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

Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Previous comments: Observation, direct request.

In order to provide a comprehensive view of the issues relating to the application of ratified social security Conventions, the Committee considers it appropriate to examine Conventions Nos 19 and 102 together.

Institutional reform of social security and social dialogue. The Committee notes the information provided by the Government in its report on the current process of institutional reform of social security, in which the whole of Dominican society is participating through public consultations. The partial reforms already adopted were voted on in the National Social Security Board (CNSS), in which both workers and employers are represented. The Committee requests the Government to provide information on progress made in the current process of reform of the social security system.

Article 1 of Convention No. 19. Equality of treatment between national and foreign workers. The Committee notes the Government’s indication in its report that foreign workers affiliated to the Dominican social security system (SDSS) receive all the benefits deriving from occupational accidents through Act No. 87-01 and Decree No. 377-02. The Committee requests the Government to provide information on whether nationals and foreigners affiliated to the SDSS who receive occupational accident compensation for themselves and their dependants continue to receive them when they take up residence outside the national territory.

Part II (Medical care). Article 10(2) of Convention No. 102. Sharing by persons protected in the cost of medical care in respect of a morbid condition. The Committee notes the Government’s indication that in the context of the SDSS family health insurance, specifically in relation to out-of-pocket expenditure of the population affiliated to the contributory scheme and special health plans for retirees, the following actions were taken: (i) a reduction in the ceiling for the sliding scale fee, which decreased from the level of two minimum wage equivalents subject to contributions to one minimum wage equivalent, with a decrease in the annual share of affiliated persons estimated at 840 million Dominican pesos (DOP); (ii) an increase to DOP2,090,000 for medication for chemotherapy and adjuvants, with DOP1 million pesos maintained for radiotherapy and radiosurgery; and (iii) elimination of co-payments by workers for medical examinations and hospitalization associated with COVID-19 up to March 2022, plus the inclusion of other temporary forms of coverage. The Committee duly notes this information. In this context, the Committee requests the Government to provide information on the current percentage of out-of-pocket family expenditure, indicating the direct share in the costs of medical care received in relation to the benefits indicated in Article 10(1) of the Convention.

Sharing by persons protected in the cost of medical care in the case of pregnancy and confinement and their consequences. The Committee notes the Government’s indication that: (i) natural childbirth has been prioritized by means of a 20 per cent co-payment for caesarean deliveries, in order to discourage this practice; (ii) women on low incomes who are affiliated to the subsidized health scheme are not subject to co-payments for caesarean deliveries or for any other medical procedure. The Committee requests the Government to clarify whether women who undergo a non-voluntary, planned caesarean delivery for medical reasons are required to share in the costs associated with this procedure.

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 the Government’s indication that old-age benefits are provided through two systems: (i) a mandatory individual capitalization system (CCI), where pensions are calculated on the basis of funds accumulated by affiliated persons, without fixed replacement rates and with guaranteed minimum pensions for those who do not manage to accumulate sufficient funds; (ii) a pay-as-you-go system, where pensions have guaranteed replacement rates and are based on 60 per cent of the average wage in the last three years. The Committee also notes that 1,888,510 workers currently contribute to the CCI system and 121,660 workers contribute to the pay-as-you-go scheme. The Committee duly notes the Government’s indication that it is evaluating proposals for improvement in the context of the current revision of Act No. 87-01. The Committee recalls that, under the terms of Article 28 of the Convention, old-age benefit shall be a periodic payment calculated as a percentage of previous earnings or the wage of a standard beneficiary determined in accordance with Article 65 or Article 66, with a minimum amount of 40 per cent. The Committee trusts that the reform of Act No. 87-01, announced by the Government, will make it possible to adapt the old-age pension system in line with the requirements established by Articles 28, 65 or 66 (and by the Schedule appended to Part XI) of the Convention. In the meantime, the Committee requests the Government to provide information on progress made in the above-mentioned reform process.

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 notes the Government’s indication that the Dominican Institute for Occupational Risk Prevention and Protection (IDOPPRIL) implements the form of payment of employment injury benefits, in accordance with sections 195 and 196 of Act No. 87-01 as amended by Act No. 397-19, and that this benefit takes the form of a lump sum when the degree of incapacity is between 5 and 49 per cent. The Committee recalls that the purpose of the indemnity for employment injury victims who suffer incapacity, even partial, is to protect them throughout the contingency and this is better achieved by periodic payments which are adjusted regularly to take account of substantial variations in the cost of living. The Committee also recalls that Article 36(3) of the Convention allows a periodic payment to be commuted for a lump sum where the degree of incapacity is slight, which has always been estimated at 25 per cent by the Committee, or where the competent authority is satisfied that the lump sum will be properly utilized. The Committee once again requests the Government to indicate how the competent authority is satisfied that the lump sum will be properly utilized by beneficiaries in the event of employment injury. The Committee also encourages the Government to take the opportunity afforded by the above-mentioned social security reform process to ensure the payment of a periodic benefit in the event of permanent partial incapacity throughout the contingency, at least where this is granted in relation to a degree of incapacity above 25 per cent.

Part VII (Family benefit). Articles 39, 42 and 44. Provision and value of family benefit. The Committee notes the Government’s indication, with regard to the provision of family benefit, concerning the promulgation of Act No. 342-22 on early childhood protection and care, which establishes the National Institute for Early Childhood Care (INAIPI), in order to reinforce comprehensive child benefits and aim to achieve universality of services giving priority to the most vulnerable families. The Committee observes that the above-mentioned Act establishes the National System for Early Childhood Protection and Care and policy coordination mechanisms, instruments, actions and programmes developed by state bodies with regard to early childhood care. The Committee observes that the above-mentioned Act does not indicate the manner in which family benefits are granted in accordance with Part VII of the Convention, or their value. The Committee recalls that Article 42 of the Convention provides that family benefits shall be provided to persons protected with dependent children: (i) as a periodic payment; or (ii) in the form of provision to or in respect of children, of food, clothing, housing, holidays or domestic help; or (iii) a combination of both, in an amount in line with the criteria established by Article 44 of the Convention. In this regard, the Committee requests the Government to provide detailed information on: (i) the laws and regulations which implement the terms of Act No. 342 of 2022 and regulate the provision of family benefits, in accordance with Article 42 of Part VII of the Convention; and (ii) the type and value of such benefits and the manner in which they are calculated, indicating how this part of the Convention is currently applied.

Part XII (Equality of treatment of non-national residents). Article 68. The Committee notes the Government’s indication that, irrespective of the existence of any bilateral or multilateral agreement providing for reciprocity with regard to social security rights, under Act No. 87-01 and its supplementary standards, foreign workers who are legally resident in the country are covered by the same rights and benefits provided by the Dominican social security system to national workers. The Committee also notes the Government’s indication that it signed the “Bilateral social security agreement” with Spain on 1 July 2004, and the “Multilateral Ibero-American social security agreement” was signed on 7 February 2011, both of which converge as regards invalidity, old-age, survivors’ and employment injury benefits.

Article 71(3). Responsibility of the State regarding sustainability of the social security system and provision of benefits. Actuarial studies. The Committee notes the following information provided by the Government: (i) the Social Security Treasury (TSS) contributes towards sustaining the financial balance of the social security system through payment collection actions against indebted employers, auditing of employers in terms of the obligations imposed by law and prevention and prosecution of fraud in conjunction with the judicial authorities; (ii) during the COVID-19 pandemic, 5,462 million Dominican pesos were invested in the account for the health care of persons in relation to the SDSS contributory scheme, and that over 2 million affiliated persons were incorporated into the subsidized scheme, increasing affiliation coverage to 98 per cent as of May 2022; (iii) in 2017, the actuarial study on the impact of extending maternity leave from 12 to 14 weeks was sent to the CNSS; this showed that increasing the collection rate to 0.48 per cent would still be insufficient, since the rate needed would be 0.72 per cent; (iv) an investment of DOP600 million during 2022 was needed to cover part of the deficit of the subsidy fund; and (v) the TSS asked the CNSS to provide a report forecasting collection trends, in order to evaluate the increase in the contribution rate and its impact on the system. In light of the information provided by the Government on the incorporation of new affiliated persons into the subsidized scheme and on the measures taken by the Social Security Treasury, the Committee requests the Government to provide information on: (i) the possible impact of the adopted measures on the financial sustainability of the system; and (ii) the findings of the above-mentioned report forecasting collection trends in the social security system.

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 structure of the CNSS, which also comprises representatives of workers and employers selected by the respective sectors. However, the Committee observes that, under section 21 of Act No. 87-01 establishing the Dominican social security system (SDSS), the administration and granting of social security benefits is entrusted to the following entities: the Pension Fund Administrators (AFP), Health Risk Administrators (ARS) and Health Service Providers (PSS), which are of a public, private or joint nature. The Committee recalls that Article 72(1) of the Convention requires the participation of representatives of the persons protected in the management of institutions, where these are not administered by a public institution or government department. The Committee therefore requests the Government to indicate the manner in which persons protected are represented in the management of the Pension Fund Administrators (AFP), Health Risk Administrators (ARS) and Health Service Providers (PSS), where applicable.

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 Government’s indication that workers suspended owing to the decrease in activity of enterprises received a monthly financial transfer from the State. It adds that payments of premiums guaranteeing the disability and survivors’ insurance (SVDS) have still not been made for this segment of the population, since active workers were not involved, and this has made it impossible to have the benefits envisaged by this insurance. The Committee notes the Government’s indication that: (i) financing of the benefits of the SDSS contributory scheme occurs through contributions from employers and active workers; and (ii) because of the high rate of COVID-19 infection among health workers, the Directorate of Information and Defence of Social Security Affiliated Persons (DIDA) asked IDOPPRIL to recognize COVID-19 as a risk covered by the occupational risk insurance (SRL), and this request was accepted.

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

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.