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105-462: By the late 1990s, only 29% of Hong Kong's three-million workforce was covered by formal retirement provisions, Hong Kong's social security system is faced with the demographic challenge of a growing number of elderly people in the future. There were some calls to establish a central provident fund and heated debates among government, politicians and trade unions in the early 1990s. After some 30 years of debate on how to provide financial security for

210-410: A basic level of well-being through subsidized social services such as healthcare , education , infrastructure, vocational training , and public housing. 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

315-503: 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

420-403: A certain period in average amount. This average amount will be calculated dividing the lump sum by the service years with the current employer, and will be taxed as monthly salaries. For the number of service years with the current employer, the actual number of years should be considered. If the number of years is more than 12, only 12 will be considered. In Hong Kong, an employee employed under

525-414: A company unwilfully. In addition to their remaining regular pay, it may include some of the following: Packages are most typically offered for employees who are laid off or retire . Severance pay was instituted to help protect the newly unemployed. Sometimes, they may be offered for those who either resign, regardless of the circumstances, or are fired . Policies for severance packages are often found in

630-633: A company's employee handbook . Severance contracts often stipulate that employees will not sue the employer for wrongful dismissal or attempt to collect on unemployment benefits , and that if they do so, they must return the severance money. In the United States, there is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Instead it is a matter of agreement between employers and employees. Severance agreements, among other things, could prevent an employee from working for

735-512: A competitor and waive any right to pursue a legal claim against the former employer. Also, an employee may be giving up the right to seek unemployment compensation . An employment attorney may be contacted to assist in the evaluation and review of a severance agreement. The payments in some cases will continue only until the former employee has found another job. Severance agreements cannot contain clauses that prevent employees from speaking to an attorney to get advice about whether they should accept

840-568: A confidential basis funded from government (The Access to Justice Fund ) for all areas of law in major cities, such as, Ottawa Legal Information Centre. In the United Kingdom Labour Law provides for Redundancy Pay . The maximum amount of statutory redundancy pay is £17,130. In Italy, severance pay (TFR) is provided in all cases of termination of the employment relationship, for whatever reason: individual and collective dismissal, resignation, etc. The law recognizes subordinate workers

945-456: A daily basis. Hawkers (street vendors), domestic employees, persons covered by statutory pension or provident fund schemes such as civil servants or teachers. Members of occupational retirement schemes with specific exemptions, and foreign citizens who work in Hong Kong for periods shorter than 13 months or who are covered by another country's retirement system may also be exempt. Under the scheme,

1050-528: A farming revolution where many sheep farms were broken up and sold to become smaller dairy farms. This enabled thousands of new farmers to buy land and develop a new and vigorous industry that has become the backbone of New Zealand's economy to this day. This liberal tradition flourished with increased enfranchisement for indigenous Māori in the 1880s and women. Pensions for the elderly, the poor and war casualties followed, with State-run schools, hospitals and subsidized medical and dental care. By 1960, New Zealand

1155-399: A lawyer deliver a Statement of Claim. Responding to the opposing side's documents and conducting examinations for discovery will likely involve another $ 3,500–$ 5,000. The preparation and presentation of your case at trial is likely to add another $ 5,000—$ 15,000 to your legal costs. These legal expense is income tax deductible. There are free Legal information and referral services offered on

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1260-604: A lawyer to review the package (typically for a fee), and potentially negotiate. However, employees are never entitled to any severance package upon termination or lay-offs. Severance packages vary by country depending on government regulation . For instance, under the Age Discrimination in Employment Act (ADEA), employees over the age of forty (40) are entitled to 21 days to review and sign their severance offer. If an employer requires an employee over 40 to review and sign

1365-417: A month. Employees and self-employed are required to contribute 5% of their earnings to their MPF fund. When the scheme was launched, the upper relevant income limit for contributions was $ 20,000. The lower and upper thresholds for relevant earnings are subject to periodic adjustment. An employee's MPF assets are fully vested, and are portable when the employee changes employers. Benefits that have accrued under

1470-402: A penalty of HK$ 200,000 and one year in prison. At the same time, companies hoping to be admitted as service providers were also required to register by the deadline. As the scheme operates on the principle of fully funded defined contributions into a privately managed plan funds contributed by employers and employees have and managed as a trust , which compartmentalises fund assets from those of

1575-576: A range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. In Philippines, social welfare is mainly provided by the Department of Social Welfare and Development (DSWD). DSWD provides social welfare such as cash assistance (ayuda) and physical goods. The Pantawid Pamilyang Pilipino Program

1680-627: A range of social services and financial assistance to its citizens. The Estonian welfare state is a liberal welfare state, which means that it provides a minimal safety net for citizens in need and places a greater emphasis on individual responsibility and self-sufficiency. The Estonian welfare state provides a range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. The Estonian welfare state

1785-569: A senior economist at the World Bank noted that the Mandatory Provident Fund's offset mechanism, where an employee's severance pay can be offset by the contributions made to his or her retirement funds, undermined the effectiveness of retirement protection in the city. Palacio explained that contributions being made are directed at two purposes – unemployment benefit and at the same time as a pension – thus not achieving either objective. From

1890-667: A severance offer in less than the compliant 21 days, they must allow employees more time to review. In February 2010, a ruling in the Western District of Michigan held that severance pay is not subject to FICA taxes, but it was overturned by the Supreme Court in March 2014. Employers are required to pay severance pay after an employee working in Puerto Rico is terminated. Employees are not permitted to waive this payment. Severance pay

1995-468: A severance payment equal to three months of salary, plus an additional two weeks of salary for each year of employment. An employee with more than fifteen years of service must receive a severance payment equal to six months of salary, plus an additional three weeks of salary for each year of employment. The amount of severance pay an employee is owed when dismissed without misconduct varies between common law (judge-made law) and employment law. In Ontario,

2100-504: A significant effect on social protection policies. Prior to the 1980s, most Latin American countries focused on social insurance policies involving formal sector workers, assuming that the informal sector would disappear with economic development . The economic crisis of the 1980s and the liberalization of the labor market led to a growing informal sector and a rapid increase in poverty and inequality. Latin American countries did not have

2205-449: A so-called widow's / widower's pension. Provided to widowed individuals from the Czech pension system, its aim is to compensate households for losing income that they would in this situation be lacking. The widowed individual is entitled to a pension from a deceased person who has received an old-age or disability pension or has fulfilled the statutory condition on the required insurance period at

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2310-548: A strong social security system to provide support to citizens in need. It also places a strong emphasis on promoting social cohesion and reducing income inequality, and it has a relatively high level of social spending compared to other countries. Solidarity is a strong value of the French Social Protection system. The first article of the French Code of Social Security describes the principle of solidarity. Solidarity

2415-644: 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 only 27% of the world 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". Welfare can take

2520-521: 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: Not all citizens use their social rights. Selective social rights have higher non-take-up rate than universal social rights due to

2625-526: A work contract becomes due after five years' service with a single employer, provided the employee is not entitled to an old-age pension and the termination is due to redundancy, unfair dismissal, or covered in a collective labor agreement. The statutory amount of pay depends on years of service and the notice provided of the pending termination, but all severance pay is generally exempt from income tax. The severance payment in Mainland China shall be based on

2730-480: A year. However, only the portion of the fund assets corresponding to their contributions could be transferred. Offset of Long Service Payment/Severance Payment is a feature of the MPF since the inception. The legislation permits employers to use contributions they have made to offset payments made to employees in respect of long service/redundancy or layoff. According to analysis of offsets by unions between 2008 and 2014, it

2835-409: Is a basic distinction as to dismissals. There are two basic types of dismissals, or terminations: dismissal with cause ( just cause ) and termination without cause. An example of cause would be an employee's behavior which constitutes a fundamental breach of the terms of the employment contract. Where cause exists, the employer can dismiss the employee without providing any notice. If no cause exists yet

2940-399: 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 decrease of 35–49%), the second degree (a decrease of 50–69%), and the third degree (a decrease of 70% and above). Furthermore, there is

3045-494: Is a severance pay calculator based on common law "Bardal Factors" that predicts the amount of severance pay owed as determined by the court. The goal is to provide enough notice or pay in lieu for the employee to find comparable employment. Unlike statutory minimum notice, the courts will award much more than 8 weeks if warranted by the circumstances, with over 24 months' worth of pay in damages possible. Other factors considered may include: The biggest factor in determining severance

3150-629: Is commonly comprehended in relations of similar work, shared responsibility and common risks. Existing solidarities in France caused the expansion of health and social security. The welfare state has a long tradition in Germany dating to the Industrial Revolution . Due to the pressure of the workers' movement in the late 19th century, Reichskanzler Otto von Bismarck introduced the first rudimentary state social insurance scheme . Under Adolf Hitler ,

3255-409: Is funded through a mix of taxation and public spending, and it relies on a strong social security system to provide support to citizens in need. However, compared to other welfare states, it has relatively low levels of social spending and may rely more on private sector solutions to address social welfare issues. The Finnish Nordic model welfare state is based on the principles of social equality and

Mandatory Provident Fund - Misplaced Pages Continue

3360-428: 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

3465-442: Is no more than three times the average wage amount of employees in the local area in the previous year shall be exempt from individual income tax. The fraction of the compensation that exceeds 3 times the local annual average salary shall be taxed as individual income tax as follows: For those employees receiving a lump sum compensation, the lump sum can be considered as receiving monthly salaries in one time, and shall be allocated to

3570-425: Is no uniform method of charging fees, fund holders attempting to choose may be confused by the lack of comparability between different funds. CY Leung made a pledge during the 2012 chief executive election to introduce measures to reduce the use of the offsetting mechanism progressively. However, union representatives criticised Leung for stalling on the delivery of his campaign promise as no changes had been made to

3675-407: Is not required if the employee was terminated with "just cause". Just cause is satisfied in any of the following situations: the employee had a pattern of improper or disorderly conduct ; the employee worked inefficiently, belatedly, negligently, poorly; the employee repeatedly violated the employer's reasonable and written rules; the employer had a full, temporary, or partial closing of operations;

3780-413: Is now followed by (usually much lower) Arbeitslosengeld II (ALG II) or Sozialhilfe , which is independent of previous employment ( Hartz IV concept). As of 2022 , under ALG II, single adults receive up to €449 per month plus the cost of 'adequate' housing. ALG II can also be paid partially to employed persons to supplement a low work income. The Directive Principles of India , enshrined in part IV of

3885-539: 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. 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

3990-747: Is one of the most well known social welfare programs by the DSWD where cash grants are given to parents and guardians in poverty to help their children continue schooling. This has assisted parents and guardians in poverty by helping them buy food and school supplies for their dependents. The Sustainable Livelihood Program (SLP) is also another social welfare program where the DSWD provides education, cash grants, or items such as vehicles and food stalls to individuals and communities to aid in their livelihoods. SLP grants are given to individuals such as street food vendors and organisations such as farmers cooperatives. DSWD also provides medical assistance for those who cannot afford

4095-483: 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

4200-415: 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

4305-493: Is re-employability. If someone is in a field or market where they will have great difficulty finding work, the court will provide more severance. The reason being that the primary purpose of severance is to provide the wrongfully dismissed employee the opportunity to secure other employment within the period provided. (See also Canada section in wrongful dismissal for related litigation cases in Canada.) In Canadian common law, there

Mandatory Provident Fund - Misplaced Pages Continue

4410-469: 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

4515-673: The Aadhaar system to distribute welfare measures in India. Some of the social programmes undertaken by the government are: As of 2023, the government's expenditure on social programme and welfare was approximately ₹ 21.3 lakh crore (US$ 260 billion), which was 8.3% of gross domestic product (GDP). In 2020, the expenditure was ₹ 17.1 lakh crore (equivalent to ₹ 20 trillion or US$ 240 billion in 2023), accounting for 7.7% of GDP. The Israeli government spend 86 billion NIS ($ 22.8 billion) in 2014. They are administered by

4620-610: The Attlee government (1944–1951). 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 . In

4725-734: 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

4830-522: 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

4935-561: 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 . Social welfare in Czech Republic

5040-694: The Indian Constitution , reflect that India is a welfare state. The National Food Security Act, 2013 aims to guarantee right to food to all citizens. The welfare system was fragmented until the passing of The Code on Social Security, 2020 , which standardised most of the programmes. The Government of India 's social programmes and welfare expenditures are a substantial portion of the official budget, and state and local governments play roles in developing and implementing social security policies. Additional welfare measure systems are also uniquely operated by various state governments. The government uses

5145-456: The Ministry of Social Affairs and Social Services , and by Israel's national social security agency, Bituah Leumi . Social security schemes include pensions for the elderly and the disabled, unemployment benefits, and income support for low income households. All residents of Israel must pay insurance contributions to qualify for welfare. The Italian welfare state's foundations were laid along

5250-620: The National Socialist Program stated "We demand an expansion on a large scale of old age welfare." Today, the social protection of all its citizens is considered a central pillar of German national policy. 27.6 percent of Germany's GDP is channeled into an all-embracing system of health, pension, accident , longterm care and unemployment insurance , compared to 16.2 percent in the US. In addition, there are tax-financed services such as child benefits ( Kindergeld , beginning at €192 per month for

5355-777: 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 . Other provisions for the poor were introduced during the history of Ancient Rome, such as the Alimenta . The Song dynasty government (960 CE) supported multiple programs which could be classified as social welfare, including

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5460-503: 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

5565-591: 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

5670-588: 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 $ 145   billion 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

5775-558: The ESA about termination and severance of employment are minimum requirements. Some employees may have rights under the common law that are greater than the rights to notice of termination (or termination pay) and severance pay under the ESA. An employee may want to sue their former employer in court for wrongful dismissal ". Common law provides above-minimal entitlements, using a well-recognized set of factors from Bardal v Globe and Mail Ltd. (the "Bardal Factors"). Bardal Factors include: There

5880-508: 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

5985-566: 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 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

6090-545: The ability to conduct inspections, audits and investigations, and also to impose sanction on a trustee in the event of breaches of the legislation. Initially, all 300,000 employers in Hong Kong without an existing occupational retirement scheme are required to enrol their employees, in the region of 2.2 million individuals, in an MPF plan by 1 December 2000. Any company that has not set up an MPF plan may be liable to criminal prosecution with possible fines of up to HK$ 100,000 and six months imprisonment; persistent offenders risk

6195-574: The ageing Hong Kong population, the British Hong Kong Government legislated on a mandatory, privately managed fully funded contribution scheme in 1995 along the lines of the second pillar defined in the World Bank report. Legislators representing the business sector refused to back the MPF legislation unless an offset mechanism was included to allow employers to use amounts paid by them to make long-service payments or severance to staff. Under

6300-519: The amount of severance pay under the employment law is given in Ontario by Employment Standards Act (ESA), which is also explained in 'Your Guide to the Employment Standards Act's Severance Pay Section'. The amount of severance pay under the employment law in Ontario may be calculated using the tool from Ontario Government. It is stated in ESA's Guide Wrongful dismissal section: "The rules under

6405-467: The asset allocation among different funds available from their providers, but may only do so for their part of the retirement contribution. Hong Kong employees and their employers started contributing to the scheme as early as 2000, but the employees can only withdraw accrued benefits at 65 and other specified conditions under the regulation. Only since 1 November 2013, employees were given freedom to transfer their fund assets to any provider they liked, once

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6510-445: 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

6615-419: 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

6720-428: The belief that all citizens should have access to the same basic rights and opportunities. It provides a range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. The Finnish welfare state relies on

6825-401: 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

6930-450: The choice of MPF provider is the province of the employer, with employees having no say. Employees are expected to join the scheme administered by the MPF provider of their new employers when they change jobs. The employer and the employee each contribute 5 per cent (a sum equal to 10%) of the salary of employee whose earnings are above a certain threshold to funds run by banks, insurers or fund houses. Total contributions are capped at HK$ 1,500

7035-493: 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

7140-518: The complexity of the information and the Bureaucracy. Sometimes people need the help of other people to mediate their rights. 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

7245-568: The date of death. The amount of the assessment is 10% of the average wage and the amount of the percentage assessment is 50% of the percentage of the old-age or disability pension to which the deceased was entitled at the time of their death. Danish welfare is handled by the state through a series of policies (and the like) that seeks to provide welfare services to citizens, hence the term welfare state. This refers not only to social benefits, but also tax-funded education, public child care, medical care, etc. A number of these services are not provided by

7350-499: The employee or if the employee reached the retirement age. The amount of compensation is normally equal to one third of one month's taxable compensation per year of employment, which includes a prorated amount equal to all the bonuses paid out in the preceding three years. This sum cannot exceed the greater of €94000 or one year's gross salary. This payment is subject to normal income taxes. Severance pay in Luxembourg upon termination of

7455-463: The employer dismisses without providing lawful notice, then the dismissal is a wrongful dismissal . There is a time limit of two years from the date of termination for suing the employer in Ontario. This litigation follows civil procedure in Ontario . Before starting a court case, there are other options, such as, negotiation, mediation , and arbitration. Typically in a civil lawsuit, in 2019, it can cost $ 1,500–$ 5,000 to initiate an action and have

7560-563: The employer had technological or reorganization changes, changes in the nature of the product made, and changes in services rendered; or the employer reduced the number of employees because of an actual or expected decrease in production, sales , or profits . An employee with less than five years of employment with the employer must receive a severance payment equal to two months of salary , plus an additional one week of salary for each year of employment . An employee with more than five years but less than fifteen years of employment must receive

7665-408: The employer is located, the rate for the severance payment to be paid shall be 3 times local average monthly salary and shall be for no more than 12 years. Where any employee obtains lump-sum compensation income (including economic compensation, living allowances and other subsidies granted by an employer) from the employer's termination of labor relationship with him/her, the part of the income which

7770-422: The extreme inequality levels and the mass scale of poverty; locating a financial basis for programs; and deciding on exit strategies or on the long-term establishment of programs. The economic crisis of the 1980s led to a shift in social policies, as understandings of poverty and social programs evolved (24). New, mostly short-term programs emerged. These include: New Zealand is often regarded as having one of

7875-425: The first and second child, €198 for the third and €223 for each child thereafter, until they attain 25 years or receive their first professional qualification), and basic provisions for those unable to work or anyone with an income below the poverty line. Since 2005, reception of full unemployment pay (60–67% of the previous net salary) has been restricted to 12 months in general and 18 months for those over 55. This

7980-403: The first comprehensive welfare systems in the world. During the 1890s, a Liberal government adopted many social programmes to help the poor who had suffered from a long economic depression in the 1880s. One of the most far reaching was the passing of tax legislation that made it difficult for wealthy sheep farmers to hold onto their large land holdings. This and the invention of refrigeration led to

8085-579: 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

8190-453: The fund as the Hong Kong government no longer recognises the passports as legal travel documents. In April 2023, The Wall Street Journal published an editorial about MPF withdrawals being denied to those using BN(O) passports as evidence of leaving Hong Kong, saying the MPF "intended to coerce residents to stay in the city and retaliate against anyone who leaves with a BNO passport by confiscating their property." The Mandatory Provident Fund

8295-493: 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

8400-458: The ill or otherwise disabled and for the old, has long been provided in Japan by both the government and private companies. Beginning in the 1920s, the government enacted a series of welfare programs, based mainly on European models, to provide medical care and financial support. During the postwar period, a comprehensive system of social security was gradually established. The 1980s marked a change in

8505-598: The institutions and funds to properly handle such a crisis, both due to the structure of the social security system, and to the previously implemented structural adjustment policies (SAPs) that had decreased the size of the state. New Welfare programs have integrated the multidimensional, social risk management , and capabilities approaches into poverty alleviation. They focus on income transfers and service provisions while aiming to alleviate both long- and short-term poverty through, among other things, education, health, security, and housing. Unlike previous programs that targeted

8610-467: 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

8715-487: The legislation, occupational schemes are unlike publicly run national provident funds found in other countries, and those schemes marketed to the public as mandatory provident fund (MPF) are established and run by financial institutions. In March 2021, the Mandatory Provident Fund Schemes Authority said that MPF providers should not allow workers using a BN(O) as evidence to withdraw early from

8820-468: The lines of the corporatist -conservative model, or of its Mediterranean variant. Later, in the 1960s and 1970s, increases in public spending and a major focus on universality brought it on the same path as social-democratic systems. In 1978, a universalistic welfare model was introduced in Italy, offering a number of universal and free services such as a National Health Fund. Social welfare, assistance for

8925-405: The manager, investment decisions are delegated to trustee in the private sector. Legislation defines three types of MPF schemes: The system is mandatory for all employees in Hong Kong who have an employment contract of 60 days or more and applies also to the self-employed between ages 18 and 65. Those employed in the catering and construction sectors are generally exempt but they may be covered on

9030-437: The number of years the employee has worked for the employer at the rate of one month salary for each full year worked. Any period of no less than six months but less than one year shall be counted as one year. The severance payment payable to an employee for any period of less than six months shall be one half of his/her monthly salary. If the monthly salary of an employee is higher than 3 times local average monthly salary where

9135-413: The offer, or speak to an attorney after they sign. The offer also cannot require that the employee commit a crime, such as failing to appear subject to court subpoena for proceedings related to the company. It can, however, prevent the filing of a lawsuit against the company for wrongful termination, discrimination, sexual harassment, etc. Severance packages are often negotiable, and employees can hire

9240-422: The offset arrangements as at the end of October 2015. In early 2016, the pro-establishment Bauhinia Foundation endorsed phasing out the offset mechanism, saying that additional costs to employers would be affordable, as the amount to only 0.4% of payroll costs expenditures, and the annual net profit margin would be lowered by a mere 0.04 percent. Global Aging Institute president Richard Jackson remarked in 2016 that

9345-560: The out-of-pocket cost of hospitalisation as Philhealth's coverage usually does not cover the full expense. Other government agencies and companies also provide social welfare such as the Philippine Charity Sweepstakes Office , Department of Health , and offices of house representatives in their respective congressional districts. Severance package A severance package is pay and benefits that employees may be entitled to receive when they leave employment at

9450-678: The period since its launch to 2010, employers used HK$ 12 billion from employees' MPF accounts to make severance or long-service payments; employees made redundant risked seeing their MPF funds depleted by these withdrawals. Social security Welfare spending 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. pensions ), as opposed to social assistance programs which provide support on

9555-525: The poor and slaves. 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 the 18th Century, according to one study, the Qing Dynasty had “the most elaborate relief system in world history, based on state and local granaries that were used in times of shortage to stabilize food prices and provide relief to

9660-479: The retiring baby-boomers in Hong Kong were faced with challenges, as MPF was immature and traditional family retirement support was breaking down. Dr Ernest Chui, an academic at Hong Kong University criticised the scheme as being unadapted to Hong Kong workers. He said that in terms of the demographic changes that Hong Kong is facing, "the MPF scheme is very ineffective in terms of 'replacement rate' and thus cannot satisfy people's need after they retire." Robert Palacios,

9765-415: The right to receive severance pay, pursuant to article 2120 of the civil code. Dutch law provides that a "transition allowance" ( transitievergoeding ) is due to the employee within one month of the end of employment if the employment was terminated by the employer and not the employee, including if the employer chose to not renew a temporary work contract, save if the termination was due to a grave fault by

9870-513: 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

9975-454: The scheme of a former employer can be transferred to a scheme operated by the new employer. There are strict guidelines on the types of assets in the investment funds. However, MPF providers may offer more than one investment option constituted along the guidelines to its members through different funds, thus employees may build their own investment portfolio out of the funds provided by the provider chosen by their employers. Employees may elect on

10080-450: The scheme was launched, there were concerns among employee federations that due to changing life expectancy and investment returns, the assets constituting the fund at retirement would only suffice to cover living expenses for a short period. Common with other defined-contribution system with individual accounts, administrative fees may be high. MPF trustees are free to set their fees provided that fees and structures are transparent. As there

10185-411: The state directly, but administered by municipalities, regions or private providers through outsourcing. This sometimes gives a source of tension between the state and municipalities, as there is not always consistency between the promises of welfare provided by the state (i.e. parliament) and local perception of what it would cost to fulfill these promises. Estonia does have a welfare state that provides

10290-466: The state hospitals, low-interest loans for peasants, state orphanages, free pharmacies for the poor, filled state granaries, fire stations and libraries in the large cities, 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   ...". Ancient Greek city-states provided free medical services for

10395-405: The structure of Latin American social protection programs. Social protection embraces three major areas: social insurance, financed by workers and employers; social assistance to the population's poorest, financed by the state; and labor market regulations to protect worker rights. Although diverse, recent Latin American social policy has tended to concentrate on social assistance. The 1980s, had

10500-666: The urban and rural poor.” This system, however, was weakened after imperialism entered China following the 1840 Opium War and the Taiping Rebellion (1850-1860), which resulted in a crisis in the Qing Dynasty. Following the foundation of the Republic in 1912 and the following years of civil wars and warlordism, “the state granary system became almost non-existent.” Throughout the history of the Byzantine Empire, various social welfare services and institutions were established. Provision

10605-428: The working class, new programs have successfully focused on locating and targeting the very poorest. The impacts of social assistance programs vary between countries, and many programs have yet to be fully evaluated. According to Barrientos and Santibanez, the programs have been more successful in increasing investment in human capital than in bringing households above the poverty line. Challenges still exist, including

10710-479: Was able to afford one of the best-developed and most comprehensive welfare systems in the world, supported by a well-developed and stable economy. Norway has a strong welfare state that provides a range of social services and financial assistance to its citizens. The Norwegian welfare state is based on the principles of social democracy, which means that it has a strong focus on reducing income inequality and promoting social cohesion. The Norwegian welfare state provides

10815-592: Was also made for the State to provide food and clothing for children that parents were unable to bring up due to indigence. 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

10920-415: Was found that 37 per cent of early withdrawals of MPF benefits, valued at HK$ 10.6 billion, came from offsetting by employers. The MPF was launched during a downturn in the economic cycle, and there was pressure from businesses to delay its launch. Furthermore, there was disquiet among many small businesses, for which employers' MPF contributions represented a de facto 5% increase to payroll costs. When

11025-679: Was implemented in December 2000, following the enactment of the Mandatory Provident Fund Schemes Ordinance on 27 July 1995 and Provident Fund Schemes Legislation (Amendment) Ordinance 1998 in March 1998. The Mandatory Provident Fund Schemes Authority (MPFA), up and running in September 2000, is charged with supervising the provision of MPF schemes – it registers schemes and ensures that approved trustees administer schemes prudently. The MPFA have powers to ensure compliance, including

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