Cape Verdean experience in the sustainable financing of social protection

Instituto Nacional de Previdência Social

Basis of Social Protection

Source:Lei n.º 131/V/ 2001 de 22 de Janeiro

Incomes from compulsory social protection

A) workers' contributions;

B) The contributions of employers;

C) Transfers or subsidies from the General State Budget, as well as from other entities, once duly authorized;

D) Income from own assets;

E) Default interest and fines imposed for infringement of mandatory social protection legislation;

F) Revenue by International Organizations for the application of social security conventions;

G) All other revenues and fines legally established or authorized.

Source: Art. 16º DL 5/2004, actualizado DL 50/2009

Compulsory Social Protection Financing

Source: Art. 3 Portaria nº16/2016

Regime TCO / FPN Regime

TCP FPA e Retired Worker Employer Total

Family allowance and supplementary benefits

_ 1,5% 1,5%

Sickness, Maternity, Paternity and Adoption

4% 4% 8% 8% 8%

Unemployment Subsidy 0,5% 2,5% 3%

Disability, Old Age and Survival Pensions

3% 7% 10% 10%

Management

1% 1% 2% 1,5%

Total 8,5% 16% 24,5% 19,5%

TECHNOLOGICAL MODERNIZATION

Sistema Integrado de Previdência Social – SIPS

Coordenação de

Região Norte

Subdelegação

do Fogo

Subdelegação da

Boavista

Subdelegação de

São Nicolau

Representação

Concelhias Brava

Representação

Concelhias

• Porto Novo

•Paul

Representação Concelhias

Maio

Representação Concelhias

Mosteiros

Representação Concelhias

Tarrafal

Representação Concelhias:

• Santa Catarina

•Santa Cruz

•Tarrafal

Delegação

do Sal

Sed

e

APPLICATION OF RESOURCES

2010 2011 2012 2013 2014 2015

Total income 100% 100% 100% 100% 100% 100%

Total Costs 45% 39% 44% 49% 50% 54%

Sickness and Maternity 17% 16% 18% 19% 21% 22%

Pension 12% 11% 12% 15% 15% 19%

Family allowance and

supplementary benefits 2% 2% 3% 3% 3% 3%

Operating Costs 5% 5% 6% 6% 6% 7%

Other Operating Costs

(Depreciation and Provisions) 8% 5% 6% 6% 6% 4%

Surplus 55% 61% 56% 51% 50% 46%

EVOLUTION OF CONTRIBUTIONS VS BENEFITS

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

2010 2011 2012 2013 2014 2015

Contributions

Benefits

Compulsory Social Protection

Thank You