COUNTRY REPORT PRESENTATION MONGOLIA SEOUL, REPUBLIC OF KOREA

Transcription

1 COUNTRY REPORT PRESENTATION MONGOLIA SEOUL, REPUBLIC OF KOREA OCT. 2011

2 Contents - Brief statistics - Social insurance legislation - Organizational structure - Types of social insurance - Contribution rates, coverage and benefits - Coordination system among related institution - Policy responses toward the resent global economic crisis since Challenges ahead regarding the development of EI or EII

3 Brief statistics: By the end of 2010 total population of Mongolia estimates 2.8 million. 1.1 million of which are related to the economically active people. By the end of 2010 GDP of Mongolia has been billion tugrugs, unemployment rate 9.9%, inflation rate 10.1%, average salary USD By the end of 2010 average life expectancy of men has been 64.3 and of women- Social insurance legislation: Before the transition to the market oriented economy, during the , the history of Mongolia has witnessed the development of a Socialist system based on labor and pay-as-you-go scheme, the main principle of which was a Marxist left wing theory. During that period Mongolian government has upheld the social protection policy where necessary support for obtaining general education, profession, health protection and support during loss of working capacity, old age, maternity, disability is provided by the government free of charge. Unfortunately, this kind of socialist system has weakened individual responsibility in the society and has led the general public to rely too much on the government eventually straining the already unbalanced economy. The dawn of 1990 brought a radical transition and decentralization of the stagnating social protection system. Mongolia took a step towards a market oriented economy where the old social protection policy was inept in terms of mechanism, component and financial resource. In this phase, a brand new, independent social protection scheme was introduced as result of approval and enforcement of social insurance and social welfare package laws which interrelated with the theories and principles of a market oriented economy. Particularities of reforms of this period include an innovative way of protecting and providing the regular life conditions for workers in times of hardship such as old age, sickness, injuries and accidents by a joint fund consisting of their own and employer s participation through a pay-as-you-go scheme.

4 Today, Mongolia s total population is roughly 2.8 million which is a very small number compared to its vast territory of square kilometers. Its population is widely scattered through the rural areas. The capital city Ulaanbaatar has gathered almost 1.1 million residents. The long-term research and surveys had been conducted from in order to reform the old laws of social insurance. After that the following laws were adopted and complied by Mongolian Parliament since 1 January Law on Social Insurance Law on Pensions & Benefits Provided by the Fund of Social Insurance Health Insurance Law Law on Benefits Provided by the Fund of Social Insurance Against Employment Injury & Occupational Disease Law on Unemployment Benefit Provided by the Fund of Social Insurance Law on Individual Pension Insurance Contribution Accounts Law on Social Insurance Fund Budget Law on Pensions and Benefits for Servicemen Now working people can protect themselves from risk by being covered in pension insurance, benefits insurance, unemployment insurance, health insurance and insurance against employment injury and occupational diseases. Organizational structure: State Social Insurance General Office is the Implementing Agency of the Government and works under the management of the Ministry of Social Welfare and Labour and The National Board of Social Insurance. Goals of State Social Insurance General Office

5 - To extend coverage of social insurance through provision of efficient technical services to the insured, to create favorable conditions for them to be entitled to pensions and benefits, to exercise fully the other rights specified in the Law. Responsibilities: - to arrange the implementation of the social and health insurance legislation and law on individual pension insurance contribution accounts. - to extend the coverage of social insurance, to form the social insurance fund and ensure its performance on receipts and expenditure. - to monitor the operations of local offices and provide them with technical, methodological guidance. - to have public education on the State policy regarding social security and social insurance activities. - to strengthen the social insurance system, its operation and methodology. - to arrange the timely payment of pensions and benefits out of the relevant branch fund of social insurance and to improve services. - to take accounts towards having public education on social insurance legislation in cooperation with research, education, press organizations or separately, in order individuals could obtain appropriate knowledge of social insurance. International Relations: The main purpose is to establish regular relations with neighbor and other countries (China, Korea, Japan Russia etc.) and organizations (International Labour Organization etc.,) to exchange experiences and information, to improve technical knowledge and skill of officials. Types of social insurance: The social insurance is a socio-economic measure to provide pensions, benefits or payments prescribed in the legislation to the insured person in contingencies of retirement, disability, sickness and unemployment, as well as his/or her dependents in case of the insured person s death, having established a Social Insurance Fund through contributions

6 payable by individuals, State institutions, business units and organizations according to the applicable procedures. We have a five of Social Insurance, herein: Pension insurance Benefits insurance Health insurance Insurance against employment injury and occupational diseases Unemployment insurance Contribution rates, coverage and benefits: Social Insurance Scheme members are required to pay the following premiums (contributions). Figure1 Types of Insurance Contribution Rates for Compulsory Insurance (percentage) Employer Employee Contribution Rates for Voluntary Insurance (percentage) Pension Benefit Employment Injury and Occupational Diseases 1.0, 2.0, Unemployment Health Total 11.0,12.0, The above mentioned contribution rates were newly established and complied in

7 Figure Number of beneficiaries from the Pension Insurance Fund (thous.persons) Number of beneficiaries from the Pension Fund Number of Old-age pensioners In 2010, thousand people received pensions from the Pensions Insurance Fund of which thousand people received old-age pensions (See Figure 3). Coordination system among related institution: The Social Insurance General Office Is fully responsible for income collection of 5 funds. But now it is not in charge of some activities related to the unemployment insurance fund. Its responsibilities are to collect contribution income of unemployment insurance, to control contribution payment and to fund consumption. The General Office of Labour and Benefits Service which is the Implementing Agency of the Ministry of Social Welfare and Labour registers unemployed people, grants them unemployment benefits and organizes retraining. However both organizations have the same jurisdiction of the Ministry of Social Welfare and Labour and there is no problem it is needed to change some issues. Policy responses toward the resent global economic crisis since 2008: World economic crisis from 2008 has had an adverse effect on some economic fields of Mongolia especially on construction and trading. Due to the failure and breakdown caused by this crisis there was much staff reduction.

8 Mongolian government conducted the following short term measures (till 1 January 2011) in order not to reduce the income of unemployed people. 1. The term of the right to get unemployment benefits was changed from the last 9 months till 6 months when contribution was paid non stop. 2. The beneficiary who got unemployment benefits before had the new right of unemployment benefits when he paid during 6 months. This term was deducted till 3 months. 3. Unemployment insurance was accounted by 126 days not by 76 days. But the above mentioned concession was carried out during the short term and cancelled on 1 January Challenges ahead regarding the development of EI or EII: The goal of Mongolian government is to undergo pension reform and it is preparing for moving to 3 pillars pension scheme. Within the frame of this reform the packet laws of social insurance are being reformed and the following changes will be made herein. 1. For unemployment insurance -Unemployment benefits will be granted by the organizations not by the General Office of Labour and Benefits Service. - not to increase unemployment insurance contribution. - to raise the calculating rate of unemployment benefits. Social insurance 2. Within the frame of Employment injury insurance - to establish disability pension newly. - to increase contribution paid from employers. - to increase the calculating rates of pension and benefits. - to reduce the number of documentation. Statistics: Number of occupational diseases and employment injuries \by industry\

9 No. Industry Number of people Percent Figure3 1 Education, health Culture and science Heavy industry, geology, mining Light and food industry Construction, road transportation, communication Agriculture Trade, service Other Total Number of injuries and occupational diseases by category Figure4 No. Categories Number of people Percent 1 Contagious and parasitic diseases Blood and blood borne diseases

10 3 Diseases of the nervous system and sensory organs Respiratory diseases Skin diseases Musculoskeletal system diseases Poisoning Radiology Cancer Total Insurance against occupational diseases and employment injury In Mongolia, our present legislation permits 5 types of insurance: Pension, health, unemployment, benefit and insurance against employment injury and occupational diseases. Definition - employment injury - "Employment injury" is being injured due to the adverse effects of employment and similar thereto factors in the prosecution of duties. - Acute toxicity is being under toxic effects of radiation or chemicals in the prosecution of employment duties. Acute toxicity is treated as an employment injury. - Definition occupational disease - Occupational disease" is a disease caused by adverse effects of employment in the course of discharging duties by an insured person.

11 Mongolia has rich natural resources, principally gold, copper, coal, and rare earth minerals. Estimates have placed the country s gold and copper reserves as amongst the highest in the world. The mining sector accounts for about 20% of Mongolian GDP and half the country s exports, and attracts the vast majority of foreign investment. Work place safety, precaution and responsibility from the employers are ever more important in the mining sector. The employment injury and occupational disease insurance contribution rate for the business units is 1.0, 2.0 or 3.0 depending on the potential risk of employment injury and occupational disease. Medical labour accreditation commission resides by each district and aimag social insurance division and is responsible for determining the length and percentage of working capacity loss. The following benefits are provided by the fund for Insurance against employment injury and occupational diseases (IAEIOD): Disability pension. After the cessation of the benefit for temporary working capacity loss and determination of the insured s percentage and length of working capacity loss, the insured receives disability pension until his/her working capacity is restored. If the insured has lost his/her life, the pension shall be paid until the next month. Survivor s pension. Dependents of the insured who has died as a result of employment injury and occupational disease who no capacity for work. The survivor's pension shall be calculated at the following rate from the wages of an insured deceased: Number of dependents % of wages 3 or more

12 Benefit for temporary loss of working capacity. Benefits for temporary loss of working capacity: benefit equal to 100 percent of wages for the duration of under 180 days regardless of contribution period of the insured. Rehabilitation cost. Pension insurance contributions for people who became disabled as a result of employment injury or occupational diseases Variable cost which incurred for the health care of the insured at the resort. Funeral grant: One time funeral grant for the deceased who lost his/her life due to employment injury or occupational disease regardless of the contribution period of the insured. Following payments are covered by the fund for insurance against employment injury and occupational diseases: The first time cost for prosthetic appliances & orthopedics, and other therapies of insured who has become disabled due to occupational disease or employment injury shall be covered by the fund. If the insured continues to pay contributions, cost for replacing the prosthetic appliances and orthopedics shall be covered by the fund 100 percent. If the person discontinues the payment of contributions 50 percent of the second time cost will be covered by the fund. If the prosthetic appliances and orthopedics or therapy are necessary to be done abroad according to the professional (injury) hospital, onetime cost for the abovementioned appliances shall be covered by the fund in accordance with the standard prices for prosthetic appliances, orthopedics and therapy in Mongolia. Once a year, the insured that is treated at a sanatorium for occupational diseases transportation cost to and from the sanatorium can be covered by the Fund for employment injury and occupational diseases insurance based on the current transportation tariffs of Mongolia. The amount of variable cost for health treatment of the insured who has become disabled due to occupational diseases and employment injury shall be determined by the Social Insurance National Council.

13 In order to increase the responsibility from the employer a reimbursement payment exists separate from the fund for insurance against employment injury and occupational diseases. The amount of the reimbursement payment is paid relevant to the percentage of working capacity loss of the patient. Reimbursement payment equal to the average wage of the following months is paid to the patient for more than once: 30% of working capacity loss 5 months, 31-50% of working capacity loss 7 months, 51-70% of working capacity loss 9 months, Working capacity loss of above 71% - 18 months The employer shall pay reimbursement payment equal to the average of the wage for the 36 months to the family of the insured who died as a result of occupational diseases and employment injury. Determining the loss of working capacity Medical Accreditation Central Commission determines the percentage of the insured who has lost his working capacity due to occupational diseases and employment injury. Claim for reimbursement If the employer denies the payment of the reimbursement specified in the legislation, court shall settle the dispute. As of today, we have to incidents of court appeal in such cases. Liability Employers who have concealed the employment accident, toxic poisoning, whose wrong conduct has resulted in employment injury shall be penalized according to the Law on Labour safety and Health and other relevant legislation.

14 The permanent non-staff commissions determine and register employment injury, occupational diseases and toxic poisoning in business units. The commission investigates the accident site and determines the cause of the injury within 24 hours of receiving notice of the accident. If under necessary circumstances complete medical examination and research is necessary, examination and determination of the injury can be done within one month. If necessary the commission has a right to request conclusion from the state inspection authority. Employment injury The employment injury acts are sealed by the signatures of head and members of the commission. The state labor and health inspector approve the act. State health inspector investigates and approves the act related to toxic poisoning. Commission appointed by the government determines the act in case of serious toxic poisoning and employment injury with critical damages. Registrations of the occupational diseases are based on the decision of the Medical accreditation council and other related authorities. injury: Injuries acquired during the following circumstances are considered as employment 1/ while discharging employment duties at work place or other places; 2/ before the commencement of the general working hours or after the general finishing time in the course of arranging the work place and equipment; 3/ travel to or from an insured person's place of work