Seychelles

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1971 (provident fund).

Current laws: 1987 (social security), implemented in 1988; and 1990 (Seychelles pension scheme).

Type of program: Universal and social insurance system.

Coverage

Social security fund: All citizens residing in Seychelles territory and resident foreign employees who contribute to the Seychelles pension scheme.

Special schemes for the employees of three companies in the banking and industrial sector. Employees of these companies are covered under the Seychelles pension scheme.

Seychelles pension scheme: Employees in the public and private sectors.

Voluntary coverage for the self-employed.

Exclusions: Part-time workers employed for less than 25 hours a week.

Source of Funds

Insured person

Social security fund: 5% of monthly earnings; domestic workers pay Rs50 a month.

The above contributions to the social security fund also finance sickness and maternity benefits and work injury benefits.

Seychelles pension scheme: Rs25 a month (plus additional voluntary contributions).

There are no maximum earnings for contribution purposes.

Self-employed person

Social security fund: Contributions are made through the tax system.

Seychelles pension scheme: Voluntary contributions of Rs25 a month (plus additional voluntary contributions).

There are no maximum earnings for contribution purposes.

Employer

Social security fund: 10% on the first Rs1,000 of monthly wages, 20% on the second Rs1,000, 35% on the next Rs8,000, and 40% on wages in excess of Rs10,000; Rs50 a month for each domestic worker.

The above contributions to the social security fund also finance sickness and maternity benefits and work injury benefits.

Seychelles pension scheme: Rs50 a month for each employee.

Government: Contributes as an employer. Makes contributions out of the general budget and guarantees the pension benefits under the social security fund. The Seychelles pension scheme contribution is taken from business tax receipts.

Qualifying Conditions

Old-age pension

Old-age pension (social security fund): Age 63 with at least 5 years of residence immediately before the date of retirement. (The residency requirement may be waived by the Minister of Finance under special circumstances.)

The pension is not payable abroad.

Old-age benefit (Seychelles pension scheme): Age 63; at any age if the insured is emigrating permanently.

The pension is not payable abroad.

Disability pension

Disability pension (social security fund): A loss of 3/4 of earning capacity with at least 5 years of residence. A reduced pension is paid for a loss of earning capacity of between 50% and 74%. (The residency requirement may be waived by the Minister of Finance under special circumstances.)

Dependent supplement (income-tested): Payable for a family whose income is less than the family subsistence level. The supplement is payable under certain conditions for each dependent child and for one adult who must be the spouse, a person caring for the insured person, or a dependent disabled adult not receiving any other benefits.

The pension is not payable abroad.

Disability benefit (Seychelles pension scheme): Younger than age 63 and assessed as incapable of work by a medical board appointed by the Seychelles pension scheme. The benefit is payable after receiving the social security fund disability pension for 6 months.

The pension is not payable abroad.

Survivor pension

Spouse pension (social security fund): The deceased had at least 5 years of residence.

Eligible survivors are a widow aged 45 or older or with a dependent child younger than age 16 (or older if a student), a dependent widower, and full orphans.

A widow who does not qualify for a pension receives a limited benefit for 20 working days.

Dependent supplement (income-tested): Payable for a family whose income is less than the family subsistence level. The supplement is payable under certain conditions for each dependent child and for one adult who must be the spouse, a person caring for the insured person, or a dependent disabled adult not receiving any other benefits.

The pension is not payable abroad.

Survivor benefit (Seychelles pension scheme): The deceased was insured.

Eligible survivors are a widow(er) or cohabiting partner with whom the insured lived for at least 6 months or, in the absence of a surviving spouse or partner, dependent children. The insured may also designate any other person as a survivor, but the widow(er) automatically qualifies for the benefit. The pension is also payable to a child if the whereabouts of the child's parents is unknown.

Old-Age Benefits

Old-age pension (social security fund): Rs1,600 a month.

Benefit adjustment: Benefits are reviewed and adjusted annually for changes in the cost of living. (Benefits were last adjusted in January 2005.)

Old-age benefit (Seychelles pension scheme): The insured's contributions plus 5% interest. The average lump sum is Rs16,000.

Permanent Disability Benefits

Disability pension (social security fund): Rs1,550 a month.

Partial disability (earnings-tested): The full pension is reduced according to earnings. The pension is payable until retirement age after receiving sickness benefits for 6 months.

Dependent supplements (income-tested): Rs650 for an adult and Rs600 for each child.

The combined disability pension and dependent supplements must not exceed 80% of the insured's previous earnings.

Benefit adjustment: Benefits are reviewed and adjusted annually for changes in the cost of living. (Benefits were last adjusted in January 2005.)

Disability benefit (Seychelles pension scheme): The insured's contributions plus 5% interest.

Survivor Benefits

Spouse pension (social security fund): The monthly pension is Rs1,300 for an eligible widow or dependent widower, for a maximum of 1 year.

Dependent supplements (income-tested): Rs650 for an adult and Rs600 for each child.

The pension ceases on remarriage or if the widow(er) cohabits with a partner.

Orphan's pension (social security fund): The monthly pension is Rs775 for each full orphan.

Funeral grant: A lump sum of Rs1,500.

Benefit adjustment: Benefits are reviewed and adjusted annually for changes in the cost of living. (Benefits were last adjusted in January 2005.)

Survivor benefit (Seychelles pension scheme): The deceased's contributions plus 5% interest.

Administrative Organization

Ministry of Finance administers the social security fund program.

Directed by a managing director and a tripartite board of trustees, the Seychelles pension scheme (http://www.pensionscheme.sc) administers the supplementary program.

Sickness and Maternity

Regulatory Framework

First law: 1979.

Current law: 1987 (social security), implemented in 1988.

Type of program: Social insurance system. Cash sickness and maternity benefits only.

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: Contributions are made through the tax system.

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

Government: None.

Qualifying Conditions

Cash sickness and maternity benefits: There is no minimum qualifying period.

Dependent supplements (income-tested): Payable for a family whose income is less than the family subsistence level. The supplement is payable under certain conditions for each dependent child and for one adult who must be the spouse, a person caring for the insured person, or a dependent disabled adult not receiving any other benefits.

Sickness and Maternity Benefits

Sickness benefit: The employer pays the full salary for the first 2 months and is reimbursed 80% of the amount paid or Rs2,000, whichever is less; thereafter, the social security fund pays Rs1,300 a month for up to 130 working days.

Dependent supplements (income-tested): Rs650 for an adult and Rs600 for each child.

Benefit adjustment: Benefits are adjusted periodically according to changes in the cost of living. (Benefits were last adjusted in January 2005.)

Maternity benefit: The employer pays the full salary for 2 weeks before and 8 weeks after the expected date of childbirth and is reimbursed 80% of the amount paid up to Rs1,300. For a prolonged incapacity that is the result of pregnancy or childbirth, a sickness benefit is paid.

Dependent supplements (income-tested): Rs650 for an adult and Rs600 for each child.

Benefit adjustment: Benefits are adjusted periodically according to changes in the cost of living. (Benefits were last adjusted in January 2005.)

Workers' Medical Benefits

No statutory benefits are provided.

Medical services are available in government dispensaries and hospitals under the National Health Plan.

Dependents' Medical Benefits

No statutory benefits are provided.

Medical services are available in government dispensaries and hospitals under the National Health Plan.

Administrative Organization

Ministry of Finance administers the social security fund program.

Work Injury

Regulatory Framework

First law: 1970 (employer liability).

Current law: 1987 (social security), implemented in 1988.

Type of program: Social insurance system.

Coverage

Employed persons.

Exclusions: Self-employed persons.

Source of Funds

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

Self-employed person: Not applicable.

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

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Dependent supplements (income-tested): Payable for a family whose income is less than the family subsistence level. The supplement is payable under certain conditions for each dependent child and for one adult who must be the spouse, a person caring for the insured person, or a dependent disabled adult not receiving any other benefits.

Temporary Disability Benefits

For an assessed degree of disability of at least 50%, Rs1,300 a month is payable for up to 130 working days.

The degree of disability is assessed by the medical board established by the Ministry of Health.

Dependent supplements (income-tested): Rs650 for an adult and Rs600 for each child.

Benefit adjustment: Benefits are adjusted periodically according to changes in the cost of living. (Benefits were last adjusted in January 2005.)

Permanent Disability Benefits

Permanent disability pension: For a total disability, Rs1,300 a month is payable until retirement age after receiving a temporary disability benefit for 130 workings days.

Partial disability: A percentage of the benefit for a total disability according to the assessed degree of disability.

Dependent supplements (income-tested): Rs650 for an adult and Rs600 for each child.

The degree of disability is assessed by the medical board established by the Ministry of Health.

For a court award, compensation for incapacity for work is shared equally between the employer and the social security fund.

Benefit adjustment: Benefits are adjusted periodically according to changes in the cost of living. (Benefits were last adjusted in January 2005.)

Workers' Medical Benefits

Free medical care is provided when needed. Benefits include medical and surgical care, hospitalization, medicines, appliances, and transportation.

Survivor Benefits

Survivor pension: Rs1,300 is payable a month to the widow(er) if the deceased provided at least 75% of family income. The widow(er) must not be in gainful employment or self-employment.

The pension ceases on remarriage or if cohabiting with a partner.

Benefit adjustment: Pensions are adjusted annually according to changes in the cost of living. (Benefits were last adjusted in January 2005.)

Administrative Organization

Ministry of Finance administers the social security fund program.

Unemployment

Regulatory Framework

No statutory benefits are provided.

Under the 1980 Unemployment Fund Act, daily subsistence wages are provided for registered unemployed persons who work on government-approved projects.