News ID: 151 Publish Date : 6/9/2016 Hour : 14:32 Group: Home  
Dr. Ali Rabiei,  Minister of Cooperatives, Labor and Social Welfare
Technial Seminar on Administrative and Operational Efficiency Iranian Social Security Organization (ISSO) Tehran, I.R. Iran, 30-31August 2016 c

Dr. Ali Rabiei, Minister of Cooperatives, Labor and Social Welfare

Dr. Ali Rabiei,  Minister of Cooperatives, Labor and Social Welfare, welcomed the participants of the Technical Seminar in the opening ceremony and explained the status of Welfare and Social Security System in the I. R. Iran as follows:

Social welfare is one of the important pillars of each political system. Welfare and social security system is one of the major means of establishing social justice which has a great significance in terms of human rights, national sovereignty and social stability. In this context, sustainable development in a country would be affected by the quality and levels of social security in that country.

The concepts of public welfare and social security have been first evolved in Germany, although through a basic and limited coverage. This system was developed in some other western European countries as well. However, the development of social security systems owes much to the work of international organizations which led to the evolution of this highly important institution. However, the difference in terms of regulations, degree of coverage, social and healthcare services is evident between social security systems around the world. This difference is more visible when comparing developed countries with less developed and developing countries.

The first and the most important fact is the pace of developing social security systems around the world. Thus the challenge of extending insurance coverage would be the second most important issue for the social security systems. There is no doubt that social security is an opportunity to improve social, economic, political and even cultural development. Nowadays, providing services known as social security is one of the main duties of each and every state toward its people.

The history of a systemic welfare system in Iran goes back to ancient times. The clay tablets belonging to ancient Persia were discovered in 1933 in Persepolis, on which some calligraphies referring to the following facts:

  • There was a definite and pre-determined system to give workers’ wages based on their age and experience
  • Workers had been receiving extra payments to reimburse their non-sufficient income
  • The provision of food, clothing and housing was up to the employer during the employment period of the worker
  • Women and girls had almost equal rights to benefits and services.
  • The workers could use healthcare services in case of health injuries
  • The whole employee’s family members were entitled to financial assistance
  • Mothers had the right to child delivery as well as child benefits.
  • Mothers could entrust their children to Kindergartens during their working time
  • Food supplies had been given to the worker based on his/her age, skill and general status
  • One eighth of the workers' salary had been saved to pay him cash or credit benefits in case of disability to further that.
  • The wage of holidays had been calculated and paid to the worker.
  • Women could choose to work part-time jobs in order to be able to handle the domestic affairs

 

Social security and welfare in Islam:

The necessity of welfare and social security is undeniable for everyone. Islam first introduced social equilibrium when vulnerable groups had been abandoned and no one had been providing any economic supports to them and their families.

 

Islam has given special rules on social security and welfare. Fulfilling these requirements can best solve the challenges prevalent in the society. These requirements depict the bilateral duties and responsibilities of the both, people and the state which are funded by public expenditure. They are included within the following principles:

  • Humanitarian action: there are specific rules indicating humanitarian behavior such as Khoms, Zakaat, Kaffareh, Sadagheh and etc...
  • Security and safety: based on Quran, the highly appreciated commodity being provided by a Muslim is “security”.
  • Social solidarity: Quran necessitates all Muslims as brothers belonging to one single community which would help together in times of hardships.
  • Poverty reduction: Quran requires people to help the vulnerable groups and help fulfill their needs.
  • Responsibility: The Holy Quran requires everyone to be responsible toward the others.
  • Social justice: The Holy Quran highlights the mission of all prophets in spreading justice globally.

There are also some specific insurance mechanisms being anticipated in the Holy Quran, such as certain taxes, liabilities, and funds based on specific Islamic rules.

 

The institutional footprints of the Ministry of welfare and social security goes back to more than a hundred years ago.  The first steps in establishing the organizational fundamentals of this institution include:

  • The adoption of the first National Employment Law in 1922 which formulated the first Iranian retirement system
  • The establishment of the first Iranian Provident Fund for Railway Workers in 1930
  • The adoption of the First Iranian Labor Law by the Cabinet in 1946
  • The establishment of the Ministry of Labor in 1949
  • The adoption of the Workers’ Social Insurance Act and setting up the Social Insurance Organization for the Workers in 1952
  • Renaming the “Social Insurance Organization for the Workers” to the “Social Insurance Organization” under the supervision of the Ministry of Labor and Social Affairs in 1963
  • The adoption of Social Insurance Act for the Rural Population in 1968
  • The establishment of Healthcare Services Organization following the adoption of the first Act on Civil Servants’ healthcare services in 1972
  • The official establishment of the Ministry of Social Welfare in 1974
  • The establishment of Iranian Social Security Organization in 1975

After the Islamic Revolution of Iran, the new government had got a protectionist attitude towards the vulnerable groups. This led to specification of an Article in the Iran’s Constitution stipulating the necessity to provide sufficient protections for the needy and vulnerable population. This among other protections steps, led to the ratification of the Comprehensive Welfare and Social Security System Structure Act in 2004 which brings about a structure, composed of principles, policies, components as well as fundamentals within which the substantive laws are regulated and enforced.

Pursuant to the adoption of the abovementioned Law, The New Ministry of Welfare and Social Security was established in 2004 and it was entrusted with policymaking in areas of national social insurance, assistance and charities as well as rescue and relief activities. This Ministry was emerged with the Ministries of Labor and Cooperatives in 2011. The ministry merging was a part of government program for reorganizing government ministry and integration of the executive body with a complementary or overlapped tasks. The new ministry has same tasks and responsibilities of all three former ministries. 

The Comprehensive Welfare and Social Security System Structure Act, was ratified in 2004 which is considered a blueprint in the history of national social security system.

The Act was ratified pursuant to the fulfillment of the Article 29 of the Iran’s Constitution which stipulated the duty of the government to provide social security rights to all. According to this Act, the principles of social insurance, assistance and charities as well as rescue and relief activities and their scope of application have been illuminated.

To help establish a comprehensive welfare and social security system in Iran, the following mechanisms have been at the heart of national welfare policies:

  • Social insurance mechanisms which are based on the employment of insured population and consists of social insurances, provident funds and employers’ liability. This is a tripartite system funded by the contributions by the employers, employees and the government. Insurance funds along with Iranian Social Security Organization are categorized in this section.
  • Social assistance mechanisms which are based on the requirement of having Iranian citizenship. This institution is funded mainly by the government (through the public budget) and the beneficiaries include vulnerable groups such as people with disabilities (physical and mental), orphans, prisoners’ families and etc. State Welfare Organization, Imam Khomeini Relief Foundation and Charities are embedded in this category.
  • Rescue and Relief mechanisms which includes governmental, public and even international aids in times of natural disasters such as floods, earthquake, extensive fires or civil riots and unrests. This institution needs not only governmental aids but also voluntary public aids and the target beneficiaries include national and international victims of natural and non-natural disasters.

 

Now it is the time for the Iranian welfare and social security system to move towards a multi pillar social security system. Actually, spreading social justice and implementing poverty reduction strategies have long been on the agenda of the Islamic Republic of Iran. Right now, we are faced with the challenge of old age population and the main solution is to help develop social insurance funds to be able to respond to the needs of current as well as future insured population.

Setting up a comprehensive, integrated, transparent, efficient and multi-pillar social security system has been emphasized in the 6th National Development Plan issued by the Iranian Supreme Leader. The lack of a centralized insurance system for non-wage earners and non-compulsory features of insurance coverage, highly dependence of most insurance funds to the public budget and the lack of a well-balanced relationship between resources and liabilities in insurance and retirement funds in addition to the lack a comprehensive  safety net to recognize the authentic target beneficiaries, are among the current challenges of the Iranian social security system which necessitates implementation of a multi pillar social security system. Establishing this multi pillar system is one of the main duties of the Ministry of Cooperatives, Labor and Social Welfare. The aim is to organize and coordinate between different pillars so as to facilitate the implementation of complementary insurances (third pillar). This complementary pillar would act as a partial in-kind system as well as the means to meet the welfare needs of the target beneficiaries who embark upon voluntary registration. The fundamentals of the multi-pillar social security system were anticipated in the 5th National Development Plan, in accordance with Articles 27 and 42 and it is supposed to be seriously continued through the 6th National Development Plan.

Having been the largest insurer organization in the Region, Iranian Social Security Organization has got remarkable potentials in the social insurance as well as health sectors and is inclined to play a more highlighted role in the Region by exchanging experience and knowledge in areas of welfare and social security with ISSA members.

Dr. Ali Rabeie, Minister of Cooperatives, Labor and Social Welfare concluded:  “I wish we can fulfill the goals stipulated in the requirements of a comprehensive social welfare system in upcoming years and achieve the objective of universal, comprehensive, and adequate social benefits for the Iranian population.

Before I conclude, I would like to express my sincere appreciation to  Mr. Konkolewsky, Secretary General of the International Social Security Association (ISSA), as well as to ISSO staff for their excellent work.

Thank you for being here today and for your attention.  I wish you all a pleasant time here in Tehran”.

 

Dr. Ali Rabiei,  Minister of Cooperatives, Labor and Social Welfare, welcomed the participants of the Technical Seminar in the opening ceremony and explained the status of Welfare and Social Security System in the I. R. Iran as follows:

Social welfare is one of the important pillars of each political system. Welfare and social security system is one of the major means of establishing social justice which has a great significance in terms of human rights, national sovereignty and social stability. In this context, sustainable development in a country would be affected by the quality and levels of social security in that country.

The concepts of public welfare and social security have been first evolved in Germany, although through a basic and limited coverage. This system was developed in some other western European countries as well. However, the development of social security systems owes much to the work of international organizations which led to the evolution of this highly important institution. However, the difference in terms of regulations, degree of coverage, social and healthcare services is evident between social security systems around the world. This difference is more visible when comparing developed countries with less developed and developing countries.

The first and the most important fact is the pace of developing social security systems around the world. Thus the challenge of extending insurance coverage would be the second most important issue for the social security systems. There is no doubt that social security is an opportunity to improve social, economic, political and even cultural development. Nowadays, providing services known as social security is one of the main duties of each and every state toward its people.

The history of a systemic welfare system in Iran goes back to ancient times. The clay tablets belonging to ancient Persia were discovered in 1933 in Persepolis, on which some calligraphies referring to the following facts:

  • There was a definite and pre-determined system to give workers’ wages based on their age and experience
  • Workers had been receiving extra payments to reimburse their non-sufficient income
  • The provision of food, clothing and housing was up to the employer during the employment period of the worker
  • Women and girls had almost equal rights to benefits and services.
  • The workers could use healthcare services in case of health injuries
  • The whole employee’s family members were entitled to financial assistance
  • Mothers had the right to child delivery as well as child benefits.
  • Mothers could entrust their children to Kindergartens during their working time
  • Food supplies had been given to the worker based on his/her age, skill and general status
  • One eighth of the workers' salary had been saved to pay him cash or credit benefits in case of disability to further that.
  • The wage of holidays had been calculated and paid to the worker.
  • Women could choose to work part-time jobs in order to be able to handle the domestic affairs

 

Social security and welfare in Islam:

The necessity of welfare and social security is undeniable for everyone. Islam first introduced social equilibrium when vulnerable groups had been abandoned and no one had been providing any economic supports to them and their families.

 

Islam has given special rules on social security and welfare. Fulfilling these requirements can best solve the challenges prevalent in the society. These requirements depict the bilateral duties and responsibilities of the both, people and the state which are funded by public expenditure. They are included within the following principles:

  • Humanitarian action: there are specific rules indicating humanitarian behavior such as Khoms, Zakaat, Kaffareh, Sadagheh and etc...
  • Security and safety: based on Quran, the highly appreciated commodity being provided by a Muslim is “security”.
  • Social solidarity: Quran necessitates all Muslims as brothers belonging to one single community which would help together in times of hardships.
  • Poverty reduction: Quran requires people to help the vulnerable groups and help fulfill their needs.
  • Responsibility: The Holy Quran requires everyone to be responsible toward the others.
  • Social justice: The Holy Quran highlights the mission of all prophets in spreading justice globally.

There are also some specific insurance mechanisms being anticipated in the Holy Quran, such as certain taxes, liabilities, and funds based on specific Islamic rules.

 

The institutional footprints of the Ministry of welfare and social security goes back to more than a hundred years ago.  The first steps in establishing the organizational fundamentals of this institution include:

  • The adoption of the first National Employment Law in 1922 which formulated the first Iranian retirement system
  • The establishment of the first Iranian Provident Fund for Railway Workers in 1930
  • The adoption of the First Iranian Labor Law by the Cabinet in 1946
  • The establishment of the Ministry of Labor in 1949
  • The adoption of the Workers’ Social Insurance Act and setting up the Social Insurance Organization for the Workers in 1952
  • Renaming the “Social Insurance Organization for the Workers” to the “Social Insurance Organization” under the supervision of the Ministry of Labor and Social Affairs in 1963
  • The adoption of Social Insurance Act for the Rural Population in 1968
  • The establishment of Healthcare Services Organization following the adoption of the first Act on Civil Servants’ healthcare services in 1972
  • The official establishment of the Ministry of Social Welfare in 1974
  • The establishment of Iranian Social Security Organization in 1975

After the Islamic Revolution of Iran, the new government had got a protectionist attitude towards the vulnerable groups. This led to specification of an Article in the Iran’s Constitution stipulating the necessity to provide sufficient protections for the needy and vulnerable population. This among other protections steps, led to the ratification of the Comprehensive Welfare and Social Security System Structure Act in 2004 which brings about a structure, composed of principles, policies, components as well as fundamentals within which the substantive laws are regulated and enforced.

Pursuant to the adoption of the abovementioned Law, The New Ministry of Welfare and Social Security was established in 2004 and it was entrusted with policymaking in areas of national social insurance, assistance and charities as well as rescue and relief activities. This Ministry was emerged with the Ministries of Labor and Cooperatives in 2011. The ministry merging was a part of government program for reorganizing government ministry and integration of the executive body with a complementary or overlapped tasks. The new ministry has same tasks and responsibilities of all three former ministries. 

 

The Comprehensive Welfare and Social Security System Structure Act, was ratified in 2004 which is considered a blueprint in the history of national social security system.

The Act was ratified pursuant to the fulfillment of the Article 29 of the Iran’s Constitution which stipulated the duty of the government to provide social security rights to all. According to this Act, the principles of social insurance, assistance and charities as well as rescue and relief activities and their scope of application have been illuminated.

To help establish a comprehensive welfare and social security system in Iran, the following mechanisms have been at the heart of national welfare policies:

  • Social insurance mechanisms which are based on the employment of insured population and consists of social insurances, provident funds and employers’ liability. This is a tripartite system funded by the contributions by the employers, employees and the government. Insurance funds along with Iranian Social Security Organization are categorized in this section.
  • Social assistance mechanisms which are based on the requirement of having Iranian citizenship. This institution is funded mainly by the government (through the public budget) and the beneficiaries include vulnerable groups such as people with disabilities (physical and mental), orphans, prisoners’ families and etc. State Welfare Organization, Imam Khomeini Relief Foundation and Charities are embedded in this category.
  • Rescue and Relief mechanisms which includes governmental, public and even international aids in times of natural disasters such as floods, earthquake, extensive fires or civil riots and unrests. This institution needs not only governmental aids but also voluntary public aids and the target beneficiaries include national and international victims of natural and non-natural disasters.

 

Now it is the time for the Iranian welfare and social security system to move towards a multi pillar social security system. Actually, spreading social justice and implementing poverty reduction strategies have long been on the agenda of the Islamic Republic of Iran. Right now, we are faced with the challenge of old age population and the main solution is to help develop social insurance funds to be able to respond to the needs of current as well as future insured population.

Setting up a comprehensive, integrated, transparent, efficient and multi-pillar social security system has been emphasized in the 6th National Development Plan issued by the Iranian Supreme Leader. The lack of a centralized insurance system for non-wage earners and non-compulsory features of insurance coverage, highly dependence of most insurance funds to the public budget and the lack of a well-balanced relationship between resources and liabilities in insurance and retirement funds in addition to the lack a comprehensive  safety net to recognize the authentic target beneficiaries, are among the current challenges of the Iranian social security system which necessitates implementation of a multi pillar social security system. Establishing this multi pillar system is one of the main duties of the Ministry of Cooperatives, Labor and Social Welfare. The aim is to organize and coordinate between different pillars so as to facilitate the implementation of complementary insurances (third pillar). This complementary pillar would act as a partial in-kind system as well as the means to meet the welfare needs of the target beneficiaries who embark upon voluntary registration. The fundamentals of the multi-pillar social security system were anticipated in the 5th National Development Plan, in accordance with Articles 27 and 42 and it is supposed to be seriously continued through the 6th National Development Plan.

Having been the largest insurer organization in the Region, Iranian Social Security Organization has got remarkable potentials in the social insurance as well as health sectors and is inclined to play a more highlighted role in the Region by exchanging experience and knowledge in areas of welfare and social security with ISSA members.

Dr. Ali Rabeie, Minister of Cooperatives, Labor and Social Welfare concluded: “I wish we can fulfill the goals stipulated in the requirements of a comprehensive social welfare system in upcoming years and achieve the objective of universal, comprehensive, and adequate social benefits for the Iranian population.

Before I conclude, I would like to express my sincere appreciation to  Mr. Konkolewsky, Secretary General of the International Social Security Association (ISSA), as well as to ISSO staff for their excellent work.

Thank you for being here today and for your attention.  I wish you all a pleasant time here in Tehran”.

 

 

 

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