“The Role of Social Security in Protecting Migrant Workers:

ILO’s Approach”

Ursula Kulke, Co-ordinator for Standards and LegislationUrsula Kulke, Co-ordinator for Standards and Legislation

Social Security Department, ILO GenevaSocial Security Department, ILO Geneva

ISSA Regional Conference for ISSA Regional Conference for Asia and the PacificAsia and the Pacific

New DelhiNew Delhi, , India, NovemberIndia, November 20062006

Not new, but critical and urgent issue...

The expansion of globalization and the greater flow

of people across national boundaries

Lead to new forms of relations that require corresponding economic and social policies

Widely accepted definition ofsocial security

ILO defines social security as:

“… the protection which society provides for its members, through a series of public measures, against the economic and social distress that would otherwise be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, unemployment, invalidity, old-age and death and the provision of medical care and subsidies to families with children….”

Nine branches of social security benefits

1. Medical care

2. Sickness benefit

3. Unemployment benefit

4. Old-age benefit

5. Employment injury benefit

6. Family benefit (for children)

7. Maternity benefit

8. Invalidity benefit

9. Death (for survivors) benefit

Social Security – A Human RightSocial Security – A Human Right

Declaration of Philadelphia (1944)

Universal Declaration of Human Rights (1948)

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

International Covenant on Economic, Social & Cultural Rights (1966)

International Labour Conference (2001): “highest priority are policies and initiatives which can bring social security to those who are not covered by existing systems”

Overall policy objectives

Ensuring equality of treatment in social security for migrant workers and ensuring that migrant workers can enjoy their entitlements to benefit in practice

Thus, extending social security coverage to currently unprotected population

Restrictions faced by migrant workers under national

legislation

Principle of Nationality, which leads to exclusion of migrant workers from coverage or entitlement to benefits

Principle of Territoriality, which limits scope of application of social security legislation to territory of a country

Lack of bilateral or multilateral social security agreements through which social security rights, acquired in one country, are maintained and which provide for the export of benefits

Policy options and instruments

Coordination of social security rights of migrant workers by

Multilateral agreements

Bilateral agreements

Ratification of ILO Social Security Conventions

Protection of social security rights by unilateral measures

Protection by individuals (e.g. private insurance)

ILO standards for the protection of migrant workers’ social security rights

Equality of Treatment (Accident Compensation) Convention, 1925 (No. 19) = 120 Ratifications

Asian Countries: Bangladesh, China, Korea, India, Indonesia, Iran, Iraq, Japan, Jordan, Lebanon, Malaysia, Myanmar, Pakistan, Philippines, Singapur, Syria, Thailand and Yemen

The Equality of Treatment (Social Security) Convention, 1962 (No. 118) = 38 Ratifications

Asian Countries: Bangladesh, India, Iraq, Jordan, Pakistan and Philippines

The Maintenance of Social Security Rights Convention, 1982 (No. 157) = 3 Ratifications

Asian Countries: Philippines

The Maintenance of Social Security Rights Recommendation, 1982 (No. 157)

Social security rights of irregular migrant workers

Relevant ILO social security standards are silent regarding the protection of irregular migrant workers

Exception:

Article 9(1) of the ILO Migrant Workers (Suplementary Provisions) Convention, 1975 (No. 143), which stipulates that irregular migrant workers shall have the same rights as regular migrant workers concerning social security rights arising out of past employment

Ratifications: 18 (non of them belongs to Asian Countries)

Basic principles of ILO standards and bilateral and multilateral instruments

Equality of treatment between nationals and non-nationals Non-national workers should have same treatment as national

workers re. coverage and entitlement to benefits

Determination of applicable legislation Social protection of migrant workers has to be governed by

single law to avoid double benefits or double obligation to pay social security contributions

Maintenance of acquired rights The right acquired in other countries should be guaranteed to

the migrant worker

Basic principles of ILO standards and bilateral and multilateral instruments

Maintenance of rights in course of acquisition The contribution period served in other countries should be taken into

account when considering the qualifying period (principle of aggregation)

Provision of benefits abroad There should be no restriction on the payment of benefits irrespective of

the place of residence of the beneficiary

Mutual administrative assistance Facilitation of administrative arrangements through liaison bodies to

ensure smooth coordination

Reciprocity Protection of migrant workers is based on reciprocity

Protection through multilateral social security agreements

- Examples -

European Union

Regulation 1408/71/EEC (1971) Regulation 859/2003/EC (2003) European-Mediterranean Agreements (most remarkably,

The Barcelona Declaration of 1995)

Caribbean Community and Common Market (CARICOM) Agreement on Social Security (1997)

Protection through multilateral social security agreements

- Examples -

Africa: Economic Community of West African States (ECOWAS)

General Convention on Social Security (1993), Economic Community of the Countries of the Great Lakes

(CEPGL);General Social Security Convention (1978) Southern African Development Community (SADC);

Convention under Preparation East African Community (EAC); Convention under

Discussion Asia:

In the context of regional integration, ASEAN is interested in establishing social safety nets and reinforcing social security for member countries

Receiving CountriesSending Countries

SS AgreementsRatified Convention

India (6’271.000)

Saudi Arabia (5’255.000)

Australia (4’705.000)

Pakistan (4’243.000)

China (3’508.000)

Iran (2’321.000)

Jordan (1’945.000)

United Arab Emirates (1’922.000)

0

C. 19, 118

0

---------

13 (non Asian C.)C. 19

2 (Libya,Denmark)C. 19, 118

2 (Korea, Germany)C. 19

0

C. 19

0

C. 118

0

----------

India (7’164.00)

0C. 19, 118

Philippines (4’086.00)

10 (non Asian C.)C. 19, 118, 157

Pakistan (3’765.00)

2 (Denmark,Libya)C. 19, 118

Bangladesh (3’342.000)

N/AC. 19, 118

China (2’540.000)

2 (Korea, Germany)C. 19

Indonesia (2’428.00)

0C. 19

Thailand (1’607.000)

0C. 19

Viet Nam (1’457.000)

0----------

Korea (1’450.000)

1C. 19

Reasons for the lack of social security coordination

Administrative complexity and costs for coordination

Social security systems of migrant sending countries are insufficiently developed

Impediment for conclusion of bilateral/multilateral agreements on « reciprocal » basis

Social security systems of migrant sending countries are different to those of migrant receiving countries

e.g. widespread use of provident fund systems

Administrative capacity is insufficient to ascertain whether all required conditions are satisfied to distribute periodically for several years social security benefits

Lack of willingness to coordinate, as social security is not given a high priority

Protecting social security rights through unilateral measures

Coverage of social security for migrant workers in the host countries

Provision of group insurance for overseas workers

Liability on recruitment agencies for (voluntary) social security coverage (e.g. Indonesia and Philippines)

Provision of voluntary social security coverage for nationals working abroad (e.g. Jordan, Philippines)

Provision of health care coverage for family members in the home country

Possibility of covering retroactively missing insurance periods

Some best practices regarding protection of irregular migrant workers’ social

security rights

Provision of emergency health care e.g. Belgium, Czech Republic, Finland, France, Mexico,

Norway and Spain

Treatment by medical doctor in case of urgent care e.g. Mexico, Sweden and Turkey

ILO’s Approach for the Way Forward…

International Migration is important part of ILO’s Decent Work Agenda

ILO Tripartite Meeting of Experts adopted in 2005 “The ILO Multilateral Framework on Labour Migration: Non-binding principles and guidelines for a rights-based approach to labour migration”, which lays down:

“(9.9.) entering into bilateral, regional or multilateral agreements to provide social security coverage and benefits, as well as portability of SS entitlements, to regular migrant workers and, as appropriate, to migrant workers in irregular situation”

(“9.10.) adopting measures to ensure that migrant workers and accompanying family members are provided with health care and, at a minimum, with access to emergency medical care, and that regular migrant workers and accompanying family members receive the same treatment as nationals witht regard to the provision of medical care”

ILO’s Approach for the ASEAN Countries...

Extending social protection for migrant workers constitutes one of key pillars of ILO Plan of Action on Labour Migration in Asia Pacific. It states: “The Asian Regional Meeting in 2001 asked the ILO to help design

a social security treaty for migrant workers, especially for coverage of old-age benefits and payment of pensions in countries where migrants retire. Possibilities for harmonizing benefits that can be availed of by each other’s nationals when employed in another member country will be studied, including the requirements and qualifications for membership and for entitlements to various benefits. There may be a need in some cases to amend existing social security legislation to allow for pension rights to be given to non-nationals........

Both ISSA and SEC/SOC (ILO) will be asked to provide technical expertise on social security issues under the Plan of Action”

ILO’s Approach for the ASEAN Countries...

ILO is well prepared to provide ASEAN countries technical assistance regarding:

Providing social security coverage for migrant workers under national legislation

Harmonizing national social security legislation and, if needed, amending existing social security legislation

Negotiating and drafting of bilateral social security agreements

Drafting of regional social security treaty for ASEAN countries

Strengthening administrative capacities for the implemention of social security agreements/social security treaty.

THANK YOU