Social security programme in some countries
28/05/2024 02:20 PM
According to ILO, Social security is Social security is the protection that a society provides to individuals and households to ensure access to health care and to guarantee income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner.
Illustrative image (internet)
There are many social security programmes from countries in the world.
Singapore: Old age, Disabilities and Survivors
Regulatory framework
First law: 1953 (provident fund), implemented in 1955.
Current laws: 2001 (provident fund) and 2015 (income support program).
Type of program: Provident fund and social assistance system.
Note: Central Provident Fund (CPF) provides four types of individual accounts for each member: an Ordinary Account (OA) to finance the purchase of a home, approved investments, life and mortgage insurance, and education; a Special Account (SA), principally for retirement (may invest in retirement-related financial products); a MediSave account (MA) for certain hospitalization and medical expenses (see Sickness and Maternity); and a Retirement Account (RA) set up at age 55 to finance monthly payments at retirement.
Provident fund: Employed persons, including most categories of public-sector employees; and self-employed persons with annual net income greater than S$6,000 (MA only).
Voluntary coverage for persons without mandatory coverage.
Special system for certain categories of public-sector employees, including administrative service staff.
Social assistance (Silver Support Scheme): Needy, elderly citizens of Singapore.
Insured person
Provident fund: 20% of monthly earnings of at least S$750 if younger than age 56, 13% if aged 56 to 60, 7.5% if aged 61 to 65, or 5% if aged 66 or older. Insured persons earning at least S$500 but less than S$750 a month pay a flat monthly amount depending on age and earnings. Contribution rates are reduced for pensioners.
An additional monthly premium, which varies by age, is paid for coverage under the Dependants' Protection Scheme (DPS). The premium ranges from S$36 (if younger than age 35) to S$260 (if aged 55 to 59). Premiums can be paid using the balance in the OA or SA.
The minimum monthly earnings used to calculate contributions are S$500.
The maximum monthly earnings used to calculate contributions are S$6,000.
Of the combined insured person and employer contribution, 1% to 23% is allocated to the OA, 1% to 11.5% to the SA, and 8% to 10.5% to the MA, depending on age, for insured persons with monthly earnings of at least S$750. The MA covers the cost of hospitalization and medical expenses (see Sickness and Maternity). Funds from the OA and the SA are transferred to the RA at age 55, up to a certain amount.
The maximum annual combined insured person and employer contribution is S$37,740.
Social assistance: None.
Self-employed person
Provident fund: 4% to 10.5% (depending on age, earnings, and whether or not the self-employed person is a pensioner) of annual net trade income to the MA only. (Contribution rates for older insured persons, persons with higher annual net trade income, and nonpensioners are higher).
The maximum mandatory annual contribution to the MA is S$5,760 to S$7,560, depending on age, earnings, and whether or not the self-employed person is a pensioner.
Self-employed persons can make voluntary contributions to the OA and SA.
Employer
Provident fund: 17% of monthly payroll greater than S$50 for employees aged 55 or younger, 13% for employees aged 56 to 60, 9% for employees aged 61 to 65, or 7.5% for employees aged 66 or older. Contribution rates are reduced for pensioners.
The minimum monthly earnings used to calculate contributions are S$50.
Of the combined insured person and employer contribution, 1% to 23% is allocated to the OA. 1% to 11.5% to the SA, and 8% to 10.5% to the MA, depending on age for insured persons with monthly earnings of at least S$750. Funds from the OA and the SA are transferred to the RA at age 55, up to a certain limit.
Government
Provident fund: Contributes as an employer for most categories of public-sector workers.
Under the Workfare Income Supplement Scheme (see Family Allowances), subsidizes 60% of up to S$3,600 a year, depending on the insured person's age and income, to the CPF accounts of lower-wage employees aged 35 or older (aged 13 or older if disabled) with gross monthly income up to S$2,000 (and gross average monthly income up to S$2,000 in the last 12 months for employees); 90% of up to S$2,400 a year, depending on the insured person's age and income, to the MA of lower-wage self-employed persons; and tops up CPF accounts for insured persons on an ad hoc basis.
Social assistance: The total cost.
Old-age benefit (provident fund)
Ordinary Account: Funds can be withdrawn at age 55, subject to certain conditions; at any age if the fund member is assessed with a serious medical condition or permanently leaves Singapore and West Malaysia.
Drawdown payment: Funds can be withdrawn before age 55 to purchase a home or insurance (term-life insurance scheme and a mortgage-reducing insurance program run by the CPF Board) or to pay for full-time tertiary education at approved local institutions for the fund member, his or her spouse or children. Funds over S$20,000 can be withdrawn to make investments in approved instruments.
Special Account: Funds can be withdrawn at age 55, subject to certain conditions; at any age if the fund member has a serious medical condition or permanently leaves Singapore and West Malaysia.
Early withdrawal: Funds over S$40,000 can be withdrawn before age 55 to make investments in approved instruments.
MediSave Account: Funds can be partially withdrawn to pay for costs related to hospitalization, certain outpatient expenses, and healthcare insurance premiums. See Sickness and Maternity.
Retirement Account: Funds can be partially withdrawn at age 55, subject to certain conditions, or at any age if the fund member has a serious medical condition or permanently leaves Singapore and West Malaysia.
Fund members with at least S$60,000 in the RA at age 65 are automatically enrolled in a life annuity program from the CPF Board (CPF Lifelong Income For the Elderly [CPF LIFE]). (Enrolment is voluntary for fund members with less than this amount.)
Old-age benefit (Silver Support Scheme, social assistance, income tested): Age 65 with total CPF contributions of up to S$70,000 by age 55 and household per capita monthly income of up to S$1,100. Self-employed persons must have an average annual net trade income of up to S$22,800 from age 45 to 54. Must live in public housing with less than seven rooms and must not own or be married to someone who owns a property with five or more rooms.
Disability benefit (Dependents' Protection Scheme, provident fund): Must be aged 21 to 60 and diagnosed with a serious medical condition, assessed with a permanent total incapacity for any work, or terminally ill.
The disability is assessed either by a registered doctor in any government hospital or by the Central Provident Fund Board's panel of doctors.
Fund members may opt out.
Survivor benefit (provident fund): Paid to one or more named survivors.
Ordinary and Special accounts: A lump sum is paid of the account balance exceeding the minimum required balance in the RA, or S$5,000, whichever is greater.
The minimum required balance in the RA varies depending on the age at which the insured reached age 55: from S$80,000 (if reaching age 55 from July 1, 2003 to June 30, 2004) to S$171,000 (if reaching age 55 from January 1, 2018 to December 31, 2018).
Interest rate: The interest rate on the OA is 2.5% or the average interest rate of major local banks over the last three months, whichever is higher. The interest rate on the SA, MA, and RA is based on the current floor interest rate of 4% or the 12-month average yield of the 10-year Singapore Government Securities plus 1%, whichever is higher. The first S$60,000 of a member's combined savings (including up to S$20,000 from the OA) earns an additional 1% a year. Members aged 55 or older will also earn an additional 1% extra interest on the first S$30,000 of their combined savings (with up to S$20,000 from the OA). The CPF Board guarantees a legislated minimum interest rate of 2.5% a year on all accounts. Interest is computed monthly and compounded and credited annually.
MediSave Account: See Sickness and Maternity.
Retirement Account: Funds can be withdrawn to buy a life annuity from the CPF Board or approved insurers. Members with at least S$60,000 in their RA at age 65 must purchase the life annuity provided by the CPF Board (CPF LIFE). Up to half the minimum required balance in the RA can be withdrawn.
The minimum required balance in the RA varies based on the age at which the insured reached age 55: from S$80,000 (if reaching age 55 from July 1, 2003 to June 30, 2004) to S$171,000 (if reaching age 55 from January 1, 2018 to December 31, 2018).
Old-age benefit (Silver Support Scheme, social assistance, income tested): S$300 to S$750 a quarter is paid, depending on the beneficiary's place of residence.
Disability benefit (Dependents' Protection Scheme, provident fund): Fund members are paid a lump sum of up to S$5,000 or the amount of the RA balance exceeding a pro-rated minimum balance, whichever is greater.
A monthly benefit of the remaining balance in the RA is also paid.
The maximum combined disability benefit is S$46,000.
Survivor benefit (provident fund, all accounts): The benefit is the remaining balances in the deceased's accounts, any term-life insurance payouts, and any death benefit from the CPF LIFE annuity scheme.
The fund member determines the proportion of benefit that different survivors receive. If there are no named survivors, the benefit is distributed by the Public Trustee according to law.
Ministry of Manpower (https://www.mom.gov.sg/) provides policy supervision through its Income Security Policy Division.
Central Provident Fund Board (https://www.cpf.gov.sg/), managed by a tripartite board and a chairman, administers the programs, including the custody of the fund, collection of contributions, and payment of benefits.
Sickness and Maternity
Regulatory Frame work:
First laws: 1953 (provident fund), implemented in 1955; 1968 (employment); and 1993 (medical endowment scheme).
Current laws: 2000 (medical and elderly care), 2001 (provident fund), 2001 (child development co-savings), 2009 (employment), and 2015 (medical benefits).
Type of program: Social insurance (medical benefits), provident fund (medical benefits), employer-liability (cash sickness and maternity benefits), employment-related (cash maternity benefit), and social assistance (medical benefits) system.
Note: Provident fund members have a MediSave account to pay for hospital treatment, selected outpatient medical treatment, and approved medical insurance.
Coverage:
Social insurance (MediShield Life, medical benefits): Citizens and permanent residents of Singapore.
Provident fund (MediSave, medical benefits): See coverage under Old Age, Disability, and Survivors.
Employer liability (cash sickness and maternity benefits): Employed persons.
Exclusions: Self-employed persons.
Employment-related (cash maternity benefit): Employed and self-employed persons.
Social assistance (MediFund, medical benefits): Needy citizens of Singapore.
Source of fund
-Insured person
Social insurance (MediShield Life, medical benefits): An annual premium that varies depending on age and whether the insured is assessed with certain pre-existing conditions. Premiums can be paid in cash or using the balance in the MA provident fund account (see source of funds under Old Age, Disability, and Survivors).
Provident fund (MediSave, medical benefits): See source of funds under Old Age, Disability, and Survivors.
-Self-employed person
Social insurance (MediShield Life, medical benefits): An annual premium that varies depending on age and whether the insured is assessed with certain pre-existing conditions. Premiums can be paid in cash or using the balance in the MA (see source of funds under Old Age, Disability, and Survivors).
Employer liability (cash sickness and maternity benefits): The total cost.
Employers can seek a tax exemption for the two types of benefits (above) for medical expenses incurred up to a certain percentage of their wage costs.
Social insurance (MediShield Life, medical benefits): Provides means-tested premium subsidies.
Provident fund (MediSave, medical benefits): Contributes as an employer. Opens and credits a certain amount to a MA for newborn Singaporean citizens under the MediSave Grants for Newborns program. Provides regular and ad-hoc top-ups to the MA of certain groups of Singaporean citizens including low-income and elderly persons.
Employer liability (cash sickness and maternity benefits): Contributes as an employer.
Employment-related (cash maternity benefit): The total cost.
Social assistance (MediFund, medical benefits): Finances all or part of the cost of treatment in approved publicly funded institutions.
Cash sickness benefit (employer liability): Must have at least three months of employment. A registered doctor must provide medical certification.
Cash maternity benefit (employer liability and employment-related): Must have at least three months of employment or self-employment immediately before childbirth and be married to the child's father.
Medical benefits (MediShield Life, social insurance): There is no minimum qualifying period.
Medical benefits (MediSave, provident fund): There is no minimum qualifying period. Withdrawal limits apply.
Medical benefits (MediFund, social assistance, means tested): Must satisfy a means test.
Sickness benefit (employer liability): 100% of the employee's gross wages is paid for up to 14 days a year (up to 60 days if hospitalized).
Maternity benefit (employer liability and employment-related): 100% of the employee's gross wages is paid for up to 16 weeks. For the first and second child, the employer pays for the first eight weeks and the government pays thereafter; for each subsequent child, the government pays for all 16 weeks.
The maximum maternity benefit is S$10,000 for each four-week period.
Medical benefits (MediShield Life, social insurance): Benefits include inpatient care, outpatient treatment, and prescribed medicine in approved hospitals and medical institutions after deduction of subsidies for citizens and permanent residents, subject to claim limits.
Medical benefits (MediSave, provident fund): Funds can be withdrawn from the MA for medical treatments and to purchase MediShield Life and ElderShield, a severe disability long-term care insurance plan, or ElderShield Supplements for a member or his or her dependents, subject to limits. Fund members may also use the MA to purchase Integrated Shield Plans from private insurers or withdraw funds to pay for childbirth and maternity care expenses.
Medical benefits (MediFund, social assistance): Provides financial aid for medical treatment in public healthcare institutions. The amount of financial aid provided depends on individual circumstances.
Discretionary subsidies are also available at approved intermediate and long-term care institutions.
Medical benefits for dependents are the same as those for the insured.
Administrative Organization:
Ministry of Manpower (https://www.mom.gov.sg/) provides general supervision for the employer-liability and programs and enforces the law through its Labour Relations and Workplaces Division.
Ministry of Manpower (https://www.mom.gov.sg/) provides policy supervision for the provident fund program through its Income Security Policy Division.
Central Provident Fund Board (https://www.cpf.gov.sg/), managed by a tripartite board and a chairman, administers the provident fund program, including custody of the fund, collection of contributions, and payment of benefits, in accordance with the Central Provident Fund Act and relevant subsidiary legislation.
Ministry of Health (https://www.moh.gov.sg/) regulates medical services provided by government hospitals and private providers. It also oversees the funding of the healthcare sector, subsidies, and MediFund, and provides policy direction for MediSave, MediShield Life, and ElderShield.
First law: 1933 (workmen's compensation).
Current law: 2009 (work injury compensation).
Type of program: Employer-liability system through a private carrier.
Coverage
Manual employees (regardless of earnings) and non-manual employees with monthly earnings of S$1,600 or less (unless exempt).
The Ministry of Manpower may waive the compulsory insurance requirement for any employer or class of employers.
Exclusions: Self-employed persons, household workers, military, police, civil defense force, central narcotics bureau, and prison service personnel.
Employer: The total cost (provides benefits directly to employees or pays insurance premiums).
Government: None; contributes as an employer.
Must be assessed with a work injury or occupational disease. There is no minimum qualifying period, but claims must be made within one year of the date of the accident or when the disability began.
100% of the insured's average monthly earnings in the 12 months before the disability began is paid for up to 14 days if not hospitalized (up to 60 days if hospitalized). Thereafter, 66.7% of the insured's average monthly earnings in the 12 months before the disability began is paid.
The benefit is paid from the first day of incapacity for the duration of incapacity, up to one year.
Permanent disability benefit: For an assessed total (100%) disability, a lump sum is paid that varies depending on the insured's age when the disability began and the average monthly earnings in the 12 months before the disability began.
The lump sum ranges from 72 times the insured's average monthly earnings in the 12 months before the disability began (if aged 66 or older) to 181 times the insured's average monthly earnings in the 12 months before the disability began (if aged 14 or younger).
The minimum permanent disability benefit is S$88,000.
The maximum permanent disability benefit is S$262,000.
Partial disability: For an assessed degree of disability of less than 100%, a percentage of the full permanent disability benefit is paid based on the assessed degree of disability and a schedule in law.
Additional disability benefit: If the insured is assessed with a total (100%) disability, an additional 25% of the permanent disability benefit is paid. A registered doctor must provide medical certification.
Treatment at approved hospitals is provided.
The employer pays for medical expenses up to a maximum amount of S$36,000 or for up to one year after the date of the accident, whichever occurs first.
A lump sum, which varies depending on the insured's age at the time of death and average monthly earnings, is split among eligible survivors.
The lump sum ranges from 48 times the deceased's average monthly earnings in the 12 months before death (if the deceased was aged 66 or older) to 136 times the deceased's average monthly earnings in the 12 months before death (if the deceased was aged 14 or younger).
Eligible survivors include a spouse, parents, grandparents, stepparents, children, grandchildren, stepchildren, and brothers and sisters.
The minimum survivor benefit is S$69,000.
The maximum survivor benefit is S$204,000.
Ministry of Manpower (https://www.mom.gov.sg/) provides general supervision through its Work Injury Compensation Department, Occupational Safety, and Health Division.
The Commissioner for Labour, as appointed under the Employment Act, and his appointed Assistant Commissioners assess and distribute compensation, conduct hearings, and investigate and enforce the Work Injury Compensation Act.
Unemployment
Regulatory Framework
The Workfare Training Support Scheme provides subsidized employment training, including a training allowance of up to S$4.50 an hour of training completed, to persons who qualify for the Workfare Income Support Scheme (see Family Allowances).
Family Allowances
Current law: 2001 (provident fund).
Type of program: Social assistance system.
Needy employed and self-employed citizens of Singapore.
Government: The total cost.
Income supplement (Workfare Income Supplement Scheme, means tested): Age 35 (at any age if disabled).
Means test: Gross average monthly income in the last 12 months (employees) and gross monthly income in the last month (employees and self-employed persons) must not exceed S$2,000. Must not live in a property with a gross annual rental value exceeding S$13,000 in the previous year or own two or more properties (including the spouse's properties). The spouse's income must not exceed S$70,000 in the previous year.
Income supplement (Workfare Income Supplement Scheme, means tested): Up to S$3,600 a year (S$2,400 if self-employed) is paid depending on the worker's age.
40% of the supplement is paid as a cash benefit (10% if self-employed) and 60% is paid to the CPF account (90% to the MediSave account if self-employed).
Schedule of payments: The benefit is paid monthly (annually if self-employed).
Administrative Organization
Central Provident Fund Board (http://www.cpf.gov.sg/) administers the program and pays benefits.
Old age, disability and survivors
First laws: 1898 (old-age pension), 1911 (widow's pension), 1924 (blind person's pension), 1936 (disability pension), and 1954 (war pensions).
Current laws: 1964 (social security), implemented in 1965; and 2014 (veterans' support).
Type of program: Universal and social assistance system.
Note: Net amounts are reported for benefits that can be considered a primary source of income and are taxable at the applied primary tax rate.
Legal residents of New Zealand.
Source of funds
Insured person: None.
Self-employed person: None.
Employer: None.
Government: The total cost is financed from general revenues.
Old-age pension (New Zealand Superannuation, universal): Age 65 with at least 10 years of continuous residence and physical presence in New Zealand since age 20, including at least five years after age 50, and a resident on the date of application. There is no income or asset test (except for pensioners who choose to include an unqualified partner in their pension).
The pension is payable abroad for up to 26 weeks if the beneficiary is not abroad for more than 30 weeks; may be payable abroad for longer than 26 weeks, depending on the beneficiary's length of residence in New Zealand and the applicable reciprocal agreements and domestic legislation.
Old-age assistance benefits (social assistance, means tested): An accommodation supplement, a disability allowance, a special needs grant, and other benefits may be paid to old-age pensioners who meet certain conditions.
Disability pension (Supported Living Payment, social assistance, income tested): Paid to citizens or permanent residents aged 16 or older with at least two years of residence who are assessed with a limited capacity for work (less than 15 hours a week for more than two years) due to a serious disability or mental health condition or are caring for a person who would otherwise need full-time professional care.
The disability pension is payable abroad temporarily under certain conditions.
Caregiver allowance (Supported Living Payment, social assistance, income tested): Paid to citizens or permanent residents aged 18 or older (aged 16 to 17 under exceptional circumstances) with at least two years of residence who provide full-time care for persons with a serious disability or mental health condition. The person receiving care must not be the caregiver's spouse or partner.
Disability assistance benefits (social assistance, means tested): An accommodation supplement, a family tax credit, an advance payment of benefit, a training incentive allowance, transition-to-work assistance, a disability allowance, a temporary additional benefit, a special needs grant, and other benefits may be paid to disability pensioners who meet certain conditions.
Spouse's pension (Job Seeker Support, social assistance, income tested): Paid to a widow with no children or a widow(er) whose youngest child is aged 14 or older (see Unemployment).
Survivor pension (Sole Parent Support, social assistance, income tested): Paid to a widow(er) whose youngest child is younger than age 14 (see Family Allowances).
Orphan's benefit (social assistance, income tested): Paid to the primary caregiver of an orphan younger than age 18 whose biological or adoptive parents are deceased, cannot be found, or are incapable of caring for the child due to a serious long-term disability. The caregiver must be aged 18 or older and expect to care for the child for at least 12 months. The child must be a resident and physically present in New Zealand; or the caregiver must be a resident and continuously physically present in New Zealand for at least 12 months.
Funeral grant (social assistance, means tested): Paid to the deceased's partner, spouse, child, parent, guardian, or, in the absence of the above, to the person who paid for the funeral. There are income and asset tests based on the deceased's circumstances before death and the survivor's age, number of children, and relationship with the deceased.
Survivor assistance benefits (social assistance, means tested): An accommodation supplement, an advance payment of benefit, a training incentive allowance, transition-to-work assistance, a disability allowance, a special needs grant, and other benefits may be paid to survivor pensioners who meet certain conditions.
Old-age pension (New Zealand Superannuation, universal): NZ$400.87 (if single and living alone), NZ$370.03 (if single and sharing accommodation), or NZ$308.36 (if in a married, civil-union, or de facto couple) (net) a week is paid.
If the beneficiary chooses to include a spouse or partner who would otherwise not qualify for an old-age pension, up to NZ$586.18 (net) a week is paid, subject to an income test (the pension is reduced by NZ$0.70 for every NZ$1 of gross annual joint income above NZ$5,200).
The pension may be reduced by NZ$1 for every NZ$1 in pension benefits the beneficiary receives from foreign governments.
Benefit adjustment: Benefits are adjusted annually on April 1 based on changes in the consumer price index for the previous year, with a further adjustment based on the net average ordinary time weekly wage. The net average ordinary time weekly wage is determined by the quarterly employment survey published by Statistics New Zealand.
Old-age assistance benefits (social assistance, means tested): The amount of additional assistance varies depending on the beneficiary's earnings, family situation, living conditions, and other factors.
Disability pension and caregiver allowance (Supported Living Payment, social assistance, income tested): Up to NZ$217.80 (if single, aged 16 or 17, and without children), NZ$269.15 (if single, aged 18 or older, and without children), NZ$379.19 (if single with children), NZ$237.09 (if in a married, civil-union, or de facto couple with children), or NZ$224.28 (if in a married, civil-union, or de facto couple without children) (net) a week is paid.
Income test: The benefit is reduced by NZ$0.30 for every NZ$1 of gross annual earnings above NZ$5,200 and by NZ$0.70 for every NZ$1 of gross annual earnings above NZ$10,400. The personal earnings of totally blind persons are exempt.
Benefit adjustment: Benefits are adjusted annually on April 1 based on changes in the consumer price index for the previous calendar year.
Disability assistance benefits (social assistance, means tested): The amount of additional assistance varies depending on the beneficiary's earnings, family situation, living conditions, and other factors.
Spouse's pension (Job Seeker Support, social assistance, income tested): Up to NZ$215.34 (with no dependent children), NZ$334.05 (with dependent children), or NZ$224.28 (if benefits began before July 15, 2013) (net) a week is paid.
Income test: The pension is reduced by NZ$0.30 for every NZ$1 of gross annual earnings above NZ$5,200 and by NZ$0.70 for every NZ$1 of gross annual earnings above NZ$10,400.
Survivor pension (Sole Parent Support, social assistance, income tested): NZ$334.05 (net) a week is paid.
Orphan's benefit (social assistance, income tested): Up to NZ$229.83 (gross) a week is paid, depending on age, for each eligible orphan.
Income test: The benefit is reduced by NZ$1 for every NZ$1 of unearned income the child receives above 50% of the basic annual orphan's benefit rate. (The caregiver's income is not taken into account.)
The basic annual orphan's benefit rate is NZ$209.52 (net) a week.
Funeral grant (social assistance, means tested): Up to NZ$2,516.19 (gross) is paid to the surviving spouse, partner, or dependent child for funeral costs.
Means test: There is an income and asset test based on the deceased's circumstances before death and the survivor's age, number of children, and relationship with the deceased.
Survivor assistance benefits (social assistance, means tested): The amount of additional assistance depends on earnings, family situation, living conditions, and other factors.
Service Line Work and Income (https://www.workandincome.govt.nz/), under the Ministry of Social Development (https://www.msd.govt.nz/), administers pensions and benefits through its local offices.
First law: 1938.
Current law: 1964 (social security), implemented in 1965.
Universal (paid parental leave): Employed and self-employed persons legally residing in New Zealand.
Universal (medical benefits): Legal residents of New Zealand and certain other persons.
Social assistance (cash benefits): Citizens or permanent residents of New Zealand.
Cash sickness and maternity benefits (Job Seeker Support, social assistance, income tested): Must be aged 18 or older (aged 19 or older with a dependent child); have at least two years of continuous residence; and have stopped working, have reduced hours and income, or be unemployed or working part-time and be unable to perform full-time work due to sickness, injury, pregnancy, or disability.
For persons with less than two years of residency, a benefit may be paid in cases of hardship. For nonpermanent residents, an income- and asset-tested emergency benefit may be paid in cases of hardship.
Paid parental leave (universal): Must have worked an average of at least 10 hours a week for at least 26 of the 52 weeks before the expected date of childbirth or the date the adopted child came into the parent's care. Partial or full entitlement is transferable to a qualifying spouse or partner.
Medical benefits (universal): Must have legally resided or have a stated intent to remain in New Zealand for at least two years. No residency requirement for subsidized treatment for accidents under the Accident Compensation Corporation.
Sickness benefit (Job Seeker Support, social assistance, income tested): Up to NZ$215.34 (net) a week is paid if aged 25 or older, single, and with no children; NZ$179.44 (net) a week if aged 20 to 24, or if aged 18 or 19 and living away from home; NZ$143.55 (net) a week if aged 18 or 19 and living with a parent.
Up to NZ$334.05 (net) a week is paid for a single beneficiary with children; up to NZ$192.25 (net) a week for each member of a married or civil-union couple with children or NZ$179.44 (net) a week without children.
The benefit is paid after a waiting period of up to two weeks, depending on the beneficiary's previous income.
There is no limit on the period of eligibility, but the beneficiary must reapply every 52 weeks. A medical professional must periodically assess the illness.
Income test: The benefit is reduced by NZ$0.70 for every NZ$1 of gross weekly earnings above NZ$80 for single persons without children and for couples; by NZ$0.30 for every NZ$1 of gross weekly earnings from NZ$100 to NZ$200 and by NZ$0.70 for every NZ$1 of gross weekly earnings above NZ$200 for single persons with children.
Maternity benefit (Job Seeker Support, social assistance, income tested): May be paid to a single pregnant woman at the sickness benefit rate (see above) after the 26th week of pregnancy (or earlier if the woman is unable to work due to pregnancy complications, an illness, or disability). Payment may continue for up to 13 weeks after childbirth.
Income test: The benefit is reduced by NZ$0.70 for every NZ$1 of gross earnings above NZ$80 a week.
Paid parental leave (universal): 100% of the employee's average gross weekly earnings in the best 26 of the 52 weeks of earnings before childbirth or adoption is paid for up to 18 weeks. The benefit is paid to one parent or shared between both parents if they are both eligible.
Self-employed persons who earn less than the equivalent of 10 hours a week at the highest adult minimum wage receive the minimum gross weekly benefit.
The minimum gross weekly paid parental leave benefit for self-employed persons is NZ$165.
The maximum gross weekly paid parental leave benefit is NZ$564.38.
Benefit adjustment: The maximum benefit is adjusted annually on July 1 based on the increase in net average ordinary time weekly earnings. Net average ordinary time weekly earnings are determined by the quarterly employment survey published by Statistics New Zealand. The minimum benefit for self-employed persons is adjusted annually on July 1 based on the increase in the highest minimum wage.
Free services include inpatient care in public hospitals, maternity care, and most laboratory services. Partial subsidies are provided for general practice visits. Costs for care in a private hospital are not subsidized.
Cost sharing: Partial subsidy for approved prescribed medicines, depending on a patient's number of copayments, income, and frequency of use.
Subsequent items are fully subsidized after a patient or family makes 20 copayments of NZ$5 for each item a year.
Low-income families have access to a Community Services Card (CSC) for reduced prescription charges, after hours doctor visits, specialist visits, children's eyeglasses (up to age 15), emergency dental care, travel and lodging support for certain hospitalizations, and home help.
Persons who do not qualify for a CSC can obtain a High Use Health Card (HUHC) if they have made 12 or more doctor's visits in the last 12 months. The HUHC is for individual use only and is not income tested. For HUHC cardholders, visits are subsidized at NZ$15 a visit for adults aged 18 or older, and NZ$20 a visit for children aged 6 to 17.
No reimbursement is provided for dental treatment, physical therapy, or work-related injuries.
The Accident Compensation Corporation (ACC) subsidizes treatment for accident-related injuries.
Medical benefits for dependents are the same as those for workers. Free general practitioner care is provided for children up to age 13; free dental care for children up to age 18.
Special subsidies are provided for low-income families or those who need intensive medical care.
Ministry of Social Development (Work and Income) (https://www.msd.govt.nz/) administers cash benefits through its service centers.
Ministry of Social Development (Community Services Card Service Center) (https://www.msd.govt.nz/) administers Community Services Cards.
Ministry of Health (Sector Services) (https://www.health.govt.nz/) administers medical benefits.
The Inland Revenue Department (https://www.ird.govt.nz/) administers statutory paid parental leave benefits.
Work injury
First laws: 1900 (worker's compensation) and 1974 (accident compensation).
Current law: 2001 (accident compensation), implemented in 2002.
Type of program: Universal and employer-liability (through a public carrier) system.
Work injury: Citizens and residents of New Zealand.
Nonwork injury: Citizens and residents of, and temporary visitors to, New Zealand.
Source of Funds
Work injury: None.
Nonwork injury: Contribution rates are set each year based on the actual lifetime cost of injuries, according to a schedule in law.
Work injury: Contribution rates are set each year based on the actual lifetime cost of injuries, according to a schedule in law.
Work injury: Contribution rates are set each year based on experience ratings and injury risk groups, which take into account both the industry and the employer's performances in injury prevention and returning employees to work.
Nonwork injury: None.
Work injury: Contributes as an employer.
Nonwork injury: The cost of the program for nonearners is financed from general revenues.
Work injury benefits: Must be assessed with a work injury or occupational disease, and be substantially unable to perform usual work as a result of the work injury or occupational disease. A medical practitioner must provide a medical certificate. For noise-induced hearing loss, must be assessed with at least a 6% injury-related loss.
Nonwork-related injury benefits: There is a one-week waiting period.
Temporary disability benefit (Weekly Compensation, earnings tested): 80% of the worker's average gross weekly earnings in the period before the incapacity began is paid until he or she is able to return to work.
The benefit is paid after a one-week waiting period for as long as a certified incapacity lasts, or up to the normal retirement age or 12 months after the incapacity began (whichever is later). (For work-related injuries, the employer pays benefits for the first week)
The minimum gross weekly temporary disability benefit for incapacitated full-time workers is NZ$528.
The maximum gross weekly temporary disability benefit is NZ$1,976.46.
Earnings test: The benefit is reduced by NZ$1 for every NZ$1 of earnings above 20% of the worker's weekly earnings used to calculate benefits.
Employers may make an additional weekly payment to increase the employee's income during incapacity to the level of his or her normal wage. The additional payment is exempt from the benefit reduction.
Benefit adjustment: Benefits are increased annually based on changes in the labor cost index.
Permanent disability pension
Lump-sum payment: A lump sum is paid based on the assessed degree of incapacity: from NZ$3,345.06 (gross) for an assessed incapacity of 10% to NZ$133,802.28 (gross) for an assessed incapacity of at least 80%. Assessment for entitlement begins two years after the injury occurred or occupational disease began, or once the condition stabilizes, whichever is earlier.
Independence allowance: The allowance varies depending on the assessed degree of incapacity: from NZ$191.36 (gross) for an assessed incapacity of 10% to NZ$1,148.81 (gross) for an assessed incapacity of at least 80%. The allowance is paid quarterly in addition to other cash assistance for any long-term incapacity resulting from an injury suffered before April 1, 2002. There is no limit to duration.
Medical practitioners assess the degree of incapacity.
Benefit adjustment: Benefits may increase if the initial assessed level of incapacity increases.
Medical care: A copayment may be required for medical care and physical rehabilitation, according to a schedule in law. The worker pays for the full cost of benefits that are not specified. The full cost of elective surgery performed by a contracted provider is fully funded; partially funded if performed by a non-contracted provider.
Social rehabilitation: Attendant care, household help, childcare, assistive devices and appliances, modification of motor vehicles and residence, and travel-related costs are provided if there is an assessed need.
Vocational rehabilitation: Provided for up to three years (may be extended) to those entitled to compensation for loss of earnings and potential earnings.
Survivor pension
Spouse's pension: 60% of the temporary disability benefit the deceased would have received for a total incapacity is paid. The benefit is paid for up to five years, until the date the deceased's youngest child reaches age 18, or until the date that the spouse no longer cares for the deceased's children younger than age 18 or any other eligible dependent, whichever is later. (The spouse can choose between survivor benefits under superannuation or work injury.)
Orphan's pension: 20% of the temporary disability benefit the deceased would have received for a total incapacity is paid for an orphan up to age 18 (age 21 if a full-time student; no limit if disabled, dependent on the deceased, and with earnings lower than a set amount); 40% for a full orphan.
Other dependents' pension: 20% of the temporary disability benefit the deceased would have received for a total incapacity is paid to other dependents with average weekly earnings over a 12 month-period less than the minimum full-time earner rate.
The maximum combined survivor benefit is 80% of the deceased's weekly earnings, up to a maximum.
Survivor's grant: A lump sum of NZ$6,668.03 (gross) is paid to a spouse; NZ$3,334.04 (gross) to each child younger than age 18 or other dependent.
Child care: NZ$141.79 (gross) a week is paid for one child; NZ$85.07 (gross) each a week for two children; NZ$198.51 (gross) a week for three or more children.
Funeral grant: A lump sum of up to NZ$6,219.44 (gross) is paid to a named survivor.
Ministry of Business, Innovation, and Employment (https://www.mbie.govt.nz/) oversees the program and legislation.
New Zealand Treasury (https://treasury.govt.nz/) monitors the performance of the Accident Compensation Corporation.
Accident Compensation Corporation (https://www.acc.co.nz/) administers the benefits.
Employers may self-manage claims.
First law: 1930.
Citizens or permanent residents of New Zealand.
Exclusions: Pensioners, full-time students, and striking workers.
Unemployment benefit (Job Seeker Support, income tested): Must be aged 18 or older (aged 20 or older with a dependent child); have at least two years of continuous residence; be available for and actively seeking full-time work and must comply with the work test, which includes acceptance of any offer of suitable employment. The unemployed person is ineligible for benefits for the first 13 weeks in cases of voluntary unemployment or dismissal for serious misconduct (during which time a provisional benefit may be paid if specified tasks are performed for six weeks).
For citizens or permanent residents with less than two years of residency in New Zealand, a benefit may be paid in cases of hardship. For nonpermanent residents, an income- and asset-tested emergency benefit may be paid in cases of hardship.
Unemployment benefit (Job Seeker Support, income tested): Up to NZ$215.34 (net) a week is paid if aged 25 or older, single, and with no children; NZ$179.44 (net) a week if aged 20 to 24 or if aged 18 or 19 and living away from home; NZ$143.55 (net) a week if aged 18 or 19 and living with a parent.
Up to NZ$334.05 (net) a week is paid if single with children; up to NZ$192.25 (net) a week for each member of a married, civil-union or de-facto couple with children or NZ$179.44 (net) a week without children.
The benefit is paid after a waiting period of up to two weeks, depending on the beneficiary's previous income and family circumstances.
Income test: The benefit is reduced by NZ$0.70 for every NZ$1 of gross weekly earnings above NZ$80 for beneficiaries who are not single parents. For single parents, the benefit is reduced by NZ$0.70 for every NZ$1 of gross weekly earnings above NZ$100; by NZ$0.30 for every NZ$1 of weekly income from NZ$100 to NZ$200; and by NZ$0.70 for every NZ$1 of weekly income above NZ$200.
There is no limit on the period of eligibility for the unemployment benefit but the beneficiary must reapply every 52 weeks.
Ministry of Social Development (Work and Income) administers benefits through its service centers and provides a one entry point for financial assistance and employment services via its Work and Income' service line.
Family Allowance
Regulatory Framewwork
First and current laws: 1964 (social security), implemented in 1965; 2004 (taxation), implemented in 2005; and 2007 (income tax and tax credits), implemented in 2008.
Note: It is possible to be eligible for more than one tax credit and allowance.
Citizens and legal permanent residents of New Zealand.
Sole parent support (social assistance, income tested): Paid to a single parent aged 20 or older with a dependent child younger than age 14. Must be available for part-time work or participate in employment training or job placement seminars, depending on the age of the parent's youngest dependent child. Must have at least two years of continuous residence.
Young parent payment (social assistance, income tested): Paid to parents aged 16 to 18 with dependent children. Single parents aged 16 to 17 must be in exceptional circumstances (neither living with nor supported by parents or guardians), divorced or separated, or living at home or financially supported by parents or guardians with earnings below a certain threshold. Parents aged 16 to 18 who are married or in a civil union do not have to be in exceptional circumstances but neither partner must receive certain other benefits in his or her own right. Must be undertaking or available to undertake full-time secondary or tertiary studies, approved training, or approved work-based learning; or must be exempt from this condition due to personal circumstances. Must have at least two years of continuous residence.
For persons with less than two years of residence, a benefit may be paid in cases of hardship. For nonpermanent residents, an income- and asset-tested emergency benefit may be paid in cases of hardship.
Job seeker support for sole parents (social assistance, income tested): See Unemployment.
Emergency maintenance allowance (social assistance, income tested): Paid to single parents who are ineligible for the sole parent support, job seeker support, supported living payment, youth payment, or young parent payment, and who would experience hardship without the benefit.
Child disability allowance (universal): Paid to the principal caregiver of a dependent child with a serious disability.
Unsupported child's benefit (universal): Paid for a child younger than age 18 who is financially dependent on the caregiver, and the child's parents (biological, adoptive, or step) are unable to care for him or her. The primary caregiver must be aged 18 or older and expect to care for the child for at least 12 months.
Youth payment (social assistance, income tested): Must be aged 16 to 17 with no dependent children. Must be single and in exceptional circumstances (neither living with nor supported by parents or another guardian) or divorced or separated, or must be married or in a recognized union with a person who is not receiving certain benefits in his or her own right. Must be undertaking or available to undertake full-time secondary or tertiary studies, approved training, or approved work-based learning; or must be exempt from this condition due to personal circumstances. Must have at least two years of continuous residence.
Family tax credit (social assistance, income tested): Paid to families with dependent children up to age 17 (age 18 if a student). The principal caregiver or the child must meet a family income test and a residence test.
In-work tax credit (social assistance, income tested): Paid to families with dependent children up to age 17 (age 18 if a student). A two-parent family must work jointly more than 30 hours a week; 20 hours a week for single parents. Parents receiving paid parental leave or accident compensation for an injury suffered after January 1, 2006, can meet the work hours test. No eligible parent may receive an income-tested benefit, a student allowance, or a parental allowance under the War Pensions Act 1954. The principal caregiver or the child must meet a family income test and a residence test.
Minimum family tax credit (social assistance, income tested): Paid to working families with dependent children up to age 17 (age 18 if a student) with annual income less than NZ$26,156 (net). A two-parent family must be working jointly more than 30 hours a week; 20 hours a week for single parents. Parents receiving paid parental leave or accident compensation for an injury suffered after January 1, 2006, can meet the work hours test. No eligible parent may receive an income-tested benefit or a student allowance. The principal caregiver or the child must meet a residence test.
Best Start tax credit (social assistance, income tested): Paid to families after the end of paid parental leave until the child reaches age 3 (from birth for families who are not entitled to paid parental leave).
Income test: An income test is applied once the child reaches age 1. For children younger than age 1, there is no income test.
Sole parent support (social assistance, income tested): NZ$334.05 (net) a week is paid for single parents after a waiting period of up to two weeks, depending on previous income and family circumstances. Other rates depend on age, relationship status, number of dependents, and income.
Income test: The benefits are reduced by NZ$0.30 for every NZ$1 of gross annual earnings above NZ$5,200 and by NZ$0.70 for every NZ$1 of gross annual earnings above NZ$10,400.
Young parent payment (social assistance, income tested): Up to NZ$334.05 (net) a week is paid to a single person aged 18 or aged 16 to 17 and receiving no support from his or her parents. Accommodation, utilities, and other related expenses may be paid directly from the benefit payment; a food allowance is credited to a payment card; and a cash allowance is paid.
Income test: The benefit is reduced by NZ$1 for every NZ$1 of additional income above NZ$211.96 a week.
Emergency maintenance allowance (social assistance, income tested): NZ$334.05 (net) a week is paid after a waiting period of up to two weeks, depending on previous income and family circumstances.
Income test: The benefit is reduced by NZ$0.30 for every NZ$1 of gross annual earnings above NZ$5,200 and by NZ$0.70 for every NZ$1 of gross annual earnings above NZ$10,400.
Child disability allowance (universal): NZ$47.64 (gross) a week is paid.
Unsupported child's benefit (universal): Up to NZ$209.52 (gross) a week is paid for each eligible unsupported child, depending on age.
Youth payment (social assistance, income tested): NZ$179.44 (net) a week is paid.
Benefit adjustment: The sole parent support, the job seeker support for sole parents, the emergency maintenance allowance, the child disability allowance, the young parent payment, and the youth payment are adjusted on April 1 based on changes in the consumer price index for the previous year.
Family tax credit (social assistance, income tested): NZ$113.04 (gross) a week is paid for the first child and NZ$91.25 (gross) a week for each additional child.
Income test: The total benefit is reduced by NZ$0.25 for every NZ$1 of gross annual earnings above NZ$42,700.
In-work tax credit (social assistance, income tested): Up to NZ$72.50 (gross) a week is paid for up to three eligible children; NZ$15 (gross) a week for each additional child.
Income test: The total benefit is reduced by NZ$0.2225 for every NZ$1 of gross annual earnings above NZ$36,350.
Minimum family tax credit (social assistance, income tested): A guaranteed gross income for working families of NZ$26,156 a year is paid.
Best Start tax credit (social assistance, income tested): Up to NZ$60 a week is paid for each eligible child.
Income test: For a child aged 1 or older, the benefit is reduced by NZ$0.21 for every NZ$1 of gross annual earnings above NZ$79,000; for a child younger than age 1, there is no income test.
Benefit adjustment: The family tax credit and the best start tax credit are automatically adjusted when the cumulative increase in the consumer price index reaches 5%. The in-work tax credit is subject to periodic review; the minimum family tax credit is reviewed annually; and both are adjusted at the discretion of the government.
Ministry of Social Development (Work and Income) administers allowances through its service centers.
Inland Revenue Department administers the in-work tax credit, minimum family tax credit, best start tax credit, and family tax credit for working families who do not receive a benefit.
PV
Sickness
Work Injury and Occupational Disease
Survivor’s
Old-age
Maternity
Medical (Health Insurance)
Certificate of coverage
VSS - ISSA Guidelines on Social Security
