Social Protection

Building social protection floors
and comprehensive social security systems

Timor-Leste

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Situation and Priorities

Social protection situation

Social protection is a right enshrined in the constitution of Timor-Leste, and this commitment is reflected in the broad range of existing national policies and programmes. Since independence in 2002, the country has progressed in building citizenship, linking obligations to social rights, and investing in a comprehensive national social protection system.

The National Strategy for Social Protection of Timor-Leste 2021-2030 was approved in 2022. This is the first strategic document in this area developed in the country, defined around three strategic objectives: reducing poverty, improving and expanding social security for workers, and promoting institutional development. With ILO support, the Ministry of Social Solidarity and Inclusion (MSSI) approved the first implementation plan (2022-2023) and the first annual implementation report. The MSSI is also establishing a governance structure for the coordination and integration of the social protection sector, with technical support from the ILO.

Timor-Leste established the General Contributory Social Security Scheme by law in 2016, which entered into force in 2017, representing a major step forward in the progressive organization of a social security system in Timor-Leste. The scheme includes pensions for old age, invalidity and survivors, as well as allowances for maternity/paternity/adoption and work accidents. In 2022, there were 134,039 workers and 4,479 employers registered in the contributory social security system in Timor-Leste.

The non-contributory system in Timor-Leste includes a quasi-universal social pension for the elderly (60 years old and above) and a social pension for people unable to work (18 years old and above). Both social pensions amounts were increased from US$57 to US$60 in 2024. For the old-age pension, there is an additional benefit for older people, with those aged 70 to 79 receiving US$80 and those aged 80 and above receiving US$100. The non-contributory system also includes a conditional cash transfer for poor and vulnerable families with children, pensions for ex-combatants, martyrs, and their families, and a near-universal school meal programme, as well as other support programmes, including programs for the recovery of victims of natural disasters and for victims of gender-based violence and domestic violence.

The government of Timor-Leste remains committed to the Agenda 2030 for Sustainable Development, particularly to achieving target 1.3 of Sustainable Development Goal 1, focused on poverty eradication and aimed at implementing a national social protection system, and target 3.8 of Goal 3, focused on good health and well-being, aimed at achieving universal health coverage.

However, a considerable gap remains between those aspirations and the reality on the ground. In Timor-Leste, only 30.6 per cent of the population is effectively covered by at least one social protection benefit, while the remaining 69.4 per cent— as many as 930,262 people— are left unprotected. The population effectively covered by at least one social protection benefit in Timor-Leste is lower than the Asia and Pacific regional estimate of 44.1 per cent.

The approval of a basic law for social protection is a top priority for social protection in Timor-Leste. The MSSI and the government of Timor-Leste established a task force to advance the organization and definition of the basis of the social protection system in the country. The ILO is providing technical assistance to MSSI.

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COVID-19 and other crises

The government of Timor-Leste has reiterated its commitment to social protection as a human right and society’s primary line of defense. The COVID-19 pandemic and the floods in 2022 demonstrated how a well-functioning social protection system can protect individuals throughout life and economies by acting as a social and economic stabilizer in times of crisis. The government's economic recovery plan reaffirmed that “human development must be the epicenter of the economic policy, with social protection, education, and health as the main pillars of human capital development, crucial for the functioning of a modern society and the country’s long-term economic and sustainable development.”

The government of Timor-Leste ensured a stimulus package of US$150 million (approximately 10.5 per cent of GDP) to respond to the crisis, placing a strong emphasis on supporting livelihoods through social security and social assistance. A new cash transfer benefit of US$100 was introduced to ensure minimum consumption levels, delivered to around 300,000 families over two months. This programme was ten times larger than any previous programme, and was successfully rolled out thanks to the support and coordination of development partners. The ILO played a leading role in managing coordination between agencies and supporting the rollout of a programme where none of the population had mobile bank accounts.

Timor-Leste also established a support measure for informal economy workers, granting an extraordinary subsidy of US$36 for 3 months (from October to December 2020) to all self-employed workers and the informal economy not yet registered with Social Security. This government measure demonstrated an effort to support workers who had never before been covered, aimed at strengthening their capacity to face future risks.

Measures to maintain employment for workers registered in the social security scheme were also introduced. This included paying 60 per cent of the wages for formal economy workers placed on reduced working hours (approximately 30,000 people), waiving utility bills and social security contributions for low-income households for three months, and introducing a benefit for students living abroad.

Visit the Social Protection COVID-19 Monitor
Government and social partner priorities

The Council of Ministers approved the National Strategy for Social Protection 2021-2030 in November 2022. The strategy promotes an integrated social protection system, seeking to expand coverage and scope, and maximize the reduction of poverty and vulnerability. It also aims to consolidate the rights to social security and social assistance, as well as inclusive access to social services, education, and health.

Strategic objectives include:

  • Reducing poverty
  • Improving and expanding social security for workers
  • Institutional development

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Results

The ILO activities were planned into the first Decent Work Country Programme (DWCP) 2016-2020 for Timor-Leste, and continued into the second DWCP 2022-2025, both including a large social protection component.

The ILO has been supporting the social protection sector in Timor-Leste, through a tripartite engagement of partners, using an integrated approach that combines different projects and sources of funding to achieve common goals, in particular through Action Portugal, a three-year project whose first phase started in 2015 and is now in its third phase (2022-2025).

Please see below for more details on the main results achieved.

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Funding gaps / Support the ILO

US$ 550,000

Timor-Leste’s component under ACTION Portugal to cover 36 months of implementation (2022-2025)

US$ 150,000

Technical expert assistance up to 36 months, and administrative staff contribution to support the project

Build the capacity of the Ministry of Social Solidarity and Inclusion to effectively implement, monitoring and evaluate the National Strategy for Social Protection

Build the capacity of the National Institute of Social Security to effectively administer contributory social security programmes

Build capacity through regional trainings, workshops, and study tours to countries with relevant experiences.

Build a culture of social protection through awareness-raising campaigns on the rights and benefits available to citizens

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