The Norwegian welfare model Elita Cakule, Head of International Projects Department Presentasjon | 2003 • Small income disparity KS Arbeidsgiverutvikling Characteristics of the welfare model • Small income disparity Presentasjon | 2003 Characteristics of the welfare model • High taxes KS Arbeidsgiverutvikling • Generous welfare benefits take responsibility for own family not try to cheat on taxes follow laws and regulations respect people with different beliefs use the right to vote in elections give support to people who need help keep informed about important issues in society care about what happens in the neighbourhood take part in discussions on vital society issues work actively for volunteer organisations be member of a political party take public office – stand for election KS Arbeidsgiverutvikling • • • • • • • • • • • • Presentasjon | 2003 MOST IMPORTANT CITIZEN VALUES KS Arbeidsgiverutvikling • “Nordic Model”: combination of open economy, welfare system and egalitarian traditions • “Flexicurity”: a secure and universal welfare system - combined with a flexible labour market • Labour culture: based on cooperation employers/employees, confidence in employees and competence, not on control. • Flexible working hours Presentasjon | 2003 Safe and flexible labour market KS Arbeidsgiverutvikling Presentasjon | 2003 WELFARE LEGISLATION BASED ON SOLIDARITY Presentasjon | 2003 • Represent the basis for Norwegian social and economic welfare system • Municipal sector - main provider • Gradual increase in legislation granting all individuals economic aid and pension • The National Insurance Scheme – 1967 KS Arbeidsgiverutvikling Social security ”the transfere of public benefits to lesser fortunate individuals and groups in order to secure a minimum standard of living” Presentasjon | 2003 Building the society ”Give inhabitants larger economic freedom, social safety and equal opportunities” KS Arbeidsgiverutvikling Qualitative and quantitative development • increase in the number of services • universal welfare policies • Political consensus Presentasjon | 2003 “Active, strong and accountable state” • Stable government and parliament situation KS Arbeidsgiverutvikling • Economic situation KS Arbeidsgiverutvikling Automatically members, legal right to economic aid/ pensions/benefits from birth - death: • Pensions • Benefits in case of disablement • Work assessment allowance • Occupational injury benefits • Benefits to single parents • Cash benefits in case of sickness, maternity, adoption • Unemployment • Medical benefits in case of sickness and maternity • Funeral grant Presentasjon | 2003 National Insurance Scheme Presentasjon | 2003 Financing: • Employees - 7,8 % of gross wage income • Employer fee – 0,0 - 14,1% of paid out wages State: rest through other taxes (2010 – 28,6% of the Scheme’s total expense) = In 2010 was more than 1/3 of State budget KS Arbeidsgiverutvikling National Insurance Scheme KS Arbeidsgiverutvikling • Child Benefit Act 1946: Montly grant for all children untill 18 yrs, paid to the family. For single parents for 1 extra child. • Child Rearing Benefit Act 1955: Automatic monthly payment from divorced parent to parent with whom the child is living, according to salary and time spent with the child. • Social Insurance Act 2010: 47 week maternal leave (12 weeks fathers quota), with 100% salary or 57 weeks with 80% salary pay. Presentasjon | 2003 Children: the responsibility of society as a whole • The Kindergarten Act 1975: All children aged 1-5 have the right to a kindergarten place in their home municipality - at a fixed price and with municipal coordination, private or municipal. Presentasjon | 2003 General services for children • Alternative: The Cash Benefit Act 1998: for children 13 years who do not use kindergartens KS Arbeidsgiverutvikling • Education Act, 1977: Right to 13 years of free education for all, including 3 years of secondary school. Also loans/grants for University and education for adults. Working Environment Act 1977: • Protects workers’ rights, limits overtime + prohibits sexual harassment. Presentasjon | 2003 Regulated labour market • Special rights for women during pregnancy and after giving birth +giving both parents 10 days paid leave if illness of the child/person caring for the child. • Workers with small children have the right to flexible working KS Arbeidsgiverutvikling hours – and to refuse overtime. • Gender Equality Act, 1978: Prohibits gender discrimination and promotes gender equality. Additions from 1980/1990s set a 40% quota for all public committees. Presentasjon | 2003 Gender Equality legislation • Act on Equality and Anti-Discrimination Ombud and Tribunal, 2006: Institutions that monitor that Norwegian laws and practices are in line with international conventions. KS Arbeidsgiverutvikling • Act of Gender Representation in Private Company Boards, 2003: A 40% quota for members of all listed private company boards. State bank: secure loan/grants with no regard to income (1947 - ) enabled this development Presentasjon | 2003 Educational level: • 1970 – 50 % of population primary school • 2000 – 78 % secondary school • Age 25-64 - 86 % secondary school • 1984 - 12% university degree (most women) • 2011 - 30% university degree • 2030 - 40% university degree KS Arbeidsgiverutvikling Education Health reform - 2012 _________________________________ • Life expectancy women: 83 years • Life expectancy men: 79 years Presentasjon | 2003 Municipalities • Organizing and financing basic medical treatment; doctor, emergency, physiotherapy, home based care State: • hospitals and specialized medical services (2002) KS Arbeidsgiverutvikling Health KS Arbeidsgiverutvikling Presentasjon | 2003 Population – age and gender - 2005 Men Women KS Arbeidsgiverutvikling Age Presentasjon | 2003 Population – age and gender - 2050 Presentasjon | 2003 THE EXPECTATION GAP Efficiency/capacity Supply Production Time KS Arbeidsgiverutvikling Demands Expectations Presentasjon | 2003 • Equality – equal opportunities • Freedom • Justice KS Arbeidsgiverutvikling Values