Arab Social Protection Compass Webinar series: Part VIII
Subsidized social security contributions to bridge the coverage gap
This episode marks the first of the second season of the Arab Social Protection Compass webinar series, titled " Bridging the Coverage and Formalization Gap Through Subsidized Social Security Contributions – results of a global study". It will explore the role of contribution subsidies as a means to expand social insurance coverage and facilitate transitions to formal employment, especially for low-income and informal workers in the MENA region and beyond. Building on a global review led by the ISSA in collaboration with the ILO Regional Office for Arab States, the episode will present insights on the motivations, design, and effectiveness of contribution subsidies. It will feature international experiences and national case studies from countries such as Mexico, Malaysia, Jordan, and Namibia. This session aims to contribute to the global evidence base on subsidized contributions and support informed policymaking for inclusive and sustainable social protection systems.
The limited capacity of workers and small enterprises to regularly contribute to social security systems is one of the main barriers to their formalization and coverage in many countries.
Contribution subsidies are financial mechanisms that reduce the cost of social insurance contributions, particularly for those operating in informal or vulnerable employment conditions. They can be an important policy tool to aid in the transition from informal to formal employment, making social security more affordable and attractive while aiming to sustain long-term coverage.
Despite their widespread use in different contexts around the world, knowledge about the motivations, design, and effectiveness of contribution subsidies remains scarce. Recognizing this knowledge gap, the ISSA collaborated with the ILO Regional Office for Arab States in 2024 to carry out a global review to identify, analyse, and synthesize national experiences with social insurance contribution subsidies.
As part of the ISSA-ILO Arab Social Protection Compass webinar series, this webinar will feature the results of the global review alongside a selection of national experiences, with a view to building the global evidence base on contribution subsidy mechanisms and enabling more informed decision-making at national levels, particularly in the MENA region.
This episode will examine the following questions:
- What are the key challenges driving the need for contribution subsidies, premium support and related programmes in different contexts?
- What are the main design features of contribution subsidy and related programmes in different countries, and how are they intended to address the social security needs of different segments of low-income contributors?
- How do these mechanisms fit within the overall design of the social security system, and how do they relate to other related government functions, such as tax collection or household needs assessment systems?
- How effective have these measures been in lowering affordability barriers to coverage and increasing participation in social insurance, and what measures have governments and social security institutions put in place to monitor effectiveness?
Agenda
15:30 – 15:40| Welcome and Opening Remarks
- Welcome by Marcelo Caetano, Secretary General, ISSA.
- Opening by Milka Mungunda, President of ISSA Technical Commission on Social Security Policy Analysis and Research, ISSA.
- Logistical information and technical handover by Shea McClanahan, Senior Officer in Social Security, ISSA.
- Presentation of the project by Chantal Sirisena, Social Protection Officer, ILO Regional Officer for Arab States.
15:40 – 16:00 | Presentations
- Presentation of key findings and case studies by Oscar Cetrángolo, Professor of Public Finance, University of Buenos Aires, Argentina.
- Presentation of contributions to policy debates by Betina Ramírez López, Independent expert, Norway.
- Eduardo Alcaraz Prous, Head of Social Security Registration Unit, Registration and Collection Directorate, Mexican Social Security Institute (IMSS), Mexico
- Nur Auni 'Izzati Abdullah Suhaimin, Social Security Organisation (PERKESO), Malaysia.
- Balqais Yusoff, Head, Policy and Strategy Department, Employees Provident Fund (EPF), Malaysia
- Mohammed Khrais, Head, Department of Research and Actuarial Studies Administration, Social Security Corporation (SSC), Jordan
16:00 – 16:30 | Panel Discussion of National Experiences
16:30 – 17:00 | Q&A - Discussion
17:00 – 17:10 | Reflections from ILO technical team
17:00 – 17:15 | Closing Remarks
Moderator: Shea McClanahan, Senior Officer in Social Security, ISSA.
This episode is part of the webinar series
Arab Social Protection Compass “Towards Integrated Approaches for Universal Social Protection”
This episode is part of the webinar series "Arab Social Protection Compass: Towards Integrated Approaches for Universal Social Protection", organised by the International Labour Organization (ILO) in collaboration with the International Social Security Association (ISSA) and technical support of socialprotection.org. The initiative intends to put a spotlight on reforms and programmes geared towards fostering integration within social protection across the region and beyond, while contributing to stir discussion at the national level. Throughout the series, speakers will delve into both the theoretical underpinnings and practical implementations of specific reforms, aiming to inspire a broad audience of practitioners to replicate or scale up similar interventions.
