated at a time when the systems in question were being setup and earnings were the essential criteria by which to measure (as well as the source of) a company'swealth? Should not some benefits funded through income from work be financed via other forms of with-holding tax, particularly all aspects of family policy for example? And if we are going to raise the subjectof 'universal' benefits, i.e. which are available to the entire population, would it not also be wise to lookinto more 'universal' methods of funding that take account of all sources of income?Another fundamental area meriting consideration at the end of this study is that of social democracy.In principle, all systems are run by a Board, which (in theory) has extensive powers. However, a closerlook at the composition of these Boards and/or the ways in which the Board members representing work-ers in particular are appointed, clearly shows that the state often calls the shots, with the role played bysome of those appointed to represent 'civil society' often being reduced to an absolute minimum. Shouldwe not also consider the real role that Boards ought to play? This brings us back to question of their com-position and actual powers, especially in terms of setting contributions and benefit amounts, for example.A further issue for reflection is that of the place of the private sector in social protection. Several coun-tries refer to the role played by 'supplementary' systems in addition to social security, for example for sick-ness cover and pensions. Surely there is a need to take a closer look at how these systems are set up (withor without the help of social partners, within the framework of collective bargaining and so forth), and toask ourselves what their role is? Do they complement the benefits/services provided by the social securi-ty system or are they competing against and profiting financially from them? Having looked at the formthey take (profit or non-profit) and how useful they are, should we not now lay down some 'rules' regard-ing the role of these bodies (including the role played by the social partners in managing them, the non-selection of risks, non-discrimination with regard to access, and so on)?The few ideas and issues set out here show just how vital it is for organisations to refine their projects andproposals. What is more, this applies not only to countries in the southern and eastern Mediterraneanregion, but also to partner countries of the European Union, hence the importance of working in partner-ship with one another.One way of moving forward would be to include on the agenda 'trade union training courses' that do nottry and tackle all these issues together, but deal with each of them in turn – and indeed look at other areastoo, since the issues raised here are by no means exhaustive.The aim is for all countries in this region to move forward together so as to avoid the risks of social dump-ing between countries that may have made major progress in improving the cover they provide, and oth-ers that are advancing at a slower pace.In any event – and this is borne out by the experience of the European Union – contrary to the view heldby some governments, who are inspired by speeches of the World Bank and/or the International MonetaryFund, the EU member states that have made the most dramatic economic headway are those that have thebest social protection systems. In other words, far from being a barrier to economic development, efficientsocial protection is actually a 'productive factor', although nobody ever comes out and actually says so.This is the challenge facing the trade union world. This is our joint ambition: not simply to set up 'safetynets' that protect people against extreme poverty and force the men and women using them into depend-ency and constant need of assistance, but rather to establish social protection systems that are worthy ofthe name and ensure that people take responsibility for and provide for not only themselves, but also oth-ers, on a basis of solidarity.

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