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

Dominican Republic

Equality of Treatment (Accident Compensation) Convention, 1925 (No. 19) (Ratification: 1956)
Social Security (Minimum Standards) Convention, 1952 (No. 102) (Ratification: 2016)

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.