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Social Security (Minimum Standards) Convention, 1952 (No. 102) - Costa Rica (RATIFICATION: 1972)

Other comments on C102

Observation

Direct Request

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The Committee notes the observations of the United Trade Union Movement composed of the Confederation of Workers Rerum Novarum (CTRN), the Costa Rican Workers’ Movement Central (CMTC), the General Confederation of Workers (CGT) and the Workers’ Unitary Confederation (CUT) on the application of the Convention, received on 31 August 2022, in relation to which the Government is requested to provide its comments in future reports.

The Committee also notes the observations of the Costa Rican Federation of Chambers and Associations of Private Enterprise (UCCAEP), communicated with the Government’s report.

Part II (Medical care) of the Convention. Application of the Convention in practice. The Committee notes the comments of the United Trade Union Movement alleging non-compliance with Part II of the Convention as the provision of medical care has been weakened as a result of the thousands of cases of delayed surgical interventions and medical examinations, and deficiencies in the provision of medication. According to the United Trade Union Movement, the delays are due to the unfavourable financial situation of the Costa Rican Social Security Fund. The Committee hopes that the Government will provide its comments on the observations of the United Trade Union Movement and requests it to provide information on the length of the delays in patients receiving the medical care guaranteed by Article 10 of the Convention.

Part VI (Employment injury benefit), Articles 36 and 38. Duration of benefit. In its previous comment, the Committee expressed the hope that the Government would take the necessary measures to ensure the payment of periodical benefits throughout the contingency in cases of permanent partial disability of more than 25 per cent, or replace the payment for a lump sum where the competent authority is satisfied that the lump sum will be properly utilized. The Committee notes the indication provided by the Government in its report that it will engage in coordination to carry out an actuarial study with a view to assessing the possible options, and will keep the Committee informed. The Committee trusts that the Government will take the necessary measures to give effect to Articles 36 and 38 of the Convention with a view to ensuring the payment of periodical benefits throughout the contingency in the case of permanent partial disability of more than 25 per cent. The Committee requests the Government to provide detailed information in its next report on the findings of the actuarial study carried out and the measures adopted or envisaged with a view to giving effect to Articles 36 and 38 of the Convention.

Part VII (Family benefit), Article 44. In its previous comment, the Committee requested the Government to provide information on the total value of family benefits granted in accordance with the provisions of Article 44 of the Convention. The Committee notes the information provided by the Government on the benefits provided under the Interinstitutional Cooperation Agreement between the Ministry of Labour and Social Security (MTSS) and the Mixed Social Assistance Institute (IMAS), which grants a conditional cash transfer to families with child workers who are incorporated into the formal education system with a view to contributing to the eradication of child labour and the protection of young workers. However, the Committee observes that the report provided by the Government does not provide detailed statistics on the manner, amounts and conditions under which such transfers are provided, and the extent to which they meet the requirements of Part VII of the Convention, and particularly Article 44. The Committee recalls that, in accordance with Article 44 of the Convention, family benefit shall represent: (a) 3 per cent of the wage of an ordinary adult male labourer, multiplied by the total number of children of persons protected; or (b) 1.5 per cent of the reference wage, multiplied by the total number of children of all residents.

In this context, the Committee once again requests the Government to specify in its next report the amounts provided directly to meet the needs of children and to indicate the extent to which the family benefits provided meet the requirements set out in Part VII of the Convention, and particularly Article 44, by replying to the questions in the report form.

Article 28 of Part V (Old-age benefit), Article 56 of Part IX (Invalidity benefit), Article 62 of Part X (Survivors’ benefit), Articles 65 and 66 of Part XI (Standards to be complied with by periodical payments) and the Annex. Guaranteed minimum benefit. The Committee notes the information provided by the Government in its report that the Invalidity, Old-age and Survivors’ Insurance Regulations were revised by the Executive Board of the Costa Rican Social Security Fund on 14 December 2021, with amendments to sections 5, 23 and 24 and the transitional sections XII, XIII, XIV and XV being repealed, resulting in changes in the provisions respecting the ordinary old-age pension, the proportional old-age pension and the early old-age pension, as well as those respecting invalidity and survivors’ pensions, and the formula for the calculation of average wages for contribution purposes, the periods when pensions are paid and their amount. The Committee notes the observations of the United Trade Union Movement that these changes exclude the possibility of early retirement, change the number of contributions required for entitlement to pensions and accumulate the supplementary benefit with the basic pension, which could result in a reduction of up to 7 per cent in the level of future pensions.

The Committee hopes that the Government will provide its comments on the observations of the United Trade Union Movement and requests it to provide information to demonstrate that the amount of the minimum pension guaranteed by the scheme governed by the Invalidity, Old-age and Survivors’ Insurance Regulations meets the requirements set out in Articles 28, 56 and 62, in conjunction with Article 65 or 66 of the Convention, as indicated in the report form for the Convention.

Part XIII (Common provisions), Article 71. Financing. The Committee notes the observation of the United Trade Union Movement indicating that the Costa Rica Social Insurance Fund is going through a serious financial crisis due to administrative shortcomings, indebtedness and the lack of investment by the Government of Costa Rica, which has resulted in inadequate levels of social security benefits and medical care. The Committee also notes the observation that, according to the data of the National Institute of Statistics and Census (INEC), 30 per cent of economically active persons in general and 58 per cent of self-employed workers are not covered by the social security system. It adds that the deficiencies in the coverage of the self-employed, and the low wages paid to dependent workers, which are adjusted at below the inflation rate, are having a negative effect on the financing of social security and are resulting in low invalidity, old-age and survivors’ pensions.

The Committee hopes that the Government will provide its comments on the observations of the United Trade Union Movement and requests it to provide information on: (i) the current financial situation of the Costa Rican Social Insurance Fund, with an indication, where appropriate, of the measures adopted or to be adopted to improve the level of financing; and (ii) the application of Article 71, including statistical data and calculations, taking into account the various pension schemes and health services, as indicated in the report form for the Convention.

The Committee reminds the Government of the possibility of having recourse to ILO technical assistance in this regard.