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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
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Presentasjon | 2003
MOST IMPORTANT CITIZEN VALUES
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• “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
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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
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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”
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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
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• Economic situation
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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
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• 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
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• 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
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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.
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• 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
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Education
Health reform - 2012
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• 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)
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Health
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Presentasjon | 2003
Population – age and gender - 2005
Men
Women
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Age
Presentasjon | 2003
Population – age and gender - 2050
Presentasjon | 2003
THE EXPECTATION GAP
Efficiency/capacity
Supply
Production
Time
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Demands
Expectations
Presentasjon | 2003
• Equality – equal opportunities
• Freedom
• Justice
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Values
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