Contemporary Social Policy

Session 11

• Social insurance: Social insurance has been defined as a program where risks are transferred to and pooled by an organization, often governmental, that is legally required to provide certain benefits. It diminishes risks associated with unemployment, ill health, disability, work-related injury and old age, such as health insurance or unemployment insurance. Based on contribution/ the principle of risk pooling. It refers to the insurance schemes organized at the societal level for example pensions- based on the principle of contribution.

• Social assistance: It is when resources, either cash or in-kind, are transferred to vulnerable individuals or households with no other means of adequate support, including single parents, the homeless, or the physically or mentally challenged. Given to the people by the society for example direct cash transfer.

• Employer’s mandate: Employer’s responsibilities in relation to labour welfare that have been codified by the state. Examples: maternity leave, minimum wage, contribution to EOBI/WWF - Requires employers to provide health coverage to those employees and sets a minimum baseline of coverage and employer contributions. Employers who do not comply will face annual penalties based on the number of employees in the firm. Done by the state for example minimum wages (provided by the private sector but mandated by the state), pensions, work place safety, maternity benefits/leave

• Flat rate benefits: Same amount of benefit given to everyone – benefits given at the same rate for example BISP

• Earning-related benefits: benefits are provided according to the income that person was getting before. It provides citizens with a cash transfer that equates to a proportion of the income they received from employment before they became sick, unemployed or retired and so on. Depends on your own income or number of