The Social Insurance in the System of the Social Risks Regulation
This paper analyzes the social insurance in the context of its basic function - protection against social risks. The results of the study of the social insurance and social risk relationships help propose the definition of the social risk. We consider the social risk as the probability of financial...
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Інститут економіки промисловості НАН України
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irk-123456789-876242015-10-23T03:02:16Z The Social Insurance in the System of the Social Risks Regulation Nadraga, V.I. Finance This paper analyzes the social insurance in the context of its basic function - protection against social risks. The results of the study of the social insurance and social risk relationships help propose the definition of the social risk. We consider the social risk as the probability of financial distress due to the lack of earnings because of objective socially significant reasons and due to the additional costs of the children or other family members’ allowance, as well as to meet the needs of health and social services. In this case, the object of compulsory state social insurance relations is the coverage of social risk. The social risk is actualized under a system of interconnected relationships. Its participants are the insurance carrier, the insurer and the insured. The purpose of these mentioned relationships is to provide insurance protection of the economically active population in the event of the social-risk situation, its prevention and effects compensation. Insurance risk function is transformed into a fee insurer liability for the consequences of the risk caused by the events which are preappointed by current legislation. The basic principles of social insurance are: commitment, a clear dependence between participation in the financing system and the size of pensions and benefits, provision of payments, comparable with the income of the insured person during his / her working life, facilities isolation and participation of the social partners in the governance.It has been mentioned that in contradiction to Ukraine the general trend for the member states of the European Union is a striving for the social contributions optimization. Thus, based on projections over the next fifty years, they expect an increase by only 5 % of GDP - in the corresponding estimates, they take into account the expected effects of reforms in the social security that have already been legislated and done (including new aid schemes and conditions of pensions), and the expected increase of labor share in total population and employment levels.The current social insurance system in Ukraine in its content is not insurance in the classic sense, as it stores and serves the social security (benefits) functions. It has a number of disadvantages and needs to be improved, in particular: to improve the mechanism of insured persons providing with benefits and social services, policies differentiated insurance rates improvement, economic stimulation of employers providing in the implementation of measures to prevent industrial risks. To reduce the load on the payroll fund it is necessary to expand the base of insurance premiums accounting, to improve the system of collecting and accounting of insurance premiums and gradually ensure parity among employees and employers to pay insurance contributions for compulsory social state insurance. Стаття присвячена аналізу соціального страху- вання в контексті його основної функції - захисту від соціальних ризиків. В результаті дослідження взаємозв’язку соціального страхування та соціального ризику, останній можна представити у вигляді ймовірності настання матеріальної скрути внаслідок відсутності заробітку за об’єктивних соціально-значимих причин та у зв’язку з додатковими витратами по утриманню дітей чи інших членів сім’ї, а також по задоволенню потреб в медичних чи соціальних послугах. Об'єктом правовідносин із загальнообов’язкового державного соціального страхування у цьому випадку виступає страховий захист від соціальних ризиків. Ризик актуалізується в рамках системи взаємопов'язаних правовідносин, учасниками яких є страхувальник, страховик і застрахована особа. Цільовим призначенням такого взаємозв’язку є забезпечення страхового захисту економічно активного населення у випадку настання соціально-ризикової ситуації, її попередження й компенсації наслідків. Ризикова функція страхування трансформується в певну плату страховикові матеріальної відповідальності за наслідки ризику, зумовленого подіями, перелік яких передбачено чинним законодавством. В якості базових принципів соціального страхування виділено наступні: обов’язковість, чітка залежність між участю у фінансуванні системи та розміром пенсій і допомог; забезпечення рівня виплат, зіставного з доходом застрахованої особи протягом трудового життя; відособленість засобів; участь соціальних партнерів в управлінні відповідним фондом. Відзначається, що на відміну від України, загальною тенденцією для країн-членів ЄС є прагнення до оптимізації соціальних внесків. Так, виходячи з прогнозних оцінок для Євросоюзу, протягом наступних п’ятдесяти років передбачається їх збільшення лише на 5 % від ВВП - у відповідних оцінках враховуються очікувані наслідки реформ у сфері соціального забезпечення, які вже були законодавчо закріплені й проведені (включаючи нові схеми надання допомог та умов пенсійного забезпечення), а також очікуване зростання частки робочої сили в загальній чисельності населення й рівні зайнятості. Сучасна система соціального страхування в Україні за своїм змістом не є страховою у класичному розумінні, оскільки зберігає і виконує функції соціального забезпечення (допомоги). Вона має ряд недоліків і потребує вдосконалення, зокрема: оптимізація механізму надання застрахованим особам матеріального забезпечення та соціальних послуг; удосконалення політики диференційованих страхових тарифів; забезпечення системи економічного стимулювання роботодавців у здійсненні заходів профілактики виробничих ризиків. Для зменшення навантаження на фонд оплати праці необхідно розширити базу нарахування страхових внесків, удосконалити систему збору та обліку страхових внесків та поетапно забезпечити паритетну участь працівників та роботодавців у сплаті страхових внесків на загальнообов’язкове державне соціальне страхування. Стаття присвячена аналізу соціального страху- вання в контексті його основної функції - захисту від соціальних ризиків. В результаті дослідження взаємозв’язку соціального страхування та соціального ризику, останній можна представити у вигляді ймовірності настання матеріальної скрути внаслідок відсутності заробітку за об’єктивних соціально-значимих причин та у зв’язку з додатковими витратами по утриманню дітей чи інших членів сім’ї, а також по задоволенню потреб в медичних чи соціальних послугах. Об'єктом правовідносин із загальнообов’язкового державного соціального страхування у цьому випадку виступає страховий захист від соціальних ризиків. Ризик актуалізується в рамках системи взаємопов'язаних правовідносин, учасниками яких є страхувальник, страховик і застрахована особа. Цільовим призначенням такого взаємозв’язку є забезпечення страхового захисту економічно активного населення у випадку настання соціально-ризикової ситуації, її попередження й компенсації наслідків. Ризикова функція страхування трансформується в певну плату страховикові матеріальної відповідальності за наслідки ризику, зумовленого подіями, перелік яких передбачено чинним законодавством. В якості базових принципів соціального страхування виділено наступні: обов’язковість, чітка залежність між участю у фінансуванні системи та розміром пенсій і допомог; забезпечення рівня виплат, зіставного з доходом застрахованої особи протягом трудового життя; відособленість засобів; участь соціальних партнерів в управлінні відповідним фондом. Відзначається, що на відміну від України, загальною тенденцією для країн-членів ЄС є прагнення до оптимізації соціальних внесків. Так, виходячи з прогнозних оцінок для Євросоюзу, протягом наступних п’ятдесяти років передбачається їх збільшення лише на 5 % від ВВП - у відповідних оцінках враховуються очікувані наслідки реформ у сфері соціального забезпечення, які вже були законодавчо закріплені й проведені (включаючи нові схеми надання допомог та умов пенсійного забезпечення), а також очікуване зростання частки робочої сили в загальній чисельності населення й рівні зайнятості. Сучасна система соціального страхування в Україні за своїм змістом не є страховою у класичному розумінні, оскільки зберігає і виконує функції соціального забезпечення (допомоги). Вона має ряд недоліків і потребує вдосконалення, зокрема: оптимізація механізму надання застрахованим особам матеріального забезпечення та соціальних послуг; удосконалення політики диференційованих страхових тарифів; забезпечення системи економічного стимулювання роботодавців у здійсненні заходів профілактики виробничих ризиків. Для зменшення навантаження на фонд оплати праці необхідно розширити базу нарахування страхових внесків, удосконалити систему збору та обліку страхових внесків та поетапно забезпечити паритетну участь працівників та роботодавців у сплаті страхових внесків на загальнообов’язкове державне соціальне страхування. 2014 Article The Social Insurance in the System of the Social Risks Regulation / V.I. Nadraga // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 85-91. — Бібліогр.: 11 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/87624 349.3+316.48 en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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Digital Library of Periodicals of National Academy of Sciences of Ukraine |
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Finance Finance |
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Finance Finance Nadraga, V.I. The Social Insurance in the System of the Social Risks Regulation Економічний вісник Донбасу |
| description |
This paper analyzes the social insurance in the context of its basic function - protection against social risks. The results of the study of the social insurance and social risk relationships help propose the definition of the social risk. We consider the social risk as the probability of financial distress due to the lack of earnings because of objective socially significant reasons and due to the additional costs of the children or other family members’ allowance, as well as to meet the needs of health and social services. In this case, the object of compulsory state social insurance relations is the coverage of social risk. The social risk is actualized under a system of interconnected relationships. Its participants are the insurance carrier, the insurer and the insured. The purpose of these mentioned relationships is to provide insurance protection of the economically active population in the event of the social-risk situation, its prevention and effects compensation. Insurance risk function is transformed into a fee insurer liability for the consequences of the risk caused by the events which are preappointed by current legislation. The basic principles of social insurance are: commitment, a clear dependence between participation in the financing system and the size of pensions and benefits, provision of payments, comparable with the income of the insured person during his / her working life, facilities isolation and participation of the social partners in the governance.It has been mentioned that in contradiction to Ukraine the general trend for the member states of the European Union is a striving for the social contributions optimization. Thus, based on projections over the next fifty years, they expect an increase by only 5 % of GDP - in the corresponding estimates, they take into account the expected effects of reforms in the social security that have already been legislated and done (including new aid schemes and conditions of pensions), and the expected increase of labor share in total population and employment levels.The current social insurance system in Ukraine in its content is not insurance in the classic sense, as it stores and serves the social security (benefits) functions. It has a number of disadvantages and needs to be improved, in particular: to improve the mechanism of insured persons providing with benefits and social services, policies differentiated insurance rates improvement, economic stimulation of employers providing in the implementation of measures to prevent industrial risks. To reduce the load on the payroll fund it is necessary to expand the base of insurance premiums accounting, to improve the system of collecting and accounting of insurance premiums and gradually ensure parity among employees and employers to pay insurance contributions for compulsory social state insurance. |
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The Social Insurance in the System of the Social Risks Regulation |
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The Social Insurance in the System of the Social Risks Regulation |
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The Social Insurance in the System of the Social Risks Regulation |
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The Social Insurance in the System of the Social Risks Regulation |
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social insurance in the system of the social risks regulation |
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Інститут економіки промисловості НАН України |
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The Social Insurance in the System of the Social Risks Regulation / V.I. Nadraga // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 85-91. — Бібліогр.: 11 назв. — англ. |
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V. І. Nadraga
85
Економічний вісник Донбасу № 4(38), 2014
UDC 349.3+316.48
V. І. Nadraga,
PhD in State Management,
M. Ptukha Institute of Demography and Social Studies, NАS of Ukraine
Kyiv
THE SOCIAL INSURANCE IN THE SYSTEM OF THE SOCIAL RISKS REGULATION
Introduction. The social insurance system is
based on the principles of solidarity insurance – in a
market economy the government cannot take responsi-
bility for the majority of the social risks providing.
Therefore their funding should be based on attracting
the greatest possible number of participants. The state
nature of the social insurance does not mean that the
state has to finance the cost of the social security in all
cases. It could mean the obligation of this mechanism,
the obligation of the insurance premium, the obligation
of the grounds application, conditions of the social
security and juridical responsibility. The state insur-
ance guarantees the necessary standard of living. It is
obligatory and its source is mandatory contributions of
employees and employers. The basic principle of the
state social insurance is solidarity. It means the distri-
bution of assistance depending on the needs, regardless
the size of contributions and taxes paid. The group
insurance guarantees the usual standard of living. It is
implemented both as compulsory and voluntary. Its
source payments are insurance contributions of em-
ployers and workers. The basic principle of this form is
subsidiarity. It means assistance depending on the
needs, but accordingly taking into account the size of
the payments. The personal insurance guarantees the
current level of prosperity. It is carried out voluntarily
on account of the citizens’ insurance contributions. The
basic principle of life insurance is equivalence. It
means assistance which is proportional to the insurance
contributions.
Analysis of recent publications and unsolved
part of the problem.
P. Nadash investigating social insurance problems
in Taiwan, comes to conclusion that Taiwan will short-
ly complete its comprehensive social safety net, which
includes national health insurance, retirement security,
and unemployment insurance, by introducing long-
term care (LTC) insurance – putting it ahead of the
many countries that rely on a patchwork of policies to
address the need for LTC. The program, to be imple-
mented in 3 to 5 years, will cover all citizens on a pri-
marily social insurance basis. The range of LTC policy
options considered is discussed, particularly how to
structure the program, how to finance and regulate it,
and how to develop its inadequate LTC infrastructure
and workforce. Particularly thorny issues include the
choice of social insurance, the feasibility of cash bene-
fits, and how to address Taiwan's heavy reliance on
foreign workers [1].
T. Laun, studied the role of social insurance,
namely old-age pensions, disability insurance and
healthcare, in accounting for the differing labor supply
patterns of older individuals across OECD countries.
To this end, we develop a life cycle model of labor
supply and health with heterogeneous agents. The key
features of the framework are: (1) people choose when
to stop working, and when/if to apply for disability and
pension benefits, (2) the awarding of disability insur-
ance benefits is imperfectly correlated with health, and
(3) people can partially insure against health shocks by
investing in health, the cost of which is dependent on
health insurance coverage. We find that the incentives
faced by older workers differ hugely across countries.
In fact, based solely on differences in social insurance
programs, the model predicts even more cross-country
variation in the employment rates of people aged 55-64
than we observe in the data [2].
Virginia P. Reno writes, that currently, 8.8 million
disabled workers (and nearly 2 million of their chil-
dren) receive Social Security Disability Insurance (DI)
benefits. For many, DI benefits are nearly all the in-
come they have. The DI trust fund reserves are project-
ed to be depleted in 2016, after which tax revenues
coming into DI would cover only about 80% of sched-
uled benefits. Congress has never permitted such a
drop in Social Security benefits to occur. A temporary
reallocation of part of Social Security’s 6.2% tax rate
from the Old-Age and Survivors Insurance (OASI)
trust fund to the DI trust fund would ensure that both
funds can pay full benefits until 2033, after which
scheduled taxes would cover about 75% of scheduled
benefits. Congress has reallocated the tax rate 11 times
in the past, making it what one expert has called “a
traditional and noncontroversial action.” Alternatively,
a 0.2% increase in the tax rate for DI would make DI
solvent for the next 75 years [3].
O. Volska considers that the current legislation of
Ukraine does not regulate the minimum list of social
services that would provide the most important needs
of those people who find themselves in trouble, the
social services which would be guaranteed by the state
in any economic situation, regardless of the area of
Finance
V. І. Nadraga
86
Економічний вісник Донбасу № 4(38), 2014
citizens’ residence. Normalization range of services for
the certain categories of people will help to provide
social services to those who are in need in sufficient
amount [4].
The current unresolved part of the problem is the
development of scientific and methodological ap-
proaches to assessing the effectiveness of social insur-
ance in Ukraine as a part of the social policy and the
main compensatory mechanism of the social risks. Its
solution will make it possible to offer directions for
improvement of the development of the social insur-
ance system strategy in Ukraine.
Results. In current scientific literature social in-
surance is largely interpreted as an organizational and
financial system, which activity is aimed to prevent
from social risks of income loss or having to pay for
the certain services, or other costs connected with the
health loss, disability or unemployment on account of
special funds that are formed on the contribution pay-
ment of workers, employers and the state. The object
of compulsory state social insurance relations is the
coverage of social risks. The last one is actualized for a
person under a system of interconnected relationships.
Its participants are the insurance carrier, the insurer and
the insured. The purpose of these mentioned relation-
ships is to provide insurance protection of the econom-
ically active population in the event of the social-risk
situation, its prevention and effects compensation.
Insurance risk function is transformed into a fee insurer
liability for the consequences of the risk caused by the
events which are preappointed by current legislation. In
the case of an insurance event the insured imposes to
the insurer the requirement for indemnification (pay-
ment of insurance premiums). Materializes of the in-
surance categories coverage is an appropriate fund.
This is a set of distinguished and reserved inventories
of goods intended for insurance protection implementa-
tion – not only compensation but also to overcome the
social risks effects.
The social risks in this approach include the prob-
ability of financial distress due to the lack of earnings
because of objective socially significant reasons and
due to the additional costs of the children or other fam-
ily members’ allowance, as well as to meet the needs
of health and social services.
They can be characterized by the following fea-
tures:
- exceptionally objective in nature, because they
cannot be caused by the internal reasons;
- significantly restrict human activity, resulting in
its social insecurity;
- vested properly in national law as the circum-
stances due to the occurrence of which a person may
pretend to the state or society help;
- potentially legitimate for every person, they
come due or necessarily defined circumstances;
- the main function is to prevent potential finan-
cial difficulties of a person or his / her family mem-
bers.
Based on the mentioned characteristics, the social
risks can be classified as insurance ones, that are pro-
vided through the social insurance (public or private),
and non insurance, which are provided by the govern-
ment programs of social support.
The state social insurance performs a lot of func-
tions. The main one is compensation that is to reim-
burse the insured damages. This system of rights, re-
sponsibilities and guarantees that provides the social
protection in case of illness or temporary partial disa-
bility, unemployment and in other cases stipulated by
the legislation of Ukraine. The social insurance also
performs preventive function, i.e. financing from the
certain insurance fund some preventive measures for
preventing the harmful effects of the elemental forces
of nature and other adverse effects. Control function
means that insurance funds are purpose-oriented: in-
surance premium are accumulated on the planned pur-
pose. They are used in strictly defined cases and clearly
defined range of people. The function of economic
development promotion has an important place, be-
cause collecting for mandatory social insurance against
unemployment is included into income of the special
fund of the State Budget of Ukraine. Other functions
are incidental. They are likely to arise during execution
of the main functions. Therefore, we consider the so-
cial insurance system as the system of relationships
between the insured, the insurer and the insurance car-
rier. These relationships provide the insured on account
of social insurance funds, which are formed by the
payment of insurance premiums, financial security in
case of disease, full, partial or temporary disability,
breadwinner loss, unemployment due to circumstances
regardless of the person, old age, and in other cases
provided by the law.
The concept of the social insurance, which is es-
tablished by the legislation, defines it through the sys-
tem of rights, responsibilities and guarantees that pro-
vides social protection, based on the citizens’ material
support in case of disease, full, partial or temporary
disability, breadwinner loss, unemployment due to
circumstances regardless of the person, old age, and in
other cases provided by the law, on account of money
funds, which are formed by the payment of insurance
premiums by the owner or authorized entity (employ-
er), citizens as well as budgetary and other sources
which are provided by the law. Thus, the Basic Law of
Ukraine on compulsory social insurance [ 5 ], provides
the following types of the obligatory state social insur-
ance: pension insurance, insurance in case of tempo-
rary disability and expenses related to funerals, medical
insurance, insurance against accidents at work and
occupational diseases, which caused disability, unem-
V. І. Nadraga
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Економічний вісник Донбасу № 4(38), 2014
ployment insurance, and other types of insurance under
the laws of Ukraine.
Organizational and administrative support of the
social insurance function (except health insurance) is
performed by the following funds:
- Pension Fund of Ukraine;
- Social Insurance Fund for Temporary Disability;
- Fund of the social insurance of Ukraine against
industrial accidents and occupational diseases;
- Fund of obligatory state social insurance of
Ukraine in case of unemployment.
The functioning of these funds is specified by a
single insurance principle and provides social assis-
tance to citizens who for some reason find themselves
in difficult living conditions due to loss of earnings.
The basic principles of social insurance are:
commitment, a clear dependence between participation
in the financing system and the size of pensions and
benefits, provision of payments, comparable with the
income of the insured person during his / her working
life, facilities isolation and participation of the social
partners in governance. The most important document
of the ILO in the sphere of the social security is the
Convention on Minimum Standards of Social Security.
It examines the state social insurance as a part of the
social protection system of workers (insured). It also
establishes the basic social benefits at the expense of
social insurance which include: medical care (diseases
and in case of pregnancy, childbirth and their conse-
quences ); assistance due to diseases, old age, assis-
tance in case of industrial injury or occupational dis-
eases, family assistance, assistance in case of pregnan-
cy and childbirth, disability assistance, assistance in
case of breadwinner loss. [6].
In most European countries the social insurance
system is typical. Its peculiarities are only in the organ-
ization and functioning of the insurance systems – it is
the amount of compulsory social payments for pen-
sions and health insurance, the method of levying such
payments and the tax burden distribution between em-
ployees and employers (Table 1).
Table 1
Types of benefits and services for social insurance in the EU
Types of insurance Types of benefits and services
Pension insurance.
Compulsory pension insurance of employees.
Old-age pension.
Professional ineptitude or disablement pension.
Pensions for relatives of the deceased.
Compulsory health insurance for all categories of
the population.
Partial payment of the costs of treatment and medication
Payment in sick voucher.
Compulsory insurance against accidents of all
categories of the populations.
Payment rehabilitation.
Pensions in cases of industrial accidents.
Pensions for relatives of the deceased.
Funeral assistance.
Compulsory unemployment insurance of all em-
ployees.
Unemployment assistance.
Part-time employment assistance.
Payment of fees for medical and pension insurance
Assistance for families with children. Help for the birth of a child.
The monthly pension for each child.
Social assistance to individuals who are not able to
ensure their existence on account of their own labor
income and property and do not use other types of
social services.
Help to maintain an acceptable standard of living.
Assistance in special situations.
Source: [7].
Having taken into consideration the fact that the
national legislations which govern the relations of so-
cial insurance in the member states of the European
Union are slightly different, it has been developed the
common rules of the social insurance coordination for
all countries. They were approved by the Resolution of
the Council of the European Union № 1408/71, “On
the application of social security schemes for workers
and entrepreneurs-individuals who move within the
European Union and their family members”. They are
applied to the citizens of member states of the Europe-
an Union nationals, stateless persons and refugees. The
Rules of coordination do not establish which compen-
sations must be paid by this or that state. They do not
define pensions and benefits. At the same time, the
government must ensure that a person who moves from
one member state of the European Union to another,
does not get into a worse position than those who
worked and lived all there life in the particular country.
Moreover on May 1, 2010 the new regulations of the
European Union (№ 883/2004 and number 987/2009),
aimed at the coordination of the social security systems
in the EU came into effect.
V. І. Nadraga
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Економічний вісник Донбасу № 4(38), 2014
The general trend for the member states of the Eu-
ropean Union is also a striving for optimization of the
social contributions. Thus, based on projections over
the next fifty years, they expect an increase by only
5 % of GDP. In contradiction to Ukraine, forecasts
(table 2) takes into account the expected effects of
reforms in the social security that have already been
legislated and done (including new aid schemes and
conditions of pensions), and the expected increase of
labor share in total population and employment levels.
The European Union has taken measures to actively
counter the impact of population aging on social secu-
rity and the economy generally.
Table 2
Predictive assessment of the dynamics of social
expenditure in EU Member States (2007-2060)
Level % of
GDP
Changes since 2007 in
percentage points of GDP
2007 2035 2060
Pensions 10,2 +1,7 +2,4
Health care 6,7 +1,0 +1,5
Long-term care 1,2 +0,6 +1,1
Unemployment
benefits
0,8 -0,2 -0,2
Education 4,3 -0,3 -0,2
Total 23,2 +2,8 +4,6
Source: [8].
In general, Ukraine introduced a system of social
insurance that meets the European one. The interest
payments to the funds are fully consistent with Euro-
pean rates (table 3).
Table 3
Major taxable rate in some European countries
and Ukraine
Country Standard
(basic
VAT
rate, %)
Indivi-
dual
income
tax, %
Corpo-
rate
income
tax, %
Social
insurance
contribu-
tions, %
Austria
UK
Germany
Spain
Italy
France
Switzerland
On the average
Ukraine
20
18
16
16
20
19,6
6,5
18,7
20
10-50
20-40
25,9-53
30-56
10-51
12-54
11,5
20,4-46,2
10-40
34
33
45
35
53
33
10
33,7
21
41,8
15,6
38,2
38,7
57,9
56,3
22,8
37,7
39,55
Source: [9].
For 12 months in 2013 insured persons were paid
25 840.4 million by the social insurance funds, it is 3
891.0 million insurance compensations more than in
the same period in 2012. From 1 March 2013 the
monthly insurance payments for job-related injured and
their families has been increased by 14.9%. As a result,
the average monthly insurance premium per capita in
Ukraine is 1390 USD. It is obvious, that it is incorrect
to compare its absolute value with European data.
Ukraine has about 20 million people employed, but
according to the Ministry of Social Policy only 13
million pay social contributions, and the rest – is an
informal and shadow employment. It does not allow
improving the appropriate effective mechanisms of
social insurance [10].
The current total amount of social insurance con-
tributions in Ukraine is 42.03 % (38.53 % is paid by
employers, 2 %, 3 %, 3.5 % (depending on salary) is
paid by employers). Simple mechanical reduction of
charges on payroll will cause the complete collapse of
social services to insured persons, because all social
subsystems are not independent in financial and fiscal
terms. Fiscal space or the amount of taxes and contri-
butions that our society is willing to pay is limited.
Therefore, the money collected as fees from workers
and their employers of formal economy sector cannot
be re-extracted as profits or income tax to support na-
tional solidarity through social welfare programs. Con-
tribution rates which were established within private
insurance, affect the wages and the level of contribu-
tions in the public health care systems.
To reduce the load on the payroll fund it is neces-
sary to expand the base of insurance premiums ac-
counting, to improve the system of collecting and ac-
counting of insurance premiums and gradually ensure
parity among employees and employers to pay insur-
ance contributions for compulsory social state insur-
ance. Parity participation of workers and employers to
pay insurance premiums complies with the Concept of
reforming pay and ILO documents that allow insurance
contributions redistribution between employers and
employees in equal amounts. However, the insurance
contributions redistribution between employers and
employees can only be performed if it is possible to
prevent a decline in real income of workers due to the
insurance premiums increase for them and setting the
minimum wage at the subsistence level. This will re-
duce the payroll load, expand the circle of contributors
on the account of tax legalization that will eventually
lead to an increase in revenues to social funds and
social benefits to insured persons.
According to the Law of Ukraine “On the collec-
tion and accounting of the only contribution for obliga-
tory state social insurance” – the only contribution to
the compulsory state social insurance is a consolidated
insurance premium, collection of which is performed to
the system of compulsory social insurance. It is com-
pulsory and regular. It ensures protection in cases pro-
vided by law, the rights of the insured persons and their
family members to receive insurance benefits (ser-
vices) according to the current types of obligatory state
social insurance [11].
The size of the only contribution for each catego-
ry of taxpayers specified by this Law and the propor-
tion of its distribution according to the type of compul-
V. І. Nadraga
89
Економічний вісник Донбасу № 4(38), 2014
sory social insurance are established considering that
they have to provide insured persons with insurance
benefits and social services provided by the legislation
on compulsory social insurance; financing of measures
which are aimed at preventing insurance claims; creat-
ing a funds reserve to provide insurance benefits and
social services to insured persons; the administrative
costs coverage to provide the functioning of the com-
pulsory social insurance system.
Social insurance contributions of employers and
insured persons act as the main source that provides
compensation for income loss in proportion to its size
(it is in most cases has a legally restricted level) and
budget funds are intended for the payments of a gen-
eral nature and ensure a minimum level of insurance
benefits in the event of a lack of accumulated insurance
premiums.
Thus, social insurance acts as a specific institution
of social risks regulation, which causes a number of its
characteristics: this form of social protection, in most
cases, is applied to wage earners in socially organized
production, for which the main and often the only
source of livelihood is the wage. Secondly, understand-
ing of the social risk as a natural and objective mass
phenomenon that affects the certain enough significant
socio-demographic and professional groups of the
population. Thirdly, social insurance funding, to some
extent, is carried out by all the major social partners –
workers, employers and the state. The costs of social
insurance are socially necessary for the reproduction of
labor power employed and their reference to the cost of
production, which is the recognition of the costs’ non-
taxed nature.
Conclusions. The established social insurance
system in Ukraine generally satisfies the market condi-
tions and includes the major social risks that emerge in
this area. The last ones are clearly distinguished be-
tween funds. The employer insurance liability domi-
nates, even though the proportion of the insurance
liability distribution is very disproportionate.
The current social insurance system in Ukraine in
its content is not insurance in the classic sense, as it
stores and serves the social security (benefits) func-
tions – the insurance premiums size is inconsistent
with the level of social and occupational risk, amount
of rights and guarantees of insurers and the insured, the
alienation from participation in the funds management
is available and so on.
Social insurance is the result of social and labor
relations development. It is an important tool to mini-
mize social risks. Social security has the following
features:
- this form of social protection is applied primari-
ly to employees for whom the main source of income
is wage;
- its main purpose is to regulate social risks which
objectively concern to all socio-demographic and pro-
fessional groups;
- social insurance financing to some extent is car-
ried out by all the major social partners – workers,
employers and the state. The costs of social insurance
are socially necessary for the reproduction of labor
power employed and their reference to the cost of pro-
duction, which is the recognition of the costs’ non-
taxed nature.
Social insurance does not only perform compen-
sation functions of social risks actualization, that is to
overcome the adverse consequences of risk situation,
but also the function to prevent them. This is the main
difference between the social insurance and the social
security, which is available only in adverse life situa-
tions.
Thus, the following important generalization can
be made: the social risks are connected with adverse
events and the probability of their occurrence can be
predicted in advance, they can be prevented or at least
we can prepare for them. It is necessary to develop a
methodology that will provide an opportunity to assess
the degree of occurrence probability of such events .
Social insurance must be considered as the main
form of protection against social risks, as it is applied
to the economically active population, people with
earned income, which is the basis for insurance premi-
ums calculating. They are accumulated in the particular
insurance fund, which is separated from the budget.
This fund ensures the insured person in the insurance
case.
The probability of social risk occurrence must be
assessed in advance. It allows the person to be insured,
and thus fall under the protection of the insurance sys-
tem before the insured event occurrence. This will
allow not only to prepare for the adverse events occur-
rence, but also to prevent it in advance.
Since the system of social insurance compensates
only legitimate income from employment and equal to
its activities, it can be considered as an important ele-
ment of the mechanism to stimulate employment and
entrepreneurial activity of citizens.
Social insurance system has a number of disad-
vantages and needs to be improved, in particular: to
improve the mechanism of insured persons providing
with benefits and social services, policies differentiated
insurance rates improvement, economic stimulation of
employers providing in the implementation of
measures to prevent industrial risks.
References
1. Nadash, P. Introducing social insurance for
long-term care in Taiwan: key issues. International
Journal of Social Welfare Volume 22, Issue 1. – 2013.
– Р. 69-79. 2. Laun, T. The Role of Social Insurance
Programs in Accounting for Cross-Country Differences
in Retirement Behavior. UCFS, Department of Eco-
nomics, Uppsala University. 2013. – 35 р. 3. Reno,
Virginia P. Social Security Disability Insurance: Ac-
tion Needed to Address Finances (June 2013). National
Academy of Social Insurance, Social Security Brief,
June 2013, No. 41. Available at SSRN:
V. І. Nadraga
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http://ssrn.com/abstract=2375239. 4. Vol's'ka, O.
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pro zagal'noobov'jazkove derzhavne social'ne strahu-
vannja. Redakcija vid 11.08.2013. [Basic Law of
Ukraine on compulsory social insurance. Version of
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laws/show/16/98-вр. 6. Mizhnarodna organizacija
praci. Konvencija pro minimal'ni normy social'nogo
zabezpechennja № 102. [Convention on Minimum
Standards of Social Security number 102]. – Available
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labour/control/uk/publish/category?cat_id=35657.
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2464-17.
Надрага В. І. Соцстрах в системі соціально-
го регулювання ризиків
Стаття присвячена аналізу соціального страху-
вання в контексті його основної функції – захисту
від соціальних ризиків. В результаті дослідження
взаємозв’язку соціального страхування та соціаль-
ного ризику, останній можна представити у вигляді
ймовірності настання матеріальної скрути внаслі-
док відсутності заробітку за об’єктивних соціально-
значимих причин та у зв’язку з додатковими витра-
тами по утриманню дітей чи інших членів сім’ї, а
також по задоволенню потреб в медичних чи соціа-
льних послугах. Об'єктом правовідносин із загаль-
нообов’язкового державного соціального страху-
вання у цьому випадку виступає страховий захист
від соціальних ризиків. Ризик актуалізується в рам-
ках системи взаємопов'язаних правовідносин, учас-
никами яких є страхувальник, страховик і застра-
хована особа. Цільовим призначенням такого вза-
ємозв’язку є забезпечення страхового захисту еко-
номічно активного населення у випадку настання
соціально-ризикової ситуації, її попередження й
компенсації наслідків. Ризикова функція страху-
вання трансформується в певну плату страховикові
матеріальної відповідальності за наслідки ризику,
зумовленого подіями, перелік яких передбачено
чинним законодавством.
В якості базових принципів соціального стра-
хування виділено наступні: обов’язковість, чітка
залежність між участю у фінансуванні системи та
розміром пенсій і допомог; забезпечення рівня ви-
плат, зіставного з доходом застрахованої особи
протягом трудового життя; відособленість засобів;
участь соціальних партнерів в управлінні відповід-
ним фондом.
Відзначається, що на відміну від України, за-
гальною тенденцією для країн-членів ЄС є праг-
нення до оптимізації соціальних внесків. Так, ви-
ходячи з прогнозних оцінок для Євросоюзу, протя-
гом наступних п’ятдесяти років передбачається їх
збільшення лише на 5 % від ВВП - у відповідних
оцінках враховуються очікувані наслідки реформ у
сфері соціального забезпечення, які вже були зако-
нодавчо закріплені й проведені (включаючи нові
схеми надання допомог та умов пенсійного забез-
печення), а також очікуване зростання частки ро-
бочої сили в загальній чисельності населення й
рівні зайнятості.
Сучасна система соціального страхування в
Україні за своїм змістом не є страховою у класич-
ному розумінні, оскільки зберігає і виконує функції
соціального забезпечення (допомоги). Вона має ряд
недоліків і потребує вдосконалення, зокрема: оп-
тимізація механізму надання застрахованим осо-
бам матеріального забезпечення та соціальних пос-
луг; удосконалення політики диференційованих
страхових тарифів; забезпечення системи економі-
чного стимулювання роботодавців у здійсненні
заходів профілактики виробничих ризиків. Для
зменшення навантаження на фонд оплати праці
необхідно розширити базу нарахування страхових
внесків, удосконалити систему збору та обліку
страхових внесків та поетапно забезпечити пари-
тетну участь працівників та роботодавців у сплаті
страхових внесків на загальнообов’язкове державне
соціальне страхування.
Ключові слова: соціальне страхування, соціа-
льні ризики, страхові внески, єдиний внесок.
Надрага В. И. Социальное страхование в
системе соціального регулювання рисков
Статья посвящена анализу социального стра-
хования в контексте его основной функции – защи-
ты от социальных рисков. В результате исследова-
ния взаимосвязи социального страхования и соци-
ального риска, последний можно представить в
виде вероятности наступления материальной нуж-
ды вследствие отсутствия доходов по объективным
социально-экономическим причинам и в связи с
дополнительными расходами по содержанию детей
или других членов семьи, а также по удовлетворе-
нию потребностей в медицинских или социальных
услугах. Объектом правоотношений по общеобяза-
тельному социальному страхованию в этом случае
выступает страховая защита от социальных рисков.
V. І. Nadraga
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Економічний вісник Донбасу № 4(38), 2014
Риск актуализируется в рамках системы взаимосвя-
занных правоотношений, участниками которых
выступают страховщик, страховик и застрахован-
ное лицо.
Целевое назначение такой взаимосвязи – это
обеспечение страховой защиты экономически ак-
тивного населения в случае наступления социаль-
но-рисковой ситуации, ее предупреждение и ком-
пенсация последствий. Рисковая функция страхо-
вания трансформируется в определенную плату
страховщику материальной ответственности за
последствия риска, обусловленного событиями,
перечень которых закреплен в законодательстве.
В качестве базовых принципов социального
страхования выделены следующие: обязательность,
четкая зависимость между участием в финансиро-
вании системы и размером пенсий и пособий, обес-
печение уровня выплат, сопоставимого с доходами
застрахованного лица на протяжении трудовой
жизни, обезличенность средств, участие социаль-
ных партнеров в управлении соответствующим
фондом.
Отмечено, что в отличие от Украины, общей
тенденцией для стран-членов ЕС выступает стрем-
ление к оптимизации социальных взносов. Так,
исходя с прогнозных оценок для Евросоюза, на
протяжении следующих пятидесяти лет предпола-
гается их увеличение лишь на 5% от ВВП – в соот-
ветствующих оценках учитываются ожидаемые
результаты реформ в сфере социального обеспече-
ния, которые уже были законодательно закреплены
и проведены (включая новые схемы предоставле-
ния помощи и условий пенсионного обеспечения),
а также ожидаемое увеличение доли рабочей силы
в общей численности населения и уровне занято-
сти.
Современная система социального страхова-
ния в Украине по своему содержанию не является
страховой в классическом понимании, поскольку
сохраняет и выполняет функции социального обес-
печения (помощи). Для нее характерны ряд недо-
статков, она нуждается в усовершенствовании, а
именно: оптимизация механизма назначения за-
страхованным лицам материального обеспечения и
предоставления социальных услуг; усовершенство-
вание политики дифференцированных страховых
тарифов; обеспечение системы экономического
стимулирования работодателей в проведении мер
профилактики производственных рисков. Для
уменьшения нагрузки на фонд оплаты труда необ-
ходимо увеличить базу начисления страховых
взносов, усовершенствовать систему сбора и учета
страховых взносов, а также поэтапно обеспечить
паритетное участие работников и работодателей в
оплате страховых взносов по обязательному госу-
дарственному социальному страхованию.
Ключевые слова: социальное страхование, со-
циальные риски, страховые взносы, единый взнос.
Nadraga V. І. The Social Insurance in the
System of the Social Risks Regulation
This paper analyzes the social insurance in the
context of its basic function – protection against social
risks. The results of the study of the social insurance
and social risk relationships help propose the definition
of the social risk. We consider the social risk as the
probability of financial distress due to the lack of earn-
ings because of objective socially significant reasons
and due to the additional costs of the children or other
family members’ allowance, as well as to meet the
needs of health and social services. In this case, the
object of compulsory state social insurance relations is
the coverage of social risk. The social risk is actualized
under a system of interconnected relationships. Its
participants are the insurance carrier, the insurer and
the insured. The purpose of these mentioned relation-
ships is to provide insurance protection of the econom-
ically active population in the event of the social-risk
situation, its prevention and effects compensation.
Insurance risk function is transformed into a fee insurer
liability for the consequences of the risk caused by the
events which are preappointed by current legislation.
The basic principles of social insurance are:
commitment, a clear dependence between participation
in the financing system and the size of pensions and
benefits, provision of payments, comparable with the
income of the insured person during his / her working
life, facilities isolation and participation of the social
partners in the governance.
It has been mentioned that in contradiction to
Ukraine the general trend for the member states of the
European Union is a striving for the social contribu-
tions optimization. Thus, based on projections over the
next fifty years, they expect an increase by only 5 % of
GDP - in the corresponding estimates, they take into
account the expected effects of reforms in the social
security that have already been legislated and done
(including new aid schemes and conditions of pen-
sions), and the expected increase of labor share in total
population and employment levels.
The current social insurance system in Ukraine in
its content is not insurance in the classic sense, as it
stores and serves the social security (benefits) func-
tions. It has a number of disadvantages and needs to be
improved, in particular: to improve the mechanism of
insured persons providing with benefits and social
services, policies differentiated insurance rates im-
provement, economic stimulation of employers provid-
ing in the implementation of measures to prevent in-
dustrial risks. To reduce the load on the payroll fund it
is necessary to expand the base of insurance premiums
accounting, to improve the system of collecting and
accounting of insurance premiums and gradually en-
sure parity among employees and employers to pay
insurance contributions for compulsory social state
insurance.
Keywords: social insurance, social risks, insur-
ance premiums, single social contribution.
Received by the editors: 10.10.2014
and final form 23.12.2014
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