informar sobre la brecha digital y cómo repercute en la sociedad actual

The Social Security Scheme was launched on 1 March, 1967, under the West Pakistan Employees’ Social Se- curity Ordinance No X of 1965, with the assistance of the ILO. It was the first scheme for workers outside the public sector. The provincial employees’ social security institutions, however, came into being in 1970 when the scheme was reorganised on a provincial basis after the dissolution of the One Unit. Initially, the scheme was designed for the coverage of textile industry work- ers, but was later extended to all other industries and commercial units. With the introduction of the new industrial policy in 2003, all workers of commercial and industrial establishments having five or more em- ployees are entitled to social security benefits under the KPESSI.

The main source of income for the KPESSI that gener- ates its own funds is the social security contribution. The employers covered under the scheme contribute at the rate of 7% of the total wage bill. According to the Provincial Employees Social Security Ordinance of 1965, this contribution is not supposed to be deducted from the employees’ wages. Workers drawing up to Rs8,000 per month, and employed in registered estab- lishments are liable to be covered under the scheme, in accordance with the provisions of the Social Security Ordinance. The provision of benefits is accruable with- out limitation to the dependents of secured workers. The workers once covered under the scheme remain secured even if their wages exceed Rs8,000 per month. Once workers leave an establishment, however, either because they retire or for other reasons, their coverage ceases, unless they join another enterprise.

The KPESSI faces issues of enforcing coverage. Many employers provide the number of workers and the ap- propriate payment for this number, but do not provide lists of workers covered. In 2012, the institution was al- lowed to verify the accuracy of data provided by the em- ployers through field checks. The KPESSI is a federal government agency linked with the provincial Depart- ment of Labour that provides a range of health services and cash benefits.

The KPESSI provides the following health services:

 Free medical care facilities to secured persons and their dependents through their medical units and in government hospitals.

 Hospitalisation in medical units and govern- ment hospitals, where necessary.

 Free medicines prescribed by doctors of their hospitals and specialists on panel.\

 Dental care for injuries sustained in the course of carrying out duties.

 Facilities such as angioplasty and heart sur- gery (in Lady Reading Hospital Peshawar and Armed Forces Institute of Cardiology Rawal- pindi.

 Hospitalisation in Burn Trauma Care Cantt

and Jhelum, if necessary.

The KPESSI provides the following cash benefits:

 Sickness benefit at 75% of one month’s wages.

 Maternity benefit equal to one month’s wages.

 Injury benefit equal to one month’s wages.

 Death grant equal to a month’s wages, but not less than Rs8,000.

 Disablement gratuity to secured persons who

sustained disability of up to 20% as determined by a medical board.20

 Disablement pension partial to those who sus- tained disability classified at a rate of 21-66%, and full pension to those whose disability is classified at above 66%.

 Survivors’ pension.

 Iddat benefit equal to one month’s wages.

The KPESSI is an autonomous body. The general di- rection and superintendence of the affairs of the insti- tution vest in a tripartite governing body whose main functions are to approve the budget estimates, audited accounts and annual reports of the institution, and call for any information or direct any research to be made for the furtherance of the objects of the Ordinance. The

main functions of the directorates are collection of so- cial security contribution, payment of cash benefits, registration of employers and workers, and survey of new establishments. The main function of the medical circles is to provide medical care facilities to the secured workers and their dependents through dispensaries.

Table 4.4 Number of Beneficiaries Category 2010-11 2011-12 2012-13 Registered establishments 4,255 4,490 4,578 Secured workers 50,000 51,000 58,000 Dependents 300,000 306,000 348,000 Medical care 36,225 34,823 - Referred to hospital/ specialist 33,775 30,609 - Cash benefit (beneficiaries) 2,334 1,898 - Sickness benefit 1,382 1,799 - Injury benefit 210 183 - Death grant 24 39 - Disablement gratuity 15 22 - Disablement pension 194 192 - Survivors’ pension 73 93 - Survivors Pension 73 93 Iddat Benefit 0 0 4.4.3.1 Analysis

a) Targeting efficiency: The KPESSI is meant

for low-wage employees; as such, it targets the relatively poor within the category of pri- vate sector workers. It is not a poverty-focused programme; however, as by law, the minimum wage laws are applicable to the formal sector and no industrial or commercial establishment can hire at less than the minimum wage. Fur- ther, KPESSI benefits do not extend to those who retire or who are dismissed from service. Medium.

b) Extent of programme coverage: Although the

KPESSI constitutes one of the two most gener- al and comprehensive social security schemes, it does not cover workers in the agriculture sec- tor and the informal economy, as well as the

a subset of the working class in the formal sec- tor. Government workers, the armed forces and other nominated industries are also ex- cluded, though part-time and contract workers are supposed to be extended coverage. In Khy- ber Pakhtunkhwa, 58,000 workers and their dependents were covered in 4,578 establish- ments in 2012-13. The KPESSI’s budget is lim- ited by the extent of contribution. The benefits are generous and medical care facilities seem to be well used, though cash disbursements are limited to a few beneficiaries. Low.

c) Degree of ease of access: The KPESSI has 34

medical units across the province to ease ac- cess: a hospital, polyclinic, dental unit, 12 medical centres, 11 dispensaries and 8 medi- cal posts. However, the location of these facili- ties does not synchronise with the dispersion or spread of the industrial or secured workers. Once workers are registered with the KPES- SI, they are issued a registration card that is used as their identification in future. To avail medical benefits, workers first need to visit a dispensary or medical post. If their concern cannot be addressed here, they are referred to a tertiary care facility. For all other benefits, workers need to visit the regional office to ap- ply. A disability board that meets every three months determines disability benefit cases. In case of an emergency, workers may directly visit a government hospital and they will be reimbursed. The KPESSI maintains that the employers are mandated to tell the employees about the benefits that can be availed. As such, in smaller enterprises or those where unions do not exist, the workers may not be aware of their rights under the Social Security Ordi- nance. Medium.

d) Percentage of programme expenditure dedi- cated to benefits: Latest data on administrative

costs is not available, but is generally consid- ered to be high. If other provincial employees’ social security institutions are any example, the administrative costs are estimated to be Rs480 per secured worker in Sindh. The situa- tion is likely to be same in Khyber Pakhtunkh- wa. Low.

e) Adequacy of support: The quality of services

is regarded to be poor by both the workers and the employers; however, benefits, particularly

those related to medical expenses, are gener- ous. High.

f) Grievance redressal: In case of a grievance,

workers may approach the regional head. Grievances are supposed to be addressed with- in the organisation and no outside facilitation is allowed. Low.

g) Extent of self/progressive financing and sus- tainability: The main sources of income for

the KPESSI are the monthly contributions, and profits on investments, if any, by the industrial and commercial establishments. The total in- come of the KPESSI in 2008 was Rs64.5 mil- lion, of which Rs59.1 million came from social security contribution, Rs4.7 million from profit from investments and Rs0.7 million from oth- er sources. This income was enough to main- tain a network of health care facilities for the relatively small number of employees covered. High.

h) Exit mechanisms: Benefits are based on each

application submitted and thus the exit mecha- nism is not applicable to the KPESSI. Not ap- plicable.

i) Degree of impact on the MDGs: The different

components of the KPESSI directly contribute to achieving MDG 6, and indirectly to achiev- ing MDG 4 and 5.

j) Programme potential to be extended to the RAHA target group: The KPESSI’s potential to be extended to the RAHA target districts is

limited because they do not generally house large industrial estates or commercial estab- lishments.

4.5 SOCIAL ASSISTANCE PROGRAMMES