Social Security (Minimum Standards) Convention, 1952 (No. 102)
A gateway for achieving rights-based universal social protection
From Cradle to Grave: The Human Right to Social Security Throughout the Life Cycle
The human right to social security means that people must be protected throughout their lives, so that they can access benefits when they are sick, injured, disabled, pregnant, unemployed or retired – in other words when they are in need. Social Security systems therefore must seek to ensure access to medical care and income security throughout the life cycle through benefits provided in cash or in kind.
Social Security: More Than Just a Human Right, an Investment in People and Progress
Social security is not only a human right but, importantly, also an investment that brings high social and economic returns. It is an essential part of the social contract and key to achieving equality, inclusion and peace – all integral elements of social justice. Social security is also a powerful enabler of many other rights, including those to health, food and an adequate standard of living, water and sanitation, and work.
Convention No. 102: Setting Minimum Standards for Social Protection Systems Globally
The Social Security (Minimum Standards) Convention No. 102, 1952 (No. 102) is the International Labour Organization’s (ILO) landmark social security Convention. It is the first and only international treaty which frames social security in a holistic manner, setting out qualitative and quantitative minimum benchmarks for nine contingencies (or risks) that people face during their lives: medical care, maternity, family responsibilities, sickness, disability, employment injury, unemployment, old age, and loss of the family income earner. These, in other words, are the international points of reference against which national social protection systems can be evaluated by comparison. Convention No. 102 also establishes a set of core principles that provide essential rules to guide the financing and administration of social security systems. These apply to all schemes. Whether financed through worker and employer contributions, taxation or a combination of both.
Championing Decent Work Through Social Security Standards
Social security is a key element of the Decent Work Agenda, and thus Convention No. 102 is an essential part of the set of international labour standards which together aim to address the challenges involved in shaping a fair, inclusive and secure world of work that ensures full, productive and freely chosen employment and decent work for all.
Universally Accepted, Nationally Relevant: Social Security Standards for All
Like all international social security standards, Convention No. 102 was elaborated by the ILO’s tripartite constituents (namely Governments and the representatives of employers and workers) and adopted by their two-thirds majority vote. It is therefore an expression of universally accepted principles which take into account the diverse cultural and historical backgrounds, legal systems and economic development levels of the ILO Member States.
Shaping the Social Protection Landscape: The Combined Power of Convention No. 102 and Recommendation No. 202
The systemic and comprehensive approach adopted in Convention No. 102 has profoundly influenced the landscape of national social security systems worldwide, above and beyond the number of ratifications achieved over the last 70 years. Numbering 18 since 2012, new ratifications have increased apace since adoption of the Social Protection Floors Recommendation, 2012 (No. 202), an instrument which guides the ILO and its Members towards the universal protection objective by prioritizing the establishment of nationally defined social protection floors as part of comprehensive social security systems. The added value of both instruments in tandem continues to be fully acknowledged, including their role in guiding national social protection reforms.
Turning the Human Right to Social Security into Reality
Convention No. 102 represents the “how” when it comes to giving effect to the human right to social security as set out in the Universal Declaration of Human Rights, and also in the International Covenant on Economic, Social and Cultural Rights (ICESCR), to which 172 States are currently bound. It provides guidance for State parties’ efforts to uphold their obligations to respect, protect and fulfil the right to social security.
A Pathway to Progress: Why Ratifying Convention No. 102 Matters
Ratification of Convention No. 102 is therefore an important step in realizing the human right to social security. The ratification and application of Convention No. 102 can help to achieve several outcomes, including:
- building rights-based universal social protection systems;
- promoting social justice by reducing poverty, vulnerability and inequality;
- creating a global level playing field;
- meeting the 2030 sustainable development goals;
- facilitating the access to healthcare services without hardship and contribute to addressing the social determinants of health equity;
- building a road map to guide national policy and legal action;
- preserving the social acquis, including in times of crisis;
- ensuring the sustainable and equitable financing of social protection systems including through regular actuarial valuations;
- improving social dialogue and increasing confidence in the State.
Key message
From Cradle to Grave: The Human Right to Social Security Throughout the Life Cycle
Social Security: More Than Just a Human Right, an Investment in People and Progress
Convention No. 102: Setting Minimum Standards for Social Protection Systems Globally
Championing Decent Work Through Social Security Standards
Universally Accepted, Nationally Relevant: Social Security Standards for All
Shaping the Social Protection Landscape: The Combined Power of Convention No. 102 and Recommendation No. 202
Turning the Human Right to Social Security into Reality
A Pathway to Progress: Why Ratifying Convention No. 102 Matters
Context
The COVID-19 crisis exposed persistent coverage and adequacy gaps:
- Many lack protection (4 billion people globally) due to high informality, inequality, limited fiscal space, institutional fragmentation and demographic shifts.
- Only 30.6% of the persons in working age have access to comprehensive social security (i.e. protection against all nine contingencies).
- Women’s coverage lagged behind men’s by 8%.
Universal, comprehensive, adequate and sustainable social protection systems grounded in international principles and legal frameworks matter:
- Helps weather crises like COVID-19.
- Protects people’s health, jobs and incomes by providing income security and healthcare.
- Promotes equality and security.
SDG 1.3.1: Effective coverage by function of social protection (%)
Call to action
- The ILO is implementing a Global campaign to increase ratifications and effective implementation of ILO Convention No. 102, which sets minimum social security standards.
- Goal: Reach 70 ratifications by 2026.
- ILO constituents (governments, employers’ and workers’ organizations), as well as other relevant stakeholders, are invited to participate in this global initiative.
Key features of Convention No. 102
Promoting social justice by reducing poverty, vulnerability and inequality
The development of a comprehensive, adequate and sustainable social protection system in line with Convention No. 102 contributes to preventing and reducing poverty, vulnerability and inequality, while enhancing political stability and social cohesion. Investment in social protection has also been proven to yield returns by stimulating economic growth and improving economic performance, resulting in more equitable and cohesive economies and societies.
Improving financial access to healthcare and addressing the social determinants of health
Poverty, income insecurity, unemployment and job insecurity are all examples of how non-medical factors influence health outcomes. Building a comprehensive social protection system based on the guidance in Convention No. 102 can help to address the impacts of these social determinants of health, notably those on health and wellbeing.
Fulfilling international and regional commitments
Ratifying and applying Convention No. 102 in law and in practice also demonstrates a commitment to realizing the human right to social security as set out in the Universal Declaration of Human Rights, 1948, the International Covenant on Economic, Social and Cultural Rights, 1966 (ICESCR) and other international and regional instruments. In this context, “States parties to the International Covenant on Economic, Social and Cultural Rights can effectively fulfil their obligations under article 9 through the implementation of Convention No. 102”.
Meeting the 2030 sustainable development goals
The ratification and implementation of these standards also contribute to attaining the 2030 Agenda for Sustainable Development, in particular Sustainable Development Goal target 1.3 on implementing social protection systems and measures for all, including floors, with a view to achieving universal social protection. Social security is also an enabling instrument for achieving the SDGs concerned with ending hunger and ensuring access to safe, nutritious and sufficient food (SDG 2.1), achieving good health and wellbeing through universal health coverage (SDG 3.8), gender equality (SDG 5.4) , decent work (since it is an integral component) (SDG 8.5) , reducing inequalities (SDG 10.4) and promoting just, peaceful and inclusive societies (SDG 16).
Empowering States to build universal, comprehensive, adequate and sustainable social protection systems
At the national level, ratification and application can provide many countries with the opportunity to further develop their social security systems and to extend legal and effective coverage, thus to create a concrete and detailed guiding framework for operationalizing the constitutional right to social security prevalent across the globe. States at all stages of economic development are thus provided with guidelines and adapted targets for progressively building an integrated, comprehensive, adequate and economically and financially sustainable system that leaves no one behind. In short, ratification can facilitate a politically agreed road map for strengthening a national social protection system based on clearly defined rights and obligations.
Good governance for increased public confidence and social peace
Since Convention No. 102 lays down basic principles for the sound governance and proper administration of social security (governmental responsibility for due provision of benefits as stipulated by the national law; periodical actuarial review of contributions and benefit schedule; and participatory management), its ratification can provide a solid basis for improving social security governance, administration and services. This, in turn, can promote social dialogue between employers, workers and governments and increase public confidence in a country’s social security system, national social security administration and political system in general – which can then contribute to “contribution compliance” and social peace and justice.
Preventing the levelling-down of national social security systems by creating a global level playing field
Once ratified, Convention No. 102 can serve as a means to prevent the levelling-down of national social security systems. The minimum requirements and benchmarks help to create an equitable global level playing field for social protection. Ratifying these standards ensures that businesses and countries adhere to a common set of rules which can prevent unfair competition between players and a “race to the bottom” in which protection is lowered below the minimum internationally accepted levels set out in the Convention.
Mitigating the social impacts of health, financial and economic crises
The COVID-19 pandemic demonstrated how social security can help to mitigate the social impacts of health, financial and economic crises on workers and their families through its automatic income replacement functions and the provision of essential health care. In ratifying ILO social security Conventions, a country undertakes to implement minimum social security standards through a legal framework. These standards act as powerful tools for preserving social security guarantees and entitlements at the national level, and thus, for preserving decent standards of living and health, even in times of crisis. Ratification can, therefore, prevent countries from backsliding on achievements and cutting benefit levels to below those required by the Convention when facing austerity measures; in this way, it mitigates the long-term social consequences of crises.
Lending a voice to workers and employers for effective application
Ratification requires a Government to report periodically to the ILO on how it is applying the Convention in law and practice and to share that report with the most representative employers’ and workers’ organizations. The latter are entitled to comment on its content and thus have a voice when it comes to assessing the effectiveness of application of Convention No.102.
Encouraging participatory management and financial sustainability
Convention No. 102 requires that social protection systems consider the principles of participatory management and financial sustainability; principles that are important to the representatives of employers’ and workers’ organizations.
Increasing labour productivity, competitiveness, and social solidarity
In addition, by applying Convention No. 102, employers benefit from higher labour productivity and competitiveness through improved worker health, lower absentee rates, higher job retention and motivation. They also benefit because their individual liability as employers to provide compensation directly to employees (or their families in case of death), in the event of employment injury, sickness or maternity, for example, is transferred to a collectively financed benefit in which they participate through the payment of contributions or taxes.
Breaking the cycle of vulnerability, poverty and social exclusion and strengthening the social contract.
For workers, being covered by a system established in law and placed under the overall responsibility of the State guarantees effective access to healthcare and income security and contributes to breaking the vicious cycle of vulnerability, poverty and social exclusion. Ultimately this consolidates the social contract underpinning the society in which they live. Convention No. 102 also places particular focus on protection vulnerable persons and middle- and low-income earners, including from excessive costs for health care.
Benefits of ratifying and implementing Convention No. 102
Promoting social justice by reducing poverty, vulnerability and inequality
Improving financial access to healthcare and addressing the social determinants of health
Fulfilling international and regional commitments
Meeting the 2030 sustainable development goals
Empowering States to build universal, comprehensive, adequate and sustainable social protection systems
Good governance for increased public confidence and social peace
Preventing the levelling-down of national social security systems by creating a global level playing field
Mitigating the social impacts of health, financial and economic crises
Lending a voice to workers and employers for effective application
Encouraging participatory management and financial sustainability
Increasing labour productivity, competitiveness, and social solidarity
Breaking the cycle of vulnerability, poverty and social exclusion and strengthening the social contract.
The overall and general responsibility of the State (Articles 71 and 72)
- States are explicitly recognized as assuming general responsibility for the due provision of benefits. Accordingly, they must take all measures required to ensure that benefits can be duly provided. The State, therefore, has the duty to progressively develop a legal framework which complies with the provisions of the Convention.
- States also assume general responsibility for the proper administration of the institutions and services concerned in the implementation of the social security benefits. This implies, in particular, that where the State is not directly involved in the administration of the social security schemes (i.e. when a scheme is run jointly by workers and employers or by a private body), it still has the ultimate responsibility to ensure that the system operates in a well- governed and sustainable manner.
- The State also has overall and general responsibility to ensure that funding for the benefits set out in national law is available and that social protection schemes are financially sustainable, notably by ensuring that the necessary actuarial studies and calculations concerning the financial equilibrium take place periodically and, in any event, take place prior to any changes made to the level of benefits, the rate of insurance contributions, or taxes allocated to finance the benefits. Furthermore, the State should guarantee the financial equilibrium of the system, including during periods of crisis, and that provisions are made to minimize the misuse of social security funds.
Review of periodical payments (Articles 65 and 66)
States are explicitly recognized as assuming general responsibility for the due provision of benefits. Old age, employment injury, invalidity and survivors’ pensions should be adjusted when substantial changes in the general level of earnings occur because of substantial changes in the cost of living. This ensures that beneficiaries can maintain their purchasing power, for example in the event of inflation.
Equality of treatment (Article 68)
Non-national residents need to have the same rights as national residents, subject to the following:
- Where benefits are payable wholly or mainly from public funds, special qualifying rules may apply to persons who were born outside the territory;
- Where benefits are payable under a contributory social insurance scheme, the rights of nationals from another country can be made subject to the existence of a bilateral or multilateral agreement between the countries concerned.
Suspension of benefits (Article 69)
The Convention establishes a list of cases in which a benefit can be partially or fully suspended. This list is exhaustive, and therefore no other case of suspension is acceptable. These cases may be grouped according to three types of situations:
- The absence of the person concerned from the State in which the benefit is granted (i.e. there is no obligation to “export” benefits to other countries unless bilateral or multilateral agreements have been signed to this effect);
- Situations in which the person is maintained at publicly funded institutions such as hospitals, prisons and rehabilitation centres at the expense of a social security institution, or is in receipt of another cash benefit (other than a family benefit), or is being compensated by a third party;
- A number of cases related to the personal conduct of the beneficiary, such as fraudulent claims, criminal offences, the wilful misconduct of the person concerned, and certain circumstances surrounding the loss of employment.
Right of complaint and appeal (Article 70)
- The Convention stipulates that every claimant has the right of appeal in case of refusal of a benefit, or of complaint as to its quality or quantity.
- This right, however, is restricted when it comes to medical care if the administration of that care is entrusted to a government department responsible to a parliament. In such a case, this right of appeal may be replaced by entitlement to have a complaint concerning the refusal or quality of medical care investigated by the appropriate authority.
Proper financing and administration of social security institutions (Article 71)
- Convention No. 102 allows ratifying States great leeway in organizing their social security system to ensure an overall level of protection that meets its minimum benchmarks. These schemes should, however, be financed collectively through either contributions, taxation or a combination of both. Collective financing excludes direct employer liability arrangements whereby the burden of securing the worker’s income security falls directly on the employer.
- Convention No.102 also requires that the level of benefits be established by legal provisions, and thus predictable. Benefits should not be determined by the date of occurrence of a contingency linked, for example, to stock market performance or changes in GDP.
- Any mechanism used to finance social protection benefits should ensure that persons with low incomes do not endure hardship as a result of participating in the cost of social security. Some countries achieve this through the full or partial subsidization of contributions for workers with low earnings. Others include a ceiling on contributions that can be paid, or adapt contribution payments to income levels.
- Where social protection benefits are financed through social insurance contributions, the total share of contributions borne by employees for all schemes (with the exception of benefits for child responsibilities and in the case of employment injury) must not exceed 50 per cent of all the financial resources allocated for the protection of the scheme’s beneficiaries.
- Protected persons participate in the management of social security institutions mainly through their representative organizations (such as workers’ organizations), if the scheme is not administered by an institution regulated by the public authorities or by a government department responsible to the parliament. The participation of employers’ representatives and public authorities in the administration can also be regulated.
Voluntary social insurance mechanisms (Article 6)
While the principal focus of the Convention is mandatory insurance, voluntary insurance may be considered, subject to the following conditions:
- The voluntary insurance scheme is supervised by public authorities or administered by social partners according to rules set out in national laws and regulations;
- The voluntary insurance scheme covers a substantial number of persons who earn as much or below the earnings of a person undertaking skilled manual labour, as defined in the Convention;
- The benchmarks and principles set out in the Convention are met (e.g. the minimum level and duration of the benefit).
How to implement Convention No. 102 at national level
Convention No. 102 establishes minimum benchmarks as regards the quality and quantity of the benefits to be provided, including with regard to:
- definition of the contingency;
- persons to be protected;
- qualifying conditions;
- nature and scope of benefits;
- duration of the benefit.
The Convention also sets out core principles, including:
- non-discrimination and equality treatment;
- the overall responsability of the State;
- the right of complaint and appeal;
- collective financing of benefits;
- participatory management of social security schemes;
- acceptable benefit suspension cases.
Persons protected under the Convention
Convention No. 102 gives each country the choice to determine the type of mechanism it will use to demonstrate compliance with each of the accepted contingencies, taking into account the types of schemes that make up the national system. Accordingly, it sets minimum thresholds for persons covered by schemes that protect employees, those that protect economically active persons (self-employed persons in addition to employees) or those that protect vulnerable groups of the population through means-tested social assistance.
Flexibility
The Convention allows ratifying States whose economies and medical facilities are still under development to temporarily limit the scope of their national law to larger enterprises, namely “employees in industrial workplaces employing at least 20 persons”. This temporary exception matches the approaches followed by many countries which firstly apply their national legal frameworks to the bigger economic operators before progressively extending social security protection to smaller enterprises and self-employed persons.
Gradual Implementation
The Convention does not apply to seafarers or fishers, as they are covered by other standards. No other categories of workers are specifically excluded from the application of the Convention.
Inclusivity
Level of benefits
This refers to benefits that represent a certain percentage of the previous earnings of the protected person. Convention No. 102 assesses the adequacy of such benefits according to the earnings of a person representative of a skilled worker in the country. Skilled workers and workers with lower earnings should receive a replacement rate at least at the levels set out by the Convention. A maximum limit can be imposed on the contribution or benefit rate, but it should not be lower than the earnings of a skilled worker as defined in the Convention. This guarantees that those earning up to the level of a skilled worker will receive at least the minimum replacement rates outlined in the Convention. For workers with higher earnings, benefits should bear a reasonable relation to those rates.
Benefits calculated from previous earnings
Convention No.102 assesses the level of flat-rate benefits in relation to the level of earnings of a person representative of an unskilled worker in each country (Article 66). This method can also be applied to assess the level of the minimum benefits provided by social insurance schemes.
Flat-rate benefits provided by tax or mixed-financing schemes
Whenever a scheme conditions the payment of benefits to the means of the beneficiary’s family, Convention No.102 requires that the level of the benefit must be at least sufficient to maintain the family of the beneficiary in health and decency. The benefit, together with the family’s other means, should at least reach the level set for flat-rate benefits. National rules should set out which of a family’s assets can be excluded from the means test, for example, a person’s home or car. The Convention does not consider the use of means-tested schemes in the case of employment injury, maternity and medical care.
Means-tested benefits
Core principals
While the Convention has a significant level of built-in flexibility, it does not compromise on the observance of a number of core principles:
The overall and general responsibility of the State (Articles 71 and 72)
Review of periodical payments (Articles 65 and 66)
Equality of treatment (Article 68)
Suspension of benefits (Article 69)
Right of complaint and appeal (Article 70)
Proper financing and administration of social security institutions (Article 71)
