Social Security

Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance programs which provide support only to those who have previously contributed (e.g. most pension systems), as opposed to ''social assistance'' programs which provide support on the basis of need alone (e.g. most disability benefits). The International Labour Organization defines social security as covering support for those in old age, support for the maintenance of children, medical treatment, parental and sick leave, unemployment and disability benefits, and support for sufferers of occupational injury.

More broadly, welfare may also encompass efforts to provide a basic level of well-being through free or subsidized ''social services'' such as healthcare, education, infrastructure, vocational training, and public housing.''The New Fontana Dictionary of Modern Thought'' Third Edition (1999), Allan Bullock and Stephen Trombley Eds., p. 919. In a welfare state, the state assumes responsibility for the health, education, infrastructure and welfare of society, providing a range of social services such as those described.

Some historians view systems of codified almsgiving, like the ''zakat'' policy of the seventh century (634 CE) Rashidun caliph Umar, as early examples of universal government welfare. The first welfare state was Imperial Germany (1871–1918), where the Bismarck government introduced social security in 1889. In the early 20th century, the United Kingdom introduced social security around 1913, and adopted the welfare state with the National Insurance Act 1946, during the Attlee government (1945–51). In the countries of western Europe, Australia, and New Zealand, social welfare is mainly provided by the government out of the national tax revenues, and to a lesser extent by non-government organizations (NGOs), and charities (social and religious). A right to social security and an adequate standard of living is asserted in Articles 22 and 25 of the Universal Declaration of Human Rights.

History

In the Roman Empire, the first emperor Augustus provided the '' Cura Annonae'' or grain dole for citizens who could not afford to buy food every month. Social welfare was enlarged by the Emperor Trajan. Trajan's program brought acclaim from many, including Pliny the Younger. The Song dynasty government (960 CE) supported multiple programs which could be classified as social welfare, including the establishment of retirement homes, public clinics, and paupers' graveyards. According to economist Robert Henry Nelson, "The medieval Roman Catholic Church operated a far-reaching and comprehensive welfare system for the poor..." From the 14th century onward the governments of the Italian city-states began to partner with the church to provide welfare and education to the lower classes. In later Protestant European nations such as the Dutch Republic welfare was managed by local guilds until the abolition of the guild system in the early 19th century. In the free imperial cities of the Holy Roman Empire the city governments in cities like Nuremberg could take control of the collection and distribution of public welfare.

The seventh century caliph Umar implemented a form of '' zakat'', one of the Five Pillars of Islam, as a codified universal social security tax. Traditionally estimated at 2.5% of an individual's assets, government ''zakat'' funds were distributed to various groups of Muslims, including impoverished people and those in severe debt. The collection of ''zakat'' increased during the Umayyad and Abbasid caliphates, though the ''zakat'' system was frequently inefficient and corrupt; Islamic jurists often instructed Muslims to distribute money to the needy directly instead to maximize its impact.

Likewise, in Jewish tradition, charity (represented by tzedakah) is a matter of religious obligation rather than benevolence. Contemporary charity is regarded as a continuation of the Biblical Maaser Ani, or poor- tithe, as well as Biblical practices, such as permitting the poor to glean the corners of a field and harvest during the Shmita (Sabbatical year).

There is relatively little statistical data on transfer payments before the High Middle Ages. In the medieval period and until the Industrial Revolution, the function of welfare payments in Europe was achieved through private giving or charity, through numerous confraternities and activities of different religious orders. Early welfare programs in Europe included the English Poor Law of 1601, which gave parishes the responsibility for providing welfare payments to the poor. This system was substantially modified by the 19th-century Poor Law Amendment Act, which introduced the system of workhouses.

It was predominantly in the late 19th and early 20th centuries that an organized system of state welfare provision was introduced in many countries. Otto von Bismarck, Chancellor of Germany, introduced one of the first welfare systems for the working classes. In Great Britain the Liberal government of Henry Campbell-Bannerman and David Lloyd George introduced the National Insurance system in 1911, a system later expanded by Clement Attlee.

Modern welfare states include Germany, France, the Netherlands, as well as the Nordic countries, such as Iceland, Sweden, Norway, Denmark, and Finland which employ a system known as the Nordic model. Esping-Andersen classified the most developed welfare state systems into three categories; Social Democratic, Conservative, and Liberal.

A report published by the ILO in 2014 estimated that only 27% of the world's population has access to comprehensive social security. The World Bank's 2019 World Development Report argues that the traditional payroll-based model of many kinds of social insurance are "increasingly challenged by working arrangements outside standard employment contracts".World Bank World Development Report 2019: The Changing Nature of Work. Chapter 6
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Forms

Welfare can take a variety of forms, such as monetary payments, subsidies and vouchers, or housing assistance. Welfare systems differ from country to country, but welfare is commonly provided to individuals who are unemployed, those with illness or disability, the elderly, those with dependent children, and veterans. Programs may have a variety of conditions for a person to receive welfare:
* Social insurance, state-sponsored programs based partly on individual contributions towards benefits such as healthcare, unemployment payments, and old-age pensions.
* Means-tested benefits, financial assistance provided for those who are unable to cover basic needs, such as food, clothing and housing, due to poverty or lack of income because of unemployment, sickness, disability, or caring for children. While assistance is often in the form of financial payments, those eligible for social welfare can usually access health and educational services free of charge. The amount of support is enough to cover basic needs and eligibility is often subject to a comprehensive and complex assessment of an applicant's social and financial situation. See also Income Support.
* Non-contributory benefits. Several countries have special schemes, administered with no requirement for contributions and no means test, for people in certain categories of need, such as veterans of armed forces, people with disabilities, and very old people.
* Discretionary benefits. Some schemes are based on the decision of an official, such as a social worker.
* Universal or categorical benefits, also known as demogrants. These are non-contributory benefits given for whole sections of the population without a means test, such as family allowances or the public pension in New Zealand (known as New Zealand Superannuation). See also the Alaska Permanent Fund Dividend.

Social protection

In developing countries, formal social security arrangements are often absent for the vast majority of the working population, in part due to reliance on the informal economy. Additionally, the state's capacity to reach people may be limited because of its limited infrastructure and resources. In this context, ''social protection'' is often referred to instead of social security, encompassing a broader set of means, such as labour market intervention and local community-based programs, to alleviate poverty and provide security against things like unemployment.

By country

Australia

Prior to 1900 in Australia, charitable assistance from benevolent societies, sometimes with financial contributions from the authorities, was the primary means of relief for people not able to support themselves. The 1890s economic depression and the rise of the trade unions and the Labor parties during this period led to a movement for welfare reform.

In 1900, the states of New South Wales and Victoria enacted legislation introducing non-contributory pensions for those aged 65 and over. Queensland legislated a similar system in 1907 before the Australian labor Commonwealth government led by Andrew Fisher introduced a national aged pension under the Invalid and Old-Aged Pensions Act 1908. A national invalid disability pension was started in 1910, and a national maternity allowance was introduced in 1912.

During the Second World War, Australia under a labor government created a welfare state by enacting national schemes for: child endowment in 1941 (superseding the 1927 New South Wales scheme); a widows' pension in 1942 (superseding the New South Wales 1926 scheme); a wife's allowance in 1943; additional allowances for the children of pensioners in 1943; and unemployment, sickness, and special benefits in 1945 (superseding the Queensland 1923 scheme).

Canada

Canada has a welfare state in the European tradition; however, it is not referred to as "welfare", but rather as "social programs". In Canada, "welfare" usually refers specifically to direct payments to poor individuals (as in the American usage) and not to healthcare and education spending (as in the European usage).

The Canadian social safety net covers a broad spectrum of programs, and because Canada is a federation, many are run by the provinces. Canada has a wide range of government transfer payments to individuals, which totaled $145billion in 2006. Only social programs that direct funds to individuals are included in that cost; programs such as medicare and public education are additional costs.

Generally speaking, before the Great Depression, most social services were provided by religious charities and other private groups. Changing government policy between the 1930s and 1960s saw the emergence of a welfare state, similar to many Western European countries. Most programs from that era are still in use, although many were scaled back during the 1990s as government priorities shifted towards reducing debt and deficits.

Czech Republic

Social welfare in Czech Republic is outlined in a series of social policies, as is the tradition in Europe. Their goal is primarily preventing, but also mitigating social situations individuals may find themselves in through their lives. The social welfare is provided through social (including pension) insurance, sick insurance (not to be confused with health insurance), public policy related to unemployment and low income benefits, which are financed through the government budget, and health insurance, which is financed through an array of insurance companies. Therefore, the social welfare program is usually separated into three categories: health insurance, social insurance and social benefits support.

Social insurance is a type of statutory insurance that provides citizens for a future unforeseen social event, such as unemployment or disability that would prevent an individual from working, but also planned retirement. Social insurance is therefore compulsory for all self-employed individuals, employees and employers operating in the Czech Republic and gets deducted from a salary in a similar manner to taxes. This insurance serves to finance unemployment support, disability benefits and covers a part of an employer's salary in cases of long-term illness that obstructs them from participating in the workforce.

The sickness insurance system is intended for gainfully employed individuals who, in cases of short-term social events, are provided with health insurance benefits. These are provided through financial benefits. Sickness insurance participants are employees and self-employed individuals. Employees are compulsorily covered by sickness insurance, unlike the self-employed, whose sickness insurance is voluntary (and there is no penalisation for opting out of the insurance). It is calculated through a series of reductions of an assessment base. Employees' sickness insurance provides 4 types of sickness benefits: benefits for caring for a family member, pregnancy and maternity allowance, maternity allowance. It is standard to go on paid maternity leave in the Czech Republic, which ordinarily lasts 28 weeks. This period is prolonged to 37 weeks in the case of twins. Furthermore, there are special circumstances, such as the birth of a disabled child, when this period is extended even more. The beginning of maternity leave is usually 6 weeks before expected due date, and after maternity leave, it is possible to request further parental leave, which is optional and can be performed by either parent, regardless of gender. Parental leave lasts up to four years, depending on individual preferences.

Pension insurance is part of social insurance, in addition to sickness insurance and serves as a contribution to the state employment policy. It is a premium for old age retirement, disability retirement or benefits in the event of the death of the primary provider in a household. Participation in pension insurance is mandatory for economically active individuals. For those on various forms of benefits, or currently registered as a care provider, this insurance is provided by the state. The basic pension insurance provides, in time old-age pension (includes regular, proportional, early and other variants of old-age pension), disability benefits, widower's and orphan's pension. Pension insurance is applied for at the District Social Security Administration in the applicant's place of permanent residence. They can apply in person or by proxy, on the basis of a notarized power of attorney. The amount of the pension consists of two component - the basic acreage and the percentage acreage.

Another form of pension is the disability pension. This is provided to individuals that are unable to participate in the workforce to the same degree as their able-bodied counterparts, due to their disability contributing to the decline of their ability to work (be it partially or entirely). There is a distinction between disability pension for individuals with first, second and third degree disability. The amount of the pension depends on the rate of decline of the person's ability to work, with the categories being divided between the first degree (a de