Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

Social Security (Minimum Standards) Convention, 1952 (No. 102) - Dominican Republic (Ratification: 2016)

The Committee notes the Government’s first report and the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th Session (June 2020).

The Committee notes the observations of the Autonomous Confederation of Workers’ Unions (CASC), the National Confederation of Dominican Workers (CNTD) and the National Confederation of Trade Union Unity (CNUS), received on 5 September 2019 and 1 October 2020, respectively.

Part II (Medical care). Article 10(2) of the Convention. Sharing by persons protected in the cost of medical care in respect of a morbid condition. The Committee notes the information provided by the Government on the sharing by persons protected in the cost of medical care, indicating that sharing is regulated and effected through co-payments for outpatient medicines established in Act No. 87-01 of 2001 establishing the Dominican social security system and through sliding scale fees defined in section 4 of the “Regulations on family health insurance” and the “Basic health plan” approved by the National Social Security Board through Decision No. 48-13 of 2002. However, the Committee notes that, according to the Government, family out-of-pocket expenditure in the country is estimated at around 43 per cent. The Committee requests the Government to indicate: (i) for each of the benefits indicated in Article 10(1) of the Convention, what is the direct share of the cost of medical care received and, in accordance with Article 10(2) of the Convention, what is the sliding scale fee to be made by the beneficiary or breadwinner. The Committee also requests the Government to indicate the measures taken to ensure that this cost-sharing does not involve hardship, in accordance with Article 10(2) of the Convention. Moreover, the Committee notes that the CASC, CNTD and CNUS allege that as regards purchases of medicines affiliated persons pay 30 per cent of their cost, which creates difficulties for families and affects their quality of life. The Committee requests the Government to provide its comments on this matter.

Article 10(2). Sharing by persons protected in the cost of medical care in the case of pregnancy and confinement and their consequences. The Committee notes the information provided by the Government concerning the medical care benefits to which women are entitled in case of maternity. It further notes the Government’s indication that these benefits are provided without any type of co-payments or moderating fees, with the exception of deliveries by caesarean, the costs of which are partially assumed by women, in a proportion of 15 per cent, unless they are performed in emergency. In this regard, the Committee recalls that Article 10(2) of the Convention does not provide for cost-sharing by the beneficiary or insured person in the costs of the medical care received in cases of pregnancy and confinement and their consequences. The Committee thus requests the Government to indicate (i) whether women who have to undergo a planned caesarean delivery for medical reasons are required to share in the cost of the procedure and (ii) whether women with small means are also required to participate in the costs of deliveries by caesarean in a 15 per cent proportion.

Part V (Old-age benefit). Articles 28 and 65 or 66, in conjunction with the Schedule appended to Part XI. Calculation and amounts of old-age benefit. The Committee notes that old-age benefits are provided through a mandatory individual capitalization system established by Act No. 87-01 of 2001, which does not establish a fixed replacement rate for pensions in the contributory scheme or specific benefits. However, the Committee notes that section 53 of Act No. 87-01 provides that the minimum contributory scheme pension shall be the equivalent of 100 per cent of the lowest statutory minimum wage. The Committee recalls that, under Article 28 of the Convention, the old-age pension shall be a periodical payment calculated as a percentage of previous earnings or of the wage of the standard beneficiary determined in accordance with Article 65 or Article 66, namely, a skilled manual male employee or an ordinary adult male labourer. The amount of the old-age pension must be at least 40 per cent of the previous earnings of the standard beneficiary, as indicated in the Schedule appended to Part XI, after 30 years of contribution or employment. The Committee requests the Government to provide information on the wage of a standard beneficiary as defined in Article 65 or Article 66 of the Convention, and on the calculation of the old-age benefit for which a person with the same level of earnings would qualify after 30 years of contributions.

Part VI (Employment injury benefit). Articles 36 and 38. Form and duration of indemnity in the case of permanent partial incapacity for work. The Committee observes that according to section 196 of Act No. 87-01, as amended by Act No. 397-19 establishing the Dominican Institute for Occupational Risk Prevention and Protection, victims of industrial accidents with incapacity over 5 per cent and under 49 per cent as a result of an industrial accident or occupational disease are entitled to an indemnity consisting of a lump sum corresponding to between five and 20 times the basic salary. The Committee recalls that Articles 36 and 38 of the Convention provide that, in cases of permanent incapacity for work, the benefit shall consist of a periodical payment to be granted throughout the contingency and that it may be commuted for a lump sum where the degree of incapacity is slight or where the competent authority is satisfied that the lump sum will be properly utilized. The Committee requests the Government to indicate the manner in which the competent authority satisfies itself that the lump sum paid in the event of an industrial accident or occupational disease will be properly utilized by the beneficiary.

Part VII (Family benefit). Article 39. Provision of family benefit. The Committee notes the information supplied by the Government regarding the provision of family benefit, in accordance with the terms of Act No. 87-01 on childcare facilities. However, the Committee notes the Government’s indication that Act No. 397-19 of 2019 has recently been adopted, abrogating the sections of Act No. 87-01 on childcare facilities, and establishing that the childcare facilities management department of the Dominican Social Security Institute (IDSS) shall cease to operate. The Committee also observes that IDSS childcare facilities and establishments and services under IDSS administration will henceforth be managed by the National Institute for Early Childhood Care (INAIPI). The Committee requests the Government to indicate the current laws and regulations which regulate family benefit, in accordance with Part VII of the Convention, and to provide information on how effect is currently given to this Part.

Article 44. Total value of benefit. The Committee requests the Government to provide the statistical information required with regard to family benefit granted, in accordance with Article 44 of the Convention.

Part XII (Equality of treatment of non-national residents). Article 68. The Committee requests the Government to indicate: (i) whether recourse has been had to the provisions of Article 68(1) of the Convention, under which special rules concerning non-nationals and nationals born outside the national territory may be prescribed in respect of benefits or portions of benefits which are payable wholly or mainly out of public funds and, if so, to indicate in detail what those special rules are; and (ii) in the contributory social security system, whether persons protected who are nationals of another Member which has accepted the obligations of the relevant Part of the Convention shall have, automatically, the same rights as nationals of the Dominican Republic, or whether equality of treatment in these cases is subject to the existence of a bilateral or multilateral agreement providing for reciprocity. If such agreements are necessary, the Committee requests the Government to specify the reciprocity agreements in force.

Article 71(3). Responsibility of the State regarding sustainability of the social security system and provision of benefits. The Committee notes that Act No. 177-09 has granted an “amnesty” to all public and private employers, whether natural or legal persons, whose payments of worker and employer contributions to the Dominican social security system (SDSS) have been delayed or omitted and who were operating during the period of validity of Act No. 87-01. The Committee notes that the CASC, CNTD and CNUS indicate that, owing to the delays or omissions in the payment of contributions, local authorities and private companies have heavy debts vis-à-vis the social security system and workers lack protection as a result. The Committee also observes that Act No. 13-20 of 2020, referred to by the Government, has established new rules on delayed debts vis-à-vis the SDSS, modifying the surcharges for late payments to the SDSS. In the light of the new provisions of Act No. 13-20, the Committee requests the Government to provide its comments on this matter and to indicate the measures that ensure the sustainability of the Dominican social security system and its capacity to guarantee effective protection and the provision of benefits, in accordance with Article 71(3) of the Convention.

Article 71(3). Actuarial studies and calculations. The Committee observes that Act No. 397-19 has amended section 140 of Act No. 87-01 and that Act No. 13-20 has amended section 56 of Act No. 87-01, both relating to contributions to the contributory scheme. The Committee recalls that Article 71(3) of the Convention provides that the Member concerned shall ensure that the necessary actuarial studies and calculations concerning financial equilibrium are made prior to any change in the rate of insurance contributions. The Committee requests the Government to indicate whether the necessary actuarial studies and calculations concerning financial equilibrium have been made prior to any change in the rate of insurance contributions, in accordance with Article 71(3) of the Convention, and to send the technical documentation relating to these studies.

Article 72(1). Participation of representatives of the persons protected in the administration of the social security system and benefits. The Committee notes the information provided by the Government on the State’s duties of management, regulation, financing and supervision of the social security system, as provided for by section 21 of Act No. 87-01, as amended by Act No. 397-19. The Committee notes that, according to section 21 of the aforementioned Act, the administration and granting of social security benefits in the Dominican Republic is entrusted to various entities, including Pension Fund Boards (AFP), Health Risk Boards (ARS) and Health Service Provision Boards (PSS), which have a public, private or mixed status. Recalling that, under Article 72(1) of the Convention, where the administration is not entrusted to an institution regulated by the public authorities or to a government department responsible to a legislature, representatives of the persons protected shall participate in the management, or be associated therewith in a consultative capacity, under prescribed conditions. The Committee requests the Government to indicate whether the persons protected are represented in the management of the benefit administration entities and service provider entities which are not entrusted to a public institution or government department, or whether representatives of the persons protected are associated with such management.

Institutional reform of social security and social dialogue. The Committee notes the allegations by the CASC, CNTD and CNUS that their proposals were not taken into account in the reform of the social security, and that the legislators gave preference to the Government’s proposal, which envisaged the dissolution of the Dominican Social Security Institute (IDSS), which gives rise to issues concerning the relocation of the dismissed employees of the IDSS and the payment of benefits. The unions also allege that the establishment of the National Occupational Risk Institute (IDOPPRIL) is a change to allow the AFPs to continue to benefit through the inclusion of earnings formulas, whereas henceforth any benefit is for the universality of funds. They further allege a lack of consultation with workers’ representatives on the recent changes to the Social Security Treasury (TSS) and the Department for the Information and Defence of Insured Persons (DIDA). In this respect, they consider that open dialogue could be held between employers, workers and the Government for the decisions taken in relation to social security, and they hope that the union movement will not be excluded from that dialogue. The Committee requests the Government to provide its comments in this regard.

Measures adopted in relation to the COVID-19 pandemic. With reference to the measures adopted by the Government in response to the COVID-19 pandemic, the Committee notes the allegations by the CASC, CNTD and CNUS that, on the one hand, health coverage has been maintained for workers whose employment has been suspended while, on the other, contributions have been suspended to the pension system providing disability and survivors’ pensions, resulting in many workers who have been affected by COVID-19 not being entitled to an disability pension or a survivors’ pension in the event of their death. They also allege that only health workers in the Dominican Republic during the pandemic are entitled to disability and survivors’ pensions, as COVID-19 is only considered to be an occupational disease for workers in the health sector. The Committee requests the Government to provide its comments in this regard.