Demystifying Social Security

NAMBATA ANGULATHE INTERNATIONAL Social Security Association defines social security as “any programme of social protection established by legislation, or any other mandatory arrangement, that provides individuals with a degree of income security when faced with contingencies of old age, survivorship, incapacity, disability, unemployment or rearing children”.

These programmes can include social insurance, social assistance and universal programmes, amongst others.

Social security is recognised in the 1948 Universal Declaration of Human Rights as a basic human right. In Namibia, the Constitution provides for the promotion of the welfare of the people and forms the basis of our social security. Furthermore, Namibia is a member of the International Labour Organisation (ILO) and adheres to key ILO Conventions and Recommendations.

The social protection landscape in Namibia, of which social security is a component, is fragmented. Several programmes have been established through laws and programmes, some overlapping. Hence the government has crafted a Social Protection Policy to provide a solid framework to deliver social protection in a coherent, consistent, effective and efficient manner. The policy has been approved by Cabinet and implementation is currently underway.

The Social Security Commission (SSC), established in 1994, is mandated to administer social insurance funds and further provides for the establishment of a Maternity leave, Sick leave and Death (MSD) Benefit Fund; a National  Medical Benefit Fund; a National Pension Fund; and a Development Fund. To date the MSD Benefit Fund and the Development Fund have been operationalised. Furthermore, the SSC is also mandated to administer the Employees Compensation Fund (ECF), established in 1941.

Maternity leave benefits form the largest percentage of claims at 77%, which can lead to a misconception that social security benefits are only for women. However, the payment of maternity leave to women should be lauded as it removes gender discrimination for women, who in the past had to fend for themselves on unpaid leave.

However, both genders benefit greatly from SSC social security programmes through sick leave (6,5%), death (2,5%), and retirement (14%) benefits under the MSD Fund; the administration of bursaries, study loans, and labour market interventions through the Development Fund; while the ECF, through the payment of medical expenses, temporary disability, permanent disability, and burial and transport costs, and accident fund pensions, extend coverage to all workers irrespective of gender.

The importance of registering employees for social security cannot be over-emphasised. For example, a pregnant hairdresser I came across in 2019 had to return to work two weeks after giving birth because of economic need despite still undergoing after-birth healing and the baby bonding process. However, if she had had social security coverage, she would have received an income replacement benefit for 12 weeks.

Another example is a beneficiary who inhaled highly toxic fumes from drainage sewage in the call of duty. He ended up in a coma and was incapacitated for life. The Employees Compensation Accident Fund initially paid him temporary disability benefits and, when his situation failed to improve, permanent disability benefits.

It is evident that social security is a means of helping reduce poverty and inequality and improving socio-economic development. 

However, we are also aware of emerging realities as a result of especially the Covid-19 pandemic which has changed the way we work. For example, the employment relationship with employees working from home; how to administer Covid-19 claims under the Employees Compensation Fund; income loss as a result of job losses or reduced income; improvement of benefits, increased use of digital technology, etc. These are emerging factors that policymakers need to consider to ensure that social protection in Namibia remains relevant and valuable.

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