Social Security Programs Throughout the World: Europe, 2004

 

San Marino

Exchange rate: US$1.00 equals 0.80 euros (€).

Old Age, Disability, and Survivors

Regulatory Framework

First and current laws: 1965 (old age), with 2001 amendment; 1965 (disability); and 1965 (survivors).

Type of program: Social insurance system.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: 1.9% of earnings.

Self-employed person: Contribution rates vary between 10% and 19.5% of earnings, according to the category of self-employment.

Employer: 10% of payroll.

Government: Contributes an amount equal to 10% of total contributions; may rise to 25% to cover any deficit. Higher contributions are made on behalf of agricultural workers.

All of the above contributions also finance work injury benefits.

Qualifying Conditions

Old-age pension: Age 60 for men and women (age 65 for agricultural and industrial workers) with at least 15 years of contributions. (For new entrants to the labor force from January 1, 2002, the pensionable age will be age 65 for men and women.)

Deferred pension: A deferred pension is possible.

Disability pension: A loss of working capacity of at least 65% and 7 years of contributions.

Survivor pension: Fifteen years of contributions or 7 years of contributions with at least 1 year in the 5 years preceding the insured's death. The pension is payable to a widow or an unemployed widower. The pension ceases on remarriage.

Old-Age Benefits

Old-age pension: 3% of average earnings during the last 5 years for each of the first 15 years of coverage, plus 2% of the average earnings during the last 5 years for each year of coverage beyond 15.

Deferred pension: An increase of 3% for each year of employment after age 60.

Benefit adjustment: Pensions are adjusted according to changes in the cost of living.

Permanent Disability Benefits

Disability pension: The pension amount is not affected by the assessed degree of disability.

The maximum pension is 86% of the average salary of the last 5 years of work.

Benefit adjustment: Pensions are adjusted according to changes in the cost of living.

Survivor Benefits

Survivor pension: The percentage of the insured's pension payable varies depending on the number of eligible survivors. For a spouse with one child, 70%; with two children, 75%; with three children, 90%; with more than three children, 100%.

Administrative Organization

National Social Security Institute administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1955.

Current laws: 1955 (medical benefits), 1965 (welfare), 1967 (cash benefits), and 1968 (self-employed).

Type of program: Social insurance (cash benefits) and universal (medical benefits) system.

Coverage

Cash benefits: Employed and self-employed persons.

Medical benefits: All residents.

Source of Funds

Insured person: 3.5% of earnings.

Employer: 5% of payroll.

Government: None (cash benefits); 50% of direct taxes collected by the state (medical benefits).

Qualifying Conditions

Cash sickness benefits: There is no qualifying period.

Cash maternity benefits: There is no qualifying period.

Medical benefits: There is no qualifying period.

Sickness and Maternity Benefits

Sickness benefit: 86% of monthly earnings for the first 15 days, 100% until the end of the sixth month, and 86% until the end of the twelfth month. The benefit is payable for 365 days for workers with permanent employment contracts; to the end of employment contract for workers with short-term employment contracts.

Maternity benefit: 100% of earnings during the 5 months of maternity leave (2 months before and 3 months after the expected date of childbirth); thereafter, during the following 13 months, mothers can remain on leave and receive a benefit equal to 30% of earnings for 7 months and 20% of earnings for 6 months or they can return to work and take up to 2 hours a day of leave on full pay.

Workers' Medical Benefits

Services are provided by doctors of the National Social Security Institute and state hospitals. Benefits include all medical services, hospitalization, maternity care, and pharmaceuticals.

Dental care is provided free for tooth extractions and for the first course of treatment. There is a fee for subsequent treatment (dental services are free for children up to age 14 and for pensioners).

There is no cost sharing.

There is no limit to duration.

Dependents' Medical Benefits

Same as for the insured.

Administrative Organization

National Social Security Institute administers the program.

Work Injury

Regulatory Framework

First and current law: 1965.

Type of program: Social insurance system.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: See source of funds under Old Age, Disability, and Survivors, above.

Employer: See source of funds under Old Age, Disability, and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

100% of earnings.

Permanent Disability Benefits

The monthly benefit is calculated according to the assessed degree of disability and the value of the old-age pension that would be paid with 30 years of contributions.

The minimum assessed degree of disability for entitlement is 15%.

Workers' Medical Benefits

All necessary services are provided free of charge.

Survivor Benefits

Survivor pension: The percentage of the insured's pension payable varies depending on the number of eligible survivors. For a spouse with one child, 70%; with two children, 75%; with three children, 90%; with more than three children, 100%.

Administrative Organization

National Social Security Institute administers the program.

State hospitals, or government-approved establishments, deliver medical services.

Unemployment

Regulatory Framework

First and current laws: 1967 (unemployment), 1977 (temporary unemployment), and 1980 (special economic benefit).

Type of program: Social insurance system.

Coverage

Unemployment: Salaried employees.

Exclusions: Civil servants.

Temporary unemployment: Industrial and business employees and tradesmen.

Source of Funds

Unemployment

Insured person: 0.5% of earnings.

Employer: 1.5% of payroll.

Government: None.

Temporary unemployment

Insured person: None.

Employer: 2% or 4% of payroll.

Government: None.

Qualifying Conditions

Unemployment benefit: Payable to unemployed insured employees.

Special economic benefit: Payable in cases of mass unemployment or the closure of the place of employment.

Temporary unemployment benefit: Payable for temporary unemployment resulting from unforeseen circumstances, restructuring, or a short-term market downturn.

Unemployment Benefits

Unemployment benefit: 50% of the average wage in the 3 months before unemployment is payable for up to 100 days a year for permanent contract workers; 25% for up to 50 days for temporary contract workers.

Special economic benefit: 75% of earnings for the first 6 months and 65% of earnings for a maximum of a further 6 months.

Temporary unemployment benefit: 86% of earnings payable for a maximum of 9 months.

Administrative Organization

National Social Security Institute administers the unemployment and temporary unemployment programs.

Family Allowances

Regulatory Framework

There is no information available on the family benefits program in San Marino.