Guinea-Bissau

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1954 (civil servants) and 1960 (social insurance for workers in industry and commerce).

Current laws: 1986 (social insurance) and 2007 (social insurance framework).

Type of program: Social insurance system.

Coverage

Private-sector employees, including temporary workers, apprentices, certain foreign nationals working in Guinea-Bissau; and self-employed persons (voluntary coverage for the funeral grant).

Voluntary coverage for persons who previously had mandatory coverage and for certain foreign nationals temporarily working in Guinea-Bissau.

Special systems for civil servants and public-sector employees.

Source of Funds

Insured person: 8% of gross monthly earnings.

There are no minimum or maximum earnings used to calculate contributions.

The insured person’s contributions also finance cash sickness and medical benefits.

Self-employed person: 5% to 10% of monthly declared earnings, depending on the level of coverage.

There are no minimum or maximum earnings used to calculate contributions.

The self-employed can choose to pay an additional contribution to finance the funeral grant and medical benefits.

Employer: 14% of gross monthly payroll.

There are no minimum or maximum earnings used to calculate contributions.

The employer’s contributions also finance cash sickness and medical benefits.

Government: Provides subsidies as needed.

Qualifying Conditions

Old-age pension (Pensão de Velhice): Age 60 with at least 10 years of contributions.

Employment may continue under certain conditions.

Old-age settlement: Age 60 with less than 10 years of contributions.

Disability pension (Pensão de Invalidez): Must be younger than the normal retirement age, be assessed with a loss of earning capacity of at least 50%, and have at least 10 years of contributions.

A medical board assesses the loss of earning capacity.

The disability pension ceases at the normal retirement age and is replaced by the old-age pension.

Disability settlement: Must be younger than the normal retirement age, be assessed with a loss of earning capacity of at least 50%, and have less than 10 years of contributions.

Survivor pension (Pensão de Sobrevivência): The deceased received or was entitled to receive an old-age or disability pension.

Eligible survivors include a widow(er) aged 60 or older (no age limit if unemployed, caring for eligible children, or assessed with a loss of earning capacity of at least 25%); and orphans younger than age 18 (age 25 if a student; no limit if disabled).

The widow(er)’s pension ceases upon remarriage.

Survivor settlement: The deceased did not meet the contribution requirements for an old-age or disability pension.

Eligible survivors include a widow(er) aged 60 or older (no age limit if assessed with a loss of earning capacity of at least 25%), and orphans younger than age 18 (age 25 if a student; no limit if disabled).

Funeral grant (Subsídio do Funeral): Paid when an insured person or a pensioner dies. The benefit is paid to a spouse, a child, or the person who paid for the funeral.

Old-Age Benefits

Old-age pension (Pensão de Velhice): 2% of the insured’s average monthly earnings multiplied by the number of years of contributions is paid.

Average monthly earnings are the insured’s average annual earnings in the highest two years of earnings in the five years before retirement divided by 24.

The maximum monthly old-age pension is 80% of the insured’s average monthly earnings.

Old-age settlement: A lump sum of the total employee and employer contributions allocated to finance old-age, disability, and survivor benefits is paid.

Permanent Disability Benefits

Disability benefit (Pensão de Invalidez): 2% of the insured’s average monthly earnings multiplied by the number of years of contributions is paid.

Average monthly earnings are the insured’s average annual earnings in the highest two years of earnings in the five years before retirement divided by 24.

The maximum monthly disability pension is 80% of the insured’s average monthly earnings.

Disability settlement: A lump sum of the total employee and employer contributions allocated to finance old-age, disability, and survivor benefits is paid.

Survivor Benefits

Survivor pension (Pensão de Sobrevivência)

Spouse’s pension: 50% of the old-age pension the deceased received or was entitled to receive is paid for life if the widow(er) is aged 60 or older, disabled, or raising a child; for 12 months if the widow(er) is younger than age 60 and is unemployed; for six months if younger than age 60 and employed.

Orphan’s pension: 20% of the old-age pension the deceased received or was entitled to receive is paid to one eligible orphan; 30% for two orphans; 40% for three orphans; or 50% for four or more orphans.

Survivor settlement: A lump sum of the total employee and employer contributions allocated to finance old-age, disability, and survivor benefits is paid.

Funeral grant (Subsídio do Funeral): A lump sum of up to 100,000 CFA francs is paid, depending on the deceased’s contribution record at the time of death.

Administrative Organization

Ministry of Labor and Public Administration provides general oversight.

National Institute of Social Security (http://www.inpsgb.com/) administers the program and collects contributions.

Sickness and Maternity

Regulatory Framework

First laws: 1954 (civil servants) and 1960 (social insurance for workers in industry and commerce).

Current laws: 1986 (social insurance) and 2007 (social insurance framework).

Type of program: Social insurance (cash sickness and medical benefits) and employer-liability (cash maternity benefit) system.

Coverage

Social insurance (cash sickness and medical benefits): Private-sector employees, including temporary workers, apprentices, and certain foreign nationals working in Guinea-Bissau.

Voluntary coverage for self-employed persons, persons who previously had mandatory coverage, and certain foreign nationals temporarily working in Guinea-Bissau.

Special systems for civil servants and public-sector employees.

Employer liability (cash maternity benefit): Private-sector employees.

Exclusions: Self-employed persons.

Special systems for public-sector employees.

Source of Funds

Insured person

Social insurance (cash sickness and medical benefits): See source of funds under Old Age, Disability, and Survivors.

Employer liability (cash maternity benefit): None.

Self-employed person

Social insurance (cash sickness and medical benefits): A contribution is paid.

Employer liability (cash maternity benefit): Not applicable.

Employer

Social insurance (cash sickness and medical benefits): See source of funds under Old Age, Disability, and Survivors.

Employer liability (cash maternity benefit): The total cost.

Government

Social insurance (cash sickness and medical benefits): Provides subsidies as needed; contributes as employer.

Employer liability (cash maternity benefit): None.

Qualifying Conditions

Cash sickness benefit (Subsídio de Doença, social insurance): There is no minimum qualifying period. Must provide a medical certificate.

Cash maternity benefit (employer liability): There is no minimum qualifying period. Must provide a medical certificate.

Medical benefits (Assistência médica e medicamentosa, social insurance): There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit (Subsídio de Doença, social insurance): 100% of the insured’s earnings is paid for up to 960 days.

Maternity benefit (employer liability): 100% of the employee’s earnings is paid for 60 days, including at least 30 days after childbirth.

Workers’ Medical Benefits

Medical benefits (Assistência médica e medicamentosa, social insurance): Benefits include inpatient and outpatient services, emergency care, maternity care, and rehabilitation services.

Cost sharing: A copayment may be required for certain services.

Dependents’ Medical Benefits

Medical benefits (Assistência médica e medicamentosa, social insurance): Benefits for dependents are the same as those for the insured.

Administrative Organization

Ministry of Labor and Public Administration provides general oversight.

National Institute of Social Security (http://www.inpsgb.com/) administers the social insurance program and collects contributions.

Employers pay cash maternity benefits directly to employees.

Hospitals, private clinics, and other medical facilities under contract with the National Institute of Social Security provide medical services.

Work Injury

Regulatory Framework

First and current laws: 1980 (work injury insurance) and 1980 (work injury regulations).

Type of program: Social insurance system.

Coverage

Employed persons, including temporary workers, apprentices, certain agricultural workers, and foreign nationals working in Guinea-Bissau; and certain self-employed persons.

Voluntary coverage for self-employed persons without mandatory coverage.

Source of Funds

Insured person: None.

Self-employed person: 2% to 10% of monthly payroll, depending on the assessed degree of risk.

Employer: 2% to 10% of monthly payroll, depending on the assessed degree of risk.

Government: None.

Qualifying Conditions

Must be assessed with a work injury or occupational disease. Accidents that occur while traveling to and from work are covered. Must provide a medical certificate from a recognized medical practitioner.

Temporary Disability Benefits

Temporary disability benefit (Indemnização por Incapacidade Temporaria): 40% of the insured’s average daily earnings is paid for the first 14 days of incapacity; thereafter, 70%.

If the insured person is hospitalized and there are no dependents, 40% of the insured’s average daily earnings is paid; if the insured has dependents, 70% of earnings is paid from the eighth day of incapacity.

Permanent Disability Benefits

Permanent disability pension (Prestaçãoes por Incapacidade Permanente): For a total (100%) disability, 70% of the insured’s normal earnings is paid.

Constant-attendance allowance: 25% of the permanent disability pension is paid if the insured requires the constant attendance of others to perform daily functions.

Partial disability: For an assessed degree of disability of less than 100%, a percentage of the full permanent disability benefit is paid based on the assessed degree of disability.

A medical practitioner periodically reviews the degree of disability.

Workers’ Medical Benefits

Medical and rehabilitation services are provided.

Survivor Benefits

Survivor pension

Spouse’s pension: 30% of the full permanent disability pension the deceased received or was entitled to receive is paid to a widow or to a widower aged 65 or older (at any age if disabled). If there is more than one widow, the pension is split equally.

Orphan’s pension: 15% of the full permanent disability pension the deceased received or was entitled to receive is paid to each orphan younger than age 19 (age 24 if a full-time student, no limit if disabled); 45% for a full orphan.

Dependent parent’s pension: If there is no eligible widow(er) or orphan, 10% of the full permanent disability pension the deceased received or was entitled to receive is paid to a dependent parent or sibling, up to 30%.

The maximum combined survivor pension is 100% of the full permanent disability pension the deceased received or was entitled to receive.

Funeral grant: A lump sum of 100,000 CFA francs is paid to an eligible survivor or the person who paid for the funeral.

Benefit adjustment: The funeral grant is adjusted periodically based on economic indicators.

Administrative Organization

National Institute of Social Security (http://www.inpsgb.com/) administers the program and collects contributions.