Republic of Seychelles The Impact of Income Security Universal Benefits in relieving poverty.

1
Republic of SeychellesThe Impact of Income
Security Universal Benefits in relieving poverty.
Marie Josée Bonne
2

• 1

3

• There is no poverty line this will need to be
  defined and implemented in order that we can have
  a benchmark
• But

4
Article 22Universal Declaration of Human Rights
1948

• everyone, as a member of society, has the
  right to social security

5

• Government of Seychelles supports its policy to
  ensure that its citizens live in basic comfort
  either by setting up, reviewing, or supporting
  programmes and projects

• The schemes covers the estimated population of
  81,755 based on the National 2002 Population and
  Housing Census.
• Social Security Fund
• (there remains a need to ensure that safety nets
  exist to cater for the vulnerable groups in our
  society)
• Seychelles Pension Fund

6
Social Security Fund (SSF) (regulated by the
Social Security Act of 1987)

• Earnings-Related Benefits - It is financed by
  employers and employees contribution.
• As of 1 January 1995, contributions 5 of all
  emoluments paid to an employee or deemed to be
  employed by an employer. (S31(2) of the Social
  Security Act 1987)

7
Seychelles Pension Fund (SPF) (regulated by the
Seychelles Pension Fund Act 2005)

• The Scheme seeks to ensure a level of social
  insurance and universal pensions through the
  provision of basic financial protection for the
  Seychellois worker and their relatives in
  situation of retirement, death before retirement
  and/or disability

8

• Both Funds are mandatory.
• Seychelles Pension Fund (compulsory voluntary
  element)
• Compliance to both schemes is achieved through
  deduction at source (the 15th day of the
  following month)
• The SPF maintains an updated database on
  contributors

9
STRUCTURE OF BENEFITS

• Social Security Fund (SSF)
• Sickness Benefit
• Maternity Benefit
• Injury Benefit
• Invalidity Benefits
• Disability Benefit
• Survivors Benefit
• Funeral Benefit
• Retirement Pension
• Dependents Benefit
• Orphans Benefit
• Abandoned Childs Benefits

10
BENEFITS PAID TO WORKERS UNDER THE SSF

• Injury benefit (Rs1,350) (251), Maternity
  benefit (Rs1,350) (251), Invalidity benefit
  (Rs1,600) (297), Disablement benefit (Rs1,350)
  (251), Sickness benefit (Rs1,350) (251)
• benefits paid to workers are periodic. Benefit
  received is often lower than the average salary
  of an employee. Assessment by the Means Testing
  Board and meet a number of criteria (medical
  certificate, household budgets, income of other
  family members).
• A flat rate is paid to qualified applicants,
  except for retirement benefit which sometimes
  increase in line with the budget.

11
STRUCTURE OF BENEFITS

• The Seychelles Pension Fund (SPF)
• Retirement Pension
• Invalidity Pension
• Surviving Spouses Pension
• Childrens Pension
• Post retirement surviving spouses pension and
  childrens pension
• Post retirement death gratuity
• Pre-retirement death gratuity
• Migration Allowance

12
ANALYSIS OF PENSION BENEFITS RECEIVED

• The minimum guaranteed wage in Seychelles is by
  law Rs2025(376) for governmental and parastatal
  organizations and is deemed the same for the
  private sector. Flat or uniform rate benefit is
  given solely by the retirement pension, which was
  last amended to a monthly allowance of
  Rs1700(316). It is important to note that the
  retirement allowance has been constantly
  increased since 1977, averaging a yearly increase
  of approximately Rs50.
• The retirement pension is 84 of the minimum
• Government guaranteed wage.

13

• The pensions payable are at the following
  rates-
• Salary Band (pm) Pension
• R 800 3,500 70 or R2,000
  whichever is the greater
• R 3,501 5,900 65
• R 5,901 7,500 60
• R 7,501 and above 40

14
Pockets of poor people, Peter Sinon, 1996

• Single women-headed households
• The hidden poor
• The seasonally unemployed
• Groups of retired people living on limited
  pensions.

15
DESTITUTION

• The Social Security Scheme provide subsistence
  income for persons unable to work through
  sickness, unemployment, invalidity or maternity,
  those of retirement age and all the people of
  Seychelles in general.
• The Seychelles Pension Scheme supplement the
  pension provided by the Social Security Fund
  therefore increases the allowance retired persons
  can live on.
• The Home Care Scheme assists senior citizens who
  cannot perform basic domestic work and require
  assistance and to the able-bodies seeking
  part-time employment.

16
COVERAGE

• The number of persons benefiting from the Social
  Security Fund has decreased from 15,364 in
  December 2003 to 13,398 persons by December 2005.
  (reduction in full day URS and beautification now
  full time)
• The number of beneficiaries under the Social
  security fund fluctuates frequently during the
  year depending on the number of applicants and
  those leaving the scheme.

17

• government minimum wage stands at SR2,025. the
  lowest paid workers on retirement currently enjoy
  a pension in the range of SR2,100 to SR3,500 per
  month

18

• The adequacy of social protection programmes must
  be examined to eliminate such vulnerable sectors
  of society from the risk of falling into a
  poverty trap.

19

• It is also a fact that better health care has led
  to an increase in number of elderly.
• This is coupled with the decrease in the number
  of births hence enlarging the dependency ratio.
  Population projections undertaken by Dr Michel
  Rosalie shows that the percentage of the
  non-working age population decreases and will
  continue to decrease from 83 in 1979 to 47 in
  2019.

20
WAY FORWARD

• need to carry out a poverty impact analysis of
  such national programmes and policies as a way of
  measuring the changing level of the well being
  of the population and households.