Result achieved
Outcome summary
The National Parliament approved the General Social Security Law (Law 12/2016) in November 2016, which creates the first contributory social security schemes in the country.
Outcome achieved
The National Parliament approved the General Social Security Law (Law 12/2016) in November 2016, which creates the first contributory social security schemes in the country. The new scheme offers provisions for old age, death, survivors, disability, maternity/paternity, and in the future will cover work injury too. The National Parliament approved the regulations for contributions and benefits in May 2017.
The new scheme substitutes a temporary programme that offered non-contributory pensions to public servants created in 2012, and covers both private and public sectors in a single scheme. The participation on the new schemes is mandatory from August 1st 2017, and it aims to cover from 40,000 to 70,000 workers, by January 2018. The law and its regulations, are based on actuarial projections produced jointly by the Ministry of Social Solidarity of Timor-Leste and the Ministry of Labour and Social Solidarity of Portugal, and grounded on ILO principles and standards (ILO Indonesia and Timor-Leste Office Technical Note (ILO/2016/020), produced for the Timorese National Parliament in March 2016)
ILO's contribution to the outcome
The ILO has supported the approval of the Social Security Law, and is providing technical assistance to the implementation of the new schemes. Some of the highlight activities are:
- in February 2016 a workshop was organized with members of the Government and Parliament to present international experiences and to demonstrate that the law proposal was aligned with ILO standards and international good practices;
- In June 2016, the ILO spoke in the Parliament’s Commissions of Social Affairs and Economic Affairs discussing the law proposal under the light of international best practices and recognized principles of Social Security. A Technical Note on the subject was produced in the follow up to the hearing;
- At the Government’s request, an ILO mission took place in October 2016, to assess the situation and advise the Government on the creation of an institution to manage the new Social Security Schemes. A Technical Note describing the elements that usually compose an adequate investment project to frame the creation and operation of such institution was delivered. The ILO was requested to support the development of the investment project;
- From January to March 2017, the ILO supported the development of a short-term plan for the implementation of the new social security schemes, including the drafting of the operational structure, and a medium-long term investment project for the implementation, stabilization and full development of the institution managing the social security schemes;
- From May to July 2017 the ILO is supporting the production of communication materials for the launch of the social security schemes in August, by providing the development of the content and the production of practical guides for the clients of the system, and media materials (radio and TV) to inform and raise awareness of the general public regarding the new schemes.