Social Security Programs Throughout the World: Europe, 2004

 

Serbia

Exchange rate: US$1.00 equals 54.64 dinars.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1922, implemented in 1937.

Current law: 2003.

Type of program: Social insurance system.

Coverage

Employees in industry, commerce, and agriculture; public-sector employees; and members of handicraft and fishery cooperatives.

Special systems for various categories of self-employed workers including craftsmen, artists, and farmers.

Source of Funds

Insured person: 16% of earnings.

Employer: 16% of payroll.

Government: Guarantees cash benefits.

The minimum earnings for contribution purposes range from 37% of the national average wage for employees with the lowest level of education to 155% of the national average wage for employees with the highest level of education.

The maximum earnings for contribution purposes are five times the national average wage.

Qualifying Conditions

Old-age pension: Men, age 63 with 20 years of insurance; age 65 with 15 years of insurance; or age 53 with 40 years of insurance. Women, age 58 with 20 years of insurance; age 60 with 15 years of insurance; or age 53 with 35 years of insurance.

Retirement from insured employment is necessary.

The pension is payable abroad if there is a reciprocal agreement.

Disability pension: Incapacity for all work (total disability). The insured must not be of retirement age and have at least 5 years of insurance.

If younger than age 30, the insured must have at least 1 year of service if the onset of disability was before age 20; at least 2 years of service if the onset of disability was before age 25; at least 3 years of service if the onset of disability was before age 30.

Survivor pension: The deceased was a pensioner or had 5 years of insurance coverage or was eligible for a disability pension.

Old-Age Benefits

Old-age pension: The value of personal points (a personal coefficient multiplied by the number of years of service) multiplied by the value of the general point.

The personal coefficient is equal to the sum of annual personal coefficients divided by the period for which they are calculated. The annual personal coefficient is the ratio between an individual wage and the average wage in the Republic for the same calendar year.

The value of the general point is 242.07 dinars (2003).

The maximum pension is 85% of average earnings.

Benefit adjustment: Benefits are adjusted every quarter. The adjustment is based equally on the increase in the cost of living and on the increase in average net wages.

Permanent Disability Benefits

Disability pension: The value of personal points (a personal coefficient multiplied by the number of years of service) multiplied by the value of the general point.

The personal coefficient is equal to the sum of annual personal coefficients divided by the period for which they are calculated. The annual personal coefficient is the ratio between an individual wage and the average wage in the Republic for the same calendar year.

The value of the general point is 242.07 dinars (2003).

Projected years of service are calculated as 2/3 of the period between the onset of disability and age 53 and 1/2 of the period between age 53 and age 58 (women) or age 63 (men).

Constant-attendance allowance: An allowance is provided where necessary.

Benefit adjustment: Benefits are adjusted every quarter. The adjustment is based equally on the increase in the cost of living and on the increase in average net wages.

Survivor Benefits

Survivor pension: 70% of the pension paid or accrued to the insured for one survivor; 80% for two survivors; 90% for three survivors; or 100% for four or more survivors.

Eligible survivors include a widow aged 45 or older (a widower aged 53 or older), or disabled, or caring for a child under age 15 (age 26 if a student, no limit if disabled); a dependent mother aged 58 or older, or disabled; a dependent father aged 63 or older, or disabled; and dependent grandchildren, brothers, or sisters.

Funeral grant: 1.5 times the average pension in the quarter before the insured's death.

Benefit adjustment: Benefits are adjusted every quarter. The adjustment is based equally on the increase in the cost of living and on the increase in average net wages.

Administrative Organization

Social Security Institute provides general supervision.

Pension and disability funds administer the programs at the local level.

Sickness and Maternity

Regulatory Framework

First law: 1922.

Current laws: 1992 and 1999 (health insurance for foreigners).

Type of program: Social insurance system.

Note: This information is from 1999.

Coverage

Employees in industry, commerce, and agriculture; public-sector employees; members of handicraft and fishery cooperatives; students; artists; self-employed workers; and farmers. Foreign citizens including persons without citizenship, those with refugee status, or those granted asylum. Pensioners are covered for medical benefits.

Source of Funds

Insured person: Contribution rates vary according to profession, up to a maximum of 9.7% of earnings.

Employer: Contribution rates vary, up to a maximum of 9.7% of payroll.

Government: None.

Regional pension and disability associations and employment associations pay contributions for beneficiaries' health coverage.

Qualifying Conditions

Sickness and maternity benefits: Coverage for 12 continuous months or for 18 months during the last 2 years.

Medical benefits: There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit: The employer pays for the first 60 days. The benefit is payable from the first day of incapacity until recovery or until the award of a disability pension.

The minimum benefit is 50% of average earnings.

The maximum benefit is 75% of average earnings for the first 60 days and 95% from the 61st day if the qualifying period is met; 90% if it is not.

Maternity benefit: 100% of earnings if the qualifying period is met; 80% if it is not.

Maternity grant: The grant is determined by the health insurance association.

Workers' Medical Benefits

Medical services are provided directly to patients through the facilities of the government health service on the basis of contracts with local health insurance associations.

Dependents' Medical Benefits

Same as for the insured person. The wife or another female dependent of the insured receives the same maternity benefits as an insured woman.

Administrative Organization

Health insurance funds administer the program at the local level.

National Committee provides general coordination of regional funds and associations.

Work Injury

Regulatory Framework

First law: 1922.

Current laws: 1983, 1992, 1999 (health insurance for foreign citizens), and 2003.

Type of program: Social insurance system.

Coverage

Employees in industry, commerce, and agriculture; public-sector employees; members of handicraft and fishery cooperatives; students; artists; self-employed workers; and farmers. Foreign citizens including persons without citizenship, those with refugee status, or those granted asylum.

Source of Funds

Insured person: None.

Employer: See source of funds under Sickness and Maternity, above.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

100% of earnings. The benefit is payable from the first day of incapacity until recovery or the award of a permanent disability pension.

Permanent Disability Benefits

Permanent disability pension: The value of personal points (a personal coefficient multiplied by 40) multiplied by the value of the general point.

The personal coefficient is equal to the sum of annual personal coefficients divided by 40. The annual personal coefficient is the ratio between an individual wage and the average wage in the Republic for the same calendar year.

The value of the general point is 242.07 dinars (2003).

For a disability caused by a work injury or an occupational disease, the calculation of personal points is always based on 40 years of projected service.

Constant-attendance allowance: An allowance is provided where necessary.

Benefit adjustment: Benefits are adjusted every quarter. The adjustment is based equally on the increase in the cost of living and on the increase in average net wages.

Workers' Medical Benefits

Medical services are provided directly to patients through the facilities of the government health service on the basis of contracts with local health insurance associations.

Survivor Benefits

Survivor pension: 70% of the pension paid or accrued to the insured for one survivor; 80% for two survivors; 90% for three survivors; or 100% for four or more survivors.

Eligible survivors include a widow aged 45 or older (a widower aged 53 or older), or disabled, or caring for a child under age 15 (age 26 if a student, no limit if disabled); a dependent mother aged 58 or older, or disabled; a dependent father aged 63 or older, or disabled; and dependent grandchildren, brothers, or sisters.

Funeral grant: The cost of the funeral.

Administrative Organization

Social Security Institute provides general supervision.

Pension and disability funds administer the programs at the local level.

Union of Pension and Disability Associations coordinates and administers short-term cash benefits.

Unemployment

Regulatory Framework

First law: 1927.

Current law: 1992.

Type of program: Social insurance system.

Note: This information is from 1999.

Coverage

Employed persons.

Source of Funds

Insured person: Contribution rates vary, up to a maximum of 0.9% of earnings.

Employer: Contribution rates vary, up to a maximum of 0.9% of the employee's earnings.

Government: None.

Qualifying Conditions

Unemployment benefit: Employed for the last 9 months or 12 of the last 18 months. Total household income from employment should not exceed a specified monthly amount.

Unemployment Benefits

Unemployment benefit (income-tested): 70% of average earnings in the last 3 months is payable for up to 3 months; may be extended up to 30 months for workers with 30 years of previous employment.

Administrative Organization

Unemployment funds coordinate and administer the program.

Family Allowances

Regulatory Framework

First law: 1949.

Current law: 1990.

Type of program: Employment-related system.

Note: This information is from 1999.

Coverage

Employees; some categories of self-employed persons; artists; social insurance beneficiaries; and nonworking, low-income, single mothers with one or more children.

Source of Funds

Insured person: Contribution rates vary.

Employer: Private-sector employers pay the total contribution on behalf of their employees.

Government: None.

Qualifying Conditions

Family allowances: Child must be under age 15 (age 26 if a student, no limit if disabled). Taxable household income must be below the specified monthly amount, which is adjusted periodically for changes in the cost of living. Most laws also require 12 months of coverage.

Family Allowance Benefits

Family allowances (income-tested): The allowance varies according to the number of children in the family.

Benefit adjustment: Allowances are adjusted periodically for changes in the cost of living.

Administrative Organization

National Committee provides general coordination of the regional funds and associations.

Self-governing regional associations administer programs.