Timor-Leste

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Situación y prioridades

Situación de la protección social

Social protection is a right enshrined in the constitution of Timor-Leste, and this commitment is reflected in the broad range of existing policies and programs. Although the country's comprehensive package of non-contributory policies surpasses many of its wealthier neighbours in terms of coverage, most existing programs have been set up independently of each other and much still needs to be done to extend their coverage, increase the levels of protection, and improve their effectiveness and efficiency through a systemic and coordinated approach. The official approval of the National Social Protection Strategy 2021-2030 in November 2022, developed with ILO support, is an important milestone towards these goals.

The NSSP 2021-2030 sets out three strategic objectives: (i) Reducing poverty; (ii) Improving and expanding social security for workers and (iii) Institutional development. With ILO support, the Ministry of Social Solidarity and Inclusion approved the first implementation plan 2022-2023 and is developing the first annual implementation report for 2022. The MSSI is also establishing a governance structure for coordination and integration of the social protection sector.

The General Contributory Social Security Scheme (Law No. 12/2016 of 14 November 2016), which entered into force in 2017, represents a major step forward in the progressive organization of a social security system in Timor-Leste. The scheme includes pensions for old age, invalidity and survivors,, allowances for maternity/paternity/adoption and work accidents. Protection is provided to approximately 113,496 workers (2022).

Non-contributory system in Timor-Leste includes a quasi-universal social pension for elderly (60 years old and above) and for people unable to work (18 years old and above),  a conditional cash transfer for poor and vulnerable families with children, pensions for ex-combatants, martyrs, and their families, and a near-universal school meal program, as well as other support programs, including program for the recovery of victims of natural disasters, program to support to victims of gender-based violence and domestic violence. Despite the wide range of benefits, coverage is still low for most of the programs. In 2022, the government introduced an universal cash transfer for children, pregnant women and children with disabilities in three municipalities, which will be gradually expanded and its is expected by 2028 reaching all children under 6.

COVID-19 and other crises
The government of Timor-Leste announced a stimulus package of US$ 150 million (approximately 10.5% of GDP) to respond to the crisis, and placed a strong emphasis on supporting livelihoods through social security and social assistance. Measures included paying 60% of the wages for formal economy workers placed on reduced working hours (approx. 30,000 people), waiving utility bills and social security contributions for low-income households for three months, and introducing a benefit for students studying abroad.

The main policy was the introduction of a cash transfer programme, providing US$ 100 a month for two months to almost 300,000 households. This programme was 10 times larger than any previous programme, and was successfully rolled out thanks to the support and coordination of development partners. The ILO played a leading role, managing coordination between agencies and supporting the rollout of a programme in which none of the population has mobile bank accounts.

Prioridades del gobierno

The Council of Ministers published their official approval of the National Social Protection Strategy 2021-2030 in November 2022. The strategy promotes an integrated social protection system, seeking to expand coverage and scope, and maximise the reduction of poverty and vulnerability. It also aims to consolidate the rights to social security and social assistance, as well as inclusive access to social services, education and health. Strategic objectives inlcude: 

  • Reducing poverty
  • Improving and expanding social security for workers
  • Institutional development

Proyectos y programas de la OIT

Resultados

In 2018, the ILO and the UN supported the Government of Timor-Leste to carry out an ABND exercise, which was informed by ILO cost assessments and micro-simulations to estimate potential impacts of proposed reforms. The results of the exercise informed the National Social Protection Strategy, which was adopted by the Council of Minister in November 2021 and officially launched in February 2022. The ILO also provided significant technical support to the National Institute of Social Security before it began operations in January 2019. Support included costing of schemes, proposing management structures, calculating replacement rates, and supporting its first actuarial study. 

Please see below for more detail on results achieved. The results achieved in 2020 & 2021 will be updated in March 2022. 

Brechas en el financiamiento / Apoyar a la OIT

US$ 550.000

Timor-Leste’s component under ACTION Portugal to cover 36 months of implementation (2022-2025)

US$ 150.000

Technical expert assistance up to 36 months, and administrative staff contribution to support the project

Build the capacity of the Ministry of Social Solidarity and Inclusion to effectively implement, monitoring and evaluate the National Strategy for Social Protection

Build the capacity of the National Institute of Social Security to effectively administer contributory social security programmes

Build capacity through regional trainings, workshops, and study tours to countries with relevant experiences.

Build a culture of social protection through awareness-raising campaigns on the rights and benefits available to citizens

Support the ILO

News and Events

Espacios de trabajo

Multimedia

Expertos de la OIT

IMG
Markus Ruck
Senior Social Protection Specialist
IMG
Nuno Castro
Social Protection Activity Coordinator - ACTION/Portugal Project
IMG
Rita Maria Sousa Fernandes
Senior Technical Officer, Social Protection