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2016 | OriginalPaper | Buchkapitel

Slovenia: Continuous Gradual Change of the Welfare State?

verfasst von : Maša Filipovič Hrast, Anja Kopač Mrak

Erschienen in: Challenges to European Welfare Systems

Verlag: Springer International Publishing

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Abstract

In Slovenia development of the welfare system started from a state socialist welfare system and was marked with gradualism. A dual model of the welfare system has formed, with the compulsory social insurance systems and the strong public/state sector as the main service provider of all types of services. Due to the deep economic crisis, ageing population and lack of structural reforms in the previous decade the pressure on the existing welfare system has been growing in Slovenia. The current economic and financial crisis set Slovenia back in to the situation of the mid-1990s regarding the low activity rate and high unemployment rates. This has stimulated several of the changes that were introduced in the last few years. The changes in the labour market went in the direction of higher flexibility and loss of some of the established rights. Also significant were the changes in the pension system, as well as social assistance schemes and family policy. The new legal framework has according to evaluations increased vulnerabilities of several groups. On the other hand the necessary health care reform and long-term care policy have not been adopted. An additional issue in Slovenia is the problem of low trust among social partners as well as the rising distrust of people and the increasing perception of injustice, which makes the adoption of reforms and finding consensus on their direction even more difficult. This is reflected in high political instability and civil protests.

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EU SILC definition; as is the percentage of persons living in households where the equivalised total disposable household income is below the threshold.

http://zakonodaja.gov.si/rpsi/r03/predpis_ZAKO5733.html

http://www.uradni-list.si/1/content?id=90544

The conditions for companies were that when receiving a subsidy, they would not lay off workers, they would pay wages and contributions, would not have organised work over time (in the business year of receiving the subsidy). The duration of the programme was limited (up to September 2010). During this time 904 contracts with companies were made. Source: http://www.mddsz.gov.si/si/delovna_podrocja/trg_dela_in_zaposlovanje/zdspdc/

Also this programme ended in 2011. The employment office has received 1127 requests from companies for this measure and in the programme 946 companies and more than 19,000 employees were included. Source: http://www.ess.gov.si/obvestila/obvestilo?aid=266

In the period from August 2004 to August 2005, the minimum gross wage reached 43.1 % of the average gross pay, but after that, it dropped annually to 41.1 % in 2008 (GINI report).

The proportion of recipients of the minimum wage of all employees rose from around 7 % last year (averaged from March to December) to 7.7 % in the first quarter of 2011. In the private sector, the share of recipients increased from 8.5 % (averaged from March to December) to 9.5 %, while in the public sector, it increased from 2.5 to 2.9 %.

As the conditions for receiving unemployment benefits are now being employed 9 months in last 24 months (previously 12 out of 18 months).

It increases the amount for the first 3 months of receiving the benefit (80 %, previously 70 %) and shortens the period for establishing the basis for unemployment benefit (to 8 months, previously 12).

The period of receiving unemployment benefit is lengthened for persons aged 50 or more (and 25 years insurance period) to 19 months and for persons aged 55 or more (and 25 years insurance period) to 25 months.

If an unemployed person becomes employed at less than full time, they are entitled to the proportionate amount of unemployment benefit. http://www.mddsz.gov.si/nc/si/splosno/cns/novica/article/12106/6534/

This proposed that social contributions must be paid also in more irregular forms of work (so called mini work, targeting therefore students, unemployed and retired), consequently making also these types of work contributing to security at old age. All periods of work (weighted in relation to the contributions paid) would contribute into the insurance period, however the received income will not be used for calculating the pension base.

The quorum is 20 % for rejective referendums and they can now only be proposed by 40,000 voters (previously also by members of parliament). For consultative referendums and referendums on international treaties there is no quorum. Also, referendum cannot be carried out on certain issues (ratification of international agreements, laws on taxes, laws concerning urgent measures for defense of state and other). Constitutional act on changes of article 90, 97 and 99 of the Constitution (OG RS 47/2013).

In the first 3 months of receiving unemployment benefit it stays 80 % of the basis.

The employers are exempt of payment of social security benefits for 2 years for such employees.

This is likely due to a higher number of recently unemployed (as long-term unemployed are not entitled to this benefit).

However this has later on been decided by the court to be discriminatory and has to be reversed.

The first proposed pension reform [new Pension and disability insurance act (PDIA-2)] included as the main reforms: Progressively equalising retirement age to 65 years both for men and women (with exceptions), and lengthening the calculated period for the pension base (from 18 to 30 years). Changed would also be indexation of pensions (from 2012 to 2015—once a year, 60 % indexed on wages and 40 % indexed to inflation, later 70 % with wages and 30 % to inflation). http://www.mddsz.gov.si/si/splosno/cns/novica/article/1939/6519/37f5bfe53d/

However the lowest pension base is higher according to the new act (compared to the previous).

The condition is permanent residence in the Republic of Slovenia and the age of the beneficiary (65 years of age), as well as a minimum 30-year residence in Slovenia.

Most private provision is carried out by non-profit organisations on the basis of concession agreements with the government, which means that they are tied to the public system by ways of financing (Kolarič et al. 2011, p. 296).

Subsidies are minimally 33 % (and the share of subsidy is increased—relating to income of parents; for low income also paying full costs of care). In addition to this, the second child included in the pre-school care is universally subsidized (70 % of costs). The subsidy is paid from the municipal budget.

Parental allowance is financial assistance to parents when, after the birth of a child, they are not entitled to parental benefit under the Parental Protection and Family Benefits Act. It lasts 365 days and is in its amount similar to social benefit.

Part payment for lost income is a monthly personal benefit to one of the parents when he or she terminates employment or begins to work part-time because of care and protection of a child with seriously disturbed mental development or serious physical handicap. The level of the part payment for lost income is the minimum wage (MLFSA 2014b).

The right to payment of social security contributions is held by a person who files an application for exercising the right to part-time work. The employer guarantees the applicant the right to payment according to actual working duties, and the Republic of Slovenia guarantees payment of social security contributions based on full working time. The RS pays the contributions of the insuree and employer for compulsory pension and disability insurance, unemployment insurance, insurance for parental protection, health insurance and contributions for sickness and injury outside work, for the right to health services, payment of travelling costs, a funeral grant and death grant (MLFSA 2014b).

One of the parents who leaves the labour market because of protection and care of four or more children has the right to payment of social security contributions based on the minimum wage, until the youngest child has completed 10 years of age. A person abandons the labour market if he or she ceases employment by agreed annulment or cancellation of an employment contract on their part, or if at their own request they are removed from the unemployment register (MLFSA 2014b).

Decrease from 100 % of salary base to 90 %, and also introduction of a cap of two average salaries. However parental benefit, i.e. for those that are not entitled to parental allowance, has increased.

Child allowance is targeted at low income families and its amount depends on the income of the parents. It differs also for single parent families (additional increase in the basic amount) and also in the number of children (different amounts for first, second and third child).

Financial social assistance provides the users with the means for meeting minimum needs in the amount guaranteeing their subsistence. From 1.8.2013 the basic minimum income amounts to 265.22 euros. Financial social assistance is initially granted for a maximum period of three months and can be granted again for a maximum period of 6 months; permanent financial assistance is granted to a person aged over 60 or permanently incapable of work, without any income, receipts or property and with no person obliged to provide for his/her subsistence and living at his/her home (MLFSA 2014a – c).

Granted in exceptional circumstances. It can also be granted in cases where the ceiling set for financial social assistance is surpassed but the entitled person is in financial distress for reasons beyond his/her control.

http://zakonodaja.gov.si/rpsi/r09/predpis_ZAKO5609.html

The financial social assistance is targeted at ensuring minimal income for living. Supplementary allowance is intended to support long-term costs of living (like upkeep of the dwelling).

16,100 elderly, who would be entitled to receive supplementary allowance, have rejected that right (Dremelj et al. 2013).

The demonstrators demanded the resignation of the government, social justice, a social and legal state.

The trade unions started to protest in 2009 (in November), but Slovenia faced some spontaneous rebels in certain enterprises (for example in Gorenje) even before (in spring 2009), while continuous rebels started at the end of 2012 and continued in 2013.

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Titel: Slovenia: Continuous Gradual Change of the Welfare State?
verfasst von: Maša Filipovič Hrast
Anja Kopač Mrak
Verlag: Springer International Publishing
Buch: Challenges to European Welfare Systems
Print ISBN: 978-3-319-07679-9

Electronic ISBN: 978-3-319-07680-5

Copyright-Jahr: 2016
DOI: https://doi.org/10.1007/978-3-319-07680-5_30